
Schroder Asian Total Return (ATR)
Results analysis from Kepler Trust Intelligence
Schroder Asian Total Return (ATR) has released its half year results for the period ending 30/06/2025. The trust saw a NAV decrease of 2.4% on a total return basis, versus the reference index which rose 4.3% over the same period. Returns since period end have been strong, with ATR returning 10.8% to 09/09/2025.
Managers
Two key factors have impacted performance. Firstly, the strength of
The portfolio construction approach uses clusters which has balanced defensive exposure with attractive yields, against structurally challenged areas. Additional clusters offer a balance of strong growth potential against more volatile politics. Hedging strategies are also used. The short-term models indicate a neutral to positive view, whereas their longer-term models indicate caution. As such, they have a small short exposure, which they may increase depending on pricing.
At the end of the period the level of gearing was 6.7%. Shortly after the period end, the managers took out a new RCF with a lower capacity reflecting an increased use of derivatives (CFDs).
Chair
Kepler View
Robin Parbrook and King
The portfolio construction approach is also a standout. The managers are benchmark-agnostic therefore position the portfolio depending on where they find the best opportunities. By using investment clusters, they can create a differentiated profile that can distinguish itself from peers. The current bias to the more defensive and yield-generative markets could prove beneficial in more volatile times. Similarly, the hedging strategies could offer downside protection.
The trust has experienced some short-term headwinds which are arguably out of the managers' control. Similarly, consumer stocks, driven by likely temporary trends have performed well. Robin and King Fuei caution these are unlikely to drive long-term returns and have therefore remained on the sidelines, albeit at the expense of near-term performance.
We believe the post-period bounce back demonstrates this transience, with ATR rising over 10% to 09/09/2025, with long-term returns still considerably ahead of the trust's reference index. Despite this, ATR's discount has widened slightly, albeit remaining the narrowest of peers, which could provide an attractive entry point.
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