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Schroder AsiaPacific Fund PLC on Wednesday reported a negative return for the first half of its financial year, slightly underperforming its benchmark, as cautious positioning in China and broader geopolitical risks weighed on results. For the six months to March 31, the Asia-focused investment fund posted a net asset value total return of negative 3.3%, underperforming the MSCI All Country Asia ex Japan Index, which fell 2.2% over the same period. This compares with a 5.7% NAV total return a year earlier, when the fund slightly outpaced the benchmark’s 5.3% gain. The NAV per share for the period fell to 594.52 pence from 627.02p at the end of September. The fund attributed the underperformance primarily to its underweight exposure to China, which rebounded strongly in early 2025 amid excitement over artificial intelligence applications and expectations of government stimulus. Not holding large index names such as Alibaba Group Holding Ltd and Chinese banks proved a relative drag, it said. ‘In China, the major negative relative contribution was from index stocks which we did not own or were substantially underweight, rather than from poor performance by the names we held,’ the fund said. The trust declared no interim dividend, unchanged from the prior year. It pays a final dividend, however, and this was 12.5 pence per share for financial 2024, up from 12.0p for financial 2023. ‘Despite short-term volatility, we remain confident in the long-term case for Asia,’ Chair James Williams said. ‘Favourable demographics, rising income levels and growing domestic demand continue to support the region’s structural growth story.’ ‘Periods of heightened uncertainty such as this often present some of the most rewarding long-term opportunities for astute and disciplined stock pickers,’ Chair James Williams said. The company said that share buybacks during the period added 0.6% to NAV. A total of 7.6 million shares were repurchased at a cost of £40.9 million, with the shares trading at an average 12% discount to NAV. While the trust maintained a cautious stance on China, it added several positions including Meituan, Trip.com Group Ltd and Anta Sports, citing attractive valuations. The portfolio remains overweight Singapore and Hong Kong, and underweight Korea and India. Management fees were revised down to 0.65% from 0.75% on net assets up to £600 million, effective from April 1 this year. Shares in Schroder AsiaPacific were up 0.2% at 530.91 pence in London on Wednesday morning. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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