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LONDON - Pacific Assets Trust (PAC) reported a 3.7% decrease in net asset value (NAV) on a total return basis for the half-year ending July 31, 2025, underperforming its benchmark MSCI AC Asia ex Japan Index which rose 9.5% during the same period.
The trust’s five-year performance remains strong with returns of 44.6% compared to the benchmark’s 28% through July 31, according to the half-year results statement.
Performance was primarily affected by Indian holdings, where despite robust operational results, negative market sentiment impacted share prices. Companies linked to artificial intelligence provided positive contributions to the portfolio.
The trust announced several shareholder-friendly initiatives, including a new conditional tender offer that would allow investors to redeem up to 25% of share capital near NAV if the company fails to meet performance targets over a seven-year period.
PAC also implemented a tiered management fee structure of 0.75% on the first £500 million of assets, decreasing to 0.65% thereafter. The fee will be based on the lower of market capitalization or NAV, which the company states will further incentivize management to narrow the discount.
During the period, PAC repurchased over 2.2 million shares, with an additional 1.7 million shares bought back since the period end. The share price total return was 0.3%, contributing to a narrowing discount.
The investment team added several new positions, particularly in China, including Alibaba and logistics firm S.F. Holding, as the regulatory environment evolved.
Chairman Andrew Impey noted that the revised fee structure and new tender offer "further aligns the portfolio manager with shareholders," while acknowledging the manager’s investment process has "delivered robust, long-term, risk-adjusted returns."
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