Pacific Assets Trust plc - Annual Report for the Year Ended 31 January 2026

Pacific Assets Trust plc - Annual Report for the Year Ended 31 January 2026

PR Newswire

LONDON, United Kingdom, May 01

LONDON STOCK EXCHANGE ANNOUNCEMENT

Pacific Assets Trust plc

(the "Company")

Annual Results for the Year Ended 31 January 2026

The statements below are extracted from the Company's annual report for the year ended 31 January 2026 (the "Annual Report"). The Annual Report, which includes the notice of the Company's forthcoming annual general meeting, will be submitted to the Financial Conduct Authority today and will shortly be available in full, unedited text for inspection on the National Storage Mechanism ("NSM"): https://data.fca.org.uk/#/nsm/nationalstoragemechanism

The Annual Report will be posted to shareholders on 8 May 2026. Members of the public may obtain copies by writing to Frostrow Capital LLP, 25 Southampton Buildings, London WC2A 1AL or from the Company's website at www.pacific-assets.comwhere up to date information on the Company, including daily NAV, share prices and fact sheets, can also be found.

Frostrow Capital LLP, Company Secretary

0203 709 8734

1 May 2026

Company Performance

Performance Summary

	As at	As at
	31 January	31 January
	2026	2025
Shareholders' funds	£470.8m	£503.4m
Market capitalisation	£423.9m	£431.7m

	One year to	One year to
	31 January	31 January
Performance	2026	2025
Net asset value per share total return 1 2	0.0%	9.7%
Share price total return 1 2	5.1%	3.7%
MSCI All Country Asia ex Japan Index (total return, sterling adjusted) 1	28.6%	22.3%
Average discount of share price to net asset value per share 1 2	11.4%	11.5%
Ongoing charges 2	1.1%	1.1%
Revenue return per share	5.6p	5.4p
Dividend per share	5.7p	4.9p

1 Source: Morningstar

2 Alternative Performance Measure

Chair's Statement

Introduction and Results

The Company's NAV total return for the year ended 31 January 2026 was 0.0%, significantly lagging the 28.6% rise in the MSCI AC Asia ex Japan Index (total return, sterling adjusted). This disappointing outcome places the Company at the bottom of its peer group over most longer time periods and remains a central concern for the Board.

The past year has been a difficult one for the Company. In August, Stewart Investors announced the resignation of David Gait and two other senior portfolio managers from the investment team. In October, the Board announced three strategic initiatives benefitting the Company's shareholders which comprised a reduction in the portfolio management fee, the introduction of a performance-related tender offer for up to 25% of the Company's issued share capital and a reinforced commitment to buying back shares to help reduce the discount to net asset value ("NAV") at which the Company's shares trade.

In November, First Sentier Group informed the Board of its decision to close the Stewart Investors business, with portfolio management responsibilities transitioning to its affiliate investment team, FSSA Investment Managers ("FSSA"). Although both teams share a similar investment philosophy and approach, the Board concluded that such a material change warranted a broader reassessment of the Company's future. After consulting major shareholders, the Board launched a strategic review on 11 December 2025 to evaluate the full range of options for the Company's future, including proposals from alternative investment managers (FSSA among them) and potential combination candidates.

As the transition to FSSA occurred only in the final months of the financial year, their ability to reposition the portfolio was necessarily limited. In light of the ongoing strategic review, the Board also instructed FSSA to restrict portfolio turnover to a maximum of 20%. With only modest scope for adjustments, the Portfolio Manager has made incremental reallocations, adding selectively to Chinese and Southeast Asian holdings and reducing certain cyclical exposures in India.

Economic and market conditions across the region were uneven. China saw a modest uplift due to selective policy support, yet structural challenges in the property market, local government finances and consumer sentiment persisted. India continued to grow at one of the fastest rates globally, supported by resilient domestic demand, but equity valuations in several sectors normalised after a prolonged period of outperformance. Meanwhile, Taiwan and South Korea benefited disproportionately from a surge in demand for advanced semiconductors and AI related hardware, resulting in one of the most concentrated market rallies in recent years. In this environment where performance was dominated by a narrow group of technology led markets, quality companies across India and Southeast Asia (core areas of the portfolio) were largely overlooked despite solid fundamentals.

Despite these challenging conditions, FSSA continued to identify compelling bottom up opportunities across China, India, Indonesia, the Philippines and Taiwan. The limited adjustments undertaken during the transition emphasised companies with stronger cash generation and more durable long term growth prospects and have increased the liquidity of the portfolio.

While the investment strategy has historically demonstrated resilience in more volatile or falling markets, as seen in 2023, it has struggled during the sharply rising conditions of the past two years.

The Board recognises that the Company's longer term performance record has deteriorated relative to its peers and understands that shareholders expect meaningful improvement. The aim of the strategic review, therefore, is to identify the course of action that will best serve shareholders over the long term.

Strategic Review

As mentioned above, in December your Board initiated a strategic review of the future of the Company. The Board has considered a range of possible options including retaining the existing manager, appointing a new external, third-party manager and entering into a combination with another investment trust. The Board was pleased that the Company received interest from a large number of high-quality management groups, including FSSA, which have been evaluated by the Board with the assistance of the corporate stockbroker, Investec Bank plc. The review is nearing completion and the Board expects to make an announcement within the next few weeks.

The Board wishes to acknowledge both the professionalism of the outgoing team at Stewart Investors and the constructive engagement of FSSA during a period of considerable operational and market complexity.

Share price performance

The Company's share price total return for the year was 5.1%, benefitting from the share price discount narrowing relative to the NAV total return. The shares traded at an average discount of 11.4% (2025: 11.5%), and the Company repurchased 6.3 million shares over the year, at a cost of £22.5 million, and at an average discount of 11.8%. Buybacks were paused once the strategic review was announced, but increased interest from certain investors has provided some natural discount management since that time.

The Sales, Marketing and Communications Committee made good progress on planned marketing initiatives; however, much of the activity has been necessarily deferred pending the outcome of the strategic review.

Dividend

The Company generated a revenue return of 5.6p per share during the year (2025: 5.4p per share) and, as a result, the Board recommends to shareholders the payment of a final dividend to ensure the Company complies with the investment trust rules regarding distributable income.

Subject to shareholder approval at the AGM, a final dividend of 5.7p per share will be paid on 10 July 2026 to shareholders on the register on 12 June 2026. The associated ex-dividend date will be 11 June 2026.

The Board

Having served on the Board for just over nine years now, Robert Talbut intended to retire from the Board at the AGM in July. However, at the Board's request, Robert has agreed to remain on the Board until the outcome of the strategic review has been implemented, to ensure continuity and stability during the process. The Board is grateful for his commitment and support.

The Annual General Meeting

As noted above, the Board shortly expects to announce the conclusion of its strategic review and looks forward to discussing the outcome with shareholders over the coming weeks and months. One such opportunity will be at our annual general meeting ("AGM") to be held at 10.30am on Tuesday, 7 July 2026, at Dashwood House, 69 Old Broad St, London EC2M 1QS.

The Board strongly encourages shareholders to register their proxy voting instructions online in advance of the AGM. Registering your proxy voting instructions in advance will not restrict shareholders from attending and voting at the meeting in person should they wish to do so. The Board recommends that shareholders vote in favour of all the resolutions set out in the Notice of AGM as each of the directors intends to do in respect of their own holdings.

Outlook

Overall, Asia remains well positioned over the long run, supported by favourable demographics, the continued expansion of the region's digital economy, and increasing participation in global technology and innovation supply chains. However, the near term environment is likely to be characterised by greater dispersion of returns across markets and sectors, reinforcing the importance for investors of selectivity, discipline and attention to underlying fundamentals.

FSSA provide further comment in their report.

Andrew Impey
Chair

30 April 2026

Investment Portfolio

as at 31 January 2026

Company	Country	Sector	Value £'000	% Total Assets
Samsung Electronics	South Korea	Information Technology	31,512	6.7%
Oversea-Chinese Banking Corp	Singapore	Financials	17,734	3.8%
Airtac International	Taiwan	Industrials	16,156	3.4%
Taiwan Semiconductor Manufacturing	Taiwan	Information Technology	15,701	3.3%
Jardine Matheson	Hong Kong	Industrials	14,658	3.1%
Alibaba	China	Consumer Discretionary	14,479	3.1%
Hoya	Japan	Health Care	14,166	3.0%
DFI Retail	Hong Kong	Consumer Staples	13,991	3.0%
Tencent	China	Communication Services	11,486	2.4%
Kotak Mahindra Bank	India	Financials	11,474	2.4%
Top 10 Investments			161,357	34.2%
Shenzhen Inovance Technology	China	Industrials	11,410	2.4%
Techtronic Industries	Hong Kong	Industrials	11,144	2.3%
Mahindra & Mahindra	India	Consumer Discretionary	10,976	2.3%
Midea	China	Consumer Discretionary	10,421	2.2%
AIA	Hong Kong	Financials	10,282	2.2%
Ayala	Philippines	Industrials	10,270	2.2%
Voltronic Power Technology	Taiwan	Industrials	10,118	2.1%
Sheng Siong	Singapore	Consumer Staples	9,893	2.1%
Bank OCBC Nisp	Indonesia	Financials	9,328	2.0%
Trip.com	China	Consumer Discretionary	9,113	1.9%
Top 20 Investments			264,312	55.9%
Tube Investments of India	India	Consumer Discretionary	8,846	1.9%
Elgi Equipments	India	Industrials	8,704	1.8%
Philippine Seven	Philippines	Consumer Staples	8,351	1.8%
Cholamandalam Financial	India	Financials	8,184	1.7%
Dongguan Yiheda Automation	China	Industrials	7,991	1.7%
Shanthi Gears	India	Industrials	7,920	1.7%
Mani	Japan	Health Care	7,447	1.6%
Sundaram Finance	India	Financials	7,435	1.6%
SF Holding	China	Industrials	7,397	1.6%
Triveni Turbine	India	Industrials	7,255	1.5%
Top 30 Investments			343,842	72.8%

Company	Country		Sector	Value £'000	% Total Assets
HDFC Bank	India	Financials		6,425	1.4%
ViTrox Corp	Malaysia	Information Technology		6,352	1.3%
Delta Electronics	Taiwan	Information Technology		6,044	1.3%
Bajaj Auto	India	Consumer Discretionary		6,031	1.3%
Kasikornbank	Thailand	Financials		5,879	1.2%
MediaTek	Taiwan	Information Technology		5,828	1.2%
Chroma ATE	Taiwan	Information Technology		5,589	1.2%
Tech Mahindra	India	Information Technology		5,357	1.1%
Glodon	China	Information Technology		5,032	1.1%
Marico	India	Consumer Staples		4,924	1.0%
Top 40 Investments				401,303	84.9%
Shenzhen Mindray Bio-Medical
Electronics	China	Health Care		4,682	1.0%
CG Power & Industrial Solutions	India	Industrials		4,605	1.0%
Centre Testing International	China	Industrials		4,578	1.0%
Aavas Financiers Ltd	India	Financials		4,366	0.9%
Bank Central Asia	Indonesia	Financials		4,270	0.9%
Info Edge India	India	Communication Services		4,151	0.9%
Selamat Sempurna	Indonesia	Consumer Discretionary		3,968	0.8%
Sea	Singapore	Consumer Discretionary		3,844	0.8%
Godrej Consumer Products	India	Consumer Staples		3,842	0.8%
Vitasoy International	Hong Kong	Consumer Staples		3,752	0.8%
Top 50 Investments				443,361	93.8%
SM Investments	Philippines	Industrials		3,648	0.8%
Humanica	Thailand	Industrials		3,141	0.7%
BDO Unibank	Philippines	Financials		2,967	0.6%
Silergy	Taiwan	Information Technology		2,780	0.6%
Bajaj Holdings & Investment	India	Financials		2,666	0.6%
Bank of the Philippine Islands	Philippines	Financials		2,450	0.5%
SF Holding	China	Industrials		2,420	0.5%
FPT	Vietnam	Information Technology		2,403	0.5%
Yifeng Pharmacy Chain	China	Consumer Staples		2,027	0.4%
Kalbe Farma	Indonesia	Health Care		2,019	0.4%
Marico Bangladesh	Bangladesh	Consumer Staples		1,900	0.4%
Tarsons Products	India	Health Care		771	0.2%
Total Investments				472,553	100.0%

Portfolio Manager's Review

In November 2025, First Sentier Group ("FSG") announced a strategic transition of Stewart Investors' ("SI") investment management responsibilities to its affiliate investment team, FSSA Investment Managers ("FSSA"). FSSA have managed the Company's portfolio since 14 November 2025.

Over the year to 31 January 2026, the net asset value total return of the Company was 0.0%. The MSCI AC Asia ex-Japan Index, measured on a net, total return, sterling adjusted basis (the "Index") rallied, returning 28.6% over the same period. Part of the underperformance stems from the Company's positioning in India, as holdings which are good quality but expensive were derated. However, we believe there are still good opportunities for active managers to add value with a disciplined, research-driven approach. Although India has been out of favour, we remain excited about the long-term investment opportunities in this market, with growth being underpinned by growing levels of urbanisation, favourable demographics, rising middle class consumption and a strong digital infrastructure push.

Another reason for the relative underperformance was the level of market concentration in a few stocks and themes - around two-thirds of the total return of the Index was driven by technology and Artificial Intelligence ("AI")-related companies. Outside of these sectors, many high-quality businesses - particularly in Southeast Asia, India and China's traditional sectors - have not performed despite solid earnings growth, improving governance and attractive valuations.

In particular, Korean and Taiwanese chipmakers have seen valuations expand rapidly on the future promise of AI. Taiwan Semiconductor Manufacturing ("TSMC"), Samsung Electronics, and SK Hynix - all related to the AI theme - now comprise almost a quarter of the Index's weight. On a country level, TSMC now commands a staggering 59% of MSCI Taiwan, up from 24% at the end of 2015. Samsung Electronics and SK Hynix together represent more than 50% of MSCI Korea, compared to just 23% a decade ago. 1 This underscores the outsized role of a handful of firms in shaping regional returns.

With everything seemingly about AI, we believe it is critical to remain disciplined in our investment approach and focused on quality. Momentum phases tend to favour companies with eye-catching narratives rather than those with solid balance sheets or dependable earnings. Yet far from weakening the case for quality investing, such episodes strengthen it.

Global research 2 shows that high-quality companies are consistently underpriced, as the market routinely underestimates their future returns. Low-quality companies are consistently overpriced, as over-optimistic analysts generate larger forecast errors. Crucially, the mispricing of quality is not random. The research identifies a "price of quality" that fluctuates over time. It is typically lowest during speculative booms - such as the late 1990s technology surge or the run up to the financial crisis - when investors place less emphasis on fundamental strength and more on market narratives.

When the price of quality becomes unusually compressed, subsequent returns from quality strategies tend to rise. In effect, weak periods for quality often lay the groundwork for future outperformance.

1 Source; FactSet, as at 30 January 2026

2 Clifford S. Asness, Andrea Frazzini & Lasse Heje Pedersen (2018), Quality minus junk , Review of Accounting Studies (2019),24:34-112

The recurring lesson from more than half a century of data is that quality investing succeeds not because markets are always rational, but because they frequently are not. Periods in which quality appears to lag - particularly when speculative assets dominate the headlines - are often the prelude to its strongest returns.

Positioning for growth opportunities across Asia

As benchmark-agnostic investors, we pay little attention to index compositions or returns. We focus instead on generating absolute returns for our clients in the long run. Our track record, when viewed through the lens of the market environment, shows that our portfolios tend to perform better in "normal" markets (-15% to +15% 1-year rolling returns) and bear markets (more than 15% decline), than in steeply rising markets (defined as over 15% 1-year rolling returns).

Through our bottom-up research, we own dominant industry leaders that have exposure to AI like TSMC and Tencent, but we remain sceptical about many expensive and cyclical AI-related companies in Asia. Beyond technology, we have positioned the portfolio to tap into the long-term growth opportunities across Asia. One example is Bank of the Philippine Islands ("BPI"), the second largest bank in the Philippines with roughly 15% market share in loans and 13% in deposits. BPI operates with one of the leanest cost structures in the Philippine banking sector, supported by its scale, automation and relatively higher productivity per branch. It is majority-owned by Ayala Corporation, one of the Philippines' most established and influential business groups. As a result, it has many of Ayala's associated qualities: a strong governance framework, a measured growth strategy and operational professionalism.

Although Southeast Asia appears to be unloved by investors, we believe the opportunity here is sizeable. The Philippines is one of the most under-penetrated banking markets in Asia relative to its economic size and demographics. With a population of ~114 million and a GDP of US$505 billion, it is among Southeast Asia's larger economies, yet its household credit-to-GDP remains closer to frontier market levels. We believe BPI should compound earnings steadily in the years to come.

We have also been significant and constructive shareholders of various Jardine Matheson ("JM") group companies. The Hong Kong-based group has sprawling business interests across Asia, including real estate, supermarkets, hotels and automotives. JM has been reinventing itself and we expect changes to accelerate in the coming years.

The new externally appointed CEOs at subsidiary companies DFI, Mandarin Oriental and Hongkong Land have begun to focus on the most attractive parts of their businesses, while exiting non-core ventures to improve returns on invested capital and return cash to shareholders where appropriate. Improving total shareholder return is the new mantra for the group.

More needs to be done to shift the group back towards a growth pathway, but we expect changes to accelerate in the coming years. Lincoln Pan has joined as JM's CEO, taking over from John Witt who retired from the company. Pan joins from private equity group PAG and is the first external taipan at the group. This is significant and an indication of the changing culture at the group.

In India, there have been few opportunities on a bottom-up basis over the past couple of years, as valuations across the board were quite expensive. However, as earnings have grown, valuations have become more attractive, and we are beginning to find more ideas at the margin. For instance, we own HDFC Bank, a high-quality private bank. Over the long term, it has been gaining share at the expense of state-owned banks, but in recent times it has been derated on concerns about near-term income pressure and slower loans growth. We believe this is now behind us.

At Kotak Mahindra Bank ("KMB"), we also note signs of improvement across different areas of the business. It has grown its savings accounts; credit costs have been declining; and the cost/income ratio is showing signs of improvement due to the bank's investments into digitisation and automation. For a business that should continue to compound at a mid-teens rate - we believe the current valuation makes the risk-reward look attractive.

Contributors

The largest contributor to performance over the period was Samsung Electronics, a leading manufacturer of memory and semiconductor chips. In recent years, Samsung's foundry business has been a major point of investor concern, which culminated in significant losses in the first half of 2025. These losses were exacerbated by one-time charges related to US export controls to China. The company has since undertaken a strategic shift from a "capacity-first" to a "customer-first" model, which appears to be bearing fruit. The shares rose during the quarter, as Samsung continued to benefit from surging AI-related demand for its high-bandwidth memory chips as well as tightness in traditional DRAM (Dynamic Random Access Memory) demand-supply. Strong results from US chipmaker Micron reinforced expectations of a sustained memory upcycle into 2026. With the turnaround in its foundry business and a strong legacy memory business, we believe the risk-reward looks favourable.

Delta Electronics, a leading power supply company in Taiwan, was the second largest contributor to performance. AI-related demand has been "very strong", as the trend of higher power intensity continues. As the technology leader, Delta is collaborating with clients to develop new products, which provides a first-mover advantage whenever there's an upgrade. There are also discussions about high voltage direct current ("HVDC") power, which should add incremental value (though it is hard to quantify at this stage). On the other hand, due to strong demand for AI, there are bottlenecks developing in memory, grid power, chip-on-wafer-on-substrate ("CoWoS"), water and skilled technicians. A slowdown in AI growth could have a knock-on effect at Delta. We have been reducing our position size due to rich valuation and very high expectations.

The third largest contributor to performance was DFI Retail, a leading pan-Asian retailing group with a dominant market position across various segments, including drug stores, supermarkets, convenience stores, IKEA and Maxim's (a joint venture catering and restaurants business). After years of lacklustre performance, DFI - and the broader Jardine group - has redoubled efforts to grow the business, and to improve operational efficiencies and returns on capital while optimising capital allocation. Improving total shareholder return is the new mantra for the group, and there are now clear signs of improvement. We believe margins could improve still further and lead to underlying profit growth.

Detractors

Voltronic Power has had a challenging year and was the largest detractor from returns. Around a third of its uninterruptible power supply ("UPS") sales goes to the US and was subject to higher tariffs after "Liberation Day", while its inverter business - which has been hit by weak demand and competition - appears to be challenged. While the UPS business should normalise sometime in the future, we assume lower growth for the inverter business. On the other hand, given the share price has halved over 2025 (from a high base), we believe the current valuation seems attractive overall.

Tube Investments of India, an engineering group which makes precision steel tubes for cars, bicycles and other industrial purposes, was the second biggest detractor due to sluggish business performance and rising competition in the electric vehicle ("EV") space. Despite its early mover advantage, Tube has struggled to maintain market share. It plans to arrest these challenges by increasing the number of dealership partners and entering new sub-segments in EV battery packs. On a positive note, the core business is stable with robust returns on capital employed, and it generates healthy free cash flow which is being invested in new businesses with high returns potential. In this endeavour, we are backing the management, particularly Vellayan Subbiah (executive chairman), who has an exceptional track record and has created tremendous value for shareholders.

The third largest detractor was Philippine Seven, operator of 7-11 stores, which declined after reporting weak earnings results. Same store sales growth has been weak due to the exit of the Philippine offshore gaming operators ("POGOs"), which were banned in mid-2024. However, the group continues to expand its lead in terms of store count, and its network is increasingly extending beyond Metro Manila and into harder-to-reach areas. It has also built an extensive network of more than 20 distribution centres to cater to company-owned and franchised stores across the country. At current valuations we believe the risk-reward looks compelling.

Significant transactions

Given the significant overlap in SI's and FSSA's investment philosophy and portfolios, we know all the holdings well. As part of the transition, we made a few changes to tilt the portfolio towards companies with stronger cash generation, higher returns and better long-term growth prospects. In general, we are adding to holdings in China, where we have found leading businesses like Tencent, with strong moats and attractive growth at reasonable valuations. We are reducing exposure to India, mainly in cyclical businesses like Tube Investments of India, where valuations are expensive, and Motilal Oswal, where we have lower conviction as the growth outlook has deteriorated.

Below, we highlight a few of the key additions and disposals since the transition to FSSA.

New investments

Tencent Holdings is the largest social media network and online gaming company in China, with growing businesses in online advertising, cloud services, e-payments/e-commerce and overseas gaming. Tencent has created an ecosystem of businesses which are unrivalled and should continue growing over the medium term. It has continued to develop new functions within WeChat (such as Video Accounts and Mini Shops), which should slowly improve monetisation and enhance the quality of the franchise. At FSSA, we have been shareholders of Tencent since 2005 and have consistently found the management to be effective long-term stewards of the business. In recent times, we have been impressed by Tencent's AI strategy and its disciplined approach to technology investments, which aligns with our conservative view on AI capex spending.

Kotak Mahindra Bank ("KMB") is one of India's leading financial services companies - it has consistently improved the strength of its deposit franchise and maintained better asset quality than peers through the business cycle. While the founder, Uday Kotak, has stepped down from his managing director/CEO role due to the central bank's limits on leadership terms, he remains closely involved as a board director and should ensure that the bank's risk awareness and long-term thinking is maintained. Meanwhile, the new CEO (Ashok Vaswani) aspires to grow the business further by focusing on consumer banking and digitisation. We expect to see a growing trend of formalised financial savings, benefiting KMB's insurance, mutual funds and asset management businesses.

Bank Central Asia ("BCA") is a leading private bank in Indonesia with 11% loan market share and 17% market share in low-cost deposits (i.e. current accounts and savings accounts, or "CASA"). We like the bank's conservative culture and solid management, backed by a stable and long-term owner in the Hartono family. BCA's moat in transaction banking has created a large pool of low-cost deposits for the bank which is hard to replicate. BCA then lends sensibly to good borrowers and earns a healthy return on equity ("ROE"), averaging over 20% over the past 10 years. It has the lowest credit loss ratio and lowest leverage amongst Indonesian banks. In addition, BCA was early to invest in digitisation in Indonesia, which has since accelerated its customer acquisition. BCA remains very profitable, and we believe it has the ability to compound book value at high rates without taking on too much risk. Low credit penetration and household debt in Indonesia should provide a favourable backdrop for continued growth.

Disposals

Naver, the South Korean technology platform, was sold on strength to consolidate the portfolio into higher conviction ideas. While the shares have bounced due to excitement around Korea and AI, we believe the business faces structural headwinds in terms of slowing e-commerce growth, and we have been concerned about their lack of financial discipline in the past.

Motilal Oswal Financial Services is a non-bank financial company ("NBFC") in India. We sold out of a lower conviction holding to raise cash for better ideas elsewhere.

Milkyway Intelligent Supply Chain is a chemical materials logistics company in China. We sold out of the position on concerns about leverage and poor cash generation.

Looking forward

We are optimistic on the outlook for the Asia Pacific region, with several signs pointing to a sustained period of Asian equity outperformance. With a rising share of global GDP growth, Asia should continue to benefit from the shift towards higher value services-led growth, digital transformation and the ongoing financialisation across the region. Valuations look attractive in comparison to developed markets like the US, while low ownership of Asian equities in global portfolios provides a good backdrop for absolute returns as global liquidity flows eastwards.

As markets broaden out their focus from their narrow focus on AI, we believe quality businesses owned in the portfolio should do well. The Company's holdings are characterised by strong competitive advantages, and they have historically managed to preserve margins and profitability through the cycles. We are confident that their strong fundamentals will translate into attractive shareholder returns in the long run. Current portfolio valuations, at 17x forward price-to-earnings, remain attractive - as they have been over the last couple of years, while the free cash flow yield of 5.3% is at a historic high as companies are returning more cash to shareholders. Looking forward, we expect earnings to compound at a low-to-mid teens rate with circa 20% average returns on equity, which looks attractive and reasonable to us.

FSSA Investment Managers
Portfolio Manager

30 April 2026

Key Performance Indicators ("KPIs")

The Board of Directors reviews performance against the following KPIs. As explained in the Half Year Report, the Board decided to retire the Company's UK inflation-linked performance objective and instead use a market-based comparator to measure the Portfolio Manager's performance. The first KPI has been updated to reflect this. The remaining KPIs are unchanged from the prior year.

• NAV total return against the MSCI All Country Asia ex Japan Index (the "Index")*^
• NAV per share total return against the peer group*^
• Average discount/premium of share price to NAV per share over the year^
• Ongoing charges ratio^

* Calculated on an annual basis and measured over three to five years.

^ Alternative Performance Measure.

NAV per share total return - Index

The Directors regard the Company's net asset value total return as being the overall measure of value generated by the Portfolio Manager over the long term. Total return reflects both the net asset value growth of the Company and the dividends paid to shareholders.

During the year under review, the NAV per share total return was 0.0% underperforming the Index by 28.6% (2025: NAV per share total return of 9.7%, underperforming the Index by 12.6%). Over the past three years, the annualised NAV per share total return was 2.7%, underperforming the Index by 9.4%. Over five years, the annualised NAV per share total return was 4.5%, in line with the Index.

A full description of performance during the year under review is contained in the Portfolio Manager's Review.

NAV total return - peer group

The Board also monitors the Company's performance against its peer group of the three other investment trusts in the AIC Asia Pacific sector and an exchange traded fund which tracks the MSCI AC Asia ex Japan Index.

Over the one, three and five years ended 31 January 2026, the Company ranked 5th, 5th and 4th, respectively, in its peer group.

Average discount/premium of share price to NAV per share

The Board believes that the principal drivers of an investment trust's share price discount or premium over the long term are investment performance and a proactive marketing strategy. However, there can be volatility in the discount or premium during the year. Therefore, the Board takes powers each year to buy back and issue shares with a view to limiting the volatility of the share price discount or premium, in normal market conditions.

During the year under review no new shares were issued by the Company. The Company repurchased 6,325,879 shares during the year, at a total cost of £22.5 million, and at an average discount of 11.8%. The Board keeps the level of the discount under close review. Please refer to the Chair's Statement for further information.

Average discount of share price to NAV per share*^ during the year ended

31 January 2026 31 January 2025

11.4%11.5%

Peer group average Peer group average

discount 9.0%discount 10.8%

* Source: Morningstar.

^ Alternative Performance Measure.

Ongoing charges ratio

Ongoing charges represent the costs that the Company can reasonably expect to pay from one year to the next, under normal circumstances. The Board continues to be conscious of expenses and seeks to maintain a sensible balance between high quality service and costs.

The Board therefore considers the ongoing charges ratio to be a KPI and reviews the figure both in absolute terms and in relation to the Company's peers.

Ongoing charges ratio^

31 January 2026 31 January 2025

1.1%1.1%

Peer group average 0.9%Peer group average 0.9%

^ Alternative Performance Measure.

During the year the Board agreed with the Portfolio Manager a new portfolio management fee which will have the effect of lowering the ongoing charges ratio to 1.0% in the first full year. The Board believes that the Company's relatively low turnover, and the absence of any costs associated with gearing, will mean that the Company's overall running costs - should these costs be factored into the calculation - are not necessarily as high as some other investment vehicles. It should also be noted that the Company does not have a performance fee. Performance fees are not included in the peer group average ongoing charges ratio.

Risk Management

The Board is responsible for managing the risks faced by the Company. Through delegation to the Audit Committee, the Board has established procedures to manage risk, to review the Company's internal control framework and to establish the level and nature of the principal risks the Company is prepared to accept in order to achieve its long-term strategic objective. The Board, meeting as the Audit Committee, has carried out a robust assessment of the principal and emerging risks facing the Company with the assistance of the AIFM. A process has been established to identify and assess risks, their likelihood and the possible severity of their impact.

These principal risks are set out below with a high-level summary of their management through mitigation and arrows to indicate any change in assessment during the year. The risks faced by the Company have been categorised under three headings as follows:

• Investment and financial risks
• Strategic risks
• Operational risks

Strategic Review Risk

The Board launched a strategic review towards the end of the year following changes to the Company's portfolio management arrangements during the year. The Board considers that this process has heightened the Company's overall risk environment, introducing uncertainty regarding the Company's future structure, investment approach and management arrangements. This uncertainty may influence market sentiment and contribute to volatility in the share price and discount. The review has also necessitated a pause in the Company's marketing activities, and the Portfolio Manager has been asked to limit portfolio turnover while the process is ongoing. The eventual outcome of the review may not align with the preferences of all shareholders. The Board continues to monitor these risks and will maintain open communication with stakeholders throughout the process.

A summary of these risks and their mitigation is set out below:

Principal Risks and Uncertainties	Mitigation	Change in risk assessment over the last financial year
Investment and Financial Risks
Market and Foreign Exchange Risk		Unchanged
The Company's portfolio is exposed to fluctuations in market prices (from both individual security prices and foreign exchange rates) in the regions and sectors in which it invests. Emerging markets in the Asia Pacific region, in which the portfolio companies operate, are expected to be more volatile than developed markets.	To an extent, this risk is accepted as being inherent to the Company's activities. However, the Board has set limits in the investment policy which ensure that the portfolio is diversified, reducing the risks associated with individual stocks and markets. Compliance with the investment objective and policy limits is monitored daily by Frostrow and the Portfolio Manager and reported to the Board monthly. The Portfolio Manager reports at each Board meeting on the performance of the Company's portfolio, including the impact of wider market trends and events. As part of its review of the viability of the Company, the Board also considers the sensitivity of the Company to changes in market prices and foreign exchange rates (see note 14), how the portfolio would perform during a market crisis, and the ability of the Company to liquidate its portfolio if the need arose. Further details are included in the Going Concern and Viability Statements.
Investment Performance
Increased
Investment performance may not achieve the Company's investment objective. The Portfolio Manager's investment strategy and approach is expected to lead to performance that will deviate from that of both market indices and other investment companies investing in the Asia Pacific Region.	To manage this risk, the Board: reviews and challenges reports from the Portfolio Manager, which cover portfolio composition, asset allocation, concentration and performance at each Board meeting; reviews investment performance over the long term against the Company's performance objective and peer group; monitors the Portfolio Manager's performance against set KPIs; and formally reviews the Portfolio Manager's appointment, including their performance, service levels and contractual arrangements, each year.
	The Board increased the investment performance risk rating during the year in light of the Company's short and medium term performance. In December 2025, the Board initiated a full strategic review, as described in the Chair's Statement.

Principal Risks and Uncertainties	Mitigation	Change in assessment of risk over the last financial year
Strategic Risks
Geopolitical Risk
Increased
Geopolitical events may have an adverse impact on the Company's performance by causing exchange rate volatility, changes in tax or regulatory environments, a reduced investment universe and/or a fall in market prices.	The Board regularly discusses global geopolitical issues and general economic conditions and developments. Political changes in recent years, particularly in the US and Asia Pacific region and more recently in the Middle East, as well as Ukraine and Eastern Europe, have increased uncertainty and volatility in financial markets. The Board discusses such developments and how they may impact decision making with the Portfolio Manager. In light of recent events in Iran, the Board considers that this risk has increased.
Climate Change Risk	Unchanged
The Board is cognisant of risks arising from climate change and the impact climate change events could have on portfolio companies and their operations, as well as on service providers to the Company.	The Board regularly reviews global environmental, geopolitical and economic developments with the Portfolio Manager and the implications of these risks and events on portfolio construction and the Company's operations. Given the Portfolio Manager's focus on sustainability, the Board considers the portfolio to be relatively well positioned in this regard.
Black Swan Risk	Unchanged
A significant unpredictable event (e.g. a pandemic/war/closure of a major shipping route) could lead to increased market volatility, and in a worst-case scenario, major global trade and supply chain breakdown resulting in significant volatility/declines in market prices. The Company's service providers and their operational systems may also be affected.	The Board monitors emerging risks and the robustness of the Portfolio Manager and other service providers' business continuity plans. The Portfolio Manager's investment approach includes a focus on sustainability and stewardship, which emphasises quality investments with strong balance sheets, a proven track record in previous crises, and the protection of shareholders' funds, leaving them relatively well positioned to deal with unforeseen events. All of the Company's service providers are required to have business continuity / disaster recovery policies and test them at least annually. Service providers provide updates on contingency plans for coping with major disruption to their operations.
Principal Risks and Uncertainties	Mitigation	Change in assessment of risk over the last financial year
Key Persons Risk	Increased
There is a risk that the team responsible for managing the Company's portfolio may leave their employment or may be prevented from undertaking their duties.	The Board manages this risk by: receiving regular reports from the Portfolio Manager, including any significant changes in the make-up of the portfolio management team; meeting the wider team supporting the designated lead manager, at both Board meetings and at the Portfolio Manager's offices; and delegating to the Engagement & Remuneration Committee responsibility to perform an annual review of the service received from the Portfolio Manager, including, inter alia, the team supporting the lead manager and their succession planning. In light of the changes made by First Sentier Group to the Company's portfolio management arrangements during the year, the Board recognised that this risk had increased materially.
Share Price Risk	Increased
The Company is exposed to the risk, particularly if the investment strategy and approach are unsuccessful, that the Company underperforms its peer group, fails to achieve its Performance Objective and becomes unattractive to shareholders, resulting in a widening of the share price discount to the NAV per share.	In managing this risk the Board: reviews the Company's investment objective and policy, and the Portfolio Manager's investment approach, in relation to investment performance, market and economic conditions and the performance of the Company's peers; regularly discusses the Company's future development and strategy; undertakes a regular review of the level of the share price discount/premium to the NAV per share and considers ways in which share price performance may be enhanced, including the effectiveness of marketing, share issuance and share buybacks, where appropriate; and reviews an analysis of the shareholder register at each Board meeting and is kept informed of shareholder sentiment. In view of the Company's performance, the changes to the portfolio management team, and ongoing developments in the investment trust sector, the Board considered that this risk had increased during the year. As a result, the Board launched a strategic review as described in the Chair's Statement.
Principal Risks and Uncertainties	Mitigation	Change in risk assessment over the last financial year
Operational Risk
Operational Risk	Increased
As an externally managed investment trust, the Company is reliant on the systems of its service providers for dealing, trade processing, administration, financial and other functions. If such systems were to fail or be disrupted (including, for example, as a result of cyber-crime or a pandemic) this could lead to a failure to comply with applicable laws, regulations and governance requirements and/or to a financial loss. Credit risk arising from the use of counterparties forms part of this risk. If a counterparty were to fail, the Company could be adversely affected through either delay in settlement or loss of assets.	To manage these risks the Board: periodically visits all key service providers to gain a better understanding of their control environment, and the processes in place to mitigate any disruptive events; receives a monthly report from Frostrow, which includes, inter alia, confirmation of compliance with applicable laws and regulations; reviews internal control reports and key policies of its service providers, including disaster recover procedures and business continuity plans; maintains a risk matrix with details of the risks to which the Company is exposed, the approach to managing those risks, the key controls relied upon and the frequency of the controls operation; receives updates on pending changes to the regulatory and legal environment and progress towards the Company's compliance with such changes; has considered the increased risk of cyber-attacks and received reports and assurance from the Company's service providers regarding the information security controls in place; has reviewed the arrangements (including sub-custodial arrangements) and services provided by the Custodian to ensure that the security of the Company's custodial assets is maintained; and reviews the Portfolio Manager's approved list of counterparties, the process for monitoring and adding to the approved counterparty list, and the Company's use of those counterparties. Under the terms of the contract with J.P. Morgan Chase Bank, the Company's investments are required to be segregated from J.P. Morgan Chase Bank's own assets. Further information on credit risk and other financial risks can be found in note 14. The Board considered that the risk of operational disruption had increased during the year as a result of the strategic review initiated by the Board.

Emerging Risks

Emerging risks are discussed as part of the risk review process. The Board has identified the following emerging risk:

As well as offering investment opportunities, the development and exploitation of technological breakthroughs, such as artificial intelligence, may challenge and damage the addressable market, revenue and operations of portfolio companies to the extent that they no longer offer the promise of returns consistent with the Company's investment objective.

Going Concern

As set out in more detail in the Chairman's Statement, the Board is in the process of completing a strategic review of the Company's future. The possible outcomes of the strategic review represent a material uncertainty which may cast significant doubt on the Company's ability to continue as a going concern. Notwithstanding this material uncertainty, the Board has concluded that it remains appropriate to prepare the financial statements on a going concern basis. In reaching this conclusion, the Board has come to the view that, as the Board has not yet reached a decision and the Company is considered solvent in all other regards, going concern remains the most appropriate basis for preparation of the financial statements.

The Board has also considered the Company's portfolio, investment activity, cash balances and revenue forecasts, and a detailed assessment of the Company's ability to meet its liabilities as they fall due, including stress tests which modelled the effects of substantial falls in portfolio valuations and liquidity constraints on the Company's NAV, cash flows and expenses. Further details of the stress tests and scenarios considered can be found in the Audit Committee Report and Notes 1 and 14 to the financial statements. Based on the information available to the Directors at the date of this report, the Directors are satisfied that the Company has adequate financial resources to continue in operation for at least the next 12 months from the date of signing this report.

Viability Statement

Notwithstanding the material uncertainty posed by the strategic review, the Directors have carefully assessed the Company's financial position and prospects as well as the principal risks facing the Company and expect that, if the Company is to continue in its current form, it would be able to continue in operation and meet its liabilities as they fall due over the next three financial years. The Board chose a three year horizon to align with the performance-related tender offer introduced during the year.

To make this assessment and in reaching this conclusion, the Audit Committee considered the Company's financial position and its ability to liquidate its portfolio and meet its liabilities as they fall due and notes the following:

• The portfolio is comprised of investments traded on major international stock exchanges. Based on historic analysis, it is estimated that approximately 90% of the current portfolio could be liquidated within two weeks (based on current market volumes with 20% participation);
• The Audit Committee has considered the viability of the Company under various scenarios, including periods of acute stock market and economic volatility. In view of the results of these stress tests, the Board has concluded that it would expect to be able to ensure the financial stability of the Company through the benefits of having a diversified portfolio of listed and realisable assets. Further details of the stress tests can be found in Note 1 to the financial statements;
• With a forecast ongoing charges ratio of 1.0%, the expenses of the Company are predictable and modest in comparison with the assets and there are no capital commitments currently foreseen which would alter that position;
• The Board has noted that the Company has consistently retained levels of cash that are significantly higher than its annual operating expenses;
• The Company has no employees, only non-executive Directors. Consequently it does not have redundancy or other employment related liabilities or responsibilities; and
• The closed ended nature of the Company means that, unlike open ended funds, it does not need to realise investments when shareholders wish to sell their shares.

By order of the Board

Frostrow Capital LLP
Company Secretary

30 April 2026

Statement of Directors' Responsibilities

The Directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law they are required to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice, including FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

Under company law, the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:

• select suitable accounting policies and then apply them consistently;
• make judgements and accounting estimates that are reasonable and prudent;
• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
• prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Company will continue in business; and
• prepare a directors' report, a strategic report and a directors' remuneration report which comply with the requirements of the Companies Act 2006.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Directors are responsible for ensuring that the Annual Report and financial statements, taken as a whole, are fair, balanced, and understandable and provide the information necessary for shareholders to assess the Company's performance, business model and strategy.

Under applicable law and regulations, the Directors are also responsible for preparing a Strategic Report, Directors' Report, Directors' Remuneration Report and Corporate Governance Statement which comply with that law and those regulations.

The Directors are responsible for ensuring the Annual Report and the financial statements are made available on the Company's website, which is maintained by the Portfolio Manager. Financial statements are published on the Company's website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the Company's website is the responsibility of the Directors. The Directors' responsibility also extends to the ongoing integrity of the financial statements contained therein.

Disclosure of Information to the Auditor

The Directors who held office at the date of approval of this report confirm that, so far as they are each aware, there is no relevant audit information of which the Company's auditor is unaware; and each Director has taken all the steps that he/she might reasonably be expected to have taken as a Director to make himself/ herself aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Responsibility Statement of the Directors in respect of the Annual Financial Report

We confirm that to the best of our knowledge:

• the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and the return of the Company for the year ended 31 January 2026; and
• the Annual Report includes a fair review of the development and performance of the business and the financial position of the Company, together with a description of the principal risks and uncertainties that they face.

We consider the Annual Report, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company's position and performance, business model and strategy.

On behalf of the Board

Andrew Impey
Chair

30 April 2026

Income Statement

for the year ended 31 January 2026

		Year ended 31 January 2026			Year ended 31 January 2025
		Revenue	Capital	Total	Revenue	Capital	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
(Losses)/gains on investments	8	-	(9,914)	(9,914)	-	49,989	49,989
Exchange differences		-	(685)	(685)	-	(414)	(414)
Income	2	9,912	-	9,912	9,687	-	9,687
Portfolio management
and AIFM fees	3	(1,068)	(3,204)	(4,272)	(1,211)	(3,634)	(4,845)
Other expenses	4	(1,194)	-	(1,194))	(863)	-	(863)
Return/(loss) before taxation		7,650	(13,803)	(6,153)	7,613	45,941	53,554
Taxation	5	(1,074)	2,863	1,789	(1,049)	(7,684)	(8,733)
Return/(loss) after taxation		6,576	(10,940)	(4,364)	6,564	38,257	44,821
Return/(loss) per share (p)	7	5.6	(9.3)	(3.7)	5.4	31.7	37.1

The Total column of this statement represents the Company's Income Statement. The Revenue and Capital columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies.

All revenue and capital items in the Income Statement derive from continuing operations.

The Company had no recognised gains or losses other than those shown above and therefore no separate Statement of Other Comprehensive Income has been presented.

The accompanying notes are an integral part of these statements.

Statement of Changes in Equity

for the year ended 31 January 2026

		Ordinary		Capital
		share	Share	redemption	Special	Capital	Revenue
		capital	premium	reserve	reserve	reserve	reserve	Total
	Note	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 31 January 2024		15,120	8,811	1,648	14,572	415,270	9,398	464,819
Return after taxation		-	-	-	-	38,257	6,564	44,821
Repurchase of own shares for cancellation		(46)	-	46	-	(1,361)	-	(1,361)
Ordinary dividends paid	6	-	-	-	-	-	(4,838)	(4,838)
At 31 January 2025		15,074	8,811	1,694	14,572	452,166	11,124	503,441
(Loss)/Return after taxation		-	-	-	-	(10,940)	6,576	(4,364)
Repurchase of own shares for cancellation		(791)	-	791	-	(22,498)	-	(22,498)
Ordinary dividends paid	6	-	-	-	-	-	(5,805)	(5,805)
At 31 January 2026		14,283	8,811	2,485	14,572	418,728	11,895	470,774

The accompanying notes are an integral part of these statements.

Statement of Financial Position

as at 31 January 2026

		2026		2025
	Notes	£'000	£'000	£'000	£'000
Fixed assets
Investments	8		472,553		510,203
Current assets
Debtors	9	261		1,252
Cash		4,838		8,028
		5,099		9,280
Creditors (amounts falling due within one year)	10	(1,455)		(2,397)
Net current assets			3,644		6,883
Total assets less current liabilities			476,197		517,086
Creditors (amounts falling due after one year)
Provision for liabilities	11		(5,423)		(13,645)
Net assets			470,774		503,441
Capital and reserves
Called up share capital	12		14,283		15,074
Share premium account			8,811		8,811
Capital redemption reserve	15		2,485		1,694
Special reserve	15		14,572		14,572
Capital reserve	15		418,728		452,166
Revenue reserve	15		11,895		11,124
Equity shareholders' funds			470,774		503,441
Net asset value per Ordinary Share (p)	13		412.0p		417.5p

The financial statements were approved and authorised for issue by the Board of Directors on 30 April 2026 and signed on its behalf by:

Andrew Impey

Chair

The accompanying notes are an integral part of these statements.

Pacific Assets Trust Public Limited Company - Company Registration Number: SC091052 (Registered in Scotland)

Notes to the Financial Statements

1. Accounting Policies

A summary of the principal accounting policies adopted is set out below or as appropriate within the relevant note to the financial statements.

(a) Basis of Accounting

These financial statements have been prepared under UK Company Law, FRS 102 'The Financial Reporting Standard applicable in the UK and Ireland', and in accordance with guidelines set out in the Statement of Recommended Practice ("SORP"), published in July 2022, for Investment Trust Companies and Venture Capital Trusts issued by the Association of Investment Companies, the historical cost convention, as modified by the valuation of investments at fair value through profit or loss.

The Company has taken advantage of the exemption from preparing a Cash Flow Statement under FRS 102, as it is an investment fund whose investments are substantially highly liquid, carried at fair (market) value and provides a statement of changes in equity.

The Board is of the opinion that the Company is engaged in a single segment of business, namely investing in accordance with the Investment Objective, and consequently no segmental analysis is provided.

Going concern

The Directors are required to make an assessment of the Company's ability to continue as a going concern and have concluded that the Company has adequate resources to continue in operational existence for at least 12 months from the date these financial statements were approved.

In making this assessment, the Directors have considered a wide variety of emerging and current risks to the Company, as well as the mitigation strategies that are in place. The Board has also reviewed stress-testing and scenario analyses prepared by the AIFM. The stress tests and scenario analyses considered the effect of various downturns, based on historic bear markets, on the asset value and expenses of the Company. The tests modelled the impact of decreases of up to and over 80% on the value of the investment portfolio and decreases in current market liquidity of up to 80%.

These tests are carried out as an arithmetic exercise, which can apply equally to any set of circumstances in which asset value and income are significantly impaired. It was concluded that even in an extreme downside scenario, the Company would be able to continue to meet its liabilities as they fell due. Whilst the economic future is uncertain, the opinion of the Directors is that there is no foreseeable downside scenario that would threaten the Company's ability to continue to meet its liabilities as they fall due.

Based on the information available to the Directors at the time of this report, including the results of the stress tests and scenario analyses, and having taken account of the liquidity of the investment portfolio, the Company's cash flow and borrowing position (the Company is not currently geared), the Directors are satisfied that the Company has adequate financial resources to continue in operation for at least 12 months from the date of signing these financial statements and that, accordingly, it is appropriate to adopt the going concern basis.

The Board is in the process of carrying out a strategic review of the Company's future. The possible outcomes of the strategic review represent a material uncertainty which may cast significant doubt on the Company's ability to continue as a going concern. Notwithstanding this material uncertainty, the Board has concluded that it remains appropriate to continue to prepare the financial statements on a going concern basis. In reaching this conclusion, the Board has come to the view that, as the Board has not yet reached a decision and the Company is considered solvent in all other regards, going concern remains the most appropriate basis for preparation of the financial statements. The financial statements do not include any adjustments that would be necessary if the Company were unable to continue as a going concern.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements involves judgement in determining the functional currency; however, there are no significant judgements or key sources of estimation uncertainty requiring disclosure under FRS 102.

The Company's investments are made in foreign currencies, however the Board considers the Company's functional currency to be sterling. In arriving at this conclusion, the Board considered that the shares of the Company are listed on the London Stock Exchange, it is incorporated in the United Kingdom and pays dividends and expenses in sterling.

Presentation of the Income Statement

In order to reflect better the activities of an investment trust company and in accordance with the SORP, supplementary information which analyses the Income Statement between items of a revenue and capital nature has been presented alongside the Income Statement. The net revenue return is the measure the Directors believe appropriate in assessing the Company's compliance with certain requirements set out in Section 1158 of the Corporation Tax Act 2010.

(b) Foreign Currencies

Transactions denominated in foreign currencies are translated into sterling at the exchange rates on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate ruling at the date of the Statement of Financial Position. Profits or losses on the translation of foreign currency balances, whether realised or unrealised, are taken to the capital or revenue column of the Income Statement, depending on whether the gain or loss is of a capital or revenue nature.

All values are rounded to the nearest thousand pounds (£'000) except where otherwise indicated.

(c) Cash

Cash is defined as cash at bank and cash equivalents that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value.

2. Income

	2026 £'000	2025 £'000
Overseas dividends	9,763	9,469
Interest income	149	218
	9,912	9,687

Dividends receivable are recognised on the ex-dividend date. Where no ex-dividend date is quoted, dividends are recognised when the Company's right to receive payment is established. Overseas dividends are gross of withholding tax.

Where the Company has elected to receive its dividends in the form of additional shares rather than cash the amount of cash foregone is recognised in the revenue column with any excess above this recognised in the capital column.

3. Portfolio Management and AIFM Fees

		2026			2025
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Portfolio management fee	939	2,818	3,757	1,075	3,227	4,302
AIFM fee	129	386	515	136	407	543
	1,068	3,204	4,272	1,211	3,634	4,845

Frostrow's AIFM fee is for risk management, corporate management, company secretarial and administrative services. Further information regarding FSI's and Frostrow's fees can be found on pages 40 and 41 of the Annual Report.

All expenses and interest are accounted for on an accruals basis. Expenses and interest are charged to the Income Statement as revenue items except where incurred in connection with the maintenance or enhancement of the value of the Company's assets and taking account of the expected long-term returns, when they are split as follows:

? Portfolio Management and AIFM fees payable have been allocated 25% to revenue and 75% to capital.

? Transaction costs incurred on the purchase and sale of investments are taken to the Income Statement as a capital item, within gains on investments held at fair value through profit or loss.

4. Other Expenses

	2026 £'000	2025 £'000
Directors' fees	209	215
Employers NIC on directors' remuneration	16	16
Auditor's remuneration for annual audit	51	48
Depository fees	59	70
Custody fees	172	195
Registrar fees	42	28
Broker fees	263	45
Listing fees	26	25
Legal and professional fees	57	26
Other expenses	299	195
Total expenses	1,194	863

For accounting policy, see note 3.

5. Taxation

(a) Analysis of (Credit)/Charge in the Year

		2026			2025
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Overseas taxation	1,211	-	1,211	1,224	-	1,224
Indian capital gains tax (credit)/charge	(137)	(2,863)	(3,000)	(175)	7,684	7,509
	1,074	(2,863)	(1,789)	1,049	7,684	8,733

Overseas tax arose as a result of irrecoverable withholding tax on overseas dividends.

As an investment trust, the Company is generally not subject to UK tax on capital gains. However, Indian capital gains tax arises on capital gains on the sale of Indian securities at a rate of 20% on short-term capital gains (defined as those where the security was held for less than a year) and 12.5% on long-term capital gains. £7,949,000 of the provision for Indian capital gains (see note 11) was reversed (2025: £2,439,000 increase) due to the fall in unrealised long-term capital gains on securities still held. This reversal was offset by £4,949,000 (2025: £5,070,000) relating to capital gains tax paid on disposals during the year.

(b) Reconciliation of Tax (Credit)/Charge

The UK corporation tax rate was 25.0% for the year (2025: 25.0%). The tax assessed for the year is lower than the corporation tax rate. The differences are explained below.

		2026			2025
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Total return/(loss) on ordinary activities before tax	7,650	(13,803)	(6,153)	7,613	45,941	53,554
Corporation tax charged/(credited) at 25.0% (2025: 25.0%)	1,913	(3,451)	(1,538)	1,903	11,486	13,389
Effects of:
Losses/(gains) on investment not subject to
UK corporation tax	-	2,821	2,821	-	(12,291)	(12,291)
Non-taxable exchange differences	-	(171)	(171)	-	(103)	(103)
Unutilised management expenses	528	801	1,329	464	908	1,372
Income not subject to corporation tax	(2,441)	-	(2,441)	(2,367)	-	(2,367)
Indian capital gains tax (credit)/charge (see note 5a)	(137)	(2,863)	(3,000)	(175)	7,684	7,509
Overseas taxation	1,211	-	1,211	1,224	-	1,224
Tax charge/(credit) for the year	1,074	(2,863)	(1,789)	1,049	7,684	8,733

As at 31 January 2026 the Company had unutilised management expenses and other reliefs for taxation purposes of £73,780,000 (2025: £68,461,000). It is not anticipated that these will be utilised in the foreseeable future and as such no related deferred tax asset has been recognised.

The tax effect of different items of income/gain and expenditure/loss is allocated between capital and revenue as set out in this note. The standard rate of corporation tax is applied to taxable net revenue. Any adjustment resulting from relief for overseas tax is allocated to the revenue reserve.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the Statement of Financial Position date where transactions or events that result in an obligation to pay more, or right to pay less, tax in future have occurred at the Statement of Financial Position date. This is subject to deferred tax assets only being recognised if it is considered more likely than not that there will be suitable profits from which the future reversal of the underlying timing differences can be deducted. Timing differences are differences arising between the Company's taxable profits and its results as stated in the accounts which are capable of reversal in one or more subsequent periods. Deferred tax is measured without discounting and based on enacted tax rates. Due to the Company's status as an investment trust, and the intention to meet the conditions required to obtain approval under Section 1158 of the Corporation Tax Act 2010, the Company has not provided for deferred UK tax on any capital gains and losses arising on the revaluation or disposal of investments.

Deferred tax has been provided for on capital gains arising on Indian securities as noted in 5(a) above.

6. Dividends

Amounts recognised as distributable to shareholders for the year ended 31 January 2026, were as follows:

	2026 £'000	2025 £'000
Final dividend paid for the year ended 31 January 2025 of 4.9p per share	5,805	-
Final dividend paid for the year ended 31 January 2024 of 4.0p per share	-	4,838

In respect of the year ended 31 January 2026, a final dividend of 5.7p per share has been proposed. Details of the ex-dividend and payment dates are provided in the Chair's Statement.

The Board's current policy is to pay dividends only out of revenue reserves. Therefore the amount available for distribution as at 31 January 2026 is £11,895,000 (2025: £11,124,000).

The dividends payable in respect of both the current and the previous financial year, which meet the requirements of Section 1158 CTA 2010, are set out below:

	2026 £'000	2025 £'000
Revenue available for distribution by way of dividend for the year	6,576	6,564
Final dividend of 5.7p per share (2025: final dividend of 4.9p)	(6,513)	(5,805)
Transfer to revenue reserves	63	759

Dividends paid by the Company on its shares are recognised in the financial statements in the year in which they are paid and are shown in the Statement of Changes in Equity.

7. Return per Share

The return per share is as follows:

		2026			2025
	Revenue	Capital	Total	Revenue	Capital	Total
	pence	pence	pence	pence	pence	pence
Basic	5.6	(9.3)	(3.7)	5.4	31.7	37.1

The total return per share is based on the total loss attributable to shareholders of £4,364,000 (2025: return of £44,821,000).

The revenue return per share is based on the net revenue return attributable to shareholders of £6,576,000 (2025: £6,564,000).

The capital return per share is based on the net capital loss attributable to shareholders of £10,940,000 (2025: return of £38,257,000).

The total return, revenue return and the capital return per share are based on the weighted average number of shares in issue during the year of 117,285,517 (2025: 120,899,602).

The calculations of the returns per Ordinary Share have been carried out in accordance with IAS 33 Earnings per Share.

8. Investments

	2026 £'000	2025 £'000
Investments
Opening cost	372,632	352,944
Opening investment holding gains	137,571	117,165
Opening Valuation	510,203	470,109
Purchases at cost	180,175	123,228
Disposal proceeds	(207,911)	(133,123)
(Losses)/gains on investments	(9,914)	49,989
Valuation at end of year	472,553	510,203
Cost at 31 January	394,742	372,632
Investment holding gains at 31 January	77,811	137,571
Valuation at 31 January	472,553	510,203

The Company received £207,911,000 (2025: £133,123,000) from investments sold in the year. The book cost of these investments when they were purchased was £158,065,000 (2025: £103,540,000). These investments have been revalued over time and until they were sold any unrealised gains/losses were included in the fair value of the investments.

During the year the Company incurred transaction costs on purchases of £234,000 (2025: £155,000) and transaction costs on sales of £464,000 (2025: £263,000).

Valuation of Investments

Investments are measured initially and at subsequent reporting dates at fair value. Purchases and sales are recognised on the trade date when a contract exists whose terms require delivery within the time frame established by the market concerned. For quoted securities fair value is either bid price or last traded price, depending on the convention of the exchange on which the investment is listed. Changes in fair value and gains or losses on disposal are included in the Income Statement as a capital item.

In addition, for financial reporting purposes, fair value measurements are categorised into a fair value hierarchy based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

Level 1 - Quoted prices in active markets.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable (i.e. developed using market data), either directly or indirectly.

Level 3 - Inputs are unobservable (i.e. for which market data is unavailable).

All investments are in equity shares and have been classified as Level 1 (2025: All Level 1).

9. Debtors

	2026 £'000	2025 £'000
Amounts due from brokers	-	1,008
Accrued income	162	179
Other debtors	99	65
	261	1,252

10. Creditors: Amounts Falling Due Within One Year

	2026 £'000	2025 £'000
Amounts due to brokers	-	781
Portfolio management fee	877	1,081
AIFM fee	129	135
Other creditors	449	400
	1,455	2,397

11. Provisions for Liabilities

	2026 £'000	2025 £'000
Deferred taxation on unrealised capital gains on Indian securities	5,423	13,645

See note 5 for further details and accounting policy.

12. Share Capital

	2026 £'000	2025 £'000
Allotted and fully paid:
114,262,507 Ordinary shares of 12.5p each (2025: 120,588,386)	14,283	15,074

During the current and prior year, no Ordinary shares were issued. 6,325,879 (2025: 370,000) Ordinary shares were bought back for cancellation.

The capital of the Company is managed in accordance with its investment policy which is detailed in the Strategic Report.

The Company does not have any externally imposed capital requirements.

13. Net Asset Value Per Share

The net asset value per share of 412.0p (2025: 417.5p) is calculated on net assets of £470,774,000 (2025: £503,441,000) divided by 114,262,507 (2025: 120,588,386) shares, being the number of shares in issue at the year end.

14. Financial Instruments

The Company's financial instruments comprise its investment portfolio, cash balances, and debtors and creditors that arise directly from its operations. As an investment trust, the Company holds an investment portfolio of financial assets in pursuit of its investment objective.

Fixed asset investments (see note 8) are valued at fair value in accordance with the Company's accounting policies. The fair value of all other financial assets and liabilities is represented by their carrying value in the Statement of Financial Position.

The main risks that the Company faces arising from its financial instruments are:

(i) market risk, including:

- other price risk, being the risk that the value of investments will fluctuate as a result of changes in market prices;

- interest rate risk, being the risk that the future cash flows of a financial instrument will fluctuate because of changes in interest rates;

- foreign currency risk, being the risk that the value of financial assets and liabilities will fluctuate because of movements in currency rates;

(ii) credit risk, being the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into with the Company; and

(iii) liquidity risk, being the risk that the Company will not be able to meet its liabilities when they fall due. This may arise should the Company not be able to liquidate its investments. Under normal market trading volumes, the majority of the investment portfolio could be realised within a week.

Other price risk

The management of other price risk is part of the portfolio management process and is typical of equity investment. The investment portfolio is managed with an awareness of the effects of adverse price movements through detailed and continuing analysis with an objective of maximising overall returns to shareholders. Although derivatives are not currently employed, they may be used from time to time, with prior Board approval, to hedge specific market risk or gain exposure to a specific market.

If the investment portfolio valuation rose or fell by 10% at 31 January, the impact on the net asset value would have been £47.3 million (2025: £51.0 million). The calculations are based on the investment portfolio valuation as at the respective Statement of Financial Position dates and are not necessarily representative of the year as a whole.

Interest rate risk

Floating rate

When the Company retains cash balances the majority of the cash is held in overnight call accounts. The benchmark rate which determines the interest payments received on cash balances is the bank base rate for the relevant currency for each deposit.

Foreign currency risk

The Company invests in overseas securities and holds foreign currency cash balances which give rise to currency risks. Foreign currency risks are managed alongside other market risks as part of the management of the investment portfolio. It is currently not the Company's policy to hedge this risk on a continuing basis but it can do so from time to time.

Foreign currency exposure:

			2026				2025
	Investments	Cash	Debtors	Creditors/ Provisions	Investments	Cash	Debtors	Creditors/ Provisions
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Indian rupee	113,932	5	63	-	208,458	437	1,061	(13,942)
Hong Kong dollar	62,677	22	-	-	17,927	-	-	-
New Taiwanese dollar	62,215	39	6	-	80,473	-	-	-
Chinese renminbi	53,538	-	-	-	53,787	-	-	-
US dollar	32,493	5	-	-	6,508	434	-	-
Korean won	31,512	-	94	-	27,060	-	74	-
Singapore dollar	27,626	10	-	-	27,286	485	-	-
Philippine peso	25,223	-	-	-	20,251	-	-	(484)
Indonesian rupiah	22,049	-	-	-	27,224	-	15	-
Japanese yen	21,612	-	-	-	23,279	-	29	-
Thai baht	9,020	-	-	-	9,672	-	-	-
Malaysian ringgit	6,352	-	-	-	5,585	-	-	-
Vietnamese dong	2,404	-	-	-	-	-	-	-
Bangladesh taka	1,900	-	-	-	2,693	-	-	-
Euro	-	8	-	-	-	8	-	-
Total	472,553	89	163	-	510,203	1,364	1,179	(14,426)

At 31 January 2026 the Company had £4,749,000 of sterling cash balances (2025: £7,096,000).

During the year sterling weakened 9.8% (2025: weakened by 1.1%) against all of the currencies in the investment portfolio (weighted for exposure at 31 January). If the value of sterling had strengthened against each of the currencies in the portfolio by 20%, the impact on the net asset value would have been negative £43.0 million (2025: negative £46.4 million). If the value of sterling had weakened against each of the currencies in the investment portfolio by 20%, the impact on the net asset value would have been positive £52.5 million (2025: positive £56.7 million). The calculations are based on the investment portfolio valuation and cash balances as at the year end and are not necessarily representative of the year as a whole.

Credit risk

Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into with the Company. The Portfolio Manager has in place a monitoring procedure in respect of counterparty risk which is reviewed on an ongoing basis. The carrying amounts of financial assets best represents the maximum credit risk exposure at the Statement of Financial Position date, and the main exposure to credit risk is via the Custodian which is responsible for the safeguarding of the Company's investments and cash balances.

At the reporting date, the Company's financial assets exposed to credit risk amounted to the following:

	2026 £'000	2025 £'000
Cash	4,838	8,028
Debtors	261	1,252
	5,099	9,280

All the assets of the Company which are traded on a recognised exchange are held by J.P. Morgan Chase Bank, the Custodian. Bankruptcy or insolvency of the Custodian may cause the Company's rights with respect to securities held by the Custodian to be delayed or limited. The Board monitors the Company's risk as described in the Strategic Report.

The credit risk on cash is controlled through the use of counterparties or banks with high credit ratings (rated AA or higher), assigned by international credit rating agencies. Cash is currently held at JP Morgan Chase Bank. Bankruptcy or insolvency of such financial institutions may cause the Company's ability to access cash placed on deposit to be delayed, limited or lost.

Liquidity risk

The Company's liquidity risk is managed on an ongoing basis by the Portfolio Manager. Substantially all of the Company's portfolio would be realisable within two weeks under normal market conditions. There may be circumstances where market liquidity is lower than normal. Stress tests have been performed to understand how long the portfolio would take to realise in such situations. The Board is comfortable that in such a situation the Company would be able to meet its liabilities as they fall due.

Capital management policies and procedures

The Company's capital management objectives are to ensure that it will be able to continue as a going concern and to maximise the return to its equity shareholders.

The Company's policy on gearing and leverage is set out on page 16 of the Annual Report. The Company had no gearing or leverage during the current or prior year.

The capital structure of the Company consists of the equity share capital, retained earnings and other reserves as shown in the Statement of Financial Position.

The Board, with the assistance of the AIFM and the Portfolio Manager, monitors and reviews the broad structure of the Company's capital on an ongoing basis. This includes a review of:

? the need to buy back equity shares, either for cancellation or to hold in treasury, in light of any share price discount to net asset value per share in accordance with the Company's share buy back policy;

? the need for new issues of equity shares, including issues from treasury; and

? the extent to which revenue in excess of that which is required to be distributed should be retained.

The Company's objectives, policies and processes for managing capital are unchanged from the prior year.

15. Reserves

Capital redemption reserve

This reserve arises when ordinary shares are redeemed by the Company and subsequently cancelled, at which point the amount equal to the par value of the ordinary share capital is transferred from the ordinary share capital to the Capital Redemption Reserve.

Special reserve

The Special Reserve arose following court approval in February 1999 to transfer £24.2 million from the share premium account.

Capital reserve

The following are accounted for in this reserve: gains and losses on the disposal of investments; changes in the fair value of investments; and expenses and finance costs, together with the related taxation effect, charged to capital in accordance with note 5.

Revenue reserve

The Revenue Reserve reflects all income and expenses that are recognised in the revenue column of the Income Statement.

Distributable reserves

The Revenue, Special and Capital Reserves are distributable. It is the Board's current policy to pay dividends only from the revenue reserve.

16. Related Party Transactions and Transactions with the Managers

The following are considered to be related parties:

? Frostrow Capital LLP (under the Listing Rules only)

? First Sentier Investors (UK) IM Limited (under the Listing Rules only)

? The Directors of the Company.

Details of the relationship between the Company and Frostrow Capital LLP, the Company's AIFM, are disclosed on page 41 of the Annual Report. During the year ended 31 January 2026, Frostrow earned £515,000 (2024: £543,000) in respect of company management fees, of which £129,000 (2025: 135,000) was outstanding at the year end.

The Company employs First Sentier Investors (UK) IM Limited as its Portfolio Manager. Details of this arrangement are disclosed on page 40 of the Annual Report. During the year ended 31 January 2026, First Sentier earned £3,757,000 (2025: £4,302,000) in respect of portfolio management fees, of which £877,000 (2025: £1,081,000) was outstanding at the year end.

All material related party transactions have been disclosed in notes 3 and 4. Details of the remuneration and the shareholdings of all Directors can be found on page 52 of the Annual Report.

The figures and financial information for 2025 are extracted from the published Annual Report for the year ended 31 January 2025 and do not constitute the statutory accounts for that year. The Annual Report for the year ended 31 January 2025 has been delivered to the Registrar of Companies and included the Independent Auditor's Report which was unqualified and did not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006.

The figures and financial information for 2026 are extracted from the Annual Report and financial statements for the year ended 31 January 2026 and do not constitute the statutory accounts for the year.The Annual Report for the year ended 31 January 2026 includes the Independent Auditor's Report which is unqualified and does not contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006.The Annual Report and financial statements for the year ended 31 January 2026 have not yet been delivered to the Registrar of Companies.

ANNOUNCEMENT ENDS

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.