Image location: Mumbai

Q 1Pacific Assets Trust plc

Quarterly Shareholder Update1 January - 31 March 2020

This document is a financial promotion for Pacific Assets Trust plc (the “Trust”) only for those people resident in the UK for tax and investment purposes. Investing involves certain risks including:

• The value of investments and any income from them may go down as well as up and are not guaranteed. Investors may get back significantly less than the original amount invested.

• Emerging market risk: emerging markets may not provide the same level of investor protection as a developed market; they may involve a higher risk than investing in developed markets.

• Currency risk: the Trust invests in assets which are denominated in currencies other than pound sterling; changes in exchange rates will affect the value of the Trust.

• The Trust’s share price may not fully reflect net asset value.

Reference to specific securities (if any) is included for the purpose of illustration only and should not be construed as a recommendation to buy or sell. Reference to the names of any company is merely to explain the investment strategy and should not be construed as investment advice or a recommendation to invest in any of those companies.

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

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

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Q1 Update 2020 Pacific Assets Trust plc

Contents04 COVID-19

05 Significant Trust changes

07 Commentary - Active versus passive investment in achieving sustainable development

09 Company profile - Marico

10 Proxy voting

11 Feature - Companies supporting the fight against COVID-19

12 Trip report - India

14 Other news - Implementing SDG 12: Responsible Consumption and Production - Modern Slavery and Human Trafficking Statement 2020

15 Portfolio update

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

Pacific Assets Trust plc Q1 Update 2020

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Amidst the horror of daily accumulating statistics on illness and fatality, it risks appearing irreverent to echo that overused idiom ‘business as usual’. This is not a usual time. It is a complex and harrowing period but we are confident that we are well placed to carry out our investment process and philosophy: which aims to preserve and grow shareholders’ wealth by investing in high quality companies on behalf of the Trust. On a practical basis we have been committed to flexible working, including remotely, for many years and we are adept at multi-location meetings from decades of investment trips. As such there has been minimal disruption to our investment process from home confinement.

On a philosophical basis, nothing has changed, and we continue to prefer high quality companies boasting strong cash-flows and robust balance sheets. These characteristics frequently become more popular during times of stress. It is early days and this time could be different but initial signs tentatively suggest that this historical pattern could repeat. It has already been a destructive time globally (the MSCI AC World Index fell by 16.0% in sterling terms1) and in Asia (the MSCI AC Asia ex-Japan Index fell by 12.8% in sterling terms2), since the beginning of the year.

During this awful period signs are that many mind-sets have changed. Google search statistics indicate that interest in the word ‘recession’ has more than quadrupled3. Meanwhile conservative politicians have embraced big government and investors have sought safety over risk. The longevity of these changes and the implications for

behaviours are too early to predict but it is plausible that spending patterns and attitude to debt will be more cautious in the future.

The re-establishment of global health is paramount and it invites reproach to count the cost of this pandemic. However, we are mindful that global debt is increasing while a powerful handbrake is being applied to cash generation. This is an unsustainable combination and we are even more wary of the risks, including national service, facing some or all of our companies. Currently, we are reassured that a number of the companies held in the Trust have net cash4 balance sheets - there are sizeable buffers here to help weather storms. Over the last thirty years there has been a long catalogue of misfortunes impacting Asian markets and we aim to invest with stewards who have a proven history of successfully navigating such storms.

COVID-19 Shareholder Letter In April we published a shareholder letter on the impact of COVID-19 on investment returns in Asia which you can access on the Trust’s website5.

1 Source: FactSet, Index data is net of tax. For full discrete performance please refer to page 15.

2 As footnote 1.3 Source: https://trends.google.com/trends/

explore?q=recession4 Net cash: a company’s total cash minus total

liabilities when discussing financial statements.5 Source: https://www.pacific-assets.co.uk/

trust-information/articles-and-insights/covid-19-and-investment-returns-in-asia/

COVID-19The current environment and impact

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Q1 Update 2020 Pacific Assets Trust plc

Significant Trust changes

Image location: Japan

During the quarter we were able to buy two new high quality companies for the Trust. Shenzhen Inovance is a privately owned and managed engineering firm listed in Shenzhen. The founding partners trained at Emerson and started Inovance in 2003 specialising in industrial automation and electric vehicles. They have instilled an excellent engineering culture and spend 10%6 of their sales on innovating new products. Unlike many of their competitors they have a prudent balance sheet and good cash generation. Though there is a risk to them collecting receivables from their customers which benefit from state subsidies.

The second company we are pleased to initiate a holding in for the Trust is Astral Poly Technik. Since its incorporation in 1996 by Sandeep Engineer the company has garnered an enviable reputation amongst Indian plumbers as the leading brand of CPVC (chlorinated polyvinyl chloride) pipes. Today, Astral is the only licensee of the Bendale brand of Lubrizol and they are building a powerful cash generative business in adhesives.

The track-record of profitability and financial probity is excellent and we think the risk of periodic cyclical slowdowns is countered by a long runway for growth from a large addressable market.

In addition to these new purchases we were also able to add to some of our existing holdings at lower valuations.

There was extreme volatility during the quarter

with some companies such Kasikornbank in Thailand and Square Pharma in Bangladesh indiscriminately sold down to very attractive valuations. The volatility was so great the equity markets in Bangladesh and Sri Lanka were closed and circuit breakers were tested in many equity markets around the region. While this is unwelcomed it is not unexpected and the patient capital provided by the Trust makes it easier to withstand and take advantage of such developments.

We also trimmed the position size of ten companies in the Trust over the period. The most prominent of these were OCBC in Singapore where we felt prospects for profitable loan growth had diminished and Unicharm in Japan in order to control the position size. We reduced E.Sun Financial after strong performance and with the prospect of a challenging macro environment. We also reduced Delta Electronics and Chroma ATE which have similarities to the new purchases in the Trust, Shenzhen Inovance and Pentamaster.

We were extremely sad to make the complete divestments of Manila Water and BPI in the Philippines. We have partnered with the Ayala family for decades and have great respect for the wonderful contribution they have made in the development of the Philippines. However, the political climate has changed and the relationship with the government is now quite acrimonious. This combined with higher gearing led us to conclude that the risk reward ratio was no longer in our favour.

Pacific Assets Trust plc Q1 Update 2020

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The outlook for the health of people and economies in Asia is extremely uncertain. Many western economies have effectively shut down. Hopefully this will pass quickly but these economies house many of the customers for Asian companies. Consequently, we expect order and payment delays and possibly cancellations. Over the last decade debt has been rising across individuals and institutions in Asia thereby making the region more vulnerable to a demand halt. Domestic consumption may also be challenged as employment prospects deteriorate and consumption is deferred. Against this, the lower price of oil, interest rates and domestic currencies are a necessary but possibly insufficient elixir until orders recommence.

Sadly this is not the first time that Asia has experienced a shock and we are fortunate that many of the companies we own have vivid memories of difficult times. As such they are prepared with a robust balance sheet and enviable cash generation. This not only allows them to weather any economic storm but also take advantage of any capital allocation opportunities that may arise.

We believe that our disciplined, independent investment approach of owning quality companies in the region should continue to protect and grow shareholder’s investments.

6 Source: Stewart Investors Investment Team.7 As footnote 6.

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Q1 Update 2020 Pacific Assets Trust plc

Commentary

Active versus passive investment in achieving sustainable development

Growing investor concerns about climate and societal crises have contributed to the burgeoning demand for ‘sustainable investment’ funds that take into consideration environmental, social and governance (ESG) factors. According to Morningstar, sustainability funds attracted USD20.6 billion7 of new assets globally in 2019, almost four times higher than the previous year. This should be a positive development, as more capital should, in theory, be channelled into helping resolve some of the world’s greatest challenges. However, this may not necessarily be the case as not all sustainability funds are created equal.

The biggest differences occur between active and passive funds, and more specifically, in how they assess ESG factors, and how they engage with companies. Passive investing typically uses quantitative ESG data, procured from third-party providers, to either exclude companies or tilt a portfolio towards more ‘sustainable’ companies, or a mixture of both. Active investment involves picking individual stocks and bonds based on an assessment of their underlying fundamentals, and either uses qualitative or quantitative ESG analysis, or often both.

Many questions remain about the validity of ESG metrics, including a lack of standardisation in the data, and the overall scoring methods being used. For example, in 2018 three well-known and highly regarded services came up with completely different ratings for Tesla on ESG issues. FTSE

rated Tesla as the worst car maker globally based on its metrics, MSCI ranked it the best and Sustainalytics was roughly in the middle. Moreover, it is common to find that the top-rated businesses on ESG issues also tend to be larger, developed market companies, suggesting the data is skewed to large capitalisation firms that have more formalised policies and more transparent disclosure.

Using quantitative ESG data can be beneficial in some circumstances, but placing too much emphasis on ‘ESG by numbers’ can be a risky strategy. It also is unlikely to fulfil the desired outcome of shifting capital toward more productive purposes. A quick glance at the constituents of the Dow Jones Sustainability World Index, BlackRock iShares ESG ETFs or the FTSE4Good Index, reveals the familiar names of Apple, Google’s parent Alphabet, and Bank of America. These businesses offer useful products and services, but are they really the most sustainable businesses in the world?

To invest in the highest quality companies that both contribute to and benefit from sustainable development, there needs to be room for qualitative judgements, on more nuanced areas such as:

• Are the products and services useful, and making a valuable contribution to society?

• Is the company genuinely trying to improve its approach to sustainability rather than just greenwashing?

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• Is the company able to navigate sustainability headwinds and tailwinds (e.g. changing consumer preferences or regulations)?

• How is the company’s corporate governance? In other words, how does it treat various constituents – shareholders, employees, customers?

It is not easy to find answers to these questions in ESG data alone, and it is difficult to ascertain when investing in hundreds and sometimes thousands of companies. Genuinely active investment managers, with high active share and more concentrated portfolios, should be better placed to assess these grey areas and therefore make more considered and conscious judgements.

Engagement is another important difference. For passive funds the approach to engagement can be limited by the breadth of their portfolios and is often conducted by groups that are separate from the investment team. In these cases the highly diversified nature of passive funds can work against effective stewardship. Long-term active investors that hold stocks for five years or more have the opportunity to build relationships over time helping them to influence corporate policy and encourage better practices.

Proxy voting also provides an opportunity for investors to encourage businesses to improve their ESG performance. Research finds that active investors are more likely to hold management to account by voting against them on proxy ballots, versus passive investors who are more likely to

vote in line with management. For example, BlackRock, Vanguard and State Street, the three largest passive firms all supported doubling the pay of the CEO at California utility PG&E Corp even after its stock plummeted over the USD30 billion liability from maintenance problems linked to the California wildfires. The firm has since filed for bankruptcy, becoming one of the largest utility bankruptcies in history, and one of the first to be tied directly to climate change. Even worse, recent research found a number of large passive investors have repeatedly voted against resolutions related to the environment or climate change at annual shareholder meetings even as they publicly call on companies to consider climate risks.

It seems that when it comes to sustainable investment, there is an argument that you get what you pay for, with passive funds offering a cheaper, simpler product, versus active funds that can provide more in-depth and considered analysis. All sustainability funds, regardless of whether they are active or passive, need to be clear and transparent about how they are delivering on their sustainability promises, lest the industry once again finds itself the subject of criticism for failing to meet clients’ needs and expectations.

8 Source: https://www.morningstar.com/articles/961765/sustainable-fund-flows-in-2019-smash-previous-records

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Q1 Update 2020 Pacific Assets Trust plc

Marico

Country India

Market Cap USD 4.5 billion

Shareholders since October 2011

DescriptionHair and skin care products, edible oils, health foods, fabric care products

Stewardship

Family - Founded in 1971 by Harsh Mariwala, who remains Chair and the family owns c53%

Company profile

Marico can trace its roots back to 1971 when its founder, Harsh Mariwala, graduated and joined the family business, Bombay Oil Industries. He had envisioned a branded fast moving consumer goods company (FMCG) market for coconut oil and refined edible oils in small consumer packs, and set up a nationwide distribution for the Parachute brand. Over the years Marico branched into shampoos, deodorants, skin care and healthy breakfast oats. Marico also set up copra collection centres to procure directly from farmers, increasing farmers’ margins by eliminating intermediaries (they also pay their raw material suppliers within a day). Today Marico continues to expand within India and is also steadily building a business in Bangladesh and other emerging markets across South East Asia, Africa and the Middle East. The company benefits from strong sustainability tailwinds as it contributes to improved personal hygiene and healthier foods. It also operates responsibly with a broad and inclusive commitment to serving all stakeholders and improving the lives of ordinary people. Risks relate to copra prices, changing consumer preferences and views on the health giving qualities of coconut oil.

> SDG 5 Gender equality: Gender diversity in their management and Board.

> SDG 12 Responsible consumption and production: Reducing plastic packaging across products.

SDGs supporting

The Stewart Investors Sustainable Funds Group supports the Sustainable Development Goals (SDGs). The full list of SDGs can be found on the United Nations website.

SDGs to engage on

> SDG 3 Good health and well-being: Marico’s products help to improve the health, hygiene and wellbeing of more people, mostly in India and South Asia, Southeast Asia, Africa and the Middle East, by providing hair, skin and other personal care products, coconut and other edible oils, health foods and fabric care products.

> SDG 12 Responsible consumption and production: Marico supports farmers in their supply chain through productivity improvement programs, research, and training to help improve overall agricultural yields. They also provide ongoing financial, agricultural extension and cooperative establishment support to increase supply chain resilience and the socioeconomic position of smallholder farmers.

Pacific Assets Trust plc Q1 Update 2020

10 Proxy Voting

During the quarter for the Pacific Assets Trust there were 50 company resolutions to vote on.

Proxy voting by country of origin

46% India 9% Republic of Korea 9% Philippines 9% Sri Lanka 27% Japan

Proxy voting by proposal categories

2% Audit/Financials 18% Board related 3% Changes to company statutes 76% Compensation 1% Merger and aqisition

On behalf of shareholders, we voted against one resolution relating to Commercial Bank of Ceylon’s request to adopt an equity-based Employee Share Option Plan. We believe the scheme is unnecessarily complex, we are not convinced by using relative performance benchmarking in a system where the peer group is not of high quality and have a preference for employees being awarded shares as opposed to options.

If you would like a full list of all proxy voting for the companies held in the Trust, please contact us directly.

Further information on our Stewardship and Corporate Engagement policy is available online http://stewartinvestors.com/scep

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Q1 Update 2020 Pacific Assets Trust plc

Feature

The COVID-19 pandemic is having a devastating personal and economic impact worldwide and there is an urgent need for governments, companies and individuals to play their part in helping to slow the spread, protect the vulnerable and minimise the human and economic toll.

Across the Trust, there are a number of companies that are helping to play a crucial part, either by providing diagnostic tools, expanding their healthcare services, providing extra hand-washing and hygiene supplies or simply making sure we still have food available on our supermarket shelves. Of course there are many, many more examples of companies helping through their business as usual operations; below is a selection of the most notable examples:

• Dr Lal Pathlabs – An Indian-listed blood testing and diagnostic laboratory chain which has been authorised for testing for COVID-19 in India.

• Godrej Consumer - An Indian-listed consumer goods company, which sells health and hygiene supplies has slashed the prices of their hand sanitisers for consumers.

• Unicharm – A Japanese manufacturer of healthcare products whose medical masks have played a critical role in controlling the spread of the virus.

We trust these well stewarded companies will remain focused on the long-term and not exploit the obvious opportunity to put short-term profits ahead of patient and society welfare.

Companies supporting the fight against COVID-19

Pacific Assets Trust plc Q1 Update 2020

12 Trip Report

India Image location: Mumbai

The ongoing crises making their way through the Indian financial system are indicative of the years of irrational exuberance in the decade prior. High profile examples of collapses of both non-banking financial companies (NBFCs) and private banks in the past two years point to the primacy that has been placed on growth above all else, breakdowns of ethics and sound governance, as well as the many conflicts of interest that continue to prevail in the sector. Our trip to Mumbai in December 2019 highlighted the enduring quality of some of the Indian financial companies we hold on your behalf across our strategies, not only in the context of this backdrop in India but also in a global one.

The cases of Infrastructure Leasing & Financial Services (IL&FS) and Yes Bank in India demonstrate how quickly the recipe of rapid growth without a keen eye on asset quality and a complete lack of checks and balances – from both the Board of Directors and external auditors – can lead to a complete unravelling of leveraged financial institutions.

Only a few months prior to IL&FS defaulting on USD13bn of debt obligations8, not one but three credit ratings agencies in the country had issued them with the highest AAA rating. Prior to this, there were signs of trouble brewing in an opaque ‘Employee Welfare Trust’ owned by senior management, whom also had stakes in the

holding company, buying shares in subsidiaries at a 78% discount of their market value.9

This total breakdown of governance is mirrored in the Yes Bank case. Not only did the bank pursue an aggressive growth strategy that involved lending large amounts to some of the most leveraged companies in the country, the founder and CEO of the bank has now also been accused of personally receiving large sums for disbursing these loans.10 Since this has become public, shareholders of Yes Bank have lost close to 88%.11 Quality of stewardship in these instances – competence, integrity, and humility – is completely absent.

“If what you create does not outlive you, then you have failed” – Uday Kotak 12

The brazen behaviour of these financial institutions is in direct contrast with some of the Indian financial companies we think are of the highest quality. Kotak Mahindra Bank is amongst these, where the founder Uday Kotak not only has a large stake but also has his name above the door, suggesting his reputation and economic interest are on the line alongside minority shareholders. His letter in the most recent annual report is a reassuring read, underlining the importance of experience and expertise through economic cycles. The bank is managed the same in times of optimism as in times of gloom: “Through turbulent times, a well-capitalised balance sheet, constant sniffing between risk and returns and early recognition of problems are our financial and cultural compasses.”13

This is not to say that the bank doesn’t take advantage of opportunities when they arise. They used the last financial crisis to set off on the path of building a corporate loan book. Prior to 2009,

Flirting with madness was one thing; when madness started flirting back, it was time to call the whole thing off.

Rohinton Mistry

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Q1 Update 2020 Pacific Assets Trust plc

the bank mostly disbursed retail loans but had been looking to enter the balance sheets of some of India’s largest corporations. While other banks were dealing with the fall out of the financial crisis in 2009, Kotak Mahindra Bank set about building a stable and profitable corporate loans business. This has grown at 20%14 compound annual growth rate (CAGR)15 since then, to about 39% of overall advances, and some of the lowest non-performing loans (NPLs) in the industry.

HDFC demonstrates similar prudence and caution, cultivated through decades of experience of conservatively disbursing loans and building the mortgage loans industry in the country. In times like these, it is worth remembering that the top four managers of the company alone have a total of 157 years of experience amongst them with HDFC, having witnessed and endured multiple crises16.

“Reflecting back, in the first half of the financial year, we were often asked why we are not growing as aggressively as others in certain segments of the commercial real estate market. We held our ground by consciously staying away from funding what we perceived were riskier assets. Unsurprisingly, in the second half of the year, we were asked what we did differently that enabled us to stay resilient and be the preferred choice in the flight to safety. Perhaps a combination of experience and adhering to our risk appetite held us in good stead.” – Deepak Parekh, HDFC Annual Report 2019

As with Kotak Bank, HDFC has also used past crises to set themselves up for their next decade of growth. The non-banking financial companies (NBFC) crisis in the 1990s has many parallels with the pains of today, with large AAA rated firms defaulting on debt. The Reserve Bank of India tightened license norms in the wake of this, and over the span of just four years, over 80% of NBFCs were shut down17. HDFC came out of this crisis with the ability to accelerate loan and profit growth in a manner that none of the other NBFCs were able to match, with loans growing at 30% per year18. This has gone on to serve them well through the decades, cementing their position in the industry.

In a country where many NBFCs have yet again been caught sleeping at the wheel, where banks are disbursing loans without regard for asset

quality, and oversight has been in name only, the likes of HDFC and Kotak Mahindra Bank shine through. They embody the crux of what we believe it means to be a good financial institution – the trust put in both of these names. This is layered onto with conservative cultures around growth, ability to take advantage of strategic opportunities, and never forgetting the leveraged nature of their own balance sheets. This discipline to look always to a long-term time horizon rather than to fall for what is faddish in the moment, keep both HDFC and Kotak Mahindra Bank in good stead to not only weather the brunt of this crisis, but to come out of it in a better position than their competitors.

9 Source: https://www.business-standard.com/article/finance/il-fs-employees-welfare-trust-the-link-that-paved-way-to-riches-for-some-118101500217_1.html

10 As footnote 9.11 Source: https://www.outlookbusiness.com/

strategy/trend/how-yes-banks-rana-kapoor-made-rs20-billion-from-loans-worth-rs60-billion-to-indiabulls-5516

12 Source: Calculation from Bloomberg share price chart at date of writing.

13 Source: https://www.kotak.com/content/dam/Kotak/investor-relation/Financial-Result/Annual-Reports/FY-2019/kotak-mahindra-bank/Kotak_Mahindra_Bank_Limited_FY19.pdf

14 As footnote 13.15 Source: Stewart Investors Investment Team.16 Compound annual growth rate (CAGR): the rate

of return that would be required for an investment to grow from its beginning balance to its ending balance, assuming the profits were reinvested at the end of each year of the investment’s lifespan.

17 Source: HDFC management team profiles from their website https://www.hdfcbank.com/personal/about-us/overview/management-team

18 Source: https://economictimes.indiatimes.com/industry/banking/finance/will-shadow-banking-in-india-be-able-to-bury-its-dubious-past-nbfcs-flourish/articleshow/53292953.cms?from=mdr

19 Source: CapitalIQ HDFC Annual reports https://www.hdfcbank.com/personal/about-us/investor-relations/annual-reports

Pacific Assets Trust plc Q1 Update 2020

14 Other News

Implementing SDG 12: Responsible Consumption and Production

‘Earth Overshoot Day’, the day humanity has depleted all resources that our planet is capable of renewing for a whole year, occurs earlier every year that goes by. In 2019 it was 29 July, while in 1970 it was 29 December. Using company examples, this article19 written by Hanna Ranstrad, explains the philosophy of the circular economy that is helping to contribute towards the implementation of SDG 12.

Modern Slavery and Human Trafficking Statement 2020

As a business we are committed to maintaining and improving systems and processes to avoid complicity in human rights violations related to our own operations, our supply chain, and our products and services. We understand that slavery and human trafficking can occur in many forms, such as forced labour, child labour, domestic servitude, workplace abuse and human trafficking. Therefore, the terms “slavery and human trafficking” have been used in our wider group company, First State Investments, annual statement20 to encompass these various forms of coerced labour.

20 Source: https://www.stewartinvestors.com/en-gb/our-funds/sustainable-funds-group/our-articles/implementing-the-sustainable-development-goal-12/

21 Source: https://www.firststateinvestments.com/content/dam/cfsgam/emea/uk-policies/Slavery%20and%20Human%20Trafficking%20Statement%202020.pdf

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Q1 Update 2020 Pacific Assets Trust plc

Portfolio UpdatePacific Assets Trust GBP - 31 March 2020 Fund Size £290m Number of Holdings 55

Sector Breakdown Country Breakdown

Cash Equivalents may include T-Bills.

Market Capitalisation 0 to 500m 500m to 1bn 1bn to 2.5bn 2.5bn to 5bn 5bn to 10bn 10bn to 50bn 50bn to 100bn 100bn+

Portfolio Weight 11.0 6.7 14.2 13.9 17.9 19.6 2.0 1.8Benchmark Weight 0.0 0.4 5.5 9.6 13.8 33.4 6.2 31.1

Factset does not always have full stock coverage; weights may not total 100%

Contribution Analysis - 12 Months Top Three Contributing Stocks

Stock NamePortfolio

Weight (%)Value Added

(bps)

Hoya Corp. 4.3 67Unicharm Corporation 4.1 64Nippon Paint Co., Ltd. 2.0 53

Bottom Three Contributing Stocks

Stock namePortfolio

Weight (%)Value Added

(bps)

Mahindra & Mahindra Ltd. 2.0 -214Tech Mahindra Limited 4.4 -151Cyient Ltd 0.7 -108

Annual Performance (% in GBP) to 31 March 2020 12 mths to31/03/20

12 mths to31/03/19

12 mths to31/03/18

12 mths to31/03/17

12 mths to31/03/16

NAV -16.7 11.6 3.6 30.0 -6.0Share Price -25.9 19.8 1.1 29.1 -9.0Consumer Price Index (CPI) +6% 8.0 8.1 9.0 8.6 6.5 MSCI AC Asia ex Japan Index -9.0 2.0 12.2 35.0 -9.0

Cumulative Performance (% in GBP) to 31 March 2020 Since Inception 10 yrs 5 yrs 3 yrs 1 yr 6 mths 3 mths

NAV 118.6 - 17.8 -3.6 -16.7 -20.3 -16.3Share Price 119.2 - 5.6 -10.2 -25.9 -27.0 -22.5Consumer Price Index (CPI) +6% 112.4 - 47.2 27.3 8.0 3.3 1.6 MSCI Asia AC ex Japan Index 83.6 - 28.0 4.1 -9.0 -9.3 -12.8

These figures refer to the past. Past performance is not a reliable indicator of future results.

All performance data is as at 31 March 2020. The NAV performance data is on a net basis after deducting all fees (e.g. investment management fee) and costs (e.g. transaction and custody costs) incurred by the Trust. The NAV includes dividends reinvested on a net of tax basis. The comparator shown is the MSCI All Countries Asia ex Japan Net Index, on an income reinvested net of tax basis. It is shown here as a comparator to provide additional context for investors seeking exposure to the region. The Performance Objective is considered to be appropriate given the Investment Manager’s index agnostic investment philosophy and will not change its style or strategy, or the make-up of the portfolio. Sources: i] Lipper for Trust share prices returns; ii] Trust Administrator and Bloomberg for NAV performance data. iii] CPI data from Factset and quoted on a one month lag.

*Performance since inception, Stewart Investors was appointed as Investment Manager with effect from the 01 July 2010.

*Index Weight

Consumer Staples 26.6% (5.4%*)Information Technology 19.1% (18.6%*)Financials 18.0% (21.6%*)Health Care 10.4% (3.7%*)Industrials 5.7% (6.2%*)Consumer Discretionary 5.0% (15.5%*)Materials 2.0% (3.9%*)Communication Services 0.5% (13.1%*)Other 0.0% (11.9%*)Cash and Cash Equivalents 12.8% (0.0%*)

*Index Weight

India 30.9% (8.5%*)Taiwan 14.5% (13.5%*)Japan 12.4% (0.0%*)Indonesia 6.7% (1.7%*)Bangladesh 5.2% (0.0%*)Hong Kong 4.3% (9.8%*)Philippines 4.3% (0.9%*)South Korea 2.3% (13.0%*)Singapore 1.8% (3.2%*)Other 4.9% (49.3%*)Cash and Cash Equivalents 12.8% (0.0%*)

Ten Largest Holdings

Stock NamePortfolio

Weight (%)Index

Weight (%)

Tech Mahindra Limited 4.4 0.1Hoya Corp. 4.3 0.0Vitasoy International Holdings 4.3 0.1Unicharm Corporation 4.1 0.0Philippine Seven PHP1 3.1 0.0Kotak Mahindra Bank Limited 3.0 0.0Marico Limited 2.9 0.0Dr Lal Pathlabs Ltd 2.6 0.0Housing Development Finance Corporation Limited

2.5 0.8

Koh Young Technology Inc 2.3 0.0Total 33.5 1.0

New Additions Stock Name Sector

Astral Polytechnik Limited IndustrialsShenzhen Inovance Technology Co Ltd Industrials

Complete Disposals Stock Name Sector

Bank of the Philippine Islands FinancialsManila Water Co. Inc. Utilities

Important information This document has been prepared for informational purposes only and is only intended to provide a summary of the subject matter covered and does not purport to be comprehensive. The views expressed are the views of the writer at the time of issue and may change over time. It does not constitute investment advice and/or a recommendation and should not be used as the basis of any investment decision. This document is not an offer document and does not constitute an offer or invitation or investment recommendation to distribute or purchase securities, shares, units or other interests or to enter into an investment agreement. No person should rely on the content and/or act on the basis of any material contained in this document.

This document is confidential and must not be copied, reproduced, circulated or transmitted, in whole or in part, and in any form or by any means without our prior written consent. The information contained within this document has been obtained from sources that we believe to be reliable and accurate at the time of issue but no representation or warranty, express or implied, is made as to the fairness, accuracy, or completeness of the information. We do not accept any liability whatsoever for any loss arising directly or indirectly from any use of this information.

References to “we” or “us” are references to Stewart Investors. Stewart Investors is a trading name of First State Investment Management (UK) Limited.

In the UK, issued by First State Investment Management (UK) Limited which is authorised and regulated by the Financial Conduct Authority (registration number 119367). Registered office 23 St. Andrew Square, Edinburgh, EH2 1BB number SCO79063.

Pacific Assets Trust plc (“The Trust”) is an investment trust, incorporated in Scotland with registered number SC091052, whose shares have been admitted to the Official List of the London Stock Exchange plc. The Trust is a Small Registered UK Alternative Investment Fund Manager under the Alternative Investment Fund Managers Directive. The Trust has delegated certain portfolio management responsibilities to First State Investment Management (UK) Limited. Further information is available from Client Services, Stewart Investors, 23 St Andrew Square Edinburgh, EH2 1BB or by telephoning 0800 587 4141 between 9am and 5pm Monday to Friday or by visiting www.pacific-assets.co.uk. Telephone calls with Stewart Investors may be recorded.

The distribution or purchase of shares in the Trust, or entering into an investment agreement with Stewart Investors may be restricted in certain jurisdictions.

First State Investments entities referred to in this document are part of First Sentier Investors a member of MUFG, a global financial group. First Sentier Investors includes a number of entities in different jurisdictions, operating in Australia as First Sentier Investors and as First State Investments elsewhere. MUFG and its subsidiaries do not guarantee the performance of any investment or entity referred to in this document or the repayment of capital. Any investments referred to are not deposits or other liabilities of MUFG or its subsidiaries, and are subject to investment risk including loss of income and capital invested.

The First State Investments logo is a trademark of the Commonwealth Bank of Australia or an affiliate thereof and is used by FSI under licence.

SFGQIRPAC Q1 0420

Contact details

info@stewartinvestors.com stewartinvestors.com

Edinburgh23 St Andrew Square Edinburgh EH2 1BB United Kingdom t. +44 (0) 131 473 2900

LondonFinsbury Circus House 15 Finsbury Circus London EC2M 7EB United Kingdom t. +44 (0) 207 332 6500

Singapore58 Duxton Road 2nd & 3rd Floor Singapore 089522 t. +65 680 59670

SydneySuite 10, Level 3 13 Hickson Road Dawes Point Sydney NSW Australia 2000 t. +61 2 8274 8000

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