| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 158.40 | -57 |
| Intrinsic value (DCF) | 136.14 | -63 |
| Graham-Dodd Method | 6.02 | -98 |
| Graham Formula | 0.53 | -100 |
Pacific Assets Trust plc (PAC.L) is a UK-domiciled closed-ended equity mutual fund specializing in Asia-Pacific (ex-Japan, Australia, and New Zealand) public equity markets. Managed by First State Investment Management (UK) Limited and launched by Frostrow Capital LLP, the trust focuses on growth stocks of companies contributing to sustainable development in the region. Its investment strategy combines financial analysis, company visits, and valuation metrics, benchmarked against the MSCI All Country Asia ex Japan Index. With a diversified sector approach, the fund emphasizes long-term capital appreciation through high-conviction stock selection. Listed on the London Stock Exchange since 1985, Pacific Assets Trust appeals to investors seeking exposure to emerging Asia’s growth story while adhering to ESG principles. The trust’s £403 million market cap and consistent dividend (4p/share) reflect its niche in the Financial Services sector as a specialized Asia-Pacific equity vehicle.
Pacific Assets Trust offers targeted exposure to Asia-Pacific growth equities, trading at a modest beta (0.44), suggesting lower volatility versus broader markets. Its focus on sustainable development aligns with rising ESG demand, while the 4p/share dividend provides income appeal. However, reliance on emerging markets introduces currency and geopolitical risks. The fund’s zero debt and £8 million cash position signal financial stability, but its concentrated regional focus may lag during Asia-specific downturns. With £54.96 million revenue and £44.82 million net income (FY 2025), profitability is robust, but investors must weigh fee structures and active management risks against passive alternatives.
Pacific Assets Trust differentiates itself through its exclusive Asia-Pacific ex-Japan mandate and ESG-integrated stock selection, a niche among UK-listed investment trusts. Its active management by First State leverages local expertise, contrasting with passive ETFs tracking the same index. The trust’s small-cap tilt (<£403M AUM) allows agility but limits scale advantages of larger peers like Scottish Oriental Smaller Companies Trust. Performance hinges on the manager’s ability to outperform the MSCI benchmark, a challenge given rising passive adoption. The closed-end structure provides capital stability but can trade at persistent discounts/premiums to NAV. Competitive threats include low-cost Asia-Pacific ETFs (e.g., iShares Asia ex-Japan) and broader global EM funds diversifying beyond the region. First State’s stewardship reputation is a strength, but fee compression industry-wide pressures active managers to justify costs.