The trust which  manages assets of £955.56m reported a net asset value (NAV) per share total return of 65.1%, while the share price total return was 63.3%, significantly ahead of the benchmark index return of 35.8%.

Its performance was driven by a broad range of holdings, with particularly strong contributions from investments in China, South Korea and Taiwan. At a sector level, information technology and materials were key contributors, with Samsung Electronics, Z.AI, SK Hynix, SK Square and TSMC among the strongest performers.

In March 2025, the company announced a five-year performance-related conditional tender for up to 25% of its issued share capital. Since then, NAV and share price have risen by 80.3% and 81.2% respectively, compared with 53.2% for the comparative index.

The board sought shareholder approval to increase the “aggregate director remuneration limit to £250,000 per annum in aggregate from £200,000”, which has remained  at £200,000 since 2020, explaining that “the board is seeking shareholder approval to increase the aggregate annual limit to £250,000, to enable the Board to continue to attract candidates of suitable calibre and allow for overlap of tenure, improving its capacity for succession planning.”

The Company bought back 7,802,351 shares at a cost of £73.6m, representing 9.1% of the opening issued share capital enhancing the NAV by 0.9% per share. The board confirmed plans to buy back another 15% of the Trust’s shares over the next 12 months.

Despite the trust delivering strong returns in the “highly skewed” market” its discount widened slightly over the period from 9.5% to 10.6% over the year. In its update it also updated shareholders on a change in its investment policy.

Currently, a single holding cannot be exceeded at 15% of the portfolio but it is being extended to 20% given the increasing concentration of the benchmark index.

In 2014, the 10 largest MSCI All Country Asia ex Japan constituents represented 22%. It is now sitting at 43%. The fund managers Roddy Snell and Ben Durrant were not optimistic about Indian and Vietnam, revealing the trust had “materially reduced exposure” over the year.

Indian assets were cut from 14.2% at the beginning of the period – already an underweight position versus the benchmark – to just 5.4% by the end of July this year.

Chair Roger Yates said the “scale and speed of this increase in concentration was not anticipated when the company’s existing investment parameters were established” and that the change in policy should “provide the managers with greater flexibility to express their highest-conviction investment views”.

The portfolio managers Roddy Snell and Ben Durrant revealed in the statement to shareholders that they were optimistic about the long-term prospects for Asia Pacific ex Japan, notwithstanding the strong returns from a number of markets over the past year and the likelihood of continued market volatility.

While recent returns have been strong, the managers continue to see a rich opportunity set across the region. Many Asian businesses remain under-researched, under-owned and attractively valued, supported by powerful structural growth drivers including artificial intelligence, digitisation, rising domestic consumption and industrial upgrading.

Mr Snell, portfolio manager of Pacific Horizon Investment Trust, said: “We remain positive on the outlook for Asia. Our exposure to Samsung Electronics, SK Hynix and SK Square was particularly beneficial during the year. These holdings were among the portfolio’s largest positions and strongest contributors to relative performance, as tightening supply and exceptional AI-related demand drove earnings to record levels.

“While recent market returns have been strong, we continue to see a compelling opportunity set across the region. Many businesses are benefiting from powerful structural growth trends, yet valuations remain attractive relative to developed markets.

“We believe some of the most attractive opportunities emerge where growth is underappreciated. Markets often overemphasise short-term certainty and underestimate the scale and duration of future growth. By taking a long-term perspective, we seek to identify exceptional companies capable of compounding earnings for many years before that potential is fully recognised in share prices.”