Mel Jenner
29 August 2017 · 3 min read

Witan Pacific Investment Trust announces changes to its multi-manager line-up and allocations

Number of managers increased from three to four

Witan Pacific Investment Trust (WPC) has announced it intends to change the line-up of its external multi-managers. It will retain Aberdeen Standard Investments and Matthews International Capital Management, but Gavekal will be replaced by Dalton Investments and Robeco Institutional Asset Management. The new allocations are as follows:
Aberdeen Standard Investments 25% (previously 42%)
Dalton Investments 10%
Matthews International 40% (previously 47%)
Robecco Institutional 25%

The proposed changes are intended to increase potential outperformance of the benchmark MSCI AC Asia Pacific index (in sterling terms). Each manager has mandates covering the whole Asia Pacific region, but the new line-up is expected to increase exposure to smaller cap and lesser-known companies, which offer potential for higher growth.

Robeco is owned by Japan-listed ORIX Corporation. Its Asian equity team has been in place since 1990 and is headed-up by Arnout van Rijn; it has c $7bn assets under management. Its investment strategy focuses on finding undervalued companies, while taking into account business and price momentum. Its portfolio is actively managed on a bottom-up basis and has a high active share (measure of how a portfolio differs from its underlying benchmark).

Dalton Investments is an independent investment boutique based in California. It was established in 1999 by James B Rosenwald and has c $3.3bn assets under management. It has a fundamental value investment approach with four key elements: focus on strong businesses; that have a significant margin of safety; a strong record of capital allocation; and where managements’ interests are aligned with shareholders’. Dalton tends to invest in smaller, under-researched companies, offering the potential for significant share price upside.

The multi-manager changes are the result of the board’s continuing aim to increase the potential for WPC to outperform its benchmark, with growth in both capital and income.

To read our latest research note on WPC, please click here.

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