Contact details
Pacific Assets Trust plc
25 Southampton Buildings
London
WC2A 1AL
www.pacific-assets.co.uk
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Pacific Assets Trust plc Annual Report for the year ended 31 January 2025
Pacific Assets Trust plc
Annual Report for the year ended 31 January 2025
Contents
Strategic Report
1 Financial Highlights
2 Key Information
3 Company Performance
6 Chair’s Statement
9 Investment Portfolio
12 Portfolio Manager’s Review
16 Sustainability and ESG
22 Business Review
Governance
34 Board of Directors
36 Corporate Governance
44 Report of the Directors
49 Statement of Directors’ Responsibilities
51 Audit Committee Report
56 Directors’ Remuneration Report
59 Independent Auditor’s Report
Financial Statements
66 Income Statement
67 Statement of Changes in Equity
68 Statement of Financial Position
69 Notes to the Financial Statements
Further Information
80 Glossary of Terms and Alternative Performance
Measures (unaudited)
82 Sustainable Finance Disclosure
Regulation (“SFDR”) Report (unaudited)
99 Shareholder Information
100 How to Invest
101 Notice of the Annual General Meeting
106 Explanatory Notes to the Resolutions
109 Company Information
Pacific Assets Trust plc Annual Report for the year ended 31 January 2025
1
Strategic Report
Pacific Assets Trust plc Annual Report for the year ended 31 January 2025
1
Source: Frostrow Capital LLP
* Source: Morningstar
† The Company’s Performance Objective (See Glossary beginning on page 80).
^ Alternative Performance Measure (See Glossary beginning on page 80).
Net Asset Value Per Share Total Return for the Five Years to 31 January 2025
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Source: Morningstar
Rebased to 100 as at 31 January 2020
Financial
Highlights
11.5%
Average discount of share price
to net asset value per share
during the year*^
(2024: 6.4%)
3.7%
Share price total return*^
(2024: (1.9)%)
9.7%
Net asset value per share total
return*^
(2024: (1.3)%)
1.1%
Ongoing charges
1
^
(2024: 1.1%)
22.3%
MSCI All Country Asia ex Japan
Index (total return sterling
adjusted)*
(2024: (10.5)%)
8.8%
UK Consumer Price Index
(“CPI”) + 6%†
(2024: 10.4%)
2
Strategic Report
Pacific Assets Trust plc Annual Report for the year ended 31 January 2025
Pacific Assets Trust plc (the “Company”) aims to achieve long-term capital growth
through investment in selected companies in the Asia Pacific region and the Indian
sub-continent, but excluding Japan, Australia and New Zealand (the “Asia Pacific
Region”). Up to a maximum of 20% of the Company’s total assets (at the time of
investment) may be invested in companies incorporated and/or listed outside the
Asia Pacific Region (asdefined above); at least 25% of their economic activities (at
the time of investment) are within the Asia Pacific Region with this proportion being
expected to grow significantly over the long term.
Management
Stewart Investors have been the Company’s Portfolio
Manager since 1 July 2010. They adopt a sustainable
investment strategy when selecting the investments that
make up the Company’s portfolio. They are an autonomous
investment group operating through the regulatory licences of
First Sentier Investors (UK) IM Limited, which is the legal
entity appointed as the Company’s Portfolio Manager. Their
ultimate owner is the Mitsubishi UFJ Trust and Banking
Corporation.
Frostrow Capital LLP is the Company’s Alternative
Investment Fund Manager (“AIFM”).
Investment Aims
Stewart Investors aim to generate strong long-term,
risk-adjusted returns by investing in the shares of high-
quality companies that are particularly well positioned to
contribute to, and benefit from, sustainable development in
the Asia Pacific Region. They define high-quality companies
as those they believe have exceptional management teams
and cultures, enduring franchises with strong market
positions and reputations, and sound financials with low
debt, sustainable margins and free cash flow. Sustainability
is fully integrated into the management of risk and return.
The team seeks to improve sustainable outcomes by
investing in companies contributing to solutions, engaging
and voting for positive change and avoiding businesses
linked to harmful solutions.
Investment Philosophy
The foundations of Stewart Investors’ investment
philosophy and approach remain largely unchanged since
1988 and since their first dedicated sustainability
strategy was launched in 2005.
The Stewart Investors investment philosophy is
summarised below:
> They are stewards. They believe their role is to
allocate society’s capital to productive uses,
inaccordance with their Hippocratic Oath
1
.
> They are long-term investors. Their time horizon is
measured in years, not weeks, and they value
companies accordingly.
> They invest only in companies they believe are
contributing to a more sustainable future. They
engage constructively as owners to help companies
on their sustainability journeys.
> They invest only in high-quality companies.
Theyinvest in companies with exceptional cultures,
strong franchises and resilient financials.
> They believe capital preservation is important for
capital growth. They define risk as the permanent
loss of client capital.
1
https://www.stewartinvestors.com/all/about-us/our-hippocratic-oath.html
Key Information
3
Strategic Report
Pacific Assets Trust plc Annual Report for the year ended 31 January 2025
Performance Summary
As at As at
31 January 31 January
2025 2024
Shareholders’ funds £503.4m £464.8m
Market capitalisation £431.7m £422.1m
One year to One year to
31 January 31 January
Performance 2025 2024
Net asset value per share total return
1
2
9.7% (1.3)%
Share price total return
1 2
3.7% (1.9)%
CPI +6%
3
8.8% 10.4%
MSCI All Country Asia ex Japan Index total return, sterling adjusted
1
22.3% (10.5)%
Average discount of share price to net asset value per share
1 2
11.5% 6.4%
Ongoing charges
2
1.1% 1.1%
Revenue return per share
4
5.4p 4.3p
Dividend per share 4.9p 4.0p
1
Source: Morningstar
2
Alternative Performance Measure (see Glossary beginning on page 80).
3
The Company’s Performance Objective (see Glossary beginning on page 80).
4
See Glossary beginning on page 80.
Total Return since 30 June 2010
(the date of appointment of Stewart Investors as the Portfolio Manager)
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Company
Performance
Source: Morningstar
Rebased to 100 as at 30 June 2010