Witan Pacific proffers the best of Asia


#1

Originally published at: http://whichinvestmenttrust.com/witan-pacific-proffers-the-best-of-asia/

As the only constituent left in its sector, it ploughs a lonely furrow, but could the convergence of Asian stock markets in recent years give Witan Pacific a winning hand? Fast Facts Operated as a multi-manager, meaning it selects the best external managers to manage portfolio Low cost compared to multi-manager peers Unusually, invests in…


#2

I think this should be performing better than it has in terms of the disocunt. I certainly rate Witan, but I wonder if they made more effort in promoting and marketing this a little the discount would come in.

I agree that this will probably be a great performer if Asia gets back in fashion properly, and they seem to have a good range of underlying managers, though why only three? And Gavkal is certainly new to me.

I don’t own any of this yet but I’m wondering if I should take advantage of the discount to build a bit of a holding or if I should look at Pacific Assets or even Henderson Far East Income. Not completely comparable products but they all would give me exposure to Asia.

I’m more of a buy and hold type of guy than a trader.


#3

From what I have read, Aberdeen’s performance is turning around. I don’t mind that they haven’t performed as well for these past few years because at least they were sticking to their promise to manage assets in the fashion they described.

Matthews Asia has a good reputation as a manager but I’ve never heard of Gavkal. It’s an interesting collection of managers.

As for the discount, as it seems to be persistent @steve I’m not sure how much of an opportunity it is, unless performance really does start to motor, that would see it narrowing.


#4

If performance does get a lot better you can bet the discount will narrow a lot @bluesky and it will be a great opportunity, but you’d be too late. It will likely narrow fast.

I think there’s good reasons why the performance of this trust hasn’t been amazing for the past few years and it’s because Asia hasn’t been an amazing place to be. Having said that, it’s done pretty good considering.

Witan Pacific has never really been on my radar, in fact, I didn’t know there was another Witan fund, but it is on my radar now.


#5

I reckon this might be a good time to invest in this because China/HK will do better selling to domestic Chinese consumers, India is continuing to improve and as the they say in the article japan has great companies.

Indonesia is also an interesting market and despite the dodgy politics even Thailand has done well.

Plus If you buy it now on quite a high discount it is unlikely to widen much further because they’ll buy back their own shares, so it’s not that much of a risk.

It’s a decent range of underlying managers and like they say in the article you’re getting a multi manager fund for a pretty cheapo rate.


#6

I agree with you there @jonno, now is a reasonable time to buy if you think the regions prospects are improving. And if you just don’t know the answer to that, it’s got to improve sometime, these are has some of the fastest growing economies in the world, there is a lot of positive economic change in India/Japan/China, and you’re getting it on a big discount, which provides a cushion, a comfort blanket while you wait.

Also, the dividend might be low but it’s been increasing for 11 years, and don’t forget the Brexit Sterling boost they highlight in the article.

I like the multi manager set up and the range of underlying managers they’ve got. I think Gavkal is pretty interesting and adding a macro manager in to the mix could add something extra, you couldn’t get anywhere else. I can’t think of where else you would get that.

There are other great funds/investment trusts for this region though, I rate First State/Stewart Investors offerings such as Pacific Assets, Scottish Oriental, Aberdeen have a good range here and Henderson Far East Income.

That’s the challenge I guess WPC has, is to stand out amongst this bunch. WPC is very rarely covered, this is the first proper article I’ve seen on it in the press/specialist investment websites. They should try and do more to drum up interest with investors because they’ve got an interesting proposition.