WITAN PACIFIC INVESTMENT TRUST PLC 110 th Annual General Meeting - - PowerPoint PPT Presentation

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WITAN PACIFIC INVESTMENT TRUST PLC 110 th Annual General Meeting - - PowerPoint PPT Presentation

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WITAN PACIFIC INVESTMENT TRUST PLC 110 th Annual General Meeting June 2017 DISCLAIMER These slides are intended to highlight some key points about Witan Pacific Investment Trust plc, for the use of shareholders, analysts and other professional

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SLIDE 1

WITAN PACIFIC INVESTMENT TRUST PLC

110th Annual General Meeting June 2017

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SLIDE 2

These slides are intended to highlight some key points about Witan Pacific Investment Trust plc, for the use of shareholders, analysts and other professional investors. This material is for informational purposes only and does not constitute a solicitation or a personal recommendation in any jurisdiction. No reliance may be placed for any purpose on the information and opinions contained in this document or their accuracy or completeness. No part of this material may be copied, photocopied or duplicated in any form or distributed to any person that is not an employee, officer, director or authorised agent of the recipient, without Witan Investment Services Limited’s prior permission. Important note: Please remember that past performance is not a guide to future performance. Witan Pacific Investment Trust is an equity investment. The value of an investment and the income from it can fall as well as rise as a result of currency and market fluctuations and you may not get back the amount originally invested. Issued and approved by Witan Investment Services Limited. Witan Investment Services Limited is registered in England no.5272533 of 14 Queen Anne’s Gate, London SW1H9AA. The VAT registration number for Witan Investment Services Limited is 863573889.Witan Investment Services Limited provides investment products and services and is authorised and regulated by the Financial Conduct Authority.

MSCI information. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction, The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of

  • riginality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information.

Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.msci.com)

DISCLAIMER

WITAN PACIFIC INVESTMENT TRUST 2

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SLIDE 3

AGENDA

WITAN PACIFIC INVESTMENT TRUST 3

  • Chair’s Overview
  • Investment Review

‒ Manager video commentaries ‒ Summary from Witan Investment Services

  • Question and answer discussion
  • Formal business of the meeting
  • Tea
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SLIDE 4

CHAIR’S OVERVIEW

Sarah Bates

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SLIDE 5

INVESTMENT OBJECTIVE

WITAN PACIFIC INVESTMENT TRUST 5

  • To provide shareholders with long term capital and income growth from

a diversified portfolio of investments in the Asia Pacific region, employing an active multi-manager approach

  • To grow the dividend in real terms over the long term
  • To outperform the MSCI AC Asia Pacific Index (£), the Company’s

benchmark

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SLIDE 6

ORGANISATIONAL STRUCTURE

WITAN PACIFIC INVESTMENT TRUST 6

Aberdeen

Portfolio Managers Board Executive Manager Service Providers

Matthews Gavekal Witan Pacific Witan Investment Services Capita

Company Secretary

JPMorgan

Custodian

BNP Paribas

Fund Accounting

PWC

Auditors

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SLIDE 7

FULL YEAR TO 31 JANUARY 2017

WITAN PACIFIC INVESTMENT TRUST 7

  • NAV total return of 30.7%, compared with benchmark 35.3%
  • Share price total return of 26.1%
  • Outperformed in 8 out of the 12 financial years since becoming

multi-manager in May 2005

  • Final dividend of 2.55p, making 4.75p for the full year (+2.2%)
  • Net assets £217m (2016: £170m)
  • NAV total return of 195.8% since the adoption of the multi-manager

approach in 2005, compared with 183.1% for the benchmark Please see disclaimer on slide 2

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SLIDE 8

PERFORMANCE 31 JAN 2016 TO 31 MAY 2017

WITAN PACIFIC INVESTMENT TRUST 8

Source: Datastream to 31.05.2017 Witan Pacific’s Benchmark is the MSCI AC Asia Pacific Index (Sterling)

85 95 105 115 125 135 145 Jan 2016 Apr 2016 Jul 2016 Oct 2016 Jan 2017 Apr 2017

Witan Pacific Total Return Witan Pacific NAV Total Return Benchmark Total Return

Please see disclaimer on slide 2

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SLIDE 9
  • Final dividend of 2.55p,

making 4.75p for full year

  • 2.2% increase over previous

year (CPI 1.8%)

  • 12 consecutive years of

dividend growth

  • The regular dividend is 4.5

times that paid in 2005

  • Revenue reserves are circa

3 times annual dividend

WITAN PACIFIC DIVIDEND RECORD

WITAN PACIFIC INVESTMENT TRUST 9

0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Regular dividend Special dividend

Policy – The Company aims to grow the dividend in real terms over the long term

Source: Witan Pacific

Please see disclaimer on slide 2

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SLIDE 10

DISCOUNT AND SHARE BUYBACKS (TO 31.05.2017)

WITAN PACIFIC INVESTMENT TRUST 10

Source: Datastream (to 31.05.2017)

  • Discount widened in 2016 due to market volatility and Brexit uncertainty, pace of buybacks

increased in response to the widening discount

  • 713,979 shares repurchased in the financial year to 31 Jan 2017
  • 1.6m shares repurchased in the current financial year at discounts between 11% and 17%
  • 25.0%
  • 20.0%
  • 15.0%
  • 10.0%
  • 5.0%

0.0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Witan Pacific Discount (30 day average)

Please see disclaimer on slide 2

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SLIDE 11

INVESTMENT REVIEW

James Hart, Investment Director Witan Investment Services

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SLIDE 12

HIGHLIGHTS FROM THE FINANCIAL YEAR

WITAN PACIFIC INVESTMENT TRUST 12

  • Fluctuating hopes for economic growth which improved over the year
  • Improved sentiment in Asia and particularly in emerging markets as

commodity prices recovered

  • Asian corporate earnings showing signs of improvement
  • Significant political shocks from the Brexit vote, US Presidential election and

South Korean impeachment

  • Global interest rates appear to have troughed as economic policy edges

towards targeting tax cuts and investment spending

  • These macro factors drove stock market rotation which made life difficult for

the majority of active managers, including our own

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SLIDE 13

MANAGER STRUCTURE (AS AT 31.01.2017)

WITAN PACIFIC INVESTMENT TRUST 13

Annualised performance is since inception excludes cash balances held centrally by Witan Pacific Gavekal returns are adjusted for 1.5% annual management fee charged within the UCITS OEIC, of which 0.75% is rebated to the Company directly outside the fund.

Portfolio Manager (inception) % managed Performance 12m Benchmark 12m Annualised Performance Annualised Benchmark Performance

Aberdeen (31.05.05) 43.4 +39.2 +35.3 +11.4 +9.3 Matthews (30.04.12) 46.4 +28.4 +35.3 +13.3 +11.3 Gavekal (24.04.12) 10.2 +22.3 +35.3 +10.1 +11.5

TRUST PERFORMANCE 31st MAY 2005 to 31st JANUARY 2017

Cumulative NAV TR Cumulative Benchmark Annualised NAV TR Annualised Benchmark Total return (since 31.05.05) 100.0 +195.8 +183.1 +9.7% +9.3%

Source: WM Performance Services/Morningstar All performance to 31.01.2017

Please see disclaimer on slide 2

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SLIDE 14

LONG-TERM PERFORMANCE

WITAN PACIFIC INVESTMENT TRUST 14

Source: Datastream to 31.05.17 Witan Pacific’s Benchmark is the MSCI AC Asia Pacific Index (Sterling)

80 100 120 140 160 180 200 220 240 260 280 300 320 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Witan Pacific Total Return Witan Pacific NAV Total Return Benchmark Total Return

Please see disclaimer on slide 2

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SLIDE 15

RELATIVE PERFORMANCE

WITAN PACIFIC INVESTMENT TRUST 15

Source: Datastream to 31.05.17 Witan Pacific’s Benchmark is the MSCI AC Asia Pacific Index (Sterling)

95 100 105 110 115 120 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

NAV Relative to benchmark

Please see disclaimer on slide 2

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SLIDE 16

TOP 20 INVESTMENTS…

WITAN PACIFIC INVESTMENT TRUST 16

% % 1 Samsung Electronics 2.8 11 LG Chemical 1.3 2 Japan Tobacco 2.3 12 Shin-Etsu Chemical 1.3 3 Taiwan Semiconductor 2.3 13 Mitsubishi UFJ Financial Group 1.3 4 HSBC 2.1 14 Singapore Tech Engineering 1.2 5 Minth Group 2.0 15 Keyence Corp 1.2 6 Seven & I Holdings 1.7 16 AIA Group 1.2 7 China Mobile 1.6 17 Fanuc 1.2 8 United Overseas Bank 1.6 18 Sumitomo Mitsui Financial Group 1.2 9 BGF Retail Company 1.6 19 Sinopec 1.1 10 Shenzhou International 1.4 20 CapitaLand 1.0

By size of investment as a proportion of Witan Pacific’s overall portfolio On a look through basis across managers, excluding open-end funds Source: BNP Paribas as at 31 May 2017

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SLIDE 17

…WHERE WE ARE INVESTED

WITAN PACIFIC INVESTMENT TRUST 17

  • Country breakdown as at 31

January 2017.

  • Country allocations driven by

company prospects not benchmark weights

  • Diversified exposure to the

region’s major economies and markets

  • Details are published in the

Company’s monthly factsheets on www.witanpacific.com

Source: BNP Paribas as at 31 January 2017

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SLIDE 18

REGIONAL PROSPECTS

WITAN PACIFIC INVESTMENT TRUST 18

  • Home to 60% of the world’s population, a high standard of education,

economic transition. Increased interdependence across the region

  • Asian economic ‘miracle’ driven by a high rate of investment and

productivity leading to increasing consumption and savings

  • Political change accelerating, should lead to improved public governance,

improved shareholder rights and a more business-friendly environment

  • Chinese slowdown is part of a long-term trend and evolution from a low

cost producer to a service economy

  • Japan showing signs of life following unprecedented monetary policy

action to boost the domestic economy

Please see disclaimer on slide 2

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SLIDE 19

REGIONAL PERFORMANCE CONVERGING?

Source: Datastream Services

WITAN PACIFIC INVESTMENT TRUST 19

  • Investor perceptions coloured by Japan’s underperformance from 1990-2010
  • Recent reality has been different – Japan ahead over 3 & 5 years

80 90 100 110 120 130 140 150 160 170 Jun 13 Dec 13 Jun 14 Dec 14 Jun 15 Dec 15 Jun 16 Dec 16 Tokyo Stock Exchange Topix TR £ MSCI ASIA ex JAPAN TR £

Please see disclaimer on slide 2

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SLIDE 20

CURRENT FINANCIAL YEAR

WITAN PACIFIC INVESTMENT TRUST 20

  • Outperforming year to date. NAV total return (at 9 June) 11.9%, ahead of

Benchmark 8.8%. Share price total return 13.8%

  • Discount to NAV has narrowed but remains at a relatively wide level
  • Share repurchase activity has increased
  • Asian markets have generally performed well so far this year. Japan has

underperformed its regional peers

  • Sterling exchange rates will continue to be influenced by Brexit negotiations and

the UK political environment – especially after the General Election

Please see disclaimer on slide 2

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SLIDE 21

SUMMARY

WITAN PACIFIC INVESTMENT TRUST 21

  • Objective: to outperform the regional index in total return terms and deliver real

income growth

  • Managers actively select investments independent of benchmark weightings
  • Record of dividend growth and total return outperformance since the

inception of the multi-manager strategy in 2005

  • Year to 31 January 2017: A volatile but rewarding period for equity investors in
  • Asia. Sterling weakness provided a boost to capital values for UK investors

whilst relative performance was more difficult

  • Outlook: An encouraging start to the current year. Regional prospects driven by

economic and corporate earnings growth. Attractive (absolute and relative)

  • valuations. Political reform leads to investor friendly environment. Fears of

protectionism probably overdone

Please see disclaimer on slide 2

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SLIDE 22

LONGER-TERM PERSPECTIVE

WITAN PACIFIC INVESTMENT TRUST 22

Source: Morningstar All performance for the discrete years to 31.03.17 TR= Total Return

Individual years to end-Mar 2017 2016 2015 2014 2013

MSCI AC Asia Pacific Index TR [A] 34.6

  • 6.4

22.3

  • 4.7

15.9 Witan Pacific Share Price TR 33.2

  • 10.1

26.2

  • 12.5

25.0 Witan Pacific NAV TR [B] 31.1

  • 5.0

20.9

  • 10.2

18.0 Relative NAV performance [B-A]

  • 3.5

1.4

  • 1.4
  • 5.4

2.1

Over 10 years (May 2007 to May 2017): NAV total return of 119.0% and a share price return of 116.6%, compared with the benchmark’s 103.2%.

Please see disclaimer on slide 2

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SLIDE 23

THANK YOU

WITAN PACIFIC INVESTMENT TRUST

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SLIDE 24

SUMMARY OF PROXY VOTES 2017

WITAN PACIFIC INVESTMENT TRUST 24

Resolution Votes Cast Total Votes For plus Discretion For Against Discretion Withheld Total Cast (excluding withheld) 1 34,748,670 6,140 80,725 16,207 34,835,535 34,829,395 2 34,764,622 3,135 80,725 3,260 34,848,482 34,845,347 3 34,231,397 395,543 81,537 143,264 34,708,477 34,312,934 4 34,202,906 368,367 81,537 198,931 34,652,810 34,284,443 5 34,501,809 146,494 80,885 122,553 34,729,188 34,582,694 6 33,881,927 791,878 80,725 97,211 34,754,530 33,962,652 7 34,615,404 70,882 80,931 84,524 34,767,217 34,696,335 8 34,007,402 423,687 80,931 339,721 34,512,020 34,088,333 9 34,377,094 312,287 80,931 81,429 34,770,312 34,458,025 10 34,590,905 159,857 80,931 20,047 34,831,693 34,671,836 11 34,183,619 568,724 77,438 21,961 34,829,781 34,261,057

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SLIDE 25

SUMMARY OF PROXY VOTES

WITAN PACIFIC INVESTMENT TRUST 25

Total Shares in Issue = 65,944,000 Total Voting Rights = 63,410,9431 Percentage of Shares Voted = 54.94%2

1 Voting rights as at 12 June 2017. Voting rights exclude shares

held in treasury.

2 Percentage based on validly received proxy votes prior to the

meeting in respect of Resolution 1.