30 Apr 2019 14:53
London, UK, 30 April 2019
Edison issues review on Witan Pacific Investment Trust (WPC)
Witan Pacific Investment Trust (WPC) employs a multi-manager strategy, offering investors broad exposure to pan-Asian equities. The board recently announced a renewed commitment to improving the trust's investment performance. If WPC's NAV total return lags its benchmark over the period from 31 January 2019 to 31 January 2021, the board will put forward proposals that include a full cash exit at close to NAV. As a result, shareholders should enjoy NAV performance ahead of the benchmark or share price outperformance versus NAV as the discount is closed. In its recently released FY19 results, WPC proposed a meaningful 27.3% increase in its annual dividend; the fully covered 7.0p distribution, to be approved at the June 2019 AGM, equates to a 2.1% yield.
WPC's current 11.0% share price discount to cum-income NAV is narrower than the historical average discounts (range of 13.5% to 14.5%) over the last one, three, five and 10 years. There is potential for the discount to narrow further given the board's commitment to share buybacks and returning capital if the company does not outperform. Based on the proposed higher dividend for FY19, the trust offers a 2.1% dividend yield.
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Mel Jenner, +44 (0)20 3077 5720
Gavin Wood, +44 (0)20 3681 2503
investmenttrusts@edisongroup.com
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WPC.L (WPC)