Witan Pacific (WPC) has provided a corporate update in which it says that its board is concerned that WPC has experienced some underperformance relative to its benchmark in recent years. The Board says that it believes that the Company must justify its actively managed investment approach. Therefore, it has resolved that, if the Company does not deliver NAV total return outperformance of its benchmark over the period from the last financial year end to 31 January 2021, the Board will put forward proposals which would include a full cash exit at close to NAV for all shareholders as soon as reasonably practicable after 31 January 2021. [QD comment: The board recognises the recent underperformance, which is perhaps reflected in the trust’s circa 15% discount, and is saying to shareholders, if the strategy does not deliver, you can have your money back. This should focus minds and give shareholders some certainty and help moderate the current discount]
Witan Pacific is the only investment trust with a pan-Asia mandate including Japan
WPC is a multi-manager investment trust, and the only investment trust with a pan-Asia mandate including Japan. WPC has outperformed its benchmark (MSCI AC Asia Pacific) since the inception of its multi-manager strategy in 2005, but has experienced some underperformance relative to its benchmark in recent years.
The board is confident that the strategy can deliver
WPC’s board says that it remains confident that the Company’s pan-Asian focus and multi-manager investment strategy can deliver attractive returns and long-term outperformance for shareholders, however the Board believes it appropriate to offer shareholders the opportunity to realise their holding in the Company at close to NAV, in the circumstances described.
About Witan Pacific
Witan Pacific’s objective is to provide shareholders with a portfolio of equity investments in the Asia Pacific region with the aim of outperforming the MSCI AC Asia Pacific Free Index (£). Witan Pacific employs an active multi-manager approach to add value and diversify risk. It appoint managers to access a wide range of opportunities in the Asia Pacific region, seeking capital return and income growth. Witan Pacific also aims to increase the dividend per share ahead of UK inflation rates.