The Witan Pacific Investment Trust has recorded a net asset value (NAV) total return of 22.8 per cent in the six months to the end of July, ahead of its benchmark the MSCI All Country Asia Pacific index, which gained 22 per cent.
The half year results showed the share price total return of the trust, however, was slightly lower at 19.5 per cent as the discount on the vehicle increased from 10.9 per cent at the end of January to 13.4 per cent by the end of July.
Sarah Bates, chairman of the trust’s board, noted currency effects provided “considerably more than half the returns from the region as a whole".
She explained: “Currency effects were unusually significant given the sharp decline in sterling following the results of the UK referendum on membership of the European Union, and given local currency strength as well. The yen rose by some 25 per cent, transforming a negative return to local investors in the Japanese market into a 17 per cent return to a sterling investor.”
In addition Ms Bates pointed out performance of the trust, which adopts a multi-manager approach, had been driven by a recovery in most markets in the region with “particularly strong performances from the Philippine, Thai and Hong Kong markets, and from commodity and telecoms stocks in sector terms”.
The board announced an increase of 2.3 per cent in the dividend per share, and highlighted its efforts to keep the discount under control through the use of share buy backs.
Meanwhile it was announced Ms Bates would retire from the board and as chair at the annual general meeting next year, at which point Susan Platts-Martin will take the role of chair. It also noted plans to extend marketing activity and relaunch the vehicle’s website in a “rebranding of the trust's image”.
