Schroder Asian Total Return beats index ahead of Pacific Assets merger

Schroder Asian Total Return Investment Co PLC on Tuesday reported a strongly positive first half of the year during which the trust outperformed its reference index, ahead of its agreed merger with peer Pacific Assets Trust PLC.

Schroder Asian Total Return and Pacific Assets both invest in the Asia-Pacific region. Back in June, they agreed an all-share merger whereby investors in Pacific Assets will receive shares of Schroder Asian Total Return. There also is a limited cash option for Pacific Assets shareholders.

The enlarged company is expected to have a net asset value of about £1.1 billion.

On Tuesday, Schroder Asian Total Return said the merger is expected to complete by the end of September. Remaining is a general meeting to be held by Pacific Assets on September 24 to appoint liquidators.

Schroder Asian Total Return is managed by Schroder Investment Management Ltd, which will contribute to the merger economics by reducing fees.

NAV total return was 34% in the first half of 2026, beating its reference index, the MSCI AC Asia Pacific ex-Japan index sterling adjusted, which returned 26%. NAV per share was 747.01 pence on June 30, up from 566.11p on December 31.

The shares were trading down 1.3% to 682.00p in London midday Tuesday. They are up 32% over the past 12 months.

Schroder Asian Total Return said the strong NAV return in the first half was thanks to gains by technology stocks in South Korea and Taiwan.

Looking ahead, Chair Sarah MacAulay said: "The portfolio managers continue to favour more defensive portfolio positioning. Capital is being reallocated towards attractively valued markets and companies that have lagged the AI rally, particularly higher-yielding and more defensive businesses in Hong Kong, Singapore and Australia."

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