Source - RNS
RNS Number : 3697J
Pacific Horizon Investment Tst PLC
09 September 2016




Since its Annual General Meeting ('AGM') in 2013, Pacific Horizon Investment Trust PLC has sought annual shareholder authority to implement, at the Board's discretion, a bi-annual tender offer for up to 5 per cent. of the Company's issued share capital depending on the Company's average level of share price discount during the prior six month period.

The Board of the Company is cognisant that investment trusts require sufficiency of scale and liquidity as well as ongoing successful investment performance to appeal to the broadest possible range of long term investors. Upon due consideration and having regard to feedback received from some of the Company's major shareholders, the Board is proposing a change of approach to the Company's tender offer mechanism. Accordingly, no bi-annual tender offer resolution will be put before shareholders this year and for at least the next three years. Instead, the Board intends to seek shareholder authority at the Company's 2018 AGM to implement, at the Board's discretion, a tender offer for up to 25 per cent. of the Company's issued share capital should the Company's net asset value (calculated at fair value cum income) total return performance fail to exceed the Company's comparative index by at least 1 per cent. per annum over a three year period to 31 July 2019 on a cumulative basis. If this performance target is not met, it is the Directors' intention that they will, subject to having received shareholder authority, implement a tender at a 2% discount to net asset value less costs.

The Board is of the view that when market sentiment toward an asset class or investment style or type is poor, it can become the predominant factor in driving shareholder returns. The Board believes therefore that a longer-term tender mechanism associated with performance, rather than with market sentiment, is better aligned to the performance of the portfolio managers as well as being in the best interests of the Company and its shareholders taken as a whole.

Baillie Gifford & Co Limited

Company Secretaries

9 September 2016

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