The Baillie Gifford Pacific Horizon investment trust's net asset value plunged almost 14% in June and July, as the company struggles with large falls in previously sound holdings.
Investing in the Asia/Pacific (ex Japan) region, the trust's value declined from £122m at 31 May to £105m at 31 July.
Over the year to end July, Pacific Horizon's net asset value fell 19.5% and share price plummeted 24.7% – much further than the 12.7% decline for the company’s MSCI All Country Far East ex Japan Index benchmark.
Earlier in July, Baillie Gifford appointed Mike Gush to co-manage the trust, with a view to replace Gerald Smith early next year.
Pacific Horizon cited Vietnamese funds, Korean shipbuilders and Hong Kong-listed Chinese companies as the main detractors to performance over the past year.
“Performance suffered despite reducing exposure to expensively valued companies, increasing cash and holding a put option on the Hang Seng China Enterprises Index,” it says.
“Although the near term outlook for companies is uncertain, valuations for many companies now appear attractive.”IFAonline
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