Pacific Assets (PAC) is to consult its largest shareholders and launch a strategic review after the board said it was “disappointed” by First Sentier Group’s decision to disband its fund management team.
The £425m sustainability focused Asia Pacific investment trust said Sydney-based First Sentier had decided to close its Stewart Investors subsidiary in Edinburgh following the departure in August of David Gait, PAC’s former lead manager, and two colleagues.
The fund management responsibilities of Stewart Investors will next week pass to the group’s other investment subsidiary, FSSA Investment Managers in Hong Kong. That means Doug Ledingham, who was promoted to lead manager after Gait’s resignation, and co-manager Jack Nelson will no longer run the 60-stock portfolio.
Instead, Pacific Assets will be managed by Rizi Mohanty and Martin Lau, who have more than 10 and 20 years’ experience in the region’s stock markets.
“The board is disappointed by the action taken by First Sentier Group and would like to thank Doug, Jack and the wider SI team for their years of dedicated service. The board intends to consult with its largest shareholders ahead of commencing a strategic review,” said chair Andrew Impey.
Launched in 1985, Pacific Assets is the smallest of the four London-listed Asia Pacific trusts. Performance this year has suffered due to its overweight in India and underweight to China with the shares up just 3% over 12 months compared to a 36% gain in Baillie Gifford’s Pacific Horizon (PHI) and 23% and 30% advances in their two Schroders rivals ATR and SDP.
With a three-year total return of 7% badly lagging the peer group average of 34%, last month the company announced it would hold a 25% tender offer in 2028 if its seven-year performance did not beat the MSCI AC Asia ex-Japan index. That might be unnecessary if it decides to wind up, merge or appoint a new fund manager.
