**Summary of Pacific Assets Trust PLC Half-Year Report (October 2, 2025)**
**Financial Highlights (Six Months Ended July 31, 2025):**
**Share Price** Declined 1.1% to 354.0p (from 358.0p).
**Net Asset Value (NAV) per Share** Fell 4.9% to 397.2p (from 417.5p).
**Discount to NAV** Widened to 10.9% (from 14.4%).
**Market Capitalisation** Decreased 3.0% to £418.8m (from £431.7m).
**Shareholders’ Funds** Dropped 6.6% to £470.0m (from £503.4m).
**NAV Total Return** -3.7% (vs. +10.8% in 2024), underperforming the UK CPI +6% target (+5.5%) and MSCI AC Asia ex Japan Index (+9.5%).
**Chair’s Statement**
Global trade disruptions due to U.S. tariffs have impacted Asian economies, particularly supply chains and export competitiveness.
China showed resilience despite export declines to the U.S., pivoting to alternative markets and domestic consumption.
The Company’s underperformance is attributed to a correction in Indian holdings and a focus on long-term, high-governance investments over short-term momentum.
Portfolio adjustments include increased exposure to domestic champions and reduced export-related risk.
**Strategic Initiatives**
1. **Reduction in Portfolio Management Fees:** Transitioned to a tiered fee structure (0.75% on first £500m, 0.65% thereafter) from October 1, 2025.
2. **Conditional Tender Offer** Proposed tender offer (up to 25% of shares) if NAV total return underperforms MSCI AC Asia ex Japan Index +0.5% over seven years ending October 2028.
3. **Proactive Discount Management** Repurchased 2,270,000 shares (1.9% of issued capital) at an average discount of 12.6%, with continued buybacks to enhance shareholder value.
**Performance and Portfolio**
Underperformance driven by Indian holdings correction and avoidance of short-term market rallies.
Portfolio remains overweight in Indian equities and underweight in Chinese equities, with gradual rebalancing toward high-quality Chinese opportunities.
New investments include S.F. Holding (China), Trip.com (China), Mindray (China), and SEA (Singapore), focusing on domestic growth and strategic sectors.
**Management Changes**
Jack Nelson appointed as co-portfolio manager, replacing David Gait, with Douglas Ledingham as lead manager.
Chris Grey joined Stewart Investors as an emerging markets analyst.
**Outlook**
Asia’s diverse economic landscape includes China’s uneven recovery and India’s strong long-term growth potential.
Southeast Asian markets benefit from easing monetary conditions, though geopolitical risks persist.
The Company remains focused on bottom-up investing in high-quality, sustainable businesses.
**Financial Performance**
Revenue return£4.768m (vs. £4.951m in 2024).
Capital loss£24.599m (vs. gain of £45.215m in 2024).
Total loss£19.831m (vs. gain of £50.166m in 2024).
Top contributorsSamsung Electronics, DFI Retail, Cholamandalam Financial.
Top detractorsVoltronic Power Technology, Tube Investments of India, Tech Mahindra.
**Governance and Risks**
Principal risks include investment strategy, currency risk, and geopolitical uncertainties.
The Board remains confident in the Company’s ability to meet liabilities and continue operations.
**Conclusion**
Pacific Assets Trust PLC faces short-term challenges due to global trade disruptions and portfolio corrections but remains committed to its long-term investment philosophy. Strategic initiatives aim to enhance shareholder value and align performance with market benchmarks. The Company continues to focus on high-quality, sustainable investments across Asia, positioning itself for future growth.