Edison issues review on Hansa Trust (HAN)

RNS Number : 7456O

Hansa Trust PLC

31 January 2019

 

London, UK, 31 January 2019

Edison issues review on Hansa Trust (HAN)

Hansa Trust (HAN/HANA) benefited from the diversification of its portfolio in 2018, with its strategic holding in Brazilian maritime services firm Wilson Sons (WSON) and its defensive allocation to hedge funds helping it to post a small positive NAV return, in contrast to most world equity markets. Fund Manager Alec Letchfield is mindful of the challenges facing the global economy in the year ahead, but remains cautiously optimistic for a more positive investment backdrop. Letchfield has transitioned Hansa Trust to a more dynamic approach over the past five years, and the portfolio is now made up of five principal segments: Ocean Wilsons Holdings (OWHL, which includes the WSON stake); core regional funds; thematic funds; diversifying funds (including hedge funds); and direct global equities. As Hansa Trust and OWHL both trade at a discount to NAV, investors effectively gain exposure to £1.56 of assets for each £1 invested.

At 30 January, Hansa Trust's A-shares traded at a 29.0% discount to cum-income NAV, with the ordinary shares at a 23.4% discount. The A-share discount is broadly in line with the one-, three- and five-year averages, although markedly narrower than the 10-year high of 36.9% seen in mid-2016. The board seeks to reduce the discount by raising awareness and understanding of the trust, rather than by undertaking share buybacks, which would reduce the asset base and inflate the size of the OWHL holding as a percentage of total assets. Hansa Trust currently yields 1.6%.  

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