Results analysis from Kepler Trust Intelligence
Summary by AI BETAClose X
Schroder Asian Total Return
21/09/2026
Results analysis from Kepler Trust Intelligence
Schroder Asian Total Return (ATR) has released its half-year report ending 30/06/2026 which saw NAV and share price total returns of 34.4% and 27.8%. The reference index returned 25.6%.
During the period, the company announced a proposed combination with Pacific Assets (PAC). With shareholders having agreed to the proposals, the process is continuing to implementation.
The period saw considerable volatility due to macro events, with a high dispersion of returns. Nonetheless, managers Robin Parbrook and King Fuei Lee have delivered strong overall performance, largely due to their sizeable holdings in technology companies whilst avoiding weakness from the likes of China and India.
The volatility led to portfolio adjustments, including profit taking from tech stocks, additions to more defensive, higher-yielding stocks and the consolidation of their Chinese internet holdings.
The company's discount widened, leading to the board buying back shares.
Net gearing, which forms part of the managers' wider derivative strategy, was 5.8% at year end. The company's hedging models moved from neutral to more cautious over certain elevated valuations, leading to targeted positions to reduce the beta. Separately, puts in India contributed positively.
Chair Sarah MacAulay highlighted the "more defensive portfolio positioning" although noted the managers intend "to remain fully invested but with limited gearing, selective hedging and an emphasis on resilient businesses which offer strong capital return policies and which have attractive valuations".
Kepler View
Whilst the performance will deservedly capture the headlines, arguably the most interesting story is the proposed combination with PAC, which we have covered in detail in a previous article. We believe the key takeaway is a strong vote of confidence for the ATR strategy as the risk-conscious, benchmark-agnostic approach is the best alternative for PAC's shareholders.
ATR has again delivered exceptional returns, particularly when considering the volatility of the market in the period. The managers' technology stock picks have been particularly advantageous, demonstrating good stock selection, whilst lower allocations to the likes of China and India have contributed to relative performance against the reference index. The ability of the managers to navigate challenging markets is very encouraging in our view, and cements the company's place as a highly compelling, all-encompassing strategy that can provide long-term, actively managed exposure to the exciting potential of Asia.
The investment case at this juncture is also greatly enhanced by the discount in our view which we believe offers a rare opportunity to add to the long-term potential at an attractive level.
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