Witan Pacific sets 2021 goal to outperform its benchmark
Witan Pacific Investment Trust updated shareholders on its performance on Monday, noting that it had experienced “some underperformance” relative to its benchmark in recent years.
The London-listed firm did say that it had achieved “significant absolute appreciation” in its underlying net asset value (NAV) and in its dividend over recent years, adding that benchmark underperformance was common with “many other” actively-managed funds.
Its board said it believed that the company must justify its actively-managed investment approach.
“Accordingly, the board has determined that, if the company does not deliver NAV total return outperformance of its benchmark over the period from the last financial year end to 31 January 2021, the board will put forward proposals which would include a full cash exit at close to NAV for all shareholders as soon as reasonably practicable after 31 January 2021,” the firm said in its statement.
Witan Pacific described itself as a multi-manager investment trust, and the only investment trust with a pan-Asia mandate including Japan.
It had outperformed its benchmark - the MSCI AC Asia Pacific - since the inception of its multi-manager strategy in 2005.
“The board remains confident that the company's pan-Asian focus and multi-manager investment strategy can deliver attractive returns and long-term outperformance for shareholders, however the board believes it appropriate to offer shareholders the opportunity to realise their holding in the company at close to NAV, in the circumstances described,” the directors added.