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Pacific Horizon to pay lower charge on first tier of management fee

Pacific Horizon PHI

Pacific Horizon Investment Trust has announced a change to the first tier of its management fee that is beneficial to shareholders. With effect from 1 January 2019, the annual management fee will be charged at a rate of 0.75% on the first £50m of net assets, at 0.65% on the next £200m of net assets and at 0.55% on the remaining net assets. At present, PHI pays 0.95% on the first £50m of net assets. There is no performance fee.

No changes other than to first tier

In all other respects the management fee remains unchanged. The fee will continue to be calculated and paid on a quarterly basis. The managers may terminate the management agreement on six months’ notice and the company may terminate it on three months’ notice.

Ongoing charges

The ongoing charges ratio for the accounting year ended 31 July 2018 was 1.02%, down from 1.07% in the prior accounting year. Baillie Gifford & Co Limited also provides company secretarial services. These services are included as part of the management agreement.

About Pacific Horizon

Pacific Horizon aims to achieve capital growth through investment in the Asia-Pacific region (excluding Japan) and the Indian Sub-continent. The Company may also invest in companies based in the region and in investment funds specialising in the region or particular countries or sectors within it even if they are listed elsewhere. The maximum permitted investment in such companies is 15% of gross assets.

The portfolio contains companies which the Managers have identified as offering the potential for long term capital appreciation, irrespective of whether they comprise part of any index. The portfolio is actively managed and will normally consist entirely of quoted equity securities although unlisted companies, fixed interest holdings, or other non equity investments, may be held. The Company is also permitted to invest in other pooled vehicles (general, country and sector specific) that invest in the markets of the region.

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