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This document is a financial promotion for Pacific Assets Trust plc (the "Trust") only for those people resident in the UK and Ireland for tax and investment purposes.

Investing involves certain risks including:

Where featured, specific securities or companies are intended as an illustration of investment strategy only, and should not be construed as investment advice or a recommendation to buy or sell any security.

All information included in this document has been sourced by Stewart Investors and is displayed as at 30 June 2022 unless otherwise specified and to the best of our knowledge is an accurate reflection as at this date.

For an overview of the terms of investment, risks, returns, costs and charges please refer to the Key Information Document which can be found on the Trust's website: pacific-assets.co.uk

If you are in any doubt as to the suitability of the Trust for your investment needs, please seek investment advice.

View our list of investment terms to help you understand the terminology within this document.

Quarterly Update Pacific Assets Trust plc

The investment objective of the Trust is to achieve long-term capital growth through investment in selected companies in the Asia Pacific region and the Indian Subcontinent, but excluding Japan, Australia and New Zealand (the 'Asia Pacific Region'). Up to a maximum of 20% of the Trust's total assets (at the time of investment) may be invested in companies incorporated and/or listed outside the Asia Pacific Region (as defined); at least 25% of their economic activities (at the time of investment) are within the Asia Pacific Region and this proportion is expected to grow significantly over the longer term.

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Quarterly Update Pacific Assets Trust plc

It has been a volatile second quarter. Regional equities have been weak but preserved capital better than many global peers. Asian currencies, most notably the Japanese Yen, have weakened relative to the dollar. Fears of recession are rising and speculation on the future course of interest rates appears to be more divided. The war in Ukraine continues to add uncertainty and indirectly impact commodity prices and inflation. While we consider macro headwinds and tailwinds we do not attempt to second guess large world events. Rather, we look for high-quality companies with excellent stewards, franchises and financials at reasonable valuations. During this quarter, the Trust initiated holdings in two companies with these characteristics.

The first is a bank that traces its heritage back to the great depression of 1932, making it one of the oldest, capitalised financial services firms operating in Singapore, South East Asia and parts of China. It is recognised and trusted as one the safest deposit franchises in Asia and we purchased it a slightly under one times book value and with an attractive dividend yield.

We also purchased a listed subsidiary consumer goods company, which owns, manufactures and distributes high-quality brands around the largest archipelago in the world. We have admired this franchise for decades, but high valuations had always dissuaded us from ownership. During the period, we were able to take advantage of weakness to introduce this high-quality company to the Trust.

In addition to these new purchases, we increased the position size in Shenzhen Inovance Tech (China) and Glodon (China) which improve efficiency in the engineering and construction sector respectively.

During the period, the Trust sold Hualan Biological Engineering after a re-evaluation of franchise strength amidst a shifting competitive landscape. The Trust continued to trim Dr. Reddy's Laboratories (India) over uncertainty about their operations in Russia, and CG Power (India) after a strong period of outperformance to control the position size.

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Quarterly Update Pacific Assets Trust plc

During the quarter, there were 347 resolutions from 42 companies to vote on. On behalf of the Trust, we voted against ten resolutions.

We voted against Amoy Diagnostics ' request to transfer product rights and equity to a subsidiary, and to amend authorised share capital, as we did not have sufficient information at the time of voting. (two resolutions)

We voted against the approval of an Employee Stock Purchase Plan at Glodon , as we believe one-year vesting periods are too short term and not in shareholders' interests. (three resolutions)

We voted against the appointment of the auditor and the election of two directors at Hualan Biological Engineering . At the time of voting the company had not disclosed a breakdown of the fees paid to its auditor, and we do not believe the directors are truly independent. (three resolutions)

We voted against Humanica Public 's request for management to approve all other business matters before the annual general meeting (AGM) of shareholders. We consider ourselves active shareholders and prefer to vote on such matters at the AGM. (one resolution)

We voted against Pentamaster 's request to issue shares without pre-emptive rights, as the share discount rate had not been disclosed. (one resolution)

Source for company information: Stewart Investors investment team and company data. Named new investments disclosed relate to holdings with a portfolio weight over 1%. Proxy voting chart numbers may not add to 100 due to rounding.

Quarterly Update Pacific Assets Trust plc

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Pacific Assets Trust plc published this content on 26 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 July 2022 14:28:04 UTC.