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Highlights

  • NAV declined -3.3% in H1 FY2025, underperforming the benchmark by 1.1 % points.
  • Share buybacks totalling GBP 40.9 million added 0.6% to NAV during the period.
  • Management fee on first GBP 600m of assets reduced to 0.65% effective April 2025

Schroder AsiaPacific Fund plc (LSE:SDP) is a UK-listed investment trust focused on equity investments across Asia, excluding Japan. The fund seeks to achieve capital growth through stock selection across a diverse range of Asian markets.

For the reporting period, the company posted a net asset value (NAV) total return of -3.3%, slightly trailing its benchmark, which declined -2.2%. The underperformance was attributed primarily to the fund’s underweight exposure to China, which performed relatively better during the period despite persistent structural challenges.

Conversely, positive stock selection in India and investment positions in Singapore contributed positively to overall performance, helping to offset some of the drag from China. The company noted that political developments, including the re-election of former U.S. President Donald Trump, added further complexity to the investment landscape during the period.

The company increased its level of gearing from 2.6% at the beginning of the reporting period to 3.2% by the end of March 2025. It maintains access to a GBP 75 million revolving credit facility, in addition to an overdraft facility, which may be used when the fund managers assess borrowing to be beneficial to returns.

Schroder AsiaPacific Fund also continued its share buyback programme as part of its discount management strategy. During the period, it repurchased 7.56 million shares for cancellation at a total cost of GBP 40.9 million. This activity was noted to have added approximately 0.6% to the NAV. Following the end of the reporting period, an additional 1.05 million shares were bought back.

In a move to reduce ongoing costs for shareholders, the company announced a fee adjustment with effect from 1 April 2025. The management fee on the first GBP 600 million of net assets will be reduced from 0.75% to 0.65%, while the fee on assets exceeding that threshold remains unchanged at 0.60%.

Board changes were also disclosed, with the appointment of Nicky Richards as an independent non-executive director. Richards brings prior experience from senior roles at Schroders and Fidelity, adding further industry expertise to the board.

The company acknowledged ongoing risks in Asian markets, particularly those stemming from uncertainty surrounding U.S. trade policy and China's economic growth outlook.