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Schroder Asian Total Return Investment Co PLC on Thursday reported a decline in net asset value during the first half of 2025, while its total return underperformed against its benchmark. The London-based investor, which backs equities and equity-related securities of companies trading in the Asia-Pacific region, excluding Japan, said net asset value per share at June 30 was 483.71 pence, down 2.5% from 495.91p the year before and 5.0% lower than 509.04p at December 31, 2024. NAV total return for the six months that ended June 30 was negative 2.4%, lagging behind a positive 4.3% return on its benchmark index, the MSCI All Country Asia Pacific ex-Japan. The company pointed towards the six months being ‘a very volatile period for Asian stock markets’, particularly exacerbated by the drop in markets in April after US President Donald Trump announced his tariff plans. ‘The relative underperformance however primarily came from two areas - firstly the company’s large underweight position in the Korean stock market and secondly from stock selection in China,’ explained Portfolio Managers Robin Parbrook and Lee King Fuei at Schroder Investment Management Ltd. The managers noted that while China and Hong Kong were positive contributors to the firm’s performance in the second quarter, a ‘very difficult’ first quarter resulted in the region having the largest negative overall impact during the first half. Total pretax net loss in the first half was £11.5 million, swung from a net return of £44.6 million a year earlier. The company’s share price return was negative 1.6%, ‘as the discount narrowed, reflecting improved sentiment towards Asian equities and the company,’ Schroder Asian said. ‘The consistently strong long-term track record of the company is notable. The NAV total return has outperformed the reference index over 3, 5 and 10 years,’ said Chair Sarah MacAulay. MacAulay continued: ‘Our portfolio managers continue to concentrate on the company’s current positioning in the four key investment areas in Asia. Their key overweight (versus the reference index) is in the historically more defensive Australian and Singaporean stock markets, where they find attractive yields and, selectively, reasonable valuations for steady growth businesses. ‘Good stock selection across all markets will remain key...The board has confidence in the ability of our portfolio managers to continue to find exciting investment ideas across the region and to deliver strong long-term returns to shareholders.’ Shares in Schroder Asian Total Return were up 0.1% at 510.32p in London on Thursday morning. The stock has risen 14% over the past year. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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