Pacific Horizon (PHI), the £618m pan-Asia trust run by Roderick Snell and Ben Durrant at Baillie Gifford, continued to underperform in the second half of its financial year, annual results show. As a result, over the year to 31 July the underlying total return in net asset value (NAV) was 8.3%, below the 17.1% increase in the MSCI All Country Asia ex-Japan index. Although the managers timed their reduction to India well, with the country’s stock market falling, stock selection meant they did not capture all the gains from upping their allocation to China as its market rallied. Their best stocks were SEA Ltd, a Singaporean internet gaming and ecommerce business; Bytedance, the private Chinese social media giant, and Accton Technology, a Taiwanese server network equipment manufacturer, although their gains were partly offset by falls in VerSe Innovation, a private Indian news aggregator; Samsung Electronics of South Korea; and Equinox India Developments, an Indian real estate business. The discount – or gap – between the share price and NAV meant shareholder returns were lower at 6.4%. Since April when the company announced a 25% tender offer in 2030 if returns do not beat the index and said it would target a single digit discount, the valuation gap has reduced to 9%. The company was positive on prospects believing the headwinds of a strong dollar and fears over China’s economy had receded.

Land Securities (LAND) issues an upbeat trading update to send shares in the generalist real estate investment trust 4% higher to 586p. Since the annual results in May, Landsec says it has seen good momentum on sustainable income and earnings per share growth “underpinned by the ongoing strength in occupational demand” in central London and major retail portfolios where it has signed leases at 9% and 12% respectively above estimated rental value (ERV). The company has also made good progress in recycling capital, with £644m of low-returning assets sold or in legals since March.

Life Science REIT (LABS), the specialist real estate investment trust that decided to wind down last week, saw its portfolio value fall £24.6m, or 6.7%, to £360.6m in the first half as laboratory prices fell in response to low tenant demand and difficulties in the economy. Net tangible assets (NTA) per share fell to 66.3p at 30 June down from 74.4p at 31 December. Adjusted earnings were stable at £3.4m or 1p per share with increased rental income offset by higher finance costs of £2.6m, up from £1.7m a year ago reflecting higher debt levels to fund capital spending and development costs.

Midlands-focused Real Estate Investors (RLE) has sold £7.7m of properties this year as it reaches the half-way point of its three-year disposal programme. It has reduced debt by £4.3m to £34.9m with net tangible assets (NTA) per share slipping to 50.6p at 30 June down from 51.3p at 31 December. Earnings per share fell to 0.85p from 1.04p but covered a 0.4p per share dividend, down from 0.5p, giving a yield of 5% based on a share price of 32p yesterday.

Augmentum Fintech (AUGM) says Tide, the smaller business management platform that is its third biggest holding at 24.1% of net assets, has received US$120m of investment from private equity firms TPG and Apax, an existing investor. The funding does not have a material impact on the 30 June net asset value but AUGM chief executive Tim Levene said it reflected Tide’s sustained growth that made it attractive to global investors, “as evidenced by TPG joining the register”. Other recent positive developments include last month’s US flotation of crypto custodian Gemini and online bank Zopa’s acquisition of Rvvup. AUGM shares rose 0.9% to 89.8p on an estimated 45% discount to NAV.

Weiss Korea Opportunity Fund (WKOF) will look to liquidate early next year after returning £35m to shareholders in a second compulsory share purchase in October. The company decided to wind down in April and returned £70m in July.

International Biotechnology (IBT) benefits from its second piece of M&A in a week with Pfizer’s 110% premium bid for anti-obesity specialist Metsera representing  a 1.2% uplift to net asset value (NAV). Schroders fund managers comment: “This 31st M&A deal for a holding in our portfolio since 2020 reinforces why identifying potential acquisition targets is a core part of our investment strategy: Biotech M&A continues to be an attractive route for large pharmaceutical companies to replenish their patent expiry pipelines in the coming years. Pfizer’s agreement to acquire Metsera highlights big pharma’s ongoing enthusiasm for obesity related therapies as a key theme driving returns for biotech investors.”

RTW Biotech Opportunities (RTW) notes Biogen’s acquisition of Alcyone for $85m cash plus milestone payments. The upfront payment represents a 242% uplift on the $2.1m carrying value of Alcyone, adding $5m (0.72%) to net asset value at 31 August, when Alcyone represented a 0.31% position. RTW first invested in Alcyone in June 2021.

Aquila Energy Efficiency (AEET) updates shareholders on its managed wind-down in half-year results showing four investments were sold for £19.6m in the first half to provide funds for the 36.837p per share special dividend paid in May. This reduced net assets from £69.7m at 31 December to £40.8m at 30 June with net asset value (NAV) per share dropping to 50.15p from 85.55p.  Adjusting for the dividend, NAV per share returned 1.7% over the six-month period.