Interim Management Statement

RNS Number : 0309S

Witan Pacific Investment Trust PLC

26 November 2012

 



WITAN PACIFIC INVESTMENT TRUST PLC

Interim Management Statement - 3 months ended 31 October 2012

Introduction

The Company has prepared this Interim Management Statement ("IMS") to meet the requirements of the UK Listing Authority's Disclosure Rules and Transparency Rules. The IMS covers the three months to 31 October 2012, together with relevant information up to the date of publication.

Investment Objective

The objective of Witan Pacific Investment Trust plc ("the Company") is to provide shareholders with a balanced portfolio of equity investments in the Asia Pacific region with the aim of outperforming the MSCI AC Asia Pacific Free Index (£). 

The Company's assets are managed by Aberdeen Asset Managers Limited, Matthews International Capital Management LLC and MW GaveKal Asia Limited. The Executive Manager is Witan Investment Services Limited.

Multi-Manager Structure

Managers	% of Assets 31 July 2012	% of Assets 31 October 2012
Aberdeen Asset Managers Limited	55	55
Matthews International Capital Management LLC	35	35
MW GaveKal Asia Limited	10	10

Company Information

Epic Code	WPC
Sector	Far East - Including Japan
Trust Type	Conventional
Launch Date	1907
Financial Year End	31 January
Annual Results Announced	April 2012
AGM	June 2012

Company Statistics

	31 July 2012	31 October 2012
Gross Total Assets*	£164m	£167m
NAV per ordinary share*	238.11p	240.58p
Share price*	203.50p	203.38p
Premium/Discount*	-14.5%	-15.5%
Gearing*	4.3%	4.5%
Yield*	2.0%	2.0%

*Source: BNP Paribas Securities Services

Performance Statistics

Cumulative Performance	3 months	6 months	1 year	3 years	5 years	10 years
Share Price (Total Return)	0.9%	5.5%	10.8%	37.6%	21.0%	179.2%
Net Asset Value (Total Return)	2.0%	4.1%	10.2%	31.5%	22.3%	171.5%
Index (Total Return)	0.9%	-0.1%	3.4%	16.4%	5.2%	139.5%

Performance Data Source: Datastream and Witan Pacific to 31 October 2012.

The benchmark for the Company's performance is the MSCI AC Asia Pacific Free Index (£). Source: MSCI, for more information please go to http://www.witanpacific.com/legal-information

 

Quarterly Portfolio Report as at 31 October 2012

The Trust outperformed its benchmark over the quarter to the end of October 2012, with a Net Asset Value total return of 2.0%, compared to 0.9% for the benchmark.  All three managers outperformed the benchmark and thus added value over the period.  Aberdeen's portfolio returned 1.6% before fees, while the two new managers Matthews and MW Gavekal returned 3.0% and 1.4% respectively.  Matthews in particular has performed very strongly since appointment in April 2012.

Over the period from the adoption of the multi manager approach in May 2005 to the end of October 2012, Witan Pacific has delivered a positive NAV total return of 9.6% per annum, 2.2% ahead of the benchmark's 7.4% annual return.

Market performance was mixed over the quarter with a good performance in September and small declines in August and October.  Local market performance was several percent better than the reported sterling returns due to the translation impact of sterling strength over the period. 

Our managers have noted a slowing in economic growth in Asia, particularly in China and India, though with growth rates still much stronger than in the US and Europe. The South East Asian economies are continuing to do relatively well.  The economic weakness has come partly from slowing exports to the US and Europe and from reduced investment rates in China.  Meanwhile financial markets have also been impacted by events and sentiment in the US and Europe.  However, our managers have sought to buy companies with exposure to domestic growth in the region or other drivers of performance.

Aberdeen tends to seek the best quality companies in the region and expects these companies to continue to do well in a difficult economic environment.  Matthews looks for companies with the potential for growth in cashflows to pay attractive and rising dividends, while Gavekal invests in growth companies and actively adjusts its asset allocation depending upon their view of the outlook for markets.  These approaches to investment are generally complementary and all have borne fruit over the quarter.

Geographic Breakdown*

	31 July 2012 %	31 October 2012 %
Japan	21	20
Hong Kong	20	17
Singapore	14	13
China	9	12
Australia	10	9
India	4	6
Taiwan	5	6
South Korea	5	5
Other Countries	12	12

*Source: BNP Paribas Securities Services

Sector Allocation*

	31 July 2012 %	31 October 2012 %
Financials	28	28
Consumer Staples	12	11
Consumer Discretionary	9	10
Industrials	9	10
Information Technology	9	9
Materials	7	8
Telecommunication Services	7	6
Energy	5	5
Healthcare	4	4
Utilities	3	3
Other (investment funds)	7	6

*Source: BNP Paribas Securities Services

Ten Largest Holdings*

31 July 2012	%
MW GaveKal Asian Opportunities Fund	9.7
Aberdeen Global Indian Equity Fund	4.2
QBE Insurance	2.8
HSBC Holdings	2.7
China Mobile	2.5
Taiwan Semiconductor Manufacturing	2.5
United Overseas Bank	2.3
Singapore Tech Engineering	2.2
Oversea-Chinese Banking Corporation	2.1
Samsung Electronics	2.0

*Source: BNP Paribas Securities Services

31 October 2012	%
MW Gavekal Asian Opportunities	9.6
Aberdeen Global India Opps Fund	4.3
HSBC Holdings	3.1
Taiwan Semiconductor	2.7
China Mobile	2.5
QBE Insurance	2.4
Singapore Tech Engineering	2.1
Samsung Electronics	2.0
Oversea-Chinese Banking Corporation	2.0
United Overseas Bank	1.9

*Source: BNP Paribas Securities Services

Material Events

The Board decided this year to introduce the payment of twice yearly dividends rather than a single annual payment, so that shareholders receive income earlier in the year and more regularly. Accordingly, for the current year an interim payment of 2p was paid on 19 October 2012 to shareholders on the register on 5 October 2012. The Board is hopeful that, in the absence of a material change in the outlook, an increase in the total dividend for the year (which was 4p in 2012) will be possible. The final dividend to be announced with the Annual Results will represent the difference between the dividend decided for the full year and the 2p paid this October.

Changes to Share Capital

There were no changes to the share capital during the period.

Phoenix Administration Services Limited

Corporate Secretary

 

END

 

 

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