(Alliance News) - Witan Pacific Investment Trust PLC said Thursday it underperformed against its benchmark for its recently ended financial year, as the more cyclical and consumer-based stocks within its portfolio stood as key detractors from returns.
For the year to the end of January, the investment trust reported a net asset value total return of 5.2%, compared to its benchmark, the MSCI AC Asia Pacific Free Index, which returned 8.2%.
As at January 31, Witan Pacific's net asset value per share was 363.49 pence, a 3.1% increase from 352.54p the same date the year before.
The trust's share price at the end of January was 333.00p, reflecting an 8.4% discount to net asset value.
Shares in Witan Pacific Investment Trust closed 0.9% lower at 317.00 pence on Thursday in London.
Witan Pacific said this marks the fourth consecutive year that the trust has underperformed against its benchmark. The trust said it is even considering available options for shareholders.
Witan Pacific noted that of its four managers, three underperformed, due to retail, resources and automobiles posing as the main detractors from returns as was their exposure to Chinese consumers.
Only Aberdeen outperformed its benchmark, while Matthews, Robeco and Dalton lagged behind.
There was also the US-China trade negotiations which was a key influence on Asian equity sentiment, and also took away from performances.
"The board continues to monitor performance closely and is considering the available options in the best interests of shareholders and the company, should the performance target not be met. In that event, any proposal that the board might put to shareholders would include the opportunity to realise cash should shareholders so wish. The board will update shareholders at the appropriate time, expected to be no later than the end of the first week of February 2021," said Chair Susan Platts-Martin.
Witan Pacific declared a total dividend of 7.15 pence per share, up 2.1% from 7.00p the year before.
"It is difficult to predict how long it will take for businesses to return to their normal modus operandi. The pandemic began in China which now appears to have contained it and has started to reopen its factories. Long-term growth forecasts for mainland China remain strong. Some sectors such as travel, will be much more hurt than others, and some companies will be casualties of the imposed tough operating conditions. From an investment perspective, an active approach to selecting stocks rather than tracking indices should prove particularly valuable in this investment climate although it may take time for these investment decisions to bear fruit," Platts-Martin added.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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