Annual Report and 31 July 2023 Financial Statements ##  ##  ## PLC Investor disclosure document The UK Alternative Investment Fund Managers Regulations requires certain information to be made available to investors prior to their  Disclosure Document is available for viewing at . Notes None of the views expressed in this document should be construed as advice to buy or sell a particular investment. Investment trusts are UK public listed companies and as such comply with the requirements of the Financial Conduct Authority. They are not authorised or regulated by the Financial Conduct Authority.   Ordinary Shares can qualify to be considered as a mainstream investment product and can be recommended by Independent Financial Advisers to ordinary retail investors in accordance with the rules of the Financial Conduct Authority in relation to non-mainstream investment products. This document is important and requires your immediate attention. If you reside in the United Kingdom and you are in any doubt as to   adviser authorised under the Financial Services and Markets Act 2000   If you have sold or otherwise transferred all of your ordinary shares in     was or is being effected for delivery to the purchaser or transferee.  Introduction ## Contents Financial highlights 02   Strategic report           One year summary 22   Ten year record 26 Review of investments 28 Portfolio executive summary 32 Valuing private companies 36     Governance report             Financial report             Shareholder information               01 Introduction ## Financial highlights Year to 31 July 2023 Total returns * * * * † Share price NAV Comparative index ## (8.9%) (3.6%) 0.8% *   Comparatives for 2022 can be found on page 22. † The comparative index is the MSCI All Country Asia ex Japan Index (in sterling terms). Past performance is not a guide to future performance. 02 Annual Report and Financial Statements 2023  03 Introduction ## An introduction to ##  ## Investment Trust PLC 2 Our philosophy ## Growth : embracing Long-term ## growth, disruption and This matters. Stock prices are wildly unpredictable in ## innovation.  the earnings capability of a company. So when we  ##   the patience that allows a good decision to prove ## is to invest in the Asia- its worth. ##  Growth ## Japan) and in the Indian We have found the most persistent source of alpha  ## Sub-continent in order to  ## achieve capital growth. the long-term. This trend persists irrespective of starting valuation. Active We would observe three particular features which emphasise the need for active management in the  a quarter of the index still consists of State Owned    when we want to take advantage of the tailwind provided by economic cycles in certain countries and times when we want to limit our exposure.  by a very small number of companies that do exceptionally well. Being highly selective is imperative. 04 Annual Report and Financial Statements 2023  Our structure  generated from their investment. Our scale and  commitment to low costs enables us to offer genuine  Underpinning everything is a genuine commitment to  low costs. We believe our duty to shareholders is to involved. See bailliegifford.com.  into shareholders keeping more of the returns Our structure Company status Democratising access to unlisted (private)   companies     Permanent capital Accessibility money to make additional liquid access to private      companies – a distinct structure provides a pool  gearing can amplify  of permanent capital.  investment returns.       uninterrupted on their the portfolio remains our shares are openly  journey from private to intact and is not impacted tradeable for investors  public – shareholders by shareholder demand. from around the world.       changes. compounded returns. invest for the long term fees or minimum     and hold assets that can investment restrictions. after the interests of our companies is dependent be harder to buy and   shareholders. They meet upon relationships sell – such as private  several times a year and and reputation – our companies. reporting when compared are responsible for various    with other structures that  from the access we enjoy  hold private companies. performance. but without paying fees by our companies. normally associated with This alignment underpins private equity funds. the prospect of enduring relationships. 05 ## Strategic ## report This strategic report, which includes pages 7 to 55 and incorporates the Chairman’s statement, has been prepared in accordance with the Companies Act 2006.  ##  ## statement The portfolio managers aim to invest in high growth  in the world. In the last year these markets have been   tension between the US and China and rising US interest rates and the consequent US dollar strength. Angus Macpherson These have all challenged growth expectations and Chairman   challenging environment for growth investors. It is to  be expected that there will be periods during which growth investment will not be rewarded. We are in such a phase now. As the portfolio managers present  returns have been considerable and the premium currently paid for growth is modest. While it is too early to forecast an immediate improvement in  as if growth share valuations are at attractive levels across the region. Performance   | negative 3.6% | | * and for the share price a negative | | --- | --- | --- | |  | * . This compared to a positive total return of | | | 0.8% | * for the MSCI All Country Asia ex Japan Index | | in sterling terms over the same period. The shares ended the period at an 8.0% discount to the NAV per  The notable positive stock contributors to the   EO Technics and the notable detractors were     *  Past performance is not a guide to future performance. 07 Strategic report  Earnings and dividend      year. After the deduction of the management fee and during the same period.  dividend. The Board is therefore recommending that Environmental, Social and Governance (‘ESG’)  Your Board is committed to responsible investment.  It agrees with the managers that a thoughtful  approach is required when looking at ESG factors  in emerging markets. It is not appropriate to impose consider investing in this Company if they require a developed market standard on emerging markets income from their investment as the Company companies indiscriminately. The economic miracle of typically invests in high growth stocks with little the last forty years has resulted in over 800 million or no yield. people in Asia being lifted out of poverty through economic reform and globalisation. This wealth  is resulting in increased consumption and carbon   shares were issued from treasury at a premium to levels seen in developed markets. Growth in carbon  emissions has also been stimulated by the West   year-on-year net 0.85% reduction in the amount  of shares in issue. The issuance occurred early   long-term investment is that the businesses they Company was being promoted into the FTSE 250 invest in must be sustainable. Asian countries need    play their part. The timescales for this will however   been bought back. different starting points on their paths to prosperity.    and working with companies towards achieving Issuance will continue to be undertaken only at positive change. We further endorse the view that the  absolute levels of emissions are not the basis on which dilution for existing investors. When this authority to judge a company but rather its approach to all     spreads the operating expenses of the Company critical component in manufacturing electric vehicles.   Gearing  The Board continues to set the gearing parameters  within which the portfolio managers are permitted  to operate. These parameters are reviewed regularly be asking shareholders to renew the authority to and at present the agreed range of equity gearing       of any shares held in treasury at a premium to the   active consideration at present. held in treasury at present. The Board intends The Company has a multi-currency revolving credit  facility with The Royal Bank of Scotland International considering not only the level of the discount but  also the underlying liquidity and trading volumes March 2025 and provides for potential gearing   08 Annual Report and Financial Statements 2023  Board to seek to address any imbalance between Details on the process and quantum of private  company valuations undertaken over the year can that results in a large discount to NAV whilst being be found on page 36. cognisant that current and potential shareholders have expressed a desire for continuing liquidity. Changes to the Board  Private Company Investments    the maximum permissible investment in unlisted   over a period where the Company has made measured at the point of initial investment). As at considerable progress. The NAV of the Company   assets invested in 5 private companies compared   constituent of the FTSE 250 and provided a total    reasonableness of private company valuations in the  light of the share price volatility of listed companies. conditions and growth investing being seemingly    managed growth focussed long term investment using the services of Markit Valuation Services strategy such as that used by the portfolio manager. (now S&P Global) for external advice. The Board is  comfortable that marked-to-market values are kept continue to reward patient long term shareholders as current as possible for the purpose of calculating in the future.    although based on many external (market) and stand down as Chair and a member of the Board.  Someone new should have the opportunity of considered a number of methodologies in line with chairing this Company and it is time for me to pursue International Private Equity and Venture Capital other roles. I will leave the Board once a suitable     expertise in this area and we are comfortable with  the strategy adopted by the managers to invest in for giving me the opportunity to Chair the Company later stage private companies. This is very different  to being a venture capital investor which often best for the future. involves taking seats on company boards and  The Company’s portfolio managers the business. While private company investing has    commensurate reward.  Taking as an example one of our private company the role vacated by Mr Roderick Snell when he was     was US$25 billion. At our holding equity valuation Mr Durrant is an investment manager in Baillie of US$225 billion that implies an EBITDA multiple of  8x. This is a conservative valuation for a company   RBS in its Group Strategy and Corporate Finance than 30% and 80% respectively year on year. It is     risks of investing in private companies. The Board is supportive of the managers continuing to invest in them. 09 Strategic report TCFD and Consumer Duty   Recently introduced regulations by the FCA require   dominant West were likely to grow.  product-level reports on the climate-related risks US and Western sanctions on a seemingly increasing and opportunities in the respective investment number of Chinese companies have made some of vehicle. These are known as TCFD (Task Force on them uninvestible. There is little doubt that foreign Climate-related Financial Disclosures) reports and  they are based on historic data at a single point in at least in the short term. Should these sanctions time. The report produced by Baillie Gifford for our     the market as a whole uninvestible. . Domestic considerations in China are also of The FCA also introduced a new set of rules labelled concern. The Chinese Government is developing    remains to be seen. Coupled with escalating tensions    likely to be greater complexity and risk in securing   consumers and includes a number of obligations Excess investment return is generated by judging that will need to be met. One of these obligations and managing risks. On the basis of the information is to undertake an Assessment of Value on the   believe that the risks of investment in China and the   meaning that distributors will be able to undertake rewards. China is a critical trading partner of the their assessments and continue to make shares in West and only the most extreme geopolitical  confrontation would justify the economic disruption shareholders. It should be noted that in addition to of severing economic ties entirely.    and Board assess various costs levied by third-party  service providers as well as the Managers and    with performance; this will continue to be the case.   from key drivers of long-term growth such as the Annual General Meeting   to renewable energy and an AI led digital age of    portfolio managers to unearth the right investments.   to allow time to register. There will be a presentation has served investors well in the past.   The region remains one of the fastest growing I hope to see many of you there.    Board is of the view that investing in the fastest  growing companies in the fastest growing region still website at  offers attractive long-term investment opportunities Stock Exchange regulatory news service. for patient growth investors. The portfolio managers   The invasion of Ukraine ended the geopolitical consensus that prevailed since the fall of the Angus Macpherson Berlin Wall. This consensus was an impetus for Chairman globalisation and a key component of growth in Asia. 5 October 2023 10 Annual Report and Financial Statements 2023  ##  Overview   one of the fastest growing regions over the coming decades and we strive to be invested in its fastest growing companies. It is growth multiplied by growth   Such an investment style has been well rewarded Investment Manager    All Country Asia ex Japan Index (in sterling terms)    over these time periods. 5 year 3 year NAV total return*   Ben Durrant Share price total return*   Deputy Manager MSCI All Country Asia ex Japan   Appointed 2023 total return (in sterling terms)*  there will inevitably be periods of time when our growth style of investing will be out of favour with    compared to the comparative index which rose 0.8%     to reach their nadir as President Xi cemented his grip on power during the 20th Chinese Communist    *  Past performance is not a guide to future performance. 11 Strategic report Chinese economy disappointed and concerns over   long term. This trend persists irrespective of starting  Markets will likely remain volatile as investors  continue to grapple with an uncertain global     to come from earnings growth. optimistic. Whilst many Western economies have experimented with money printing and ultra low      01. Underappreciated growth duration We believe one of the greatest investment Events in China will continue to play an important    the country faces several headwinds including are volatile from one quarter to the next. The market   an imminent collapse of the economy are misplaced.  The government has moved to support the domestic generation even if the long-term growth rate turns    willing to reinvest in their business and with greater domestic property market appear overly pessimistic. ambition. This presents us with exciting investment The broad exposure of the portfolio remains similar   near term volatility to be ignored.   02. Underappreciated growth pace  The market consistently underestimates the  likelihood of rapid growth. The evidence shows that  most investors cluster around a narrow range of valued at nearly the same price-to-earnings multiple    yet they are expected to grow their earnings at potential to grow very rapidly. Our process is focused    and searching for low probability but high impact long-term outlook for the region. Asia already  cemented itself as the lead contributor to global the broader market.  03. Underappreciated growth surprise more to global growth in US dollar terms than the    interaction between top-down and bottom-up      of ignoring macroeconomics. Purely bottom-up investment is a path to ruin in a universe where industrial and economic cycles can dominate Philosophy investment returns over multi-year periods. The We are growth investors endeavouring to invest long-term earnings for a vast number of companies in the top twenty percent of the fastest growing  companies in Asia. Across the region we have found sectors – are determined by exogenous macro the most persistent source of outperformance to be factors beyond their control. This also provides  opportunities. 12 Annual Report and Financial Statements 2023  Our analysis shows that while it may pay to invest in   those companies that display consistently high levels    in those companies that transition from poor levels it is Asian countries that behaved like orthodox  developed countries while much of the developed world behaved like the emerging markets of  old. (Perhaps we are seeing the beginning of   providing a two-fold kicker to share price performance – but identifying the drivers behind this change    a decade and the region is therefore far less      superior to much of the developed world. Combine   direction of travel is hugely valuable. valuations at multi-year lows relative to developed       will lead to a concentration in particular sectors or   investors. China certainly faces a number of   lockdowns and regulatory crackdowns have inhibited MSCI AC  Asia domestic economy. But the extreme pessimism over  ex Japan  Index the economy is too one-sided.    There are a number of signs that household trailing compound annual growth to    One year forecast earnings growth   and June compared to the same pre-lockdown      are rapidly returning to pre-pandemic levels. Our  consumer related holdings in China have posted Active share 82%   Portfolio turnover         Review accelerating economic growth and mobilising the In the last Interim management statement we  articulated three key reasons why Asian economies over the past couple of years. Time and patience is   especially when compared to developed markets. ended at the start of the year. They are: Increasing policy support is also likely to be a       government has clearly and very publicly stated its  support for the private sector. Notably in July the many major European countries. CCP Central Committee and the State Council issued 13 Strategic report a joint statement on ‘promoting the development    private sector as ‘a driving force behind promoting   remains the best structural growth story of any          advantage of share price weakness by adding to our clampdown that particularly impacted technology  and platform businesses for the past couple of    – is receding.     extremely depressed. Stripping out cash and overweight.   Funding came from three main sources. The most    (<60bp) holdings in South Korea. These were  across a range of sectors including green energy book value.   We believe this presents us with a number of  excellent long term investment opportunities due to some small additions to other names in and we increased our listed equity exposure    Chinese companies. Most additions were made to manufacturer for semiconductors) and Samsung    weighting increased modestly over the period to    and its subsidiary Ping An Bank. One new purchase    analogue chips in China (listed in Taiwan). Silergy selling both Nickel Industries and Vale Indonesia. has the largest market share among domestic We have become concerned by the huge capital   of Chinese attempts to become self-reliant in  semiconductor chips.    convert non-battery grade nickel into battery grade  nickel) commercially viable and this is likely to bring    than expected.  We also reduced our exposure to India. Notable Connect. The business makes loans to small and          are then packaged and sold on the Micro Connect  exchange. The company was founded by the former 14 Annual Report and Financial Statements 2023  We are keeping our eye on several interesting      a successful export manufacturing industry. For comparative index which rose by 0.8% in sterling    underperformance came from weakness in three of government reforms and the establishment of    that manufacturing is starting to move to India. For    expanding in India with iPhone exports quadrupling Jadestone is an oil exploration and production     a strong export manufacturing base it has the  potential to transform the economy over the  coming years.   resulting in production halting for several months. portfolio continuing to look different to many of our The lack of cash strained the balance sheet at a  time when the company was gearing up for a major largest exposures remain focused on the themes of investment phase to bring several new assets on     cyclical industries including materials and industrials  which make up the two largest relative positions success of the company very much rests on this within the portfolio. asset coming on stream in a timely manner.          the company was a 5.5% holding at the start of the  Performance at the end of 2022 were weak. M&A integration challenges and a slowdown in broader ecommerce  growth in India pushed the share price down by  52%. We are hopeful these issues are short term   periods have been more challenging as our growth      with generally poor Asian markets held back by their lows).  and a surging US Dollar syphoning liquidity from the  region. Our portfolio maintains a strong growth bias; JD.com was weak despite reasonable operational we have faith in the long-term growth prospects performance. Revenue growth was slower of the region and believe we are well placed to   ByteDance taking some low-end market share markets turn. as it leveraged its large user base to enter the  15 Strategic report  Environmental, social and governance  (‘ESG’) considerations of its scale and in-house logistics capabilities.   based on identifying and holding high quality growth  businesses that enjoy sustainable competitive advantages in their marketplace.  performed strongly. Our top contributor to  performance was Ramkrishna Forgings which   proprietary research to build up our in-depth  knowledge of an individual company and form a view on automotive and commercial vehicles. After  completing a major capacity expansion over the past Social and Governance matters which affect the few years the company is seeing rapid sales growth    long-term investment returns. Such issues are Other industrial companies in India also performed considered throughout the investment process   manufacturers of telecom and power transmission  Our approach is guided by our ESG principles: demand for power infrastructure. Tata Motors was   also strong as the domestic commercial vehicle and ownership of growing businesses: we want auto business continued to see buoyant demand   and encourage them to ignore the short-term impressed. pressures of the market.    but stock selection in South Korea was the most businesses engaging in practices that are harmful  to society may be capable of generating attractive  returns in the short term but are unlikely to do so  over the periods we seek to invest.        not reliant on formulaic and backward-looking  screens. demand for its laser products is likely to hit an    consider the likely direction of change in otherwise  promising investments and engage accordingly. and drills will need to be replaced by lasers in the Company engagement is key to our process. We  encourage steps to maximise opportunities and this holding towards the end of the period. minimise risks where we believe it is material to the  success of the company. Engagement priorities mainly from strength in our copper companies are set through a combination of a subjective MMG and Zijin Mining. This was followed by Real assessment of the materiality of an issue and our   Utilities where we had no holdings while the sector inputs to provide direction. We vote wherever  possible and will vote against management if we  believe that its actions are not in the interests of followed by Communication Services and Consumer shareholders. Discretionary due to the weakness in our Chinese We are supported by a dedicated emerging markets names.   16 Annual Report and Financial Statements 2023  ## Baillie Gifford statement ## on stewardship Baillie Gifford’s overarching ethos is that we are Prioritisation of long-term value creation ‘Actual’ investors. We have a responsibility to behave  as supportive and constructively engaged long-term focusing on long-term value creation and capital investors. We invest in companies at different stages  of their evolution, across many different industries resist demands from shareholders with shorter and geographies, and we focus on their unique  circumstances and opportunities. Consequently, way to achieve better investment outcomes. We we are wary of prescriptive policies and rules, regard it as our responsibility to encourage holdings believing that these often run counter to thoughtful   towards activities that create genuine economic favours a small number of simple principles which and stakeholder value over the long run. We are help shape our interactions with companies and happy that our value will often be in supporting give appropriate latitude to diverse processes of our  different investment teams. These principles do not  A constructive and purposeful board teams acquire. We believe that boards play a key role in supporting corporate success and representing the interests of    these responsibilities. We believe good governance works best when there are diverse skill sets and    the thinking of management. 17 Strategic report Long-term focused remuneration with Sustainable business practices stretching targets   dependent on maintaining its social licence to transparent and reward superior strategic and operate and look for holdings to work within operational endeavour. We believe incentive the spirit and not just the letter of the laws and  regulations that govern them. We expect all holdings encourage policies which create genuine long-term  alignment with external capital providers. We are   impact their long-term success. Environmental these are commensurate with outstanding long-run practices should recognise the current pace   outcomes or short-termism. We generally think that  performance hurdles should be skewed towards  long-term results and that remuneration plans  should be subject to shareholder approval. with appropriately ambitious policies and targets focused on the relevant material dimensions. Boards and senior management with superior  prospects for long-term value creation should We believe it is in the long-term interests of all  companies to maintain strong relationships with   alongside plans for ongoing improvement.    governance and ownership structures may need   and accountability should be prioritised at all appropriate times. 18 Annual Report and Financial Statements 2023  ##   Company meeting record holdings is as important as selecting the right  are aligned with our stewardship principles and describe our approach to proxy voting and company   While these guidelines are intended to provide an     on what we believe to be in the best long-term  a policy. Number of meetings voted  A broad cross section of our investment staff are with management involved in our ongoing work on stewardship. In the Number of meetings with at least  same way that our investment approach is based   voting and engagement is led by the individual Voting distribution investment teams. In keeping with our decentralised    we report accordingly in the proxy voting disclosure on our website. We also have clear processes in     disclosure is available on our website.     Number of votes for  Number of votes against 8% Number of votes abstain 2% 19 Strategic report ## Environmental, social and ## governance engagement  investment activities and, where necessary, effect change within our holdings, ultimately with the goal of achieving better returns for our shareholders. The three examples below demonstrate our stewardship approach through constructive, ongoing engagement. Brilliance China Automotive – governance   Brilliance is a Chinese automotive company which absolute commitment to work in the best interests manufactures and sells BMW vehicles and auto of all shareholders and achieve the resumption of components. It has strategic partnerships and    manufacturers. guidance set out by the stock exchange. Our escalation activities date from the suspension   our letter with substantial improvements in   issues. Following several attempts to engage with       it required the company to complete for its  shares to resume trading. Measures included: an  independent investigation into the audit issues; be completed and an indicative timeline detailing      information was crucial for shareholders to assess   we spoke to investor relations ahead of the  annual general meetings. Brilliance underwent further by sending separate letters to the boards      communication with the market while its shares  were suspended. We outlined our belief that the to work in the interests of its shareholders.  complete for shareholders and investors to appraise 20 Annual Report and Financial Statements 2023  Reliance Industries – the energy transition Zijin Mining – maintaining a social license We are deeply interested in companies that  are helping to facilitate social and economic Zijin Mining is a large state-owned metals and mining   at emerging Asia. This could be one of the important  investment themes for investing in Asia over the China and other parts of the world. The historic coming decades. A country which is particularly  interesting for us in this regard is India where there is coming from copper. Most recently there have are many new online businesses that have come been aspirations to move into battery materials to market in recent years that are helping with this    food delivery.    important here: Reliance Industries. This is a success. We have discussed with Zijin how it carries  out human rights due diligence. We have also   retail and green energy. When determining their to community engagement in Peru and water use  in Inner Mongolia and have followed up with some  additional questions for other mines.  The company has established community grievance      Global Industry Standards on Tailings Management.  In April we wrote to the company to ask about: its of lives. plans for human rights impact assessments (for   in India that led data prices to collapse from an community engagement in Peru; water quality; unaffordable US$3 per gigabyte to less than eight and the recent allegations regarding illegal mining cents today. Domestic calls became free. This pulled in Inner Mongolia. We received detailed answers  to our questions and in October 2022 we met with      management systems and environmental practices. after the US and China. Reliance aims to become The company highlighted differences between the   |  | by third-party rating providers. We encouraged the | | --- | --- | |  | company to provide more detailed updates on | | energy by 2030. | human rights due diligence work and discussed |  Over the last year we engaged with Reliance rating agencies.  sustainability ambitions in more detail. We wanted We were pleased with the transparency and openness  of the company to discuss these issues. It was and how this relates to each of the business units. helpful to learn more about the approach to ESG And we have also discussed methane at some management. We will seek to hear more about the  ESG assessments being planned which would include long-term sustainable development. We have also human rights assessment and will continue to follow  up further with the company on these topics. and carbon emissions further. 21 Strategic report ##  ##  The following information 31 July 31 July  2023 2022 % change has performed over the year to *   31 July 2023. Gearing ‡ (2%)  Net asset value per ordinary share*    Share price 586.00p   MSCI All Country Asia ex Japan Index (in sterling terms) †#    Dividend proposed per ordinary share  3.25p 3.00p Revenue earnings per ordinary share   | Ongoing charges | | | ‡¶ |   | | --- | --- | --- | --- | --- | | Discount | ‡¶ | | | (8.0%)  | | Active share | | ‡ | | 82% 83% | Year to 31 July 2023 2022 | Total return | #‡ | | | | --- | --- | --- | --- | | Net asset value per ordinary share | | ¶ | (3.6%)  | | Share price | ¶ | |   | MSCI All Country Asia ex Japan Index (in sterling terms) † 0.8% (8.2%) *  † The MSCI All Country Asia ex Japan Index (in sterling terms) is the principal index against which performance is measured. #  ‡  ¶ Key Performance Indicator. Past performance is not a guide to future performance. 22 Annual Report and Financial Statements 2023 Pacific Horizon Investment Trust PLC | Year to 31 July | 2023 | 2023 | 2022 | 2022 | | --- | --- | --- | --- | --- | | Year's high and low | High | Low | High | Low | | Net asset value per ordinary share* | 699.18p | 556.69p | 871.11p | 656.64p | | Share price | 693.00p | 523.00p | 948.00p | 602.00p | | Premium/(discount)†¶ | 2.7% | (11.7%) | 11.4% | (10.9%) | | Year to 31 July | 2023 | 2022 | | | | Net return per ordinary share | | | | | | Revenue return | 4.56p | 4.21p | | | | Capital return | (30.05p) | (123.01p) | | | | **Total return** | **(25.49p)** | **(118.80p)** | | | Net assets per ordinary share (4.1%) 2023 637.18p 2022 664.65p Share price per ordinary share (9.4%) 2023 586.00p 2022 647.00p Benchmark† (1.9%) 2023 969.1 2022 987.5 * For a definition of terms see Glossary of Terms and Alternative Performance Measures on pages 123 and 124. † The MSCI All Country Asia ex Japan Index (in sterling terms) is the principal index against which performance is measured. ‡ Source: Baillie Gifford/Refinitiv and relevant underlying index providers. See disclaimer on page 122. ‡ Alternative Performance Measure – see Glossary of Terms and Alternative Performance Measures on pages 123 and 124. ¶ Key Performance Indicator. Past performance is not a guide to future performance. 23 Strategic report # Five year summary The following charts indicate how Pacific Horizon has performed relative to its comparative index* and the relationship between share price and net asset value over the five year period to 31 July 2023. ## Five year total return performance† share price, net asset value and index* (figures rebased to 100 at 31 July 2018) ![img-0.jpeg](img-0.jpeg) Source: Baillie Gifford/Refinitiv and relevant underlying index providers#. Dividends are reinvested. ## Annual share price and net asset value total returns† ![img-1.jpeg](img-1.jpeg) Source: Baillie Gifford/Refinitiv. Dividends are reinvested. * The MSCI All Country Asia ex Japan Index (in sterling terms) is the principal index against which performance is measured. † Alternative Performance Measure – see Glossary of Terms and Alternative Performance Measures on pages 123 and 124. # See disclaimer on page 122. Past performance is not a guide to future performance. 24 Annual Report and Financial Statements 2023  Premium/(discount) to net asset value † Relative annual share price and net asset value  total returns † (compared to the MSCI All Country Asia ex Japan Index*) 15% 60% 10% 40% 5% 0% 20% (5%) 0% (10%) | (15%) | | | | | (20%) | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | 20232018 2019 2020 2021 2022 | | | | | | 20232019 2020 2021 2022 | | | | | Years to 31 July | | | | | | Years to 31 July | | | | | ● Pacific Horizon premium/(discount) | | | † | | ● NAV total return | † | ● Share price total return | | † | | | | Source: Baillie Gifford/Refinitiv | # . | | | | | | | | | | # | | | | | | | Source: Baillie Gifford/Refinitiv and relevant underlying index providers | | | | | | . | Dividends are reinvested. | Five year active share | † | Five year turnover | ‡ | | --- | --- | --- | --- | | (compared to the MSCI All Country Asia ex Japan Index*) | |  | | | 100% | | 40% | | 80% 30% 60% 20% 40% 10% 20% | 0% | | | | | 0% | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | 20232018 2019 2020 2021 2022 | | | | 20232018 2019 2020 2021 2022 | | | | Years to 31 July | | | | | Years to 31 July | | | ● Active share | † | | | | ● Turnover | ‡ | | | | Source: Baillie Gifford and relevant underlying index providers | | | # . | | Source: Baillie Gifford. | | | | * The MSCI All Country Asia ex Japan Index (in sterling terms) is the principal index against which performance is measured. †   #   ‡  Past performance is not a guide to future performance. 25 Strategic report ##  ## record Capital | | Total | | | Shareholders’ | Net asset value | | | Premium/ | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | At | assets * | Borrowings | | funds * | per share * | Share price | | (discount) * | | 31 July | £’000 | | £’000 | £’000 | p | | p | % |   –                  (8.2)     223.58        286.00       363.00 3.3      320.00  2020            802.00 3.2 2022  –     2023 580,355 – 580,355 637.18 586.00 (8.0) Revenue Gearing ratios | | | | | | Revenue | | Dividend paid | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | Available | | earnings per | | and proposed | | | | | | | | Gross | for ordinary | | | ordinary | | | per ordinary | | Ongoing | | Gross | | Year to | revenue | shareholders | | | share | † | | share (net) | | charges * | Gearing * | gearing * | | 31 July | £’000 | | | £’000 | p | | | | p | % | % | % |        –       2 3    0.35 0.35  8     (0.30) 0.35  3     (0.38) –      (328) (0.60) –  8    8  –  8  2020    0.25   8     –    2022    3.00   – 2023 9,580 4,166 4.56 3.25 0.72 (2) – *  † The calculation of earnings per ordinary share is based on the revenue from ordinary activities after taxation and the weighted average number  Past performance is not a guide to future performance. 26 Annual Report and Financial Statements 2023   | | Net asset | Net asset | | | | | | Comparative | | Retail | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | At | value per | value total | | Share | Share price | Comparative | | index | | price | | | 31 July | share * | return * | † | price | total return * | † index | †# | total return | †# | index | † |                                            232 236        208    2020 265  322 328        522    2022 365       2023 350 359 374 384 152 196 150 Compound annual returns (%) 5 year       5.8         Ten year total return performance* 600 500 400 300 200 100 0 20232013 2015 2018 2020 20222014 20172016 2019 2021 Cumulative to 31 July ● Pacific Horizon share price ● NAV total return † ● MSCI All Country Asia ex Japan Index (in sterling terms) Source: Refinitiv and underlying data providers. See disclaimer on page 122. All figures are total return (see glossary of terms and alternative performance measures on pages 123 and 124). *   †  # The MSCI All Country Asia ex Japan Index (in sterling terms) is the principal index against which performance is measured. Past performance is not a guide to future performance. 27 Strategic report ## Review of ## investments A review of the Company’s ten largest investments as at 31 July 2023. © Samsung. Samsung Electronics Ping An Insurance Samsung is a global leader in Ping An is the leading private semiconductors and electronics. insurance company in China. Its core business is highly It has been investing heavily in  technology which gives it superior  competitive advantage compared capital that permits it to invest with its state-owned peers. and innovate at scale. Insurance penetration in China is low and has the potential to be a long-term growth opportunity for the company. | Geography Korea | | | Geography China | | | | --- | --- | --- | --- | --- | --- | | Valuation  | | | Valuation  | | | | % of total assets*  | | | % of total assets*  | | | |   | | |   | | | | (% of total assets | | | (% of total assets | | | |  | 5.5%) | |  | |  | |  | | | (Net purchases in year | | | |  | | Nil) |  |  | | *  28 Annual Report and Financial Statements 2023    Delhivery Dailyhunt (VerSe Innovation) Ramkrishna Forgings is one of Delhivery is an Indian logistics    Dailyhunt is an Indian consumer exports of forging components. independent provider of end- media company. Its short form The company has been well  video and news aggregator apps  a national network used by all are popular across the country.  ecommerce players. The scale Its localised and user-generated expansion and order wins is likely and modernity of its network  to experience strong growth. has allowed it to deliver both which is valued by advertisers the lowest costs and a reliable looking to reach the Indian  mass-market. of the best-placed operators to  of Indian ecommerce. This was previously a private company investment. | Geography India | | | Geography India | | | Geography India | | | --- | --- | --- | --- | --- | --- | --- | --- | | Valuation  | | | Valuation  | | | Valuation  | | | % of total assets* 3.3% | | | % of total assets* 3.2% | | | % of total assets* 3.0% | | |   | | |   | | |   | | | (% of total assets | | | (% of total assets | | | (% of total assets | | |  | |  |  | | 5.5%) |  |  | | (Net sales in year | | | (Net sales in year | | |  | | |  |  | |  |  | |  | Nil) | *  29 Strategic report Zijin Mining Group Tata Motors EO Technics Tata Motors is an Indian EO Technics manufactures  automotive manufacturer with a lasers used in the manufacturing    engaged in the exploration     and dicing. As semiconductors   become smaller and more broad portfolio of high quality     be needed to replace more to generate strong production The domestic Indian business traditional equipment including  is seeing a strong cyclical  years.  to rapid growth for EO Technics. efforts in electric vehicles appear to be the best in the country. | Geography China | | | Geography India | | | Geography Korea | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Valuation  | | | Valuation  | | | Valuation  | | | | % of total assets*  | | | % of total assets* 2.8% | | | % of total assets*  | | | |   | | |   | | |   | | | | (% of total assets | | | (% of total assets | | | (% of total assets | | | |  | 2.0%) | |  | | 2.2%) |  | | 0.8%) | |  | | | (Net purchases in year | | | (Net purchases in year | | | |  | | Nil) |  |  | |  |  | | *  30 Annual Report and Financial Statements 2023  Samsung Engineering JD.com Samsung Engineering is an JD.com is the largest Chinese   services to Samsung Group  companies and the hydrocarbon and it is the second-largest player sectors predominantly in the in overall Chinese ecommerce. Middle East and ASEAN. It has a strong logistics network The company continues to  receive strong orders in these which is driving increased revenue  and market share. expertise in sustainable energy solutions are making impressive progress. | Geography Korea | | | Geography China | | | | --- | --- | --- | --- | --- | --- | | Valuation  | | | Valuation  | | | | % of total assets* 2.6% | | | % of total assets* 2.6% | | | |   | | |   | | | | (% of total assets | | | (% of total assets | | | |  | |  |  | | 3.3%) | | (Net sales in year | | | (Net purchases in year | | | |  |  | |  |  | | *  31 Strategic report ##  ##  Performance 1 year 3 years 5 years 10 years % % % % Share price    283.8 NAV (3.6)   258.5 Benchmark* 0.8     †  * Benchmark: MSCI All Country Asia ex Japan Index (in sterling terms). †    Key contributors and detractors to performance – year to 31 July 2023 | | Absolute | | | Absolute | | | --- | --- | --- | --- | --- | --- | | | performance | | | performance | | | Contributors | % * | | Detractors | % * | | | Ramkrishna Forgings | |  | Jadestone | |  | | Samsung Engineering  | | | Delhivery | |  | | EO Technics  | | | JD.com  | | | | Tata Motors  | | |  (56.2) | | | | Skipper  | | | Dailyhunt (VerSe Innovation) | |  | *  Denotes listed investment previously held in the portfolio as a private company investment. Denotes private company investment. Source: Revolution. 32 Annual Report and Financial Statements 2023  New buys Additions FPT Alibaba Group  Jio Financial Services Baidu.com Meituan Mobile World Investment Corporation Chalice Mining Military Commercial Joint Stock Bank Silergy Dada Nexus ADR Ping An Bank SK hynix EO Technics Ping An Insurance TISCO Indiabulls Real Estate Tata Motors Jadestone  JD.com Complete sales Reductions China Conch Environment Protection   China Conch Venture  Delhivery  Nickel Mines  Flitto PT Aneka Tambang Prestige Estate Projects  PT Vale Indonesia Ramkrishna Forgings  S-Fuelcell Phoenix Mills  SK IE Technology Merdeka Copper Gold Jiangxi Copper Co    Zomato Samsung Engineering Korea Zinc MMG Denotes listed investment previously held in the portfolio as a private company investment. 33 Strategic report Distribution of total assets *  Geographical 2023 Geographical 2023 2022 8 % % 7  China 28.5  6 1 2 India   5 3 Korea    Vietnam   4 5 Taiwan   6 Indonesia     5.2  3 2 8 Singapore 3.5 6.5   0.3   Other      0.3 Sectoral 2023 | | | | Sectoral 2023 | | 2022 | | --- | --- | --- | --- | --- | --- | | | 8 | | | % | % | | 7 | | 1 | | | |  Information Technology 22.0  2 Consumer Discretionary 20.3 20.2 6 3 Financials    Materials   5 5 Industrials   6 Communication Services 8.6  2  Real Estate   4 8 Energy   3  Consumer Staples 0.5 0.3    0.6  Net liquid assets  0.3   60% 50% 40% 30% 20% 10% % of portfolio and index stocks 0% <£1bn>£25bn £10–25bn £1–2bn£2–5bn£5–10bn ● Pacific Horizon ● MSCI All Country Asia ex Japan index # Source: Baillie Gifford/Refinitiv and relevant underlying index providers. See disclaimer on page 122. *  # The MSCI All Country Asia ex Japan Index (in sterling terms) is the principal index against which performance is measured. 34 Annual Report and Financial Statements 2023  35 Strategic report ## Valuing private ## companies We aim to hold our private company investments The valuations team also monitors relevant market  indices on a weekly basis and updates valuations open-market transaction. Valuations are adjusted both  during regular valuation cycles and on an ad hoc (S&P Global) most recent valuation report where  appropriate. process ensures that private companies are valued Continued market volatility has meant that recent in both a fair and timely manner. pricing has moved much more frequently than would The valuation process is overseen by a valuations have been the case with the quarterly valuations  cycle. independent third party (S&P Global). The valuations  group is independent from the investment team with all voting members being from different operational Instruments (lines of stock reviewed) 6  Revaluations performed   Percentage of portfolio revalued 2+ times  been applied. Percentage of portfolio revalued 5+ times 33% We revalue the private holdings on a three month   reassessed each month. During stable market been decreases. A handful of companies have  raised capital at an increased valuation. The average investment would be valued two times in a six month movement in both valuation and share price for  those which have decreased in value is shown below. reviewed twice per year by the respective investment Average trust boards and are subject to the scrutiny of movement Average external auditors in the annual audit process. in company movement valuation in share price  *  (28.8%)  These may include: changes in fundamentals; *   a takeover approach; an intention to carry out an  Share prices have decreased less than headline    of stock with preferential liquidation rights and of comparable public companies. Any ad hoc change therefore providing down side protection. to the fair valuation of any holding is implemented    value. There is no delay.   in the event of a corporate sale or liquidation. 36 Annual Report and Financial Statements 2023  Private companies summary Historical snapshot   Transaction value  ## 04 private companies listed since initial purchase ## 05 10,000 private companies 0 currently held 20222021 202020182017 Buy Listed Follow on Portfolio activity – year to 31 July 2023 Private exposure  No new capital was deployed in private companies during the year. No private companies listed or were taken-over during the year. Concentration    Total private company exposure 40,000 Dailyhunt Private company  (VerSe Innovation) 30,000 exposure within  – 3.0% ByteDance  20,000 Chime Biologics  Eden Biologics  Total private company exposure Philtown Properties (Nil)  37 Strategic report Performance of listed holdings held previously as private company investments from date of initial investment of each holding to 31 July 2023 (absolute performance in sterling terms as a %) Listed holdings at 31 July 2023 Delhivery -100 20 6040-80 -60 -40 -20 0 80 10 Listed holdings sold in the year to 31 July 2023 Zomato -100 20 6040-80 -60 -40 -20 0 80 10 Absolute performance from initial investment to initial public offering Absolute performance from initial public offering to 31 July 2023 or sale Total absolute performance from initial investment to 31 July 2023 or sale te: Absolute performance returns cannot be added together as they are geometric. Private company securities and listed securities previously held as private company securities as a percentage of total assets*  800 20 600 15 % | 400 | | | | | | | | | 10 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 200 | | | | | | | | | 5 | | | 0 | | | | | | | | 0 | | | Jul | Jul | Jul | Jul | Jul | Jul | Jul | Jul | | | | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | | ord. Total assets in sterling (left hand axis) Private company securities as a % of total assets (right hand axis) Private company securities and listed securities previously held in the portfolio as private comany securities as a % of total assets (right hand axis) See Glossary of Terms and Alternative Performance Measures on pages 123 to 124. 1,000 25 0 £ million Star Health 0 Source: Baillie Giff 38 Annual Report and Financial Statements 2023 No * Source: Revolution/Baillie Gifford.   Our private company exposure tends to be weighted  late stage private companies who are scaling up and  Total equity Number of Cap value (US$) Portfolio % holdings Micro <$300m  3 Small $300m–$2bn – – Medium  – –   5.0 2 5.1 5  Overview | | 2023 | 2022 | | --- | --- | --- | | | £’000 | £’000 | |  |   | | Purchases at cost –  Sales – proceeds received – –   – – Change in listing –  Change in fair value   Closing balance 31 July 29,427 37,243 Valuation movements – year to 31 July 2023 Pacific Horizon -29.7% Pacific Horizon -40.54% Average change at company level Average write-down per company 40% Year to 31 July 2023 Year to 31 July 2023 (excluding companies revalued up) 20% Dailyhunt Chime Biologics (VerSe Innovation) Eden Biologics 0% ByteDance (20%) Valuation changes (40%) (60%) 60% (80%) Private companies  Instruments valued 6  56% Revaluations performed  Valued 5 times or more 33% 39 Strategic report ## List of investments ##  | | | | 2023 | | 2023 | | --- | --- | --- | --- | --- | --- | | | | | Value | % of total | | | Name | Geography | Business | £’000 | | assets | | Samsung Electronics Korea  | | |   | | | manufacturer  China    Ramkrishna Forgings India Auto parts manufacturer  3.3 Delhivery India   3.2 Dailyhunt (VerSe Innovation) India Indian news aggregator application  2.3 Series I Preferred Dailyhunt (VerSe Innovation) India Indian news aggregator application   Series Equity Dailyhunt (VerSe Innovation) India Indian news aggregator application  0.3 Series J Preferred  3.0  China Gold and copper miner   Tata Motors India Automobile manufacturer  2.8 EO Technics Korea Manufacturer and distributor of semiconductor   laser markers Samsung Engineering Korea Korean construction  2.6 JD.com China Online and mobile commerce  2.6 Alibaba Group China Online and mobile commerce  2.5 MMG China Chinese copper miner  2.5 Bank Rakyat Indonesia Consumer bank   Samsung SDI Korea Electrical equipment manufacturer  2.3 Reliance Industries India Indian petrochemical company   Indiabulls Real Estate India Domestic and commercial real estate provider    China Sportswear apparel supplier  2.0  Singapore Internet gaming and ecommerce  2.0  China Social media  2.0 Merdeka Copper Gold Indonesia Indonesian miner    India Owner and operator of a chain of Indian hotels   and resorts  Vietnam Consumer bank   Phoenix Mills India Commercial property manager   Baidu.com China Internet provider   PT Astra International Indonesia Automobile distributor   Accton Technology Taiwan Server network equipment manufacturer   40 Annual Report and Financial Statements 2023  | | | | 2023 | | 2023 | | --- | --- | --- | --- | --- | --- | | | | | Value | % of total | | | Name | Geography | Business | £’000 | | assets | | Dragon Capital Vietnam Enterprise | Vietnam Vietnam investment fund   | | | | | Investments  Vietnam Steel and related products manufacturer    China Real-estate platform    China Real-estate platform 655    Midea A Shares China    Prestige Estate Projects India Owner and operator of residential real estate   properties Skipper India Transmission and distribution structures provider   Meituan China    Dada Nexus ADR China Chinese ecommerce distributor of online   consumer products TSMC Taiwan Semiconductor manufacturer   Zhejiang Supor Co A Shares China Chinese manufacturer of cookware and home   appliance products MediaTek Taiwan Taiwanese electronic component manufacturer   Jadestone Singapore Oil and gas explorer and producer    China     Korea Korean shipbuilder   Coupang Korea Ecommerce business   Military Commercial Joint Vietnam Retail and corporate bank   Stock Bank TISCO Thailand Retail and corporate bank   Koh Young Technology Korea 3D inspection machine manufacturer   Silergy Taiwan Semiconductor manufacturer   Ningbo Peacebird Fashion A Shares China Chinese fashion    India Indian mortgage provider  0.8  China Chinese semiconductor manufacturer  0.8 SK hynix Korea Semiconductor manufacturer  0.8  Korea Electronic component and device manufacturer   Geely Automobile China Automobile manufacturer   Kingdee International Software China Enterprise management software distributor    China Manufacturer of trailers and trucks   SDI Corporation Taiwan Stationary and lead frames for semiconductors   manufacturer 41 Strategic report | | | | 2023 | | 2023 | | --- | --- | --- | --- | --- | --- | | | | | Value | % of total | | | Name | Geography | Business | £’000 | | assets | Ping An Bank A Shares China Consumer bank  0.6  India   0.6 Mobile World Investment Vietnam Electronic and grocery retailer  0.6 Corporation Chalice Mining China Miner  0.6 Property Guru Singapore Real-estate platform  0.5  Vietnam Food producer  0.5 Tsugami Precision China Industrial machinery manufacturer  0.5  China    A Shares energy and lithium battery equipment AirTac International Group Taiwan Pneumatic components manufacturer   Techtronic Industries  Power tool manufacturer  0.3 Jio Financial Services India Financial service business  0.2 Binh Minh Plastics Joint Stock Vietnam Plastic piping manufacturer  0.2 Company Nexteer Automotive China Producer of automotive components  0.2 Brilliance China Automotive China Minibus and automotive components  0.2 manufacturer FPT Vietnam IT service provider   Chime Biologics China Biopharmaceutical company   Eden Biologics Taiwan Biopharmaceutical company   Philtown Properties Philippines Property developer – – Total Investments 572,748 98.7 * 7,607 1.3 Total Assets 580,355 100.0  *  Denotes private company investment. Denotes listed investment previously held in the portfolio as a private company investment. Listed Private company Net liquid Total equities investments * assets † assets % % % % 31 July 2023 93.6 5.1 1.3 100.0    0.3  Figures represent percentage of total assets. * Includes holdings in ordinary shares and preference shares. †   42 Annual Report and Financial Statements 2023  ## Business review Business model Purpose  Business and status  The Company is an investment company within the  meaning of section 833 of the Companies Act 2006 capital growth for shareholders. and carries on business as an investment trust. Investment trusts are UK public listed companies Investment objective   Exchange. They invest in a portfolio of assets in   Indian Sub-continent 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  principally of quoted securities. demand. The Company has been approved as an  Investment policy to the Company continuing to meet the eligibility  conditions. The Directors are of the opinion that the principally through investment in companies listed Company has continued to conduct its affairs so as  to enable it to comply with the ongoing requirements (excluding Japan) and the Indian Sub-continent.  The Company may also invest in companies based the Investment Trust (Approved Company) (Tax) in the region and in investment funds specialising in  the region or particular countries or sectors within The Company is an Alternative Investment Fund it even if they are listed elsewhere. The maximum   Investment Fund Managers Regulations. total assets at time of investment. 43 Strategic report The portfolio contains companies which the managers Culture  As an externally managed investment company   comprise part of any index. The portfolio is actively expressed through its Board and its third party managed and will normally consist principally of   their interactions with shareholders and other   investments may be held. The maximum exposure    the time of initial investment. The Company is also      markets of the region. Borrowings In constructing the equity portfolio a spread of  Facility Lender Maturing 2023 2022   Royal Bank  No No  million of Scotland 2025 outstanding outstanding the thematic characteristics of the portfolio are International drawings drawings   sector weights have been set by the Board except The main covenants relating to the loan are as imposed from time to time by banking covenants that borrowings should not exceed 30% of the on borrowings.  The Company may use derivatives which will be     covenants during the year. in its investments. These typically take the form of  transactions. The Company has a maximum approved equity    funds. Borrowings are invested in securities when it is considered that investment opportunities merit the Company taking a geared position. The Company is also permitted to be less than   Board and Managers at every Board meeting. 44 Annual Report and Financial Statements 2023 Pacific Horizon Investment Trust PLC # Performance # Key performance indicator The Board uses key performance indicators (KPIs) to measure the progress and performance of the Company over time when discharging its duties as set out on page 67. These KPIs are established industry measures. # Share price and net asset value total returns (APM) The total return is the return to shareholders after reinvesting the net dividend on the date that the share price goes ex-dividend. ![img-2.jpeg](img-2.jpeg) # Share price discount/premium (APM) As stock markets and share prices vary, an investment trust's share price is rarely the same as its NAV. When the share price is lower than the NAV per share it is said to be trading at a discount. If the share price is higher than the NAV per share, this situation is called a premium. ![img-3.jpeg](img-3.jpeg) # Ongoing charges (APM) Ongoing charges are the total recurring expenses (excluding the Company's cost of dealing in investments and borrowing costs) incurred by the Company as a percentage of the daily average net asset value. ![img-4.jpeg](img-4.jpeg) The Board also has regard to the total return of the Company's principal comparative index (MSCI All Country Asia ex Japan Index (in sterling terms)) and considers the performance of comparable companies. Across these measures, the Board looks for relative outperformance over the long term, while remaining mindful that the nature of the investment policy and the growth characteristics of the portfolio investments may entail periods of underperformance over the short and medium term. The Board is satisfied with the Company's progress and performance. 45 Strategic report Viability statement  and can be sold to meet its liabilities as they fall Notwithstanding that the continuation of the  Company is subject to approval of shareholders       affecting their respective services to the Company.    services required by the Company are outsourced to Company over a three year period. The Directors  continue to believe this period to be appropriate can be replaced at relatively short notice where  necessary. approach. In the absence of any adverse change to the regulatory environment and the favourable tax    period is one over which they do not expect there of increasing geopolitical tensions. The stress  testing did not indicate any matters of material risks and to the adequacy of the mitigating controls concern. in place. The Directors do not envisage any change   at which the shares trade and the Company has foresee any events that would prevent the Company  from continuing in existence over that period. deemed by the Board to be in the best interests  of the Company and its shareholders. In the year to   current position and have conducted a robust    emerging risks and uncertainties (as detailed on      (excluding Japan) and the Indian Sub-continent  equity markets would adversely impact the value of  the investment portfolio. The Directors have also   there is a reasonable expectation that the Company  will be able to continue in operation and meet its  liabilities as they fall due over the next three years. projected income and expenditure. The vast majority 46 Annual Report and Financial Statements 2023    the Company on a regular basis. The Directors have carried out a robust assessment of the principal   principal risks during the year. A description of these risks and how they are being managed or mitigated is set out below. The Board considers the heightened macroeconomic and geopolitical concerns to be factors which  trust. Their impact is considered within the relevant risks. Financial  How is it mana Current risk   This risk is increasing due to mainly of listed securities considered the impact of increased market volatility  heightened market volatility as a result of heightened portfolio) and its principal and during recent months due to macroeconomic and  macroeconomic factors such geopolitical concerns. therefore market related and  include market risk (comprising rates and geopolitical concerns.    Board considers at each meeting liquidity risk and credit risk. various metrics including regional An explanation of those risks  and how they are managed top and bottom stock contributors  to performance along with sales Financial Statements on pages and purchases of investments.  Individual investments are discussed with the portfolio manager together with general views on the various investment markets and sectors. A strategy session is held annually. Investment  How is it mana Current strategy risk Pursuit of an investment  This risk is increasing as the  regularly reviews and monitors  objective which the market   perceives to be unattractive or    the investment portfolio and during the recent period of implementation of an attractive  heightened macroeconomic   and geopolitical concern. lead to reduced returns for value at which the shares trade  and movements in the share a decreased demand for the register and raises any matters  of concern with the Managers.  trading at a widening discount to their net asset value. Decreasing RiskIncreasing Risk No Change 47 Strategic report Political and  How is it mana Current associated The Board is of the view that Political developments are closely This risk is increasing due to political change in areas in monitored and considered by the the ongoing Russia-Ukraine economic which the Company invests or     tensions between the USA and between China and the US. consequences for the Company. China regarding tariffs and unrest  from the Russian invasion of Ukraine. It monitors portfolio   to mitigate against the negative impact of military action or trade barriers. The Board believes  which predominantly comprises companies listed on the stock  (excluding Japan) and the Indian  mitigate such political risks. Discount  How is it mana Current risk     Board monitors the level of widened during the year. trade relative to its net asset  value can change. The risk of a shares trade and the Company widening discount is that it may has authority to buy back its   in the Company. by the Board to be in the best interests of the Company and its shareholders. Regulatory  How is it mana Current risk Failure to comply with  All control procedures are applicable legal and regulatory  working effectively. There requirements such as the  have been no material tax rules for investment trust Compliance Departments regulatory changes that  provide regular reports to the have impacted the Company Rules and the Companies Act Audit Committee on Baillie during the year. could lead to suspension of the   Major regulatory change  could impose disproportionate  compliance burdens on the Company being subject to tax Company. In such circumstances on capital gains. representation is made to ensure that the special circumstances of investment trusts are recognised. Shareholder documents and   and Annual Report and Financial  stringent review processes and procedures are in place to ensure adherence to the Transparency Directive and the Market Abuse Directive with reference to inside information. Decreasing RiskIncreasing Risk No Change 48 Annual Report and Financial Statements 2023  Custody and  How is it mana Current depositary   All control procedures are assets may be compromised Committee receives six-monthly working effectively. risk through control failures by the reports from the Depositary   of cyber security.  Custodian. Cash and portfolio holdings are independently  records by the Managers who   from investee companies. The  controls reports are reviewed  Department and a summary of the key points is reported to the Audit Committee and any concerns investigated. Operational  How is it mana Current risk   All control procedures are systems or those of other has a comprehensive business working effectively. third party service providers continuity plan which facilitates could lead to an inability to continued operation of the provide accurate reporting business in the event of a service and monitoring or a disruption. The Audit Committee misappropriation of assets.  on Internal Controls and reports by other key third party providers are reviewed by Baillie Gifford on behalf of the Board and a summary of the key points is reported to the Audit Committee and any concerns investigated. The other key third party service providers have not experienced  affecting their respective services to the Company. Decreasing RiskIncreasing Risk No Change 49 Strategic report   How is it mana Current The Company may borrow   money for investment purposes. require the prior approval of facility remains undrawn.  the Board and leverage levels any borrowings will magnify are discussed by the Board and the impact of this loss. If Managers at every meeting. borrowing facilities are not Covenant levels are monitored  regularly. The majority of the have to sell investments  to repay borrowings. The quoted securities that are readily Company can also make use realisable. Further information on of derivative contracts. leverage can be found on page  and Alternative Performance  Climate and  How is it mana Current governance Perceived problems on  The Investment Manager  strong ESG stewardship and continues to employ strong risk |  | engagement policies which are | ESG stewardship and | | --- | --- | --- | | in an investee company |  | engagement policies. | |  | bailliegifford.com | | | shares being less attractive to | which have been reviewed and | | |  |  | | |  | which have been fully integrated | | | to potential valuation issues | into the investment process. Due | | | arising from any direct impact | diligence includes assessment | | | of the failure to address | of the risks inherent in climate | | | the ESG weakness on the | change (see page 55). | | operations or management of the investee company (for example in the event of an industrial accident or spillage). Repeated failure by the Managers to identify ESG weaknesses in investee companies could lead to the   adversely affecting its own share price. Decreasing RiskIncreasing Risk No Change 50 Annual Report and Financial Statements 2023  Cyber  How is it mana Current security risk   All control procedures are network or that of a third party Committee reviews Reports working effectively. service provider could impact on Internal Controls published  by Baillie Gifford and other availability of data and systems. third party service providers. Cyber security due diligence is performed by Baillie Gifford on third party service providers which includes a review of crisis management and business continuity frameworks. Emerging risk  How is it mana Current   No change in emerging risks. the Annual Report and Financial close links to the investee  companies and their ability to ask regular discussions on principal questions on contingency plans.  The Managers believe the impact including any risks which are of such events may be to slow not an immediate threat but growth rather than to invalidate could arise in the longer term. the investment rationale over the The Board considers that long term. the key emerging risks arise from the interconnectedness of global economies and the related exposure of the investment portfolio to external and emerging threats such as escalating geopolitical  risks including developing AI and quantum computing  coronavirus variants or similar public health threats. Decreasing RiskIncreasing Risk No Change 51 Strategic report Promoting the success of the Company  being an externally-managed investment company (section 172 statement)    the directors of a company must act in the way potential new shareholders; its externally-appointed  managers (Baillie Gifford); other professional service to promote the success of the company for the   and depositary); lenders; wider society and the so have regard (amongst other matters and to the environment. extent applicable) to: a) the likely consequences The Board considers that the interests of the    of wishing to see the Company deliver sustainable         maintaining a reputation for high standards of being merely a matter of emphasis on those  elements. between members of the company.   are set out below.  Why we engage How we engage and what we do Shareholder  The Board places great importance on communication owners: providing them with a return for their with shareholders. The Annual General Meeting provides  an opportunity for the Board and Managers to present to investment policy and objective is the reason  for its existence. and prospects. It also allows shareholders the opportunity to meet with the Board and Managers and raise questions and concerns. The Chair is available to meet with shareholders as appropriate. The Managers meet regularly with shareholders  to the Board. Directors also attend certain shareholder  hand. Shareholders may also communicate with members of   communication opportunities help inform the Board when considering how best to promote the success of the Company  52 Annual Report and Financial Statements 2023   Why we engage How we engage and what we do Baillie Gifford –   Managers and   Secretaries    while also ensuring that appropriate and regular challenge  is brought and evaluation conducted. This approach aims to Gifford. Baillie Gifford is therefore responsible enhance service levels and strengthen relationships with the for the substantial activities of the Company      subject to the oversight and strategic direction highest standards of business conduct. provided by the Board. Portfolio companies  The Board is cognisant of the need to consider the impact conducted by third party professional   society and the environment. The Board considers that its investment portfolio which have the primary  real-world impact in terms of social and matters is an important part of its responsibility to all    an assessment of their ESG approach and its application in  making investment decisions. The Board regularly reviews   The investee companies have an interest in    rationale in order to assure themselves that long-term business strategies will be supported. Brokers     institutional shareholders. Board apprised of shareholder and wider market sentiment regarding the Company. They also arrange forums for  the normal general meeting cycle. Registrars  The Company Secretaries liaise with the registrars to interface with those shareholders who ensure the frequency and accuracy of communications   correspondence to ensure that the level of service provided   the outcome of this review to the Board. Auditor     Financial Statements as a whole are free from   information requested by the auditor in connection with the    complete and accurate in all respects. 53 Strategic report  Why we engage How we engage and what we do | Depositary | The depositary is responsible for the |  | | --- | --- | --- | | and Custodian |  | other service providers in a collaborative and collegiate | | |  |  | | | page 62. |  | challenge is brought and evaluation conducted. This approach aims to enhance service levels and strengthen relationships    maintaining the highest standards of business conduct.       and advise the Board on the appropriateness of the terms  and covenants therein. The Managers and Secretaries as described on page 8 and have an interest    and viability. that correspondence from the lenders receives a prompt response.  The Association of Investment Companies    industry peers have an interest in the    as adverse market sentiment towards  one investment trust can affect attitudes towards the wider industry. Investment platforms Investment platforms provide an interface The Managers liaise with the various investment platforms with shareholders who invest in the on strategies for improving communications with the Company indirectly.  platforms. An annual timetable of key dates is published on  shareholders. Wider society and   the environment  stakeholders as noted above form the principal forms of  direct engagement with wider society and in respect of the    health and resources).   negative impacts insofar as is possible. The Board recognises the importance of keeping    shares into treasury at a discount to net asset   making. The Company Secretaries are available  at all times to the Board to ensure that suitable their shares when natural market demand was consideration is given to the range of factors to  which the Directors should have regard. In addition value for remaining shareholders.     on two separate occasions on a non pre-emptive actions during the year which required the basis at a premium to net asset value. Directors to have regard to applicable section  54 Annual Report and Financial Statements 2023  Employees, human rights and community Climate change issues The Board recognises that climate change poses a The Board recognises the requirement to provide   to economies and companies around the globe. and community issues. As the Company has no Addressing the underlying causes is likely to result  in companies that are high emitters of carbon facing  greater societal and regulatory scrutiny and higher  costs to account for the true environmental impact human rights and community issues. of their activities. The Managers published the  Gender representation  footprint and exposure to climate risk are measured  and reported. Companies disclosing their emission  and communicating emissions plans will be a helpful two female. The Company has no employees. The place from which to begin more useful discussions   regulators. Environmental, social and governance policy the Managers  believe that carbon footprint metrics in isolation responsible investment can be found under  Corporate Governance and Stewardship on others is a mostly meaningless observation. More   approach to socially responsible investment set patient capital into innovative new technologies with  the potential to accelerate the transition away from  carbon. An external provider was engaged to map and the Baillie Gifford statement on stewardship the carbon footprint of the portfolio. This analysis   United Nations Principles for Responsible Investment    Asset Managers Initiative and are also members of  the International Corporate Governance Network emissions and other carbon related characteristics. and the Asian Corporate Governance Association. Under the Streamlined Energy and Carbon Reporting The Company considers that it does not fall within   disclose energy and carbon information (see page 66).   Future developments of the Company Company considers its supply chains to be of The outlook for the Company is set out in the low risk as its suppliers are typically professional  advisers. A statement by the Managers under the    at bailliegifford.com. by the Board of Directors and signed on its behalf on 5 October 2023. Angus Macpherson Chairman 55 ## Governance ## report This governance report, which includes pages 57 to 82 outlines the Board’s approach to the governance of your Company. We believe that good governance builds better outcomes and we are committed to high standards of corporate governance and transparency.  ## Directors and ## management Directors      non-executive director of Schroder Japan Trust plc  Angus Macpherson  Chairman    Sir Robert Chote was appointed a Director in 2020.      as an advisor to the International Monetary Fund and Sir Robert Chote  Director a senior adviser to governance reform consultancy Appointed 2020 FMA and a visiting professor at the Department of  on advisory boards at the Warwick Manufacturing Group and the Centre for Economic Performance of  57 Governance report  an experienced Asian analyst and fund manager.      Wee-Li Hee  Director  Appointed 2020 Companies Trust plc she became lead manager in    a director of Melville Paisley Investments.  She is Chairman of the Audit Committee and is  accountant and has held several non-executive and advisory roles for small and medium capitalised companies across a range of industries. Previously she  | Angela Lane | for 3i plc. She is a non-executive director and Chair | | --- | --- | | Audit Committee | of the Audit Committee of BlackRock Throgmorton | | Chair |  | |  |  |    at Dragonomics and author under the name of    Joe Studwell  Director   Management Engagement and Audit Committee. 58 Annual Report and Financial Statements 2023  Portfolio Managers Roddy is an Investment Manager in the Emerging         Investment he has also spent time in the UK and European Manager   Medical Biology from the University of Edinburgh in 2006. Ben is an Investment Manager in the Emerging      Private Companies teams. Prior to joining Baillie | Ben Durrant |  | | --- | --- | | Deputy Manager | Strategy and Corporate Finance Team. Ben is a | | Appointed 2023 |  |   59 Governance report The Company has appointed Baillie Gifford & Co     services to Baillie Gifford & Co. Dealing activity and transaction reporting have been further   Baillie Gifford & Co is an investment management    Baillie Gifford is one of the largest investment trust managers in the UK and currently manages thirteen close-ended investment companies. Baillie Gifford  together with investment portfolios on behalf of   the management or advice of Baillie Gifford totalled  the leading privately owned investment management    are both authorised and regulated by the Financial Conduct Authority. 60 Annual Report and Financial Statements 2023  ##  The Directors present their Corporate governance Report together with the Financial The Corporate Governance Report is set out on Statements of the Company for  the year to 31 July 2023. Managers and company secretaries      management services to Baillie Gifford & Co. Dealing activity and transaction reporting have been further sub-delegated to Baillie Gifford Overseas  The Investment Management Agreement sets out the matters over which the Managers have authority in accordance with the policies and     notice. Compensation fees would only be payable in respect of the notice period if termination were to occur within a shorter notice period. The Board is of the view that calculating the fee with reference to performance would be unlikely to exert a positive    million of net assets and 0.55% on the remaining net assets. 61 Governance report  Directors management and secretarial arrangements on an  ongoing basis and a formal review is conducted by  the Management Engagement Committee annually. and 58.  All of the Directors are retiring at the Annual General in the review:    for re-election. Following formal performance      continues to be effective and that they remain to date; and committed to the Company and capable of devoting    Secretaries. recommends their re-election to shareholders.   of the Management Engagement Committee that The Company has entered into qualifying third party the continuing appointment of Baillie Gifford & Co deeds of indemnity in favour of each of its Directors.   of the investment management services to Baillie  Gifford & Co and the further sub-delegation of  dealing activity and transaction reporting to Baillie   default or breach of trust or duty. The Directors   the interests of shareholders as a whole due to   incurred in connection with criminal proceedings in  which the Director is convicted or civil proceedings trust sector and the quality of the secretarial and brought by the Company in which judgement is given   the Directors also considered the execution of apply to any liability to the extent that it is recovered the agreed investment strategy and the relative from another person. The Company also maintains performance over the medium term.  Depositary     interest to the Nomination Committee on an annual in accordance with the requirements of the UK  Alternative Investment Fund Managers Regulations. taking into account the circumstances surrounding  them and makes a recommendation to the Board    authorised. Board authorisation is for a period of a record of other assets and monitoring the one year.    there were no situations which gave rise to a direct   with interests of the Company. 62 Annual Report and Financial Statements 2023  | Dividends | Major interests disclosed in the Company’s shares | | | | | --- | --- | --- | --- | --- | |  | | | Ordinary 10p | | |  | | | shares held | % of | | | Name | at 31 July 2023 | | issue | invest in companies based on the level of income they may pay out as dividends.  *  8.5%  *   Analysis of shareholders at 31 July or maintain dividends. This year the net revenue available for distribution to shareholders amounted | | | 2023 | | | | 2022 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | |  | Number of | | 2023 | | Number of | | 2022 | | | | shares held | | | % | shares held | | | % | to require a distribution to be made to maintain investment trust status. Institutions     Intermediaries  50.2   The Directors are therefore recommending the  Individuals      Marketmakers     ordinary shares will be paid on 30 November 2023 91,081,949 100.0 91,860,961 100.0 to shareholders on the register at the close of      Service. There have been no changes to the major    3 October 2023. Share capital Annual General Meeting  Capital structure proposed resolutions and information on the      their own name on the main register will be provided  with a Form of Proxy. If you hold shares through a   no restrictions concerning the holding or transfer encourage you to contact these organisations  directly as soon as possible to arrange for you to special rights attached to any of the shares. vote at the AGM. The resolutions relating to the  Dividends  The ordinary shares carry a right to receive dividends. Interim dividends are determined by the Issuance of shares   subject to shareholder approval.  authority to issue shares and also an authority to Capital entitlement issue shares or sell shares held in treasury on a non    to existing shareholders pro-rata to their existing shareholders in proportion to their shareholdings. holdings) for cash up to an aggregate nominal  Voting the forthcoming Annual General Meeting and the Each ordinary shareholder present in person or by     63 Governance report  the authority being sought is greater than the 5%  recommended by the Pre-Emption Group in their  Statement of Principles on disapplying pre-emption      seeking authority to issue shares at a premium to the    normally raise concerns and the Directors consider premium to net asset value (on the basis of debt  valued at par value) on two separate occasions at  a weighted average price of 688.00 pence per   continue until the conclusion of the Annual General      3 October 2023. Such authorities will only be used to issue shares or sell shares from treasury at a premium to net asset  value and only when the Directors believe that it Meeting seeks a general authority for the Directors would be in the best interests of the Company to do to issue ordinary shares up to an aggregate nominal so. The Directors believe that the ability to buy back  shares at a discount and re-sell them or issue new  shares at a premium are useful tools in smoothing  supply and demand. latest practicable date prior to the publication of   No issue of ordinary shares will be made pursuant   way of a special resolution) to renew the authority effectively alter the control of the Company without  the prior approval of shareholders in general meeting. shares in issue (excluding treasury shares) as at       cash without having to offer such shares to existing (excluding treasury shares) on the date on which the  resolution is passed). This authority will expire at the  end of the Annual General Meeting of the Company    made at a discount to the prevailing net asset value. the latest practicable date prior to publication of this The Company may hold bought back shares in document. treasury and then: The Directors consider that the authority proposed a. sell such shares (or any of them) for cash (or its  equivalent under the Companies Act 2006); or  a premium to net asset value and the level of natural b. cancel such shares (or any of them). liquidity in the market is unable to meet demand. The Shares will only be re-sold from treasury at (or at a Directors do not intend to use this authority to sell premium to) the net asset value per ordinary share. or issue ordinary shares on a non pre-emptive basis at a discount to net asset value. While the level of 64 Annual Report and Financial Statements 2023  Treasury shares do not receive distributions and Going concern the Company will not be entitled to exercise the  voting rights attaching to them. In accordance with   Directors have undertaken a rigorous review of the expenses) that may be paid on the exercise of the  authority shall be an amount equal to the higher of:  i. 5 per cent. above the average closing price on the market related. An explanation of these risks and     date of the purchase; and  ii. the higher of the price of the last independent heightened market volatility over recent months trade and the highest current independent bid for    is affected. The minimum price (again exclusive of expenses) that may be paid will be the nominal value of an  ordinary share. Purchases of ordinary shares will are investments in quoted securities which are    All borrowings require the prior approval of warrants or options in issue. The Directors intend the Board. The Board approves borrowing and  gearing limits and reviews regularly the amounts only if to do so would result in an increase in net of any borrowing and the level of gearing as well asset value per ordinary share for the remaining as compliance with borrowing covenants. Stress shareholders and if it is in the best interest of testing was performed in the year and no matters shareholders generally. were raised. The Company has continued to comply with the investment trust status requirements of Recommendation  The Board considers that all the resolutions to be the Investment Trust (Approved Company) (Tax) proposed at the Annual General Meeting are in the  best interests of the Company and its shareholders    recommends that you vote in favour of all of the       right to vote on the continuation of the Company Financial instruments   Financial Statements have been prepared on the  going concern basis; having assessed the principal borrowings and debtors and creditors that arise and emerging risks and other matters set out in the directly from its operations such as sales and  purchases awaiting settlement and accrued income. prospects of the Company over a period of three    will continue in operational existence for a period of the exposure of the Company to risk are disclosed at least twelve months from the date of approval of  these Financial Statements. Future developments of the Company Articles of Association The outlook for the Company is set out in the   amended by special resolution at a general meeting  of shareholders. 65 Governance report Disclosure of information to auditor Bribery act   the Directors is aware there is no relevant audit bribery and is committed to carrying out business   unaware and the Directors have taken all the steps  procedures in place to prevent bribery. that they might reasonably be expected to have taken as Directors in order to make themselves aware of any relevant audit information and to Criminal Finances Act 2017   of that information. towards the criminal facilitation of tax evasion. Independent Auditor On behalf of the Board  Angus Macpherson  Chairman  5 October 2023  and remuneration will be submitted to the Annual General Meeting. Post balance sheet events    thereto up to 5 October 2023. Greenhouse Gas Emissions and Streamlined Energy & Carbon Reporting (‘SECR’)  to third parties. The Company therefore has no greenhouse gas emissions to report from its  any other emissions producing sources under the Companies Act 2006 (Strategic Report and   itself to be a low energy user under the SECR  energy and carbon information. 66 Annual Report and Financial Statements 2023  ## Corporate ## governance report The Board is committed to Compliance achieving and demonstrating  high standards of Corporate who report against the AIC Code will be meeting Governance. This statement their obligations in relation to the UK Code (the outlines how the principles of the AIC Code can be found at ). The Board 2018 UK Corporate Governance  Code (‘Code’), which can be found the year under review with the relevant provisions of  the Code and the recommendations of the AIC Code principles of the Association of with the exception that the Company does not have Investment Companies (‘AIC’) a separate internal audit function as explained on Code of Corporate Governance  (‘AIC Code’) issued in 2019 were  The Board year. The AIC Code provides a The Board has overall responsibility for the   investment companies and can formally reserved for its approval including    governance policy. A strategy session is held annually. The Board also reviews the Financial  budgets and performance of the Company. Full and timely information is provided to the Board to enable the Board to function effectively and to allow Directors to discharge their responsibilities.   non-executive and independent.   effectiveness and setting its agenda.   concerns not properly addressed to the Chairman.  and chairs the Nomination Committee when it  67 Governance report Board of Directors Comprises independent non-executive directors Chair: Angus Macpherson Senior Independent Director: Angela Lane Audit Management Engagement Nomination Committee Committee Committee Chair: Angela Lane Chair: Angus Macpherson Chair: Angus Macpherson Purpose: The primary purpose of a Purpose: The role of the Management Purpose: The main purpose of the  Engagement Committee is to ensure that Nomination Committee is to oversee Board  the Managers remain suitable to manage recruitment and succession planning as   well as Board appraisals including of internal controls and compliance with contract is competitive and reasonable for identifying training needs. laws and regulations.  maintains appropriate administrative and company secretarial support. Third-party service providers appointed by the Board Alternative Investment Fund Managers and Company Secretary:  subsidiary of Baillie Gifford & Co) Dealing activity and transaction reporting:   The Bank of Computershare JP Morgan  New York Mellon Investor Services  Auditor    Depositary Registrar 68 Annual Report and Financial Statements 2023  The executive responsibility for investment In accordance with the AIC Code of Corporate    re-election. Following a formal performance    continued to be independent in character and  judgement and their skills and experience added  The Directors believe that the Board has a balance of skills and experience that enable it to provide Meetings effective strategic leadership and proper governance  There is an annual cycle of Board meetings which      There is an agreed procedure for Directors to policy and communication with shareholders.    regularly to discharge its duties effectively. The table below shows the attendance record for the core Appointments to the Board   excluding ancillary and sub-committee meetings. recommendation to the Board by the Nomination The Annual General Meeting was attended by all  Directors. appointments are set out in formal letters of appointment which are available for inspection Directors’ attendance at meetings on request. Management  Audit Nomination Engagement Board Committee Committee Committee  required to retire and seek approval by shareholders Number of meetings 4 2 1 1 at the next Annual General Meeting. RA Macpherson  2   In accordance with the AIC Code of Corporate RW Chote  2      2   re-election.   2   The names of Directors retiring and offering RF Studwell  2   themselves for re-election together with the reasons why the Board supports this are set out on page 62. Chairperson and Directors’ tenure The Nomination Committee has considered the Independence of Directors question of tenure for directors and has concluded All the Directors are considered by the Board to that there should not be a set maximum time limit be independent of the Managers and free of any for a director or chairperson to serve on the Board. business or other relationship which could interfere The Nomination Committee keeps under review with the exercise of their independent judgement.   The Directors recognise the importance of ensuring the Board has the right combination of succession planning for company boards and review    the view that length of service will not necessarily bringing in fresh ideas and perspective. compromise the independence or contribution of   Board. The Board concurs with the view expressed in the AIC Code that long serving Directors should not be prevented from being considered independent. 69 Governance report Management Engagement Committee Rules diversity targets more often than not but  All Directors are members of the Management implemented thoughtfully and having regard to the   Chairman of the Board. The Board considers each  member of the Committee to be independent. To result in periods when the diversity targets are not   year to consider: the performance and suitability of directors may prevent them from being able to of the Manager; the terms and conditions of undertake the responsibilities of a senior role. In    by their inclusion outweighs the ambition of meeting Terms of Reference are available on request from diversity targets.  . Board composition Nomination Committee  the importance of having a range of skilled and The Nomination Committee consists of all the  non-executive Directors and the Chairman of length of service and knowledge of the Company the Board is Chairman of the Committee. The with the desirability of ensuring regular refreshment Committee meets on an annual basis and at such of the Board. The Board reviews its composition other times as may be required. The Committee has annually. written terms of reference that include reviewing  The following disclosures are provided in respect nominating new candidates for appointment to the   board should be women; ii) at least one senior role succession including overseeing development of should be held by a woman; and iii) at least one  board member should be from a non-white ethnic The Committee also considers whether Directors  should be recommended for re-election by Statistics criteria. shareholders. The Committee is responsible for As an externally managed investment company   and for making recommendations to the Board on   guidance are Chair and Senior Independent Director   Terms of Reference are available on request from Chair to represent a senior role within this context.  . The Board currently complies in all respects with the  Diversity policy Senior Appointments to the Board are made on merit Gender Number % roles  Men 3 60   Women 2   cognitive and personal strengths. The priority in Prefer not to say – – – appointing new directors is to identify the candidate with the best range of skills and experience to complement existing Directors. Within the context Senior   Number % roles  White  80 2    20 – number of senior roles are available. The Board Prefer not to say – – –  70 Annual Report and Financial Statements 2023  Performance evaluation Audit Committee  The report of the Audit Committee is set out on a performance evaluation and review of both the  Board as a whole and of the individual Committees was carried out during the year. After inviting each  Director and the Chairman to consider and respond The Directors acknowledge their responsibility   each Director was appraised by the Chairman and internal controls systems and for reviewing their      Statements. These systems are designed to manage  rather than eliminate the risk of failure to achieve  business objectives and can only provide reasonable contribution of individual Directors and the overall but not absolute assurance against material effectiveness of the Board and its Committees. misstatement or loss.     Board and its Committees continues to be effective  and each Director and the Chairman are committed accordance with the FRC guidance ‘Guidance on      The practical measures to be taken in relation to the     commitments during the year.  the maintenance of effective operational and Induction and training compliance controls have been delegated to New Directors are provided with an induction the Managers and Secretaries. programme which is tailored to the particular circumstances of the appointee. During the year The Board oversees the functions delegated to the updates on industry and regulatory matters were Managers and Secretaries and the controls managed provided to the Board by the Managers and by the AIFM in accordance with the UK Alternative Secretaries. Other relevant training for Directors is Investment Fund Managers Regulations (as detailed provided as necessary.   risk function provide the Audit Committee with Remuneration regular reports on their monitoring programmes. As all the Directors are non-executive there is The reporting procedures for these departments no requirement for a separate Remuneration   agreement. Baillie Gifford & Co conducts an annual Board as a whole within the limits approved by review of its system of internal controls which is  documented within an internal controls report which    on Controls at a Service Organisation. This report is independently reviewed by Baillie Gifford &  Committee. 71 Governance report A report identifying the material risks faced by the The Depositary provides the Audit Committee with a Company and the key controls employed to manage report on its monitoring activities. these risks is reviewed by the Audit Committee. The AIFM has established a permanent risk These procedures ensure that consideration is given management function to ensure that effective risk regularly to the nature and extent of risks facing the management policies and procedures are in place Company and that they are being actively monitored. and to monitor compliance with risk limits. The AIFM  has a risk management policy which covers the the year they also provide a mechanism to assess risks associated with the management of the whether further action is required to manage these  risks. this policy is reviewed and approved at least annually. This review includes the risk management  processes and systems and limits for each risk area.  and internal controls systems which accord with    Internal Control and Related Financial and Business    review their effectiveness on a regular basis. No monitored and the sensitivity of the portfolio to key  risks is undertaken periodically as appropriate to under review and up to the date of this Report. ascertain the impact of changes in key variables in the portfolio. Exceptions from limits monitoring    Business Risk Department are escalated to the year and continue to be in place up to the date of AIFM and reported to the Board along with remedial approval of this Report. measures being taken. To comply with the UK Alternative Investment Fund  Relations with shareholders  The Board places great importance on communication   AIFM. regularly with shareholders and their representatives    Chairman and Directors also attend shareholder     compliance with investment limits and leverage communication with market participants and investors requirements. The Depositary is liable for the loss of   in order to ascertain views on corporate matters. The will ensure that any delegate segregates the assets Chairman is available to meet with shareholders as  appropriate. Shareholders wishing to communicate  with any members of the Board may do so by writing prepares reports on its key controls and safeguards  which are independently reviewed by its appointed     summary of the key points is reported to the Audit Committee and any concerns are investigated. 72 Annual Report and Financial Statements 2023   a forum for communication with all shareholders. The level of proxies lodged for each resolution is announced at the meeting and is published on the   subsequent to the meeting. The notice period for the Annual General Meeting is at least twenty working days. Shareholders and potential investors may obtain up-to-date information on the Company at . Corporate governance and stewardship The Company has given discretionary voting powers to Baillie Gifford & Co. The Managers vote against  rights or economic interests and report their actions to the Board.    retaining investments and has asked the Managers to take these issues into account as long as the investment objectives are not compromised. The Managers do not exclude companies from their investment universe purely on the grounds of ESG factors but adopt a positive engagement approach whereby matters are discussed with management with the aim of improving the relevant policies and management systems and enabling the Managers to consider how ESG factors could  statement of compliance with the UK Stewardship  bailliegifford.com reviewed and endorsed by the Board. Baillie Gifford  considered the Sustainable Finance Disclosures   On behalf of the Board Angus Macpherson Chairman 5 October 2023 73 Governance report ## Audit ## committee report The Audit Committee consists of  all the Directors. The members  of the Committee consider that which are available on request from the Company  Secretaries and at . The terms  of reference are reviewed annually. responsibilities of the Committee.  Ms AC Lane is Chairman of the  Audit Committee. evaluation process. At least once a year the Committee meets with the external Auditor without any representative of the Managers being present. Main activities of the committee The Committee met twice during the year and BDO    risk function provided reports on their monitoring programmes for each of these meetings.  by the Committee during the course of the year included the following:   Interim Reports;       the Annual Report and Financial Statements and whether it provided the information necessary     control environment;   engagement of the external Auditor; 74 Annual Report and Financial Statements 2023     out to tender; 2023 were agreed to external price sources. The    for investments in unlisted (private) companies (as Auditor to supply non-audit services; described on page 36) and approved the valuation of   the private investments following a detailed review Auditor and the effectiveness of the audit process; of the valuation of each investment and relevant challenge where appropriate. The listed portfolio    audit function;     Managers and Custodian; and investee companies.     Internal Controls which details the controls in place concerns about possible improprieties in matters regarding completeness and accurate recording of  investment income. The accounting treatment of each special dividend received or receivable during Internal audit the year was reviewed by the Managers. The Committee continues to believe that the  compliance and internal controls systems and the  internal audit function in place within the Investment   years and its ability to continue as a going concern  for at least twelve months from the date of signing    from the Managers on the cash position and cash   The external auditor has adopted a wholly  substantive approach to testing and therefore the  absence of an internal audit function has not had an  impact on audit procedures. as they fall due. The Committee also reviewed  on going concern on page 65. Following this Financial reporting   Board the appropriateness of the going concern areas of risk likely to impact the Financial Statements basis in preparing the Financial Statements and    and statement on going concern. the accuracy and completeness of income from investments.  Committee that they were not aware of any material The majority of the investments are in quoted misstatements in the context of the Financial securities and market prices are readily available Statements as a whole and that the Financial from independent external pricing sources. The Statements are in accordance with applicable law  and accounting standards. Internal Controls which details the controls in place regarding recording and pricing of investments and  the reconciliation of investment holdings to third party data. The Committee reviewed the effectiveness of the    75 Governance report External auditor      with Mr Neil Fung-On as the lead audit partner. The Committee reviewed: audit partners responsible for the audit are to be    from the Auditor describing its arrangements with professional and regulatory standards in order to manage auditor independence and received to protect independence and objectivity and to      audit as partner. external Auditor. There were no non-audit fees for   independent within the meaning of regulatory and  professional requirements and that the objectivity of the Committee reviewed and considered: the audit partner and staff is not impaired.       of the audit team; and independent and effective for the purpose of this    necessary to put the audit services contract out  to tender. audit process the Committee considered and reviewed: There are no contractual obligations restricting the      Accountability and audit   The respective responsibilities of the Directors and the Auditor in connection with the Financial    audit. On behalf of the Board  Chairman of the Audit Committee 5 October 2023 76 Annual Report and Financial Statements 2023  ##  ## remuneration report This report has been prepared in  accordance with the requirements shareholder approval every three years or sooner if an of the Companies Act 2006. alteration to the policy is proposed. As the Remuneration Policy was last approved at the Annual General Meeting  being sought at the forthcoming Annual General Meeting. Your attention is drawn to Resolution 2 in the Notice of  approval is being sought is set out below and is unchanged from that currently in force. Directors’ remuneration policy  none of whom has a service contract with the Company. There is no separate remuneration committee and the      should be set at a reasonable level that is commensurate with the duties and responsibilities of the role and consistent with the requirement to attract and retain Directors of the appropriate quality and experience. The Board believes that the fees paid to the Directors  be fair and should take account of the level of fees paid by comparable investment trusts. Any views expressed by shareholders on the fees being paid to Directors will be taken into consideration by the Board when reviewing the  Non-executive Directors are not eligible for any other  allowable expenses. There are no performance conditions  incentive schemes or pension schemes. There is no notice  77 Governance report Statement by the Chairman   The Board reviewed the level of fees during the year  and it was agreed that the principal consideration Co when assessing the level of fees was balancing Independent Director). Fees were last increased the cost of remuneration with ensuring that the  Company had the ability to attract and retain  Limits on Directors’ remuneration  The fees for the non-executive Directors are The Board were of the view that the investment payable monthly in arrears and are determined      in aggregate. Any change to this limit requires  shareholder approval.  and regulatory framework. The Company also had The fees paid to Directors in respect of the year exposure to both listed and private equities and  could be exposed to complex securities such as   out in the table below. The fees payable to the   the scope of oversight required for this necessitated be determined following an annual review of the a range of specialist skills to properly understand  the investment activities of the Company. Expected | Following discussion and consideration of: | fees for the | | Fees as at | | | | --- | --- | --- | --- | --- | --- | | | year ending | | | 31 July | | |   | 31 July 2024 | | | 2023 | | | | | £ | | | £ |        Non-executive Director fee   increased modestly year on year; Additional fee for Audit   Committee Chair   Total aggregate annual fees that    can be paid to the Directors in     over the medium to long term was outperforming;  and Association   to the Trust Associates September 2022 report Annual report on remuneration based on the data from around 300 investment An ordinary resolution for the approval of this report  will be put to the members at the forthcoming  Annual General Meeting.   I of the disclosures provided in this report. Where        78 Annual Report and Financial Statements 2023  Directors’ remuneration for the year (audited) The Directors who served during the year received the following remuneration in the form of fees and  | | | | 2023 | | | | | | | 2022 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | 2023 | | Taxable | 2023 | | | % | 2022 | | Taxable | 2022 | | | | Fees | |  * | Total | | change | | Fees | |  * | Total | | | Name | | £ | £ | | £ | in year | | | £ | £ | | £ | RA Macpherson   42,654    37,837 RW Chote   31,751    29,072   – 28,000    25,254    37,876    33,989 RF Studwell   30,606 6.8   28,662 161,000 9,887 170,887 10.4 142,500 12,314 154,814 * Comprises travel and subsistence expenses incurred by or on behalf of the Directors in the course of travel to attend Board and Committee meetings  Annual percentage change in remuneration Directors’ interests (audited) This represents the annual percentage change The Directors at the end of the year under in the entire remuneration paid to the Directors. review and their interests in the Company are as shown in the following table. There have been no % from % from % from  2022 to 2021 to 2020 to 3 October 2023. | Name | 2023 | 2022 | 2021 | | | | --- | --- | --- | --- | --- | --- | | RA Macpherson    | | | | Ordinary 10p | Ordinary 10p | | | | | | shares held | shares held | RW Chote*  85.3  | | | | | | Nature | at 31 July | | at 1 August | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |  | † |    | Name | of interest | | | 2023 | | 2022 | |  | # |  35.3  | | | | | | | | RA Macpherson    RF Studwell 6.8   RW Chote  500 – *             †   RF Studwell       #   hold shares in the Company.   being a 35.3% increase. 79 Governance report Statement of voting at Annual General Meeting Performance graph       were against and votes withheld were 0.3%. At the  500 Remuneration Policy was considered (November 400   300 200 Relative importance of spend on pay 100 The table below shows the actual expenditure during 0  20232013 2015 2018 2020 20222014 20172016 2019 2021 | distributions to shareholders. | | | | | | | | | Cumulative to 31 July | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | ● Pacific Horizon | | ● FTSE All-Share | | | ● MSCI All Country Asia ex Japan | | | | 2023 | 2022 | Change | | | share price | | Index | | | Index (in sterling terms) | | | £’000 | £’000 | | % | Source: Refinitiv and underlying data providers. See disclaimer on page 122. | | | | | | | All figures are total return (see glossary of terms and alternative     performance measures on pages 123 and 124).     to shareholders Past performance is not a guide to future performance. Company performance Approval    return (assuming all dividends are reinvested) to to 80 was approved by the Board of Directors and  signed on its behalf on 5 October 2023. the total shareholder return on a notional investment made up of shares in the component parts of the Angus Macpherson FTSE All-Share Index. This index was chosen Chairman for comparison purposes as it is a widely used measure of performance for UK listed companies.  information purposes only. 600 80 Annual Report and Financial Statements 2023  ##  ## responsibilities in respect of the Annual Report and the Financial Statements The Directors are responsible for preparing the The Directors are responsible for keeping adequate Annual Report and the Financial Statements in  accordance with applicable law and regulations.   Company law requires the Directors to prepare position of the Company and enable them to ensure  that the Financial Statements comply with the that law the Directors have prepared the Financial Companies Act 2006. They are also responsible for Statements in accordance with United Kingdom safeguarding the assets of the Company and hence Generally Accepted Accounting Practice (United for taking reasonable steps for the prevention and  detection of fraud and other irregularities.   The Directors are responsible for ensuring the Annual Report and the Financial Statements are Under company law the Directors must not approve made available on a website. Financial Statements   that they give a true and fair view of the state of accordance with legislation in the United Kingdom  governing the preparation and dissemination the Company for that period. In preparing these   legislation in other jurisdictions. The maintenance    them consistently;  responsibility also extends to the ongoing integrity   of the Financial Statements contained therein. are reasonable and prudent; The Directors have delegated responsibility to the   Managers for the maintenance and integrity of the    disclosed and explained in the Financial Statements;   concern basis unless it is inappropriate to presume that the Company will continue in business; and    comply with the requirements of the Companies Act 2006. 81 Governance report  Each of the Directors, whose names and functions are listed within the Directors and Managers section      Kingdom Generally Accepted Accounting Practice)     Company;     for shareholders to assess the Company’s     and the position of the Company, together with a  that it faces.  Angus Macpherson Chairman  Notes          may differ from legislation in other jurisdictions. 82 Annual Report and Financial Statements 2023 ## Financial ## report The Financial Statements for the year to 31 July 2023 are set out on pages 91 to 111 have been prepared in accordance with FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’. Financial report ## Independent ##   Opinion on the Financial Statements Basis for opinion In our opinion the Financial Statements: We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK))   and applicable law. Our responsibilities under those   return for the year then ended; responsibilities for the audit of the Financial   Statements section of our report. We believe that United Kingdom Generally Accepted Accounting  Practice; and and appropriate to provide a basis for our opinion. Our audit opinion is consistent with the additional   report to the audit committee. requirements of the Companies Act 2006.  Independence  Following the recommendation of the audit          uninterrupted engagement including retenders and   has been applied in their preparation is applicable   independent of the Company in accordance  with the ethical requirements that are relevant Financial Reporting Standard applicable in the UK  and Republic of Ireland (United Kingdom Generally  Accepted Accounting Practice).  our other ethical responsibilities in accordance with these requirements. The non-audit services prohibited by that standard were not provided to the Company. 84 Annual Report and Financial Statements 2023  Conclusions relating to going concern       concern basis of accounting in the preparation of the ability to continue as a going concern for a period Financial Statements is appropriate. Our evaluation of at least twelve months from when the Financial  Statements are authorised for issue. ability to continue to adopt the going concern basis of accounting included:     have nothing material to add or draw attention to in method of assessing going concern in light of  market volatility and the present uncertainties in Statements about whether the Directors considered economic recovery by reviewing the information it appropriate to adopt the going concern basis of used by the Directors in completing their accounting. assessment; Our responsibilities and the responsibilities of   the Directors with respect to going concern are  described in the relevant sections of this report. challenging assumptions and judgements made   Overview we considered the liquidity of the portfolios 2023 2022 and the available cash resources relative to the Key audit Valuation and ownership forecast expenditure which was assessed against matters of investments the prior year for reasonableness; Materiality Company Financial Statements as a whole         An overview of the scope of our audit by agreeing to actual results; and Our audit was scoped by obtaining an understanding     ability to meet its short-term obligations by assessing the risks of material misstatement in the assessing the net asset position and available Financial Statements. We also addressed the risk of cash balance.  assessing whether there was evidence of bias by the Directors that may have represented a risk of material misstatement. 85 Financial report Key Audit Matters    efforts of the engagement team. These matters were our audit of the Financial Statements of the current addressed in the context of our audit of the Financial   risks of material misstatement (whether or not due to   on these matters.  Key Audit Matter How the scope of our audit addressed the Key Audit Matter Valuation and ownership of investments (Note 1 and Note 9) We responded to this matter by testing the valuation and ownership of the portfolio of investments. We performed the The investment portfolio at the year-end comprised quoted following procedures:   With respect to the quoted equity investments we: We considered the valuation and ownership of investments to be    externally quoted prices;    principal activity of the entity.  Whilst we do not consider the valuation of the quoted equity appropriate indication of fair value by considering the  realisation period for individual holdings;     per equity investment from the custodian regarding all year end. investments held at the balance sheet date; and    selecting a valuation methodology and a high level of estimation shares held per the statement obtained from the custodian uncertainty involved in determining their valuations. by the valuation per share. There is also a risk that errors made in the recording of    investments owned by the Company.   For these reasons and the materiality of the balance in relation to methodology applied under the International Private Equity   key audit matter. accounting framework;   methodology selected;   sources and challenged subjective inputs including comparison to independent information where appropriate and performing stress and reverse stress testing; and    inclnuding consideration of relevant experience and  objectivity of the expert. We considered the appropriateness of the methodology and assumptions employed by the expert through review of the accounting framework and valuation guidelines followed. Key observations: Based on our procedures performed we did not identify any matters to suggest the valuation or ownership of the quoted equity or private company investments was not appropriate. 86 Annual Report and Financial Statements 2023  Our application of materiality Reporting threshold We apply the concept of materiality both in planning We agreed with the Audit Committee that we would  report to them all individual audit differences in effect of misstatements. We consider materiality to      of reasonable users that are taken on the basis of the Financial Statements. Other information The directors are responsible for the other In order to reduce to an appropriately low level information. The other information comprises the probability that any misstatements exceed the information included in the annual report and  Financial Statements other than the Financial    Our opinion on the Financial Statements does these levels will not necessarily be evaluated as  immaterial as we also take account of the nature   we do not express any form of assurance conclusion  thereon. Our responsibility is to read the other their effect on the Financial Statements as a whole.   other information is materially inconsistent with the determined materiality for the Financial Statements Financial Statements or our knowledge obtained as a whole and performance materiality as follows:  be materially misstated. If we identify such material Company Financial Statements  2023 2022 we are required to determine whether this gives Materiality   rise to a material misstatement in the Financial Basis for  determining    materiality net assets of net assets  Rationale for the  required to report that fact. benchmark applied value is the key measure of performance for users of the Financial Statements. We have nothing to report in this regard. Performance materiality   Corporate governance statement Basis for determining  performance  materiality   viability and that part of the Corporate Governance Rationale for the The level of performance materiality  percentage applied applied was set after having considered for performance a number of factors including the with the provisions of the UK Corporate Governance materiality expected total value of known and  likely misstatements and the level of  transactions in the year. we have concluded that each of the following elements of the Corporate Governance Statement is materially consistent with the Financial Statements or our knowledge obtained during the audit. 87 Financial report Going concern and longer-term viability Directors’ remuneration    appropriateness of adopting the going concern report to be audited has been properly prepared in basis of accounting and any material uncertainties accordance with the Companies Act 2006.  Matters on which we are required to report by   exception  We have nothing to report in respect of the following assessment covers and why the period is matters in relation to which the Companies Act 2006 appropriate.  Other code provisions    or returns adequate for our audit have not been understandable; received from branches not visited by us; or     robust assessment of the emerging and principal  risks; not in agreement with the accounting records and returns; or   review of effectiveness of risk management and   internal control systems; and      Committee. explanations we require for our audit. Other Companies Act 2006 reporting Responsibilities of Directors Based on the responsibilities described below and    we are required by the Companies Act 2006 and the preparation of the Financial Statements and ISAs (UK) to report on certain opinions and matters  as described below.  determine is necessary to enable the preparation Strategic Report and Directors’ Report of Financial Statements that are free from material   course of the audit:       which the Financial Statements are prepared is  consistent with the Financial Statements; and and using the going concern basis of accounting unless the Directors either intend to liquidate the    been prepared in accordance with applicable legal alternative but to do so. requirements. In the light of the knowledge and understanding of the Company and its environment obtained in  material misstatements in the strategic report or  88 Annual Report and Financial Statements 2023  Auditor’s responsibilities for the audit of the   with governance throughout the period for Financial Statements instances of non-compliance with laws and Our objectives are to obtain reasonable assurance regulations; and about whether the Financial Statements as a whole     Trust status compliance to check that the includes our opinion. Reasonable assurance is a Company was meeting its requirements to retain  its Investment Trust status. an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it Fraud exists. Misstatements can arise from fraud or error   statement to material misstatement including fraud.  Our risk assessment procedures included:  the basis of these Financial Statements.   governance regarding any known or suspected Extent to which the audit was capable of detecting instances of fraud; irregularities, including fraud    policies and procedures relating to: non-compliance with laws and regulations. We    and     to which our procedures are capable of detecting related to fraud;    with governance for any known or suspected Non-compliance with laws and regulations instances of fraud; and Based on:     how and where fraud might occur in the Financial industry in which it operates; Statements.    with governance; areas most susceptible to be management override of controls and the valuation of private company   investments. policies and procedures regarding compliance with laws and regulations; Our procedures in respect of the above included:     section above for private company investments;     management in the Financial Statements to assess industry practice represented by the AIC SORP and their appropriateness and the existence of any the applicable accounting framework. systematic bias; Our procedures in respect of the above included:     of adjustments made in the preparation of the to underlying supporting documentation; Financial Statements; and     governance relating to the existence of any non- indications of bias or deliberate misstatement. compliance with laws and regulations; 89 Financial report  and regulations and potential fraud risks to all engagement team members who were all deemed to have appropriate competence and capabilities and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. Our audit procedures were designed to respond to risks of material misstatement in the Financial  detecting a material misstatement due to fraud is higher than the risk of not detecting   misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and  the less likely we are to become aware of it. A further description of our responsibilities is  website at: .  Use of our report    work has been undertaken so that we might state   for no other purpose. To the fullest extent permitted     Chris Meyrick (Senior Statutory Auditor)   5 October 2023  in England and Wales (with registered number  90 Annual Report and Financial Statements 2023  ## Income ## statement For the year ended 31 July | | | 2023 | 2023 | 2023 | | 2022 | 2022 | 2022 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Revenue | | Capital | Total | Revenue | | Capital | Total | | Notes | | £’000 | £’000 | £’000 | | £’000 | £’000 | £’000 |   –  (25,404) –  (118,594)   –  (791) –  1,292 Income 2  – 9,580  – 11,067 Investment management fee 3  – (3,419)  – (4,036) Other administrative expenses   – (762)  – (1,093)  5,399 (26,195) (20,796) 5,938 (117,302) (111,364) and taxation Finance costs of borrowings 5  – (403)  – (756) Net return before taxation 4,996 (26,195) (21,199) 5,182 (117,302) (112,120) Tax 6 (830)  (2,086)   3,936 Net return after taxation 4,166 (27,451)  3,830 (112,014) (108,184) Net return per ordinary share 7 4.56p (30.05p) (25.49p) 4.21p (123.01p) (118.80p)  under guidance published by the Association of Investment Companies. All revenue and capital items in this Statement derive from continuing operations. A Statement of Comprehensive Income is not required as the Company does not have any other comprehensive income and the net return after taxation is   91 Financial report # Balance sheet ## As at 31 July | | Notes | 2023 £'000 | 2023 £'000 | 2022 £'000 | 2022 £'000 | | --- | --- | --- | --- | --- | --- | | **Fixed assets** | | | | | | | Investments held at fair value through profit or loss | 9 | | 572,748 | | 608,539 | | **Current assets** | | | | | | | Debtors | 10 | 420 | | 1,248 | | | Cash and cash equivalents | 18 | 12,442 | | 5,399 | | | | | 12,862 | | 6,647 | | | **Creditors** | | | | | | | Amounts falling due within one year: | | | | | | | Other creditors and accruals | 11 | (1,163) | | (1,620) | | | **Net current assets** | | | 11,699 | | 5,027 | | **Total assets less current liabilities** | | | **584,447** | | **613,566** | | **Creditors** | | | | | | | Amounts falling due after more than one year: | | | | | | | Provision for tax liability | 12 | | (4,092) | | (3,016) | | **Net assets** | | | **580,355** | | **610,550** | | **Capital and reserves** | | | | | | | Share capital | 13 | | 9,208 | | 9,208 | | Share premium account | 14 | | 254,120 | | 253,946 | | Capital redemption reserve | 14 | | 20,367 | | 20,367 | | Capital reserve | 14 | | 287,783 | | 319,573 | | Revenue reserve | 14 | | 8,877 | | 7,456 | | **Shareholders' funds** | | | **580,355** | | **610,550** | | **Net asset value per ordinary share** | **15** | | **637.18p** | | **664.65p** | The Financial Statements of Pacific Horizon Investment Trust PLC (Company Registration number 02342193) on pages 91 to 111 were approved and authorised for issue by the Board and were signed on 5 October 2023. Angus Macpherson Chairman The accompanying notes on pages 95 to 111 are an integral part of the Financial Statements. 92 Annual Report and Financial Statements 2023  ## Statement of ##  For the year ended 31 July 2023 | | | | Share | | Capital | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Share | premium | | redemption | | Capital | Revenue | | Shareholders’ | | | | capital | account | | | reserve | reserve | reserve | | | funds | | Notes | £’000 | | £’000 | | £’000 | £’000 | | £’000 | | £’000 |       610,550 Net return after taxation – – –   (23,285) Ordinary shares bought back into treasury  – – –  – (5,541) Ordinary shares sold from treasury  –  –  – 1,376 Ordinary shares issued  – – – – – – Dividends paid during the year 8 – – – –  (2,745) Shareholders’ funds at 31 July 2023 9,208 254,120 20,367 287,783 8,877 580,355 For the year ended 31 July 2022 | | | | Share | | Capital | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Share | premium | | redemption | | Capital | Revenue | | Shareholders’ | | | | capital | account | | | reserve | reserve | reserve | | | funds | | Notes | £’000 | | £’000 | | £’000 | £’000 | | £’000 | | £’000 |       687,231 Net return after taxation – – –   (108,184) Ordinary shares bought back into treasury  – – –  – (1,454) Ordinary shares sold from treasury  – – – – – – Ordinary shares issued  365  – – – 32,957 Dividends paid during the year 8 – – – – – – Shareholders’ funds at 31 July 2022 9,208 253,946 20,367 319,573 7,456 610,550  93 Financial report # Cash flow statement ## For the year ended 31 July | | Notes | 2023 £'000 | 2023 £'000 | 2022 £'000 | 2022 £'000 | | --- | --- | --- | --- | --- | --- | | **Cash flows from operating activities** | | | | | | | Net return before taxation | | (21,199) | | (112,120) | | | Net losses on investments | | 25,404 | | 118,594 | | | Currency losses/(gains) | | 791 | | (1,292) | | | Finance costs of borrowings | 5 | 403 | | 756 | | | Overseas withholding tax incurred | | (881) | | (1,288) | | | Indian tax paid on transactions | | (180) | | (774) | | | Changes in debtors | | 523 | | (580) | | | Change in creditors | | (11) | | (9) | | | **Cash from operations*** | | 4,850 | | 3,287 | | | Interest paid | | (403) | | (765) | | | **Net cash inflow from operating activities** | | | **4,447** | | **2,522** | | **Cash flows from investing activities** | | | | | | | Acquisitions of investments | | (89,277) | | (197,017) | | | Disposals of investments | | 99,574 | | 196,116 | | | **Net cash inflow/(outflow) from investing activities** | | | **10,297** | | **(901)** | | **Cash flows from financing activities** | | | | | | | Ordinary shares bought back into treasury | 13 | (5,541) | | (1,454) | | | Ordinary shares sold from treasury | 13 | 1,376 | | – | | | Proceeds from ordinary shares issued | 13 | – | | 32,957 | | | Borrowings drawn down | | – | | 119,372 | | | Borrowings repaid | | – | | (182,957) | | | Equity dividends paid | 8 | (2,745) | | – | | | **Net cash outflow from financing activities** | | | **(6,910)** | | **(32,082)** | | **Increase/(decrease) in cash and cash equivalents** | | | **7,694** | | **(30,461)** | | Exchange movements | | | (791) | | 4,094 | | Cash and cash equivalents at 1 August | | | 5,399 | | 31,766 | | **Cash and cash equivalents at 31 July** | | | **12,442** | | **5,399** | \* Cash from operations includes dividends received of £9,925,000 (2022 – £10,279,000) and interest received of £163,000 (2022 – £6,000). The accompanying notes on pages 95 to 111 are an integral part of the Financial Statements. 94 Annual Report and Financial Statements 2023  ## Notes to the ## Financial Statements the going concern basis; having assessed the principal 01 Principal accounting policies and emerging risks and other matters set out in the    prospects of the Company over a period of three years) Reporting Standard applicable in the UK and Republic of   in operational existence for a period of at least twelve which are unchanged from the prior year and have been months from the date of approval of these Financial applied consistently. Statements. a. Basis of accounting The Financial Statements have been prepared in   nature and the Financial Statements are prepared on a UK Accounting Standards and with the Statement  of Recommended Practice ‘Financial Statements of    issued by the Association of Investment Companies assumption that approval as an investment trust under   consequential amendments. Investment Trust (Approved Company) (Tax) Regulations       and loss account between items of a revenue and capital explanation of these risks and how they are managed is nature has been presented in the Income Statement.  The allocation of items to revenue and capital is  reviewed on an annual basis and is considered to impact of heightened market volatility over recent months remain appropriate for the current year.     is affected.       b. Financial instruments the prior approval of the Board. The Board approves  borrowing and gearing limits and reviews regularly the  amounts of any borrowing and the level of gearing as well party to the contractual provisions of the instrument. as compliance with borrowing covenants. The Company has continued to comply with the investment trust status    The preparation of the Financial Statements requires        reporting date. While estimates are based on best   affecting their respective services to the Company. the actual outcome may differ from these estimates.  The key sources of estimation and uncertainty relate shareholders have the right to vote on the continuation to the assumptions used in the determination of the   2026. The Financial Statements have been prepared on  95 Financial report Judgements d. Investments The Directors consider that the preparation of the  Financial Statements involves the following key  judgements:  Investment purchases and sales are recognised on a trade i. the determination of the functional currency of the date basis. Expenses incidental to purchase and sale are  written off to capital at the time of acquisition or disposal. ii. the fair valuation of the unlisted investments. Gains and losses on investments are recognised in the Income Statement as capital items. The key judgements in the fair valuation process are: Investments are designated as held at fair value through   application of the International Private Equity and at subsequent reporting dates at fair value. The fair   unlisted investment; and    value is appropriate following detailed review and fair value of suspended investments is the last traded challenge. The judgement applied in the selection of the  methodology used for determining the fair value of each of the suspension. Unlisted investments are valued at  fair value by the Directors following a detailed review the valuation. and appropriate challenge of the valuations proposed by  Estimates applies methodologies consistent with the International The key estimate in the Financial Statements is the Private Equity and Venture Capital Valuation guidelines determination of the fair value of the unlisted investments  by the Managers for consideration by the Directors. This   benchmarks and available market prices); (b) income the unlisted investments at the Balance Sheet date. The  fair valuation process involves estimation using subjective cost approach (net assets). The valuation process inputs that are unobservable (for which market data is  unavailable). The main estimates involved in the selection the price of a recent investment may be an appropriate of the valuation process inputs are:  be evaluated using the techniques described above. i. the selection of appropriate comparable companies in order to derive revenue multiples and meaningful The Managers monitor the investment portfolio on a fair  value basis and use the fair value basis for investments earnings growth. Comparable companies are chosen on  the basis of their business characteristics and growth performance. patterns; e. Cash and cash equivalents ii. the selection of a revenue metric (either historic or Cash and cash equivalents include cash in hand and forecast); deposits repayable on demand. Deposits are repayable iii. the application of an appropriate discount factor to on demand if they can be withdrawn at any time without  notice and without penalty or if they have a maturity or versus their listed peers; period of notice of not more than one working day. iv. the estimation of the probability assigned to an exit f. Income  i. Income from equity investments is brought into account company sale; on the date on which the investments are quoted  v. the selection of an appropriate industry benchmark  index to assist with the valuation validation or the established.  absence of established earnings or closely comparable ii. If scrip dividends are taken in lieu of dividends in peers; and  is credited to the revenue column of the Income vi. the calculation of valuation adjustments derived from Statement. Any excess in the value of the shares milestone analysis (i.e. incorporating operational received over the amount of the cash dividend foregone  is recognised in the capital column of the Income the valuation). Statement. 96 Annual Report and Financial Statements 2023  iii. Special dividends are treated as capital or income m. Capit al rese rve depending on the facts of each particular case.  in the fair value of investments held and realised and iv. Unfranked investment income and overseas dividends unrealised exchange differences of a capital nature are include the taxes deducted at source. dealt with in this reserve after being recognised in the   an accruals basis using the effective interest rate basis.   vi. Underwriting commission and interest receivable on deposits are recognised on an accruals basis. n. Revenue reserve g. Expenses  this reserve. The revenue reserve may be distributed by All expenses are accounted for on an accruals basis way of dividend. and are charged through the revenue column of the  o. Single segment reporting   off to capital when incurred.   segmental analysis is provided. Interest bearing bank loans are recorded at the proceeds p. Dividend distributions  Final dividends are recognised in the period in which the measured at amortised cost. Finance costs are accounted  for on an accruals basis and are charged through the revenue column of the Income statement. i. Taxation Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to taxation authorities. The tax rates and tax laws used to compute the amount are those enacted or substantively enacted at the reporting date. j. Deferred taxation    at the current tax rate relevant to the realisation of the  only to the extent that it will be more likely than not that  differences can be deducted.   Transactions involving foreign currencies are converted at the rate ruling at the time of the transaction. Assets and liabilities in foreign currencies are translated at the closing rates of exchange at the balance sheet date. Any gain or loss arising from a change in exchange rate subsequent to the date of the transaction is included as an exchange gain or loss in the Income Statement as capital or revenue as appropriate. l. Capital redemption reserve  distributable reserve into which amounts are transferred  shares. 97 Financial report ## 02 Income | | 2023 £'000 | 2022 £'000 | | --- | --- | --- | | **Income from investments** | | | | Overseas dividends | 9,417 | 11,060 | | **Other income** | | | | Deposit interest | 163 | 7 | | **Total income** | **9,580** | **11,067** | | **Total income comprises:** | | | | Dividends from financial assets designated at fair value through profit or loss | 9,417 | 11,060 | | Interest from financial assets not at fair value through profit or loss | 163 | 7 | | | **9,580** | **11,067** | ## 03 Investment management fee | | 2023 £'000 | 2022 £'000 | | --- | --- | --- | | Investment management fee | **3,419** | **4,036** | Details of the Investment Management Agreement are set out on page 61. The annual management fee is 0.75% on the first £50 million of net assets, 0.65% on the next £200 million of net assets and 0.55% on the remaining net assets. Management fees are calculated and payable on a quarterly basis. ## 04 Other administrative expenses | | 2023 £'000 | 2022 £'000 | | --- | --- | --- | | General administrative expenses | 142 | 173 | | Custody charges | 255 | 543 | | Directors' fees | 161 | 143 | | Marketing* | 71 | 85 | | Depository fee | 70 | 110 | | Auditor's remuneration for audit services† | 50 | 32 | | Registrar's fees | 13 | 7 | | | **762** | **1,093** | * The Company is part of a marketing programme which includes all the investment trusts managed by the Manager. The marketing strategy has an ongoing objective to stimulate demand for the Company's shares. The cost of this marketing strategy is borne in partnership by the Company and the Manager. The Manager matches the Company's marketing contribution and provides the resource to manage and run the programme. † Auditor's remuneration above is exclusive of VAT. There were no non-audit fees paid to the Auditor during the year (2022 – nil). ## 05 Finance costs of borrowings | | 2023 £'000 | 2022 £'000 | | --- | --- | --- | | Royal Bank of Scotland International Limited non-utilisation fee* (see note 11) | **403** | **756** | * The prior year included £300,000 pertaining to the arrangement fee of the loan. 98 Annual Report and Financial Statements 2023    | | 2023 | 2023 | 2023 | | 2022 | 2022 | 2022 | | --- | --- | --- | --- | --- | --- | --- | --- | | Revenue | | Capital | Total | Revenue | | Capital | Total | | | £’000 | £’000 | £’000 | | £’000 | £’000 | £’000 | Overseas taxation 830 – 830  – 1,352 Indian tax paid and provided for –  1,256 –  (5,288) 830 1,256 2,086 1,352 (5,288) (3,936) 2023 2022 £’000 £’000 Factors affecting the tax charge for the year The tax assessed for the year is higher (2022 – higher) than the average standard rate of * Net return before taxation (21,199) (112,120) Net return multiplied by the average standard rate of corporation tax in the   * Capital loss not deductible   Overseas dividends not taxable in the UK      Overseas withholding tax incurred 830  Revenue tax charge for the year 830 1,352    Payments of Indian tax in the period   Capital tax charge for the year 1,256 (5,288) Total tax 2,086 (3,936) *   repayment is included within interest income. The capital tax charge results from the provision for tax liability in respect of Indian  Factors that may affect future tax charges    expenses in future periods. The potential deferred tax asset has been calculated using a corporation tax rate of 25% (2022 – 25%). 99 Financial report ## 07 Net return per ordinary share | | 2023 Revenue | 2023 Capital | 2023 Total | 2022 Revenue | 2022 Capital | 2022 Total | | --- | --- | --- | --- | --- | --- | --- | | Net return after taxation | 4.56p | (30.05p) | (25.49p) | 4.21p | (123.01p) | (118.80p) | Revenue return per ordinary share is based on the net revenue profit after taxation of £4,166,000 (2022 – net revenue profit of £3,830,000) and on 91,364,427 (2022 – 91,063,205) ordinary shares, being the weighted average number of ordinary shares in issue (excluding treasury shares) during the year. Capital return per ordinary share is based on the net capital loss for the financial year of £27,451,000 (2022 – net capital loss of £112,014,000) and on 91,364,427 (2022 – 91,063,205) ordinary shares, being the weighted average number of ordinary shares in issue (excluding treasury shares) during the year. Total return per ordinary share is based on the total loss for the financial year of £23,285,000 (2022 – total loss of £108,184,000) and on 91,364,427 (2022 – 91,063,205) ordinary shares, being the weighted average number of ordinary shares in issue (excluding treasury shares) during the year. There are no dilutive or potentially dilutive shares in issue. ## 08 Ordinary dividends | | 2023 | 2022 | 2023 £'000 | 2022 £'000 | | --- | --- | --- | --- | --- | | **Amounts recognised as distributions in the year:** | | | | | | Previous year's final dividend (paid 29 November 2022) | 3.00p | – | 2,745 | – | We set out below the total dividends proposed in respect of the financial year, which is the basis on which the requirements of section 1158 of the Corporation Tax Act 2010 are considered. There is a revenue surplus for the year to 31 July 2023 of £4,166,000 which is available for distribution by way of a dividend payment (2022 – a revenue surplus of £3,830,000). | | 2023 | 2022 | 2023 £'000 | 2022 £'000 | | --- | --- | --- | --- | --- | | **Amounts paid and payable in respect of the financial year:** | | | | | | Proposed final dividend per ordinary share (payable 30 November 2023) | 3.25p | 3.00p | 2,959 | 2,745 | ## 09 Fixed assets – investments | As at 31 July 2023 | Level 1 £'000 | Level 2 £'000 | Level 3 £'000 | Total £'000 | | --- | --- | --- | --- | --- | | Listed equities* | 542,048 | 1,273 | – | 543,321 | | Unlisted company equities | – | – | 2,555 | 2,555 | | Unlisted company preference shares# | – | – | 26,872 | 26,872 | | **Total financial asset investments** | **542,048** | **1,273** | **29,427** | **572,748** | | As at 31 July 2022 | Level 1 £'000 | Level 2 £'000 | Level 3 £'000 | Total £'000 | | --- | --- | --- | --- | --- | | Listed equities | 570,801 | 495 | – | 571,296 | | Unlisted company equities | – | – | 4,051 | 4,051 | | Unlisted company preference shares# | – | – | 33,192 | 33,192 | | **Total financial asset investments** | **570,801** | **495** | **37,243** | **608,539** | * During the period, Brilliance China listed on the Hong Kong stock exchange having de-listed on 31 March 2021 and there was a demerger with Reliance Industries, where shares of Jio Financial Services were acquired but the company did not list until 21 August 2023. # The investments in preference shares include liquidation preference rights that determine the repayment (or multiple thereof) of the original investment in the event of a liquidation event such as a take-over. During the year to 31 July 2023 no investments (31 July 2022 – £23,341,000) were transferred from Level 3 to Level 1 on becoming listed. Investments in securities are financial assets held at fair value through profit or loss. In accordance with Financial Reporting Standard 102, the tables above provide an analysis of these investments based on the fair value hierarchy described below, which reflects the reliability and significance of the information used to measure their fair value. 100 Annual Report and Financial Statements 2023   (continued) Fair value hierarchy   for the individual investment in its entirety as follows: Level 1 – using unadjusted quoted prices for identical instruments in an active market; Level 2 that are directly or indirectly observable (based on market data); and Level 3 – using inputs that are unobservable (for which market data is unavailable).   companies. The determinations of fair value included assumptions that the comparable companies and scenarios chosen for the performance assessment provide a reasonable basis for the determination of fair value. In some cases the latest dealing price is  | Listed | Unlisted | 2023 | 2022 | | --- | --- | --- | --- | | equities | equities | Total | Total | | £’000 | £’000 | £’000 | £’000 |    488,845     119,694  Value of investments at 1 August 2022 571,296 37,243 608,539 725,122 Movements in year: Purchases at cost  – 88,831  Sales – proceeds received  – (99,218)  – gains on investments  – 14,553  Change in fair value   (39,957)   543,321 29,427 572,748 608,539    493,011     79,737   543,321 29,427 572,748 608,539      2023 2022 £’000 £’000  Realised gains on sales   Changes in investment holding gains and losses   (25,404) (118,594)  Details are disclosed below in accordance with the requirements of paragraph 82 of the AIC Statement of Recommended Practice     101 Financial report  (continued) | As at 31 July 2023 | | | | | | | | | | | Income | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | recognised | | | | Pre-tax | | | Net assets | | | | | | | Latest | | | | | | from holding | | | |  | | | attributable | | | | | | Financial | | |  | | |  | in the period | | Turnover | | | (loss) | to shareholders | | | | | | Statements | | | | | £’000 | Value £’000 | | | £’000 | | (‘000) | (‘000) | | | | (‘000)Name Business | | Dailyhunt | Indian news | | | |    Nil Information not publicly available | | | | | | | | | | | | | | | (VerSe | aggregator | | | | | | | | | | | | | | | | | | | Innovation) | application | | | | | | | | | | | | | | | | | | | As at 31 July 2022 | | | | | | | | | | | Income | | | | | | | | | | | | | | | | | | | recognised | | | | Pre-tax | | | Net assets | | | | | | | Latest | | | | | | from holding | | | | |  | | attributable | | | | | | Financial | | |  | | |  | in the period | | Turnover | | | (loss) | to shareholders | | | | | | Statements | | | | | £’000 | Value £’000 | | | £’000 | | (‘000) | | (‘000) | | | (‘000)Name Business | | Dailyhunt | Indian news | | | |    Nil Information not publicly available | | | | | | | | | | | | | | | (VerSe | aggregator | | | | | | | | | | | | | | | | | | | Innovation) | application | | | | | | | | | | | | | | | | | | 10 Debtors 2023 2022 £’000 £’000 Amounts falling due within one year: Income accrued (net of withholding taxes)   Sales for subsequent settlement –  Other debtors and prepayments   420 1,248     | | 2023 | | 2022 | | --- | --- | --- | --- | | | £’000 | | £’000 | |  | | 52 52 | | non-utilisation fee Investment purchases awaiting settlement –  Investment management fee   Other creditors and accruals 238  1,163 1,620     There were no breaches in the loan covenants during the year.  102 Annual Report and Financial Statements 2023        depending on the value and timing of any future sales of such investments and future Indian tax rates. 13 Share capital 2023 2023 2022 2022 Number £’000 Number £’000          22 92,074,961 9,208 92,074,961 9,208          Articles of Association share buy-backs are funded from the capital reserve.  14 Capital and reserves | | | Share | | Capital | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Share | premium | | redemption | | Capital | Revenue | | Shareholders’ | | | capital | account | | | reserve | reserve | reserve | | | funds | | £’000 | | £’000 | | £’000 | £’000 | | £’000 | | £’000 |       610,550 Net gains on sales of investments – – –  – 14,553 Changes in investment holding – – –  – (39,957) gains and losses Other exchange differences – – –  – (791) Indian CGT paid and provided for – – –  – (1,256) Ordinary shares bought back into – – –  – (5,541) treasury Ordinary shares sold from treasury –  –  – 1,376 Revenue return after taxation – – – –  4,166 Dividends paid during the year – – – –  (2,745)  9,208 254,120 20,367 287,783 8,877 580,355 T   103 Financial report   The net asset value per ordinary share and the net assets attributable to the ordinary shareholders at the year end calculated in accordance with the Articles of Association were as follows: | | 2023 | | 2022 | | 2023 | | 2022 | | --- | --- | --- | --- | --- | --- | --- | --- | | Net asset | | Net asset | | Net assets | | Net assets | | | | value | | value | attributable | | attributable | | | per share | | per share | | | £’000 | | £’000 | Ordinary shares 637.18p 664.65p 580,355 610,550      | At 1 August | | | | Exchange | | At 31 July | | | --- | --- | --- | --- | --- | --- | --- | --- | | | 2022 |  | | movement | | | 2023 | | | £’000 | | £’000 | | £’000 | | £’000 | Cash at bank and in hand 5,399 7,834 (791) 12,442 17 Transactions with related parties and the managers and secretaries  with the Company. During the year no Director was interested in any contract or other matter requiring disclosure under section       18 Financial instruments       of a permanent loss of capital rather than to minimise short term volatility. Risk provides the potential for both losses and gains.  The risk management policies and procedures outlined in this note have not changed substantially from the previous accounting period.     exposure to market risk when making individual investment decisions and monitor the overall level of market risk across the investment portfolio on an ongoing basis.    enter into derivative transactions without the prior approval of the Board. 104 Annual Report and Financial Statements 2023  18 Financial instruments (continued)    value of those items.      which the company is quoted.  otherwise adversely affect the value of the portfolio of investments.   | | | | Cash and cash | | | Other debtors | | | Net | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Investments | | | equivalents | | and creditors | exposure | | | | At 31 July 2023 | | £’000 | | | £’000 | £’000 | | £’000 | |   – – 142,684 Indian rupee    136,710 Korean won  –  100,571 US dollar   – 49,460 Indonesian rupiah  – – 32,637 Taiwan dollar   – 32,600 Vietnam dong   32 33,499 Chinese yuan  – – 30,189 Thai baht  – – 5,447 Australian dollar  – – 3,311 Chinese renminbi – – – –  558,583 12,383 (3,858) 567,108 Sterling    13,247 572,748 12,442 (4,835) 580,355 | | | | Cash and cash | | | Other debtors | | | Net | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Investments | | | equivalents | | and creditors | exposure | | | | At 31 July 2022 | | £’000 | | | £’000 | £’000 | | £’000 | |   –  135,269 Indian rupee    132,537 Korean won  –  101,271 US dollar    60,185 Indonesian rupiah  – – 46,508 Taiwan dollar   – 26,974 Vietnam dong   – 25,323 Chinese yuan  200 – 43,341 Australian dollar  – – 9,995 Chinese renminbi –   –  578,477 5,296 (2,370) 581,403 Sterling    29,147 608,539 5,399 (3,388) 610,550 105 Financial report 18 Financial instruments (continued)      of change is considered to be reasonable based on observations of current market conditions. The analysis is performed on the same basis for 2022. 2023 2022 £’000 £’000    Indian rupee   Korean won   US dollar   Indonesian rupiah   Taiwan dollar   Vietnam dong   Chinese yuan   Thai baht  – Australian dollar  500 28,355 29,070  Interest rate movements may affect directly:            account when making investment decisions and when entering borrowing agreements. The Board reviews on a regular basis the  other similar investments.      Financial assets | | | | | 2023 | 2023 | | | | | 2022 | 2022 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | 2023 | | Weighted | | Weighted | | 2022 | | Weighted | | Weighted | | Fair value | | | average | |   | Fair value | | | average | |   | | | £’000 | interest rate | | | rate period * | | £’000 | interest rate | | | rate period * | Cash and cash equivalents: Overseas currencies       Sterling     0.5%  12,442 5,399 * Based on expected redemption date. 106 Annual Report and Financial Statements 2023  18 Financial Instruments (continued)  Financial liabilities    | 2023 | 2022 | | --- | --- | | Within | Within | | 1 year | 1 year | | £’000 | £’000 |  52 52  The sensitivity analysis below has been determined based on the exposure to interest rates at the Balance Sheet date and with      would have had an equal but opposite effect.  Changes in market prices other than those arising from interest rate risk or currency risk may also affect the value of the      and investment policies. The portfolio does not seek to reproduce the index. Investments are selected based upon the merit of individual companies and therefore performance may well diverge from the comparative index.       reasonable based on observations of current market conditions.    A sensitivity analysis is provided below which recognises that the valuation methodologies employed involve subjectivity in their   table also provides the range of values for the key unobservable inputs. 107 Financial report 18 Financial Instruments (continued)   As at 31 July 2023 * Fair value as | | at 31 July | Key | | Other | | | Weighted | | | Sensitivity to changes | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Valuation | 2023 | unobservable | | unobservable | | | average | | Sensitivity |  | | technique | £’000 | inputs | | inputs | † | Range | range | # | % | unobservable inputs | | Market |   | | |   3.6x   | | | | | | | | approach | | revenue | | | | | | | |  | | using | | multiple | ‡ | | | | | | | the fair value would | | comparable | | | | | | | | | |  | | trading | | | | | | | | | |  | multiples | Transaction | g 88%   If the transaction implied | | | --- | --- | --- | | implied | | premium is changed | | premium and | |  | | discounts | | value would change |   Illiquidity e    If the illiquidity discounts discount is changed by  would change by  Benchmark  Selection of     If input comparable performance comparable company performance companies §  the fair value would  †   # Weighted average is calculated by reference to the fair value of holdings as at the respective year-end. This therefore gives a clearer indication of the typical multiple or adjustment being applied across the portfolio. ‡  §  company value for the basket of comparable companies relevant to each holding since the most recent transaction or since the last assessed. *  The variable inputs applicable to each broad category of valuation basis will vary dependent on the particular circumstances of each private company valuation. An explanation of each of the key unobservable inputs is provided below and includes   108 Annual Report and Financial Statements 2023  18 Financial Instruments (continued)   As at 31 July 2022 * Fair value as | | at 31 July | Key | | Other | | | Weighted | | | Sensitivity to changes | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Valuation | 2022 | unobservable | | unobservable | | | average | | Sensitivity |  | | technique | £’000 | inputs | | inputs | † | Range | range | # | % | unobservable inputs | | Market |   | | |   | | | 3.5x   | | | | | approach | | revenue | | | |  | | | |  | | | | multiple | ‡ | | | | | | | fair value would change | using  comparable  trading multiples Illiquidity e    If the transaction implied discounts   the fair value would   | Comparable |  | Selection of | |  -23%   If input comparable | | | --- | --- | --- | --- | --- | --- | | company | | comparable | | | company performance | | performance | | companies | § | | |  the fair value would   Recent        transaction price †  # Weighted average is calculated by reference to the fair value of holdings as at the respective year-end. This therefore gives a clearer indication of the typical multiple or adjustment being applied across the portfolio.     value for the basket of comparable companies relevant to each holding since the most recent transaction or since the last assessed. *  The variable inputs applicable to each broad category of valuation basis will vary dependent on the particular circumstances of each private company valuation. An explanation of each of the key unobservable inputs is provided below and includes   109 Financial report 18 Financial Instruments (continued)   a. Application of valuation basis   achievement of key milestones since investment. Adjustments may also be made depending on the performance of comparable    where appropriate forecasts are available. b. Probability estimation of liquidation events  input in the Transaction-based and Multiples-based valuation techniques. The probability of an IPO versus a company sale is typically estimated from the outset to be 50:50 if there has been no indication by the company of pursuing either of these      c. Selection of comparable companies  relevance of the comparable companies is continually evaluated at each valuation. The key criteria used in selecting    resultant revenue or earnings multiples or share price movements derived will vary depending on the companies selected and the industries they operate in. d. Estimated sustainable earnings  where it is not then revenues will be used in the valuation. The valuation approach will typically assess companies based on  Where a company has reliably forecasted earnings previously or there is a change in circumstance at the business which will  e. Application of illiquidity discount The application of an illiquidity discount will be applied either through the calibration of a valuation against the most recent   activity.   The selection of appropriate benchmarks is assessed individually for each investment. The industry and geography of  comparison. g. Transaction implied premium and discount  will be calibrated to this by deriving a company valuation with reference to the average multiple from a set of comparable   be reduced due to factors such as period of time since the transaction and company performance. Where a calibrated approach     Board provides guidance to the Managers as to the maximum exposure to any one holding and to the maximum aggregate exposure to substantial holdings.    110 Annual Report and Financial Statements 2023  18 Financial Instruments (continued)  This is the risk that a failure of a counterparty to a transaction to discharge its obligations under that transaction could result in the Company suffering a loss. This risk is managed as follows:   compared to the prospective investment return of the security in question;        the counterparty to any transaction entered into by the Company has delivered on its obligations before any transfer of cash or securities away from the Company is completed;   wherein the creditworthiness of the entity acting as broker or counterparty to the transaction is likely to be of sustained      2023 2022 £’000 £’000 Cash and cash equivalents   Debtors and prepayments   12,862 6,647    approximate their fair value. Capital management        111 ## Shareholder ## information  ## Notice of Annual ## General Meeting Tram Stop Leith Walk Calton Square Omni Centre York Place John w Queen Street o Bus Lewis Station e R i d s n e r e St Andrew Square G Tram t e C a Stop r e l t o n H t i l l S e Street t h e i Balmoral L c e The Annual General Meeting of the Company will be held at the St Andrew Square o P l a St Andrew Square Hotel t e r l o W a  C a l t o  n R o a d A7 North Bridge A8 Princes Street Edinburgh Waverley Station The Board encourages all shareholders to submit proxy voting By Rail:    . By Bus: Should shareholders have questions for the Board or the Lothian Buses local services include:  1, 3, 5, 7, 8, 10, 14, 15, 16, 25, 34  By Tram: to trustenquiries@bailliegifford.com Stops at St Andrew Square and Picardy Place Baillie Gifford may record your call.  Access to Waverley Train Station on foot       will be proposed as special resolutions: Ordinary business             Georg 05. To re-elect Mr RA Macpherson as a Director of the Company. 06. To re-elect Sir RW Chote as a Director of the Company. 113 Shareholder information     prejudice to the exercise of any such authority prior to the             Annual General Meeting at which the Financial Statements  are laid before the Company. that:   a. the maximum number of ordinary shares hereby authorised the Independent Auditor of the Company.     share capital of the Company on the date on which this a. the Directors be generally and unconditionally authorised Resolution is passed;   b. the minimum price (excluding expenses) which may be to subscribe for or convert any security into shares in the paid for each ordinary share shall be the nominal value  of that share; and c. the maximum price (excluding expenses) which may be b. the authority given by this Resolution: paid for any ordinary share purchased pursuant to this authority shall not be more than the higher of: i. shall be in addition to all pre-existing authorities under  i. 5 per cent. above the average closing price on the      purchase; and at the conclusion of the Annual General Meeting of the  ii. the higher price of the last independent trade of an  ordinary share and the highest current independent bid agreement which would or might require the allotment    subscribe for or to convert any security into shares in   conferred shall expire at the conclusion of the Annual   General Meeting of the Company to be held in 2023      ordinary shares under such authority which will or might  be completed or executed wholly or partly after the  expiration of such authority and may make a purchase  of ordinary shares pursuant to any such contract or provided that such power: contracts. a. shall be limited to the allotment of equity securities or the sale of treasury shares up to an aggregate nominal By Order of the Board   b. shall be in addition to all pre-existing powers under Company Secretaries    save that the Company may before expiry of the power conferred on the Directors by this Resolution make an offer or agreement which would or might require equity securities to be allotted after such expiry. 114 Annual Report and Financial Statements 2023  Notes   sponsors or voting service provider(s) should note that     special procedures in CREST for any particular message. at the AGM. A proxy need not be a member of the Company  but must attend the AGM to represent you. You may appoint apply in relation to the input of CREST Proxy Instructions. more than one proxy provided each proxy is appointed It is the responsibility of the CREST member concerned to exercise rights attached to different shares. You can  only appoint a proxy using the procedure set out in these  notes and the notes to the proxy form. You may not use  any electronic address provided either in this notice or any or voting service provider(s) take(s)) such action as shall related documents (including the Financial Statements be necessary to ensure that a message is transmitted by and proxy form) to communicate with the Company for any means of the CREST service by any particular time. In this purpose other than those expressly stated.  02. To be valid any proxy form or other instrument appointing a     concerning practical limitations of the CREST system and received by post or (during normal business hours only) by timings. hand at the Registrars of the Company at Computershare 06. The Company may treat as invalid a CREST Proxy Instruction  in the circumstances set out in Regulation 35(5)(a) of the eproxyappointment.com no later than   non-working days) before any adjourned meeting).   proxy will not prevent you attending the AGM and voting in 03. CREST members who wish to appoint a proxy or proxies person if you wish. through the CREST electronic proxy appointment service may do so by using the procedures described in the     euroclear.com/CREST. CREST personal members or other   attend and vote at the AGM (and for the purpose of the  determination by the Company of the votes they may   will be able to take the appropriate action on their behalf.  non-working days) prior to the commencement of the AGM   or any adjourned meeting. Changes to the Register of  Members after the relevant deadline shall be disregarded in  determining the rights of any person to attend and vote at authenticated in accordance with Euroclear UK & Ireland the meeting.       the appointment of a proxy or is an amendment to the       (or to have someone else appointed) as a proxy for the  Annual General Meeting. If a Nominated Person has no such   time of receipt will be taken to be the time (as determined  by the timestamp applied to the message by the CREST instructions to the shareholder as to the exercise of voting  rights. able to retrieve the message by enquiry to CREST in the   manner prescribed by CREST. After this time any change of  instructions to proxies appointed through CREST should be not apply to Nominated Persons. The rights described in communicated to the appointee through other means. those Notes can only be exercised by shareholders of the Company. 115 Shareholder information      corporate representatives who may exercise on its behalf all  of its powers as a member provided that they do not do so in payment) a statement (which is also passed to the Auditor) relation to the same shares.      conduct of the audit. Such requests must be made in writing  and must state your full name and address.        representing at least 5% of the total voting rights of all the rights of the Company who appoints a person other than the members who have a right to vote on the resolution to which    right to vote on the resolution to which the requests relate respective disclosure obligations under the UK Disclosure and hold shares in the Company on which there has been Guidance and Transparency Rules.  Such requests should be sent to the Company at        .    116 Annual Report and Financial Statements 2023  ## Further shareholder ## information  Capital gains tax trusts offer investors the following:        between the ordinary shares and the warrants as set out in the    costs are: realised within its portfolio although investors are still liable for       How to invest   follows (Source: Thomson Reuters):  by asking a professional adviser to do so. If you are interested in Ordinary share 55.00p     are a number of companies offering real time online dealing services. Share register enquiries  Sources of further information on the Company register on behalf of the Company. In the event of queries The price of shares is quoted daily in the Financial Times (under      trustnet.com  are also available on the Baillie Gifford website. These are   available from Baillie Gifford on request.            Transfer forms.    at   management website service which allows you to:   Key dates your shares;     The Annual General Meeting is normally held in October or   November.    electronic format;       and enter your Shareholder Reference Number and Company Code (this information can be found  117 Shareholder information Dividend reinvestment plan   Computershare operate a Dividend Reinvestment Plan which  can be used to buy additional shares instead of receiving your dividend via cheque or into your bank account. For further Leverage exposure information log on to  and follow the instructions or telephone 0370 702 0000. Gross Commitment method method Electronic proxy voting Maximum limit   If you hold stock in your own name you can choose to vote by Actual   returning proxies electronically at eproxyappointment.com. If you have any questions about this service please contact  Automatic Exchange of Information  CREST proxy voting   If you are a user of the CREST system (including a CREST information about certain shareholders.  give an instruction to a proxy by having an appropriate CREST The legislation requires investment trust companies to provide message transmitted. For further information please refer to the  CREST Manual.   Data protection the local tax authority on the tax residencies of a number of non-   security of any personal data provided to it. Further details on how  personal data is held and processed on behalf of the Company    website .  Automatic Exchange of Information – information for account Alternative investment fund managers holders  regulations (AIFMR) account-holders. In accordance with the UK Alternative Investment Fund Managers     bailliegifford.com    at bailliegifford.com. 118 Annual Report and Financial Statements 2023  ## Communicating ## with shareholders     Trust  published twice a year. It provides an insight to our investment .      Trust plays an important role in helping to explain Client relations team contact details our products so that readers can really understand them. You can contact the Baillie Gifford Client Relations Team by   bailliegifford.com/trust  Your call may be recorded for training or monitoring purposes. Suggestions and questions Email: trustenquiries@bailliegifford.com Any suggestions on how communications with shareholders can Website: bailliegifford.com be improved are welcomed. Please contact the Baillie Gifford Client Relations Team and give them your suggestions. They will Address: also be very happy to answer questions that you may have about Baillie Gifford Client Relations Team  Calton Square   Please note that Baillie Gifford is not permitted   119 Shareholder information The Indonesian companies  Asia ex Japan: opportunities and powering the green transition Investment Trust challenges  by John Newlands     makes it crucial to a low-carbon future. investment trust rode the tiger of growth.  discusses how the trust seeks out the fastest growing companies in the most rapidly growing and populous region of the world. 120 Annual Report and Financial Statements 2023  ## Sustainable Finance Disclosure ##       otherwise stated within in its Investment Objective & Policy.  Baillie Gifford & Co can invest in any companies it believes could   disclosures have been provided to comply with the high-level result in investments being made in companies that ultimately requirements of SFDR. cause a negative outcome for the environment or society.   Guidelines as its policy on integration of sustainability risks in sustainability can be found in the ESG Principles and Guidelines investment decisions.  bailliegifford.com.  sustainable in the long run if its approach to business is The underlying investments do not take into account the EU fundamentally out of line with changing societal expectations. criteria for environmentally sustainable economic activities  established under the EU Taxonomy Regulation.    identifying and holding high quality growth businesses that enjoy sustainable competitive advantages in their marketplace. To do  proprietary research to build up an in-depth knowledge of an individual company and a view on its long-term prospects. This includes the consideration of sustainability factors   returns of an investment. The likely impact on the return of the portfolio from a potential or actual material decline in the value of  governance event or condition will vary and will depend on several   and existence of any mitigating factors. 121 Shareholder information ##  ## provider disclaimer     of the data contained herewith nor as to the results to be obtained  by recipients of the data. No Provider shall in any way be liable and the user of this information assumes the entire risk of any       therefrom.     data or to otherwise notify a recipient thereof in the event that purpose) with respect to this information. Without limiting any of any matter stated herein changes or subsequently becomes  inaccurate.     (msci.com).   FTSE Index data         materials contained herein.  company under license. All rights in the FTSE Russell indexes MSCI Index data  Source: MSCI. The MSCI information may only be used for your   any liability for any errors or omissions in the indexes or data form and may not be used as a basis for or a component of any and no party may rely on any indexes or data contained in this   information is intended to constitute investment advice or a  recommendation to make (or refrain from making) any kind of  investment decision and may not be relied on as such. sponsor or endorse the content of this communication. 122 Annual Report and Financial Statements 2023 Pacific Horizon Investment Trust PLC # Glossary of terms and alternative performance measures ('APM') ## Total assets This is the Company's definition of Adjusted Total Assets, being the total value of all assets held less all liabilities (other than liabilities in the form of borrowings). ## Shareholders' funds and Net Asset Value Also described as shareholders' funds, Net Asset Value ('NAV') is the value of all assets held less all liabilities (including borrowings). The NAV per share is calculated by dividing this amount by the number of ordinary shares (excluding treasury shares) in issue. ## Net liquid assets Net liquid assets comprise current assets less current liabilities (excluding borrowings) and provisions for deferred liabilities. ## Discount/premium (APM) As stock markets and share prices vary, an investment trust's share price is rarely the same as its NAV. When the share price is lower than the NAV per share it is said to be trading at a discount. The size of the discount is calculated by subtracting the share price from the NAV per share and is usually expressed as a percentage of the NAV per share. If the share price is higher than the NAV per share, this situation is called a premium. | | 2023 | 2022 | | --- | --- | --- | | Net asset value per ordinary share (a) | 637.18p | 664.65p | | Share price (b) | 586.00p | 647.00p | | **(Discount)/premium ((b) - (a)) ÷ (a)** | **(8.0%)** | **(2.7%)** | ## Turnover Turnover is calculated as the minimum of purchases and sales in a month, divided by the average market value of the portfolio, summed to get rolling 12 month turnover data. ## Ongoing charges (APM) The total recurring expenses (excluding the Company's cost of dealing in investments and borrowing costs) incurred by the Company as a percentage of the daily average net asset value, as detailed below: | | 2023 £'000 | 2022 £'000 | | --- | --- | --- | | Investment management fee | 3,419 | 4,036 | | Other administrative expenses | 762 | 1,093 | | **Total expenses (a)** | **4,181** | **5,129** | | Average net asset value (b) | 578,071 | 691,596 | | **Ongoing charges ((a) + (b) expressed as a percentage)** | **0.72%** | **0.74%** | ## China 'A' shares 'A' Shares are shares of mainland China-based companies that trade on the Shanghai Stock Exchange and the Shenzhen Stock Exchange. Since 2003, select foreign institutions have been able to purchase them through the Qualified Foreign Institutional Investor system. ## Treasury shares The Company has the authority to make market purchases of its ordinary shares for retention as Treasury Shares for future reissue, resale, transfer, or for cancellation. Treasury Shares do not receive distributions and the Company is not entitled to exercise the voting rights attaching to them. ## Unlisted (private) company An unlisted or private company means a company whose shares are not available to the general public for trading and are not listed on a stock exchange. 123 Shareholder information ## Total return (APM) The total return is the return to shareholders after reinvesting the net dividend on the date that the share price goes ex-dividend. In periods where no dividend is paid, the total return equates to the capital return. | | | 2023 NAV | 2023 Share price | 2022 NAV | 2022 Share price | | --- | --- | --- | --- | --- | --- | | Closing NAV per share/share price | (a) | 637.18p | 586.00p | 664.65p | 647.00p | | Dividend adjustment factor * | (b) | 1.0056 | 1.0057 | 1.0000 | 1.0000 | | **Adjusted closing NAV per share/share price** | **(c) = (a) x (b)** | **640.75p** | **589.34p** | **664.65p** | **647.00p** | | Opening NAV per share/share price | (d) | 664.65p | 647.00p | 777.15p | 802.00p | | **Total return** | **(c) ÷ (d) -1** | **(3.6%)** | **(8.9%)** | **(14.5%)** | **(19.3%)** | \* The dividend adjustment factor is calculated on the assumption that the final dividend of 3.00p (31 July 2022 – nil) paid by the Company during the period was reinvested into shares of the Company at the cum income NAV per share/share price, as appropriate, at the ex-dividend date. ## Gearing (APM) At its simplest, gearing is borrowing. Just like any other public company, an investment trust can borrow money to invest in additional investments for its portfolio. The effect of the borrowing on the shareholders' assets is called 'gearing'. If the Company's assets grow, the shareholders' assets grow proportionately more because the debt remains the same. But if the value of the Company's assets falls, the situation is reversed. Gearing can therefore enhance performance in rising markets but can adversely impact performance in falling markets. Gearing is borrowings at book less cash and brokers' balances expressed as a percentage of shareholders' funds. | | 2023 £'000 | 2022 £'000 | | --- | --- | --- | | Borrowings (at book cost) (a) | – | – | | Less: cash and cash equivalents | (12,442) | (5,399) | | Less: sales for subsequent settlement | – | (402) | | Add: purchases for subsequent settlement | – | 446 | | Adjusted borrowings (b) | (12,442) | (5,355) | | Shareholders' funds (c) | 580,355 | 610,550 | | **Gearing: (b) as a percentage of (c)** | **(2%)** | **(1%)** | Gross gearing is the Company's borrowings expressed as a percentage of shareholders' funds. | | 2023 £'000 | 2022 £'000 | | --- | --- | --- | | Borrowings (at book value) (a) | – | – | | Shareholders' funds (b) | 580,355 | 610,550 | | **Gross gearing: (a) as a percentage of (b)** | **–** | **–** | ## Leverage (APM) For the purposes of the Alternative Investment Fund Managers Regulations leverage is any method which increases the Company's exposure, including the borrowing of cash and the use of derivatives. It is expressed as a ratio between the Company's exposure and its net asset value and can be calculated on a gross and a commitment method. Under the gross method, exposure represents the sum of the Company's positions after the deduction of sterling cash balances, without taking into account any hedging and netting arrangements. Under the commitment method, exposure is calculated without the deduction of sterling cash balances and after certain hedging and netting positions are offset against each other. ## Active share (APM) Active share, a measure of how actively a portfolio is managed, is the percentage of the portfolio that differs from its comparative index. It is calculated by deducting from 100 the percentage of the portfolio that overlaps with the comparative index. An active share of 100 indicates no overlap with the index and an active share of zero indicates a portfolio that tracks the index. ## Compound annual return (APM) The compound annual return converts the return over a period of longer than one year to a constant annual rate of return applied to the compound value at the start of each year. 124 Annual Report and Financial Statements 2023  ##  ## information Directors Registrar Independent Auditor Chairman: RA Macpherson Computershare Investor BDO LLP RW Chote Services PLC  55 Baker Street The Pavilions   Bridgwater Road RF Studwell    Depositary Further information Computershare  Client Relations Team Investor Services PLC (International) Limited Baillie Gifford & Co   Calton Square       trustenquiries@bailliegifford.com Alternative Investment Fund Managers and Company Secretaries  Company details Baillie Gifford & Co Limited   Calton Square 25 Bank Street   Canary Wharf      bailliegifford.com    125 ##    Copyright © Baillie Gifford & Co 2023.