LONDON (Alliance News) - Witan Pacific Investment Trust PLC said Monday it will pursue a full cash exit for all shareholders if it does not outperform its benchmark in the next couple of years.
The investment trust said it is "concerned" that it had experienced "some underperformance" relative to its benchmark in recent years and, therefore, "must justify" its investment approach.
As a result, Witan Pacific has decided if it does not deliver net asset value total return outperformance from last financial year to the end of January 2021, it will put forward proposals justifying its investment approach.
The investment trust said one of the proposals could include a full cash exit, at close to NAV, for all shareholders after January 31 2021.
In a statement, Witan Pacific said: "The company is a multi-manager investment trust, and the only investment trust with a pan-Asia mandate including Japan. The company has outperformed its benchmark, the MSCI AC Asia Pacific, since the inception of its multi-manager strategy in 2005."
"The board 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."
Shares in Witan Pacific Investment were up 2.6% Monday at 314.00 pence each.