TIDMHAN
RNS Number : 5065X
Hansa Trust PLC
24 November 2017
Hansa, investing to create long-term growth
Half Year Report
Six Months Ended
30 September 2017
2017
Welcome
I'm pleased to present our Half Year Report to the shareholders.
The last six months has continued to see further growth of
shareholder value in a world with increasing uncertainties both at
home and abroad. I trust you will find our thoughts on the current
market and our prospects (both short and longer-term)
interesting.
The Company held a well-attended AGM in July 2017. As in
previous years, for those of you who could not attend, I have noted
a number of the points discussed at the AGM in my Statement.
Finally, by the time this Report is published, you will no doubt
have noted that the first interim dividend of 8.0p per share for
the year to 31 March 2018 was paid on 30 November 2017.
Yours sincerely
Alex Hammond-Chambers
THIS DOCUMENT IS IMPORTANT and if you are a holder of Ordinary
shares it requires your immediate attention. If you are in doubt as
to the action you should take or the contents of this document, you
should seek advice from an independent financial advisor,
authorised under the Financial Services and Markets Act 2000 if in
the UK, or other appropriately authorised financial advisor if
outside of the UK. If you have sold or transferred your Ordinary
shares in the Company, you should send this document and any
accompanying Form of Proxy, immediately to the purchaser or
transferee, or to the stockbroker, bank or other agent through whom
the sale or transfer was effected for onward transmission as soon
as practicable.
COMPANY REGISTRATION AND NUMBER: The Company is registered in
England & Wales under company number 126107.
Chairman's Report to the Shareholders
Alex Hammond--Chambers
Chairman
Shareholder Returns
It is now over 3 1/2 years since we embarked upon a new approach
to our strategy for earning returns from a portfolio of investments
with exposure to international stock markets. You may remember that
we replaced our investments in large UK multinational companies
with a rather more tightly focused set of internationally focused
funds. We remarked at the time that it would take time to bear
fruit, but the returns earned in the past 18 months suggest that
the fruit is beginning to ripen. Certainly, the returns earned
since the changes are better than those that would have been earned
had no changes been effected.
As the graph above illustrates, the net asset values' annualised
five year returns to end September are improving, amounting to
circa 7.5% p.a. over the most recent five years and by a useful
total return of circa 5.7% over the most recent six months (which,
although an extremely short time period to compare returns, happens
to be better than our three KPI comparators). Alec Letchfield's
report goes into more detail on the returns earned over the half
year.
5 Year NAV Performance to 30 Sept 2017
Sep-12 Sep-17
Net Asset
Value 1,005.94p 1,345.21p 33.7%
Net Asset (Total
Value (Total divs paid
Return) 79p) 43.2%
Net Asset Value ("NAV") per HT Share
Rest OWHL Total NAV
of Portfolio
September
2012 627.9p 378.0p 1,005.9p
September
2017 924.3p 420.9p 1,345.2p
Change 296.4p 42.9p 339.3p
47.2% 11.3% 33.7%
The discounts (although still high) have, I am pleased to be
able to report, receded over the period (see table below). We have
made it clear that, for a number of reasons, we do not seek to plug
the shortfall in demand for our shares (that helps create the
discounts) by buying in our shares, but rather to meet that
shortfall in demand by going out and telling the Hansa Trust story
in order to attract new investors and thence new, outside demand.
We are being helped in this by working with Edison (an investor PR
firm) and, in the process, getting useful investor feedback; I am
happy to say we are being quite well received and that, we believe,
is beginning to be reflected in our share price.
As announced on 16 October, we have declared (as forecast
earlier in the year) the first of our 8p per share interim
dividends to be paid to shareholders on 30 November.
5 Year share price Performance to 30 SepT 2017
Sep-12 Sep-17
Ordinary Share
Price 734.0p 967.50p 31.8%
Ordinary Share (Total
Price (total divs paid
return) 79.0p) 44.9%
Discount: Ordinary
Share -27.0% -28.10%
'A' Ordinary
Share Price 715.0p 957.5p 33.9%
'A' Ordinary (Total
Share Price (total divs paid
return) 79.0p) 47.4%
Discount: 'A'
Ordinary Share -28.9% -28.8%
6 month share price Performance to 30 SepT 2017
Mar-17 Sep-17
Ordinary Share
Price 866.50p 967.50p 11.7%
Ordinary Share (Total
Price (total divs paid
return) 8.0p) 12.7%
Discount: Ordinary
Share -32.4% -28.10%
'A' Ordinary
Share Price 848.0p 957.5p 12.9%
'A' Ordinary (Total
Share Price (total divs paid
return) 8.0p) 14.0%
Discount: 'A'
Ordinary Share -33.8% -28.8%
The Annual General Meeting
Once again we had good attendance at our Annual General Meeting
(held on the 28 July). We received presentations from Alec
Letchfield on the portfolio, from William Salomon on Brazil, from
Rob Murphy (of Edison) on investor relations and from me on more
general corporate matters. Once again we received a number of
pertinent questions and comments from the attendees. Amongst those
fielded were:
-- Noting that the two discounts remained persistently above
30%, what could be done to reduce them? Surely a limited buy-back
programme would be helpful?
-- Separately, would the discount benefit from the payment of a
higher dividend, paid in part, out of capital returns?
Answer: We are addressing the issue of high discounts by
improving the returns (as mentioned above) and by employing Edison
to help us create new demand by going out and telling the story
(again as above). The Board believes this will create new demand
for the shares and naturally drive down the discount over time.
I explained the policy behind the dividend, which was already
being paid, in part, out of capital returns. At the time of the
2014 changes, the dividend being paid was 16p per share. Given that
the portfolio switches would result (they did) in lower portfolio
dividend income, it was decided to maintain the 16p per share until
such time as the net portfolio income caught up with the cost of
the 16p dividend and then increase it in line with the increases.
The Board didn't believe that, taking the other issues into
consideration, a higher dividend would reduce the discount.
-- How could the negative perception of Brazil be addressed?
Answer: Mr Murphy of Edison responded to the question by saying
that investors wanted to know more about the story behind Wilson
Sons (and thence Brazil) and why the Board regarded the holding in
Ocean Wilsons as such a good long-term investment. He explained
that marketing visits to investors helped to tell the Wilson Sons'
story and to clarify the Board's optimism.
Mr Salomon gave a summary of the history behind some of the
events occurring in Brazil today and some of the possible political
outcomes (which might well prove to be positive for investment in
Brazil). He also spoke about the long-term prospects for Wilson
Sons, about which he felt quite positive - given the strength of
its management and the breadth of its opportunities.
-- Noting the 1% ongoing charges ratio, was not the fee still
too high - particularly considering the considerable investment in
funds?
Answer: The fee is reviewed every year by the Board, taking into
consideration the levels obtaining in the marketplace for portfolio
management.
In respect of fees charged on the investment in funds, I made
the point that, whether in equities directly or through funds, the
research and decision making still had to earn acceptable net
returns - whatever the security of the investment. It was the net
returns that shareholders were paying for.
-- How much does the Edison service cost?
Answer: GBP65,000.
-- Why does the Portfolio Manager pick individual equities?
Answer: Alec Letchfield answered this by stating Hansa Capital
Partners' (the Portfolio Manager) investment team does have the
skills and experience to make direct equity investments and that it
benefits from its association with some high quality portfolio
managers, who produce some interesting ideas for investment.
Longer-Term Prospects
Politics tends to determine economic policies, which, in turn,
determine economic (and thence financial) outcome. Having enjoyed
largely benign economic polices since 1980, politics and political
policies are now right back in the mainstream of investors'
concerns. In fact, probably the biggest long-term uncertainty at
the moment is the quite extraordinary revolution in technology. The
world we live in ten years hence will probably be materially
different in many ways - how we generate energy, how we transport
ourselves around, how we use machines (many of which are yet to be
invented), how we manage our health, how we are governed, and so
on. In this sense it makes long-term investing particularly
intriguing, because the opportunities are numerous but the pitfalls
equally so.
There is an election in Brazil in 2018 and with it is the
possibility of a more stable government and better economic
policies. As political and economic improvements unfold (Brazil is
emerging from a deep recession), so the prospects for our
investment (through Ocean Wilsons) in Wilson Sons improve. Indeed
the share price of Wilson Sons has moved up recently - reflecting,
we believe, an improved optimism. Alec Letchfield's report goes
into some detail on the current situation.
As for the rest of the portfolio, much depends on the investment
environment and how it unfolds. Given the extent of the financial
crisis of 2007/09, a slow recovery in economies was always on the
cards. However, world economies would now appear to be in growth
sync, growing steadily, but at the same time accumulating more and
more debt in the process.
With slow economic growth, it was reasonable to suppose stock
markets would also recover rather slowly. In fact, courtesy of
Quantitative Easing, they've performed rather better than they
might have done and, to-date at least, there are no obvious equity
excesses to bring a halt to the nine year bull market. But, by and
large, stocks are not cheap in relation to some of the risks they
face (particularly of rather higher inflation and thence higher
interest rates) and so are vulnerable to some sort of setback. It
is why we have taken on (gradually) a rather more defensive
approach to the portfolio structure - recognising the possibility
of a setback.
We are confident that our portfolio - containing investments in
well managed companies and funds - is set to provide good long-term
(short-term is not easy to assess) returns for shareholders as the
benefits of the 2014 changes continue to have an impact.
Alex Hammond--Chambers
Chairman
24 November 2017
Half Year Management Report
The Directors present their Report and Condensed Financial
Statements for the six months to 30 September 2017.
THE BOARD'S OBJECTIVES
The Board's primary objective is to achieve growth of
shareholders' value over the medium to long--term.
THE BOARD
Your Board consists of the following persons, each of whom
brings certain individual and complementary skills and experience
to the Board's workings. Individual profiles for each member of the
Board can be found in the Company's Annual Report and on our
website.
Alex Hammond--Chambers (Chairman of the Board), Jonathan Davie
(Chairman of the Audit Committee), Raymond Oxford, William Salomon
and Geoffrey Wood.
BUSINESS REVIEW FOR THE SIX MONTHS TO 30 SEPTEMBER 2017
The business review, which includes an indication of important
events which have occurred within the six months to 30 September
2017, is covered in the Chairman's Report to the Shareholders and
the Portfolio Manager's Report.
KEY RISKS FOR THE FINANCIAL YEAR TO 31 MARCH 2018
The key risks and uncertainties relating to the six months ended
30 September 2017 and for the year to 31 March 2018 are covered in
the Chairman's Report to the Shareholders, the Portfolio Manager's
Report and also within the Notes to the Financial Statements.
GOING CONCERN BASIS OF ACCOUNTING FOR THE FINANCIAL YEAR TO 31
MARCH 2018
The Directors consider it appropriate to adopt the going concern
basis of accounting in preparing these Half Year Financial
Statements. The Directors do not know of any material uncertainties
to the Company's ability to continue to adopt this approach over a
period of at least 12 months from the date of approval of these
Financial Statements.
The Directors include a Long-Term Viability Statement in each
Annual Report.
RELATED PARTY TRANSACTIONS
During the period, Hansa Capital Partners LLP charged portfolio
management fees and company secretarial fees to the Company,
amounting to GBP1,152,000, excluding VAT (year to 31 March 2017:
GBP2,110,000). Amounts outstanding at 30 September 2017 were
GBP191,000 (31 March 2017: GBP189,000).
THE BOARD'S RESPONSIBILITIES
The Board is charged by the shareholders with responsibility for
looking after the affairs of the Company. It involves the
'stewardship' of the Company's assets and liabilities and 'the
pursuit of growth of shareholder value'. These responsibilities
remain unchanged from those detailed in the last Annual Report.
The Directors confirm to the best of their knowledge that:
-- The condensed set of Financial Statements contained within
the Half--Year Financial Report has been prepared in accordance
with International Accounting Standard 34 'Interim Financial
Reporting' and on a going concern basis.
-- This Interim Management Report includes a fair review of the
information required by 4.2.7R and 4.2.8R of the FCA's Disclosure
and Transparency Rules.
The above Interim Management Report, including the
Responsibility Statement, was approved by the Board on 24 November
2017 and was signed on its behalf by:
Alex Hammond--Chambers
Chairman
24 November 2017
Be Prepared.....
Market backdrop
Almost regardless of what is thrown at it, the current stock
market rally shows no signs of abating. Despite the threat of
military action, with the ongoing tit-for-tat between North Korea's
Kim Jong-un and the US's President Trump, devastation caused by
hurricanes and a changing monetary policy landscape, third quarter
returns have extended the already robust performance seen so far in
2017.
Equities again had a positive quarter, although the returns of
overseas assets were lowered by the effect of a strengthening
pound. Global equities rose by 2.2% over the quarter to September
(in Sterling terms), taking the year-to-date return to 8.1%.
Driving performance this year have been the emerging and frontier
markets, which both rose by almost 5% during the quarter. Developed
markets were more muted but still good with the US, Europe and
Japan returning some 1.3%, 3.4% and 1.0%, respectively, over the
three month period.
Global bonds declined slightly over the quarter, largely as a
result of currency moves. Global sovereign bonds were down 1.4%,
investment grade credit fell 0.7% and high yield bonds declined
slightly by 0.1%.
Alternative assets were more mixed, reflecting their diverse
nature and varied fundamental drivers. Oil prices were especially
strong, with Brent rising by over 13% in the quarter. Industrial
metals rose by 6.7%, while gold was flat in Sterling terms. Hedge
funds delivered modestly positive returns, but overall continue to
be disappointing compared to most asset classes in 2017.
Preparing for the worst
As articulated in recent commentaries, our core position remains
one of favouring equities. This is based on the belief that a
recession, which typically goes hand-in-hand with bear markets,
does not appear to be imminent, and growth, if anything, is
improving and becoming more synchronised globally. We are very much
in the camp of believing that the depth of the previous downturn,
combined with the subsequent sluggish recovery, will likely result
in a protracted economic cycle which may last for longer than many
people expect. Banks, which are central to the health of economies
and have an uncanny habit of finding the next economic black-hole,
continue to be managed in a more conservative fashion. Bank
leverage is a shadow of what it was prior to the global financial
crisis and the mind-set is still very much one of de-risking by
protecting the more defensive retail assets from the more risky
investment banking businesses.
Furthermore, we still do not see the levels of excess and
exuberance associated with downturns. Despite the current bull
market reaching its eighth anniversary it does not feel like that,
with many investors still holding meaningful cash positions,
despite having been burnt in previous downturns. We are seeing some
isolated signs of excess, such as high levels of private equity
investment and instruments such as covenant-lite loans reappearing,
but not the normal range of flashing indicators associated with
market tops.
Hence, on balance, we continue to have a constructive view on
markets. It is, however, worth pausing to make a couple of
observations. Firstly, at the risk of stating the obvious, the
length of the bull market suggests we are nearer the end of the
current cycle than the start. Secondly, we would note that
identifying tops of bull markets is akin to pinning the tail on the
donkey. While you may have a sense of where you stand it is
impossible to say with complete accuracy!
It therefore makes sense to think about the types of assets one
would want to own in a more challenging environment and then plan
to progressively increase their allocation over time.
Fixed income, and especially developed market government bonds,
were historically the defensive asset class of choice. When
starting yields were higher they were a dream asset, providing both
a decent running yield during the good times, but also downside
protection when riskier assets such as equities came under
pressure. For this reason, a balanced portfolio of equities and
bonds has produced some of the best risk adjusted returns over
recent cycles.
The challenge now, of course, is that yields have collapsed to
multi-decade lows, on the back of the unprecedented central bank
policies of slashing interest rates and engaging in mega bond
purchase programmes through quantitative easing ("QE"). With
interest rates already rising in the US and discussions on how QE
programmes will be exited in the US, UK and Europe, it is natural
to assume that the environment for bonds will become increasingly
challenging and they may not, therefore, fulfil the same defensive
roll in the next downturn, and indeed they may even be at its
epicentre.
On balance we suspect rate rises will be tempered, with policy
markers being very well aware of the dangers of shocking the market
and raising rates too aggressively. Nonetheless, the risks of a
policy mistake are undoubtedly very real.
Outside of government bonds it is possible to access higher
yields with corporate bonds, but even here the spreads between
their yields and those of government bonds are historically low.
Furthermore, with corporate default rates typically increasing
during bear markets, especially when accompanied by recessions,
their defensive characteristics can be limited. This applies
particularly to the high yield market.
For this reason we believe investors may need to be a little
more creative when investing in the bond space. Investing in
floating rate notes for example, with coupons linked to interest
rates, helps protect them against future interest rate rises. Also,
some specialist bond managers are increasingly originating their
own loans, in an environment where banks are less willing to lend,
helping them generate higher returns and enabling them to build in
greater security.
Historically, hedge funds were also thought to be defensive.
However, this was called into question during the Global Financial
Crisis, when performance was often disappointing and many funds
were forced to limit redemptions due to poor underlying liquidity.
Fee levels have also come under scrutiny and these remain excessive
in many cases, which acts as friction to long-term investment
returns.
We take a more nuanced position on hedge funds, viewing them as
a range of different strategies, as opposed to a defined asset
class. Some are clearly more defensive than others and whilst we
feel hedge funds do have a place in an investor's tool box, one
needs to be wary of those managers claiming to deliver 'alpha' when
in fact they are only generating market 'beta'.
Within this defensive bucket of hedge funds we would include CTA
funds. The term CTA or Commodity Trading Advisor is a generic name
given to those companies and funds investing in managed future
accounts. Their defining characteristic is that they are typically
based on price trend-following models, trading in multiple
different asset classes, which are systematically executed by
computers. In many ways trend--following strategies stand in
contrast to what we believe in at Hansa, where we are primarily
centred on fundamentals and valuations. It is this difference
though that makes them interesting. Blending the two strategies
together has historically generated a portfolio that has produced
better returns at points of market distress and, for that reason,
we believe they deserve a place in a portfolio.
A second hedge fund strategy that has typically performed well
in past periods of market weakness is discretionary macro
investing. Unlike systematic strategies such as CTAs, which are
computer based, discretionary macro funds rely on the skill of the
underlying fund manager. Trading movements in a wide range of macro
events, these managers were historically very adept at predicting
shifts in interest rates based on central bank decisions. With
rates globally converging towards zero this removed the opportunity
set for these managers which, combined with high fees, has meant
returns have been lacklustre at best. The big question from here is
whether or not an environment of diverging interest rates, as
economies exit the downturn at different speeds again, creates a
more favourable backdrop for macro managers.
There are a multitude of other hedge fund strategies that have
defensive characteristics, albeit each needs to be assessed on
their own merits. For example, there are event-driven managers,
trading mergers & acquisitions and broader corporate activity,
which often seek to hedge out market risk. Alternatively there are
long-short equity managers attempting to identify potential winners
and capitalise on being short of losers.
Another strand of defensive investments is that of real assets.
Be it infrastructure or real estate, these assets have a number of
attractions. They provide a yield from their operations and their
asset values typically give downside protection. The tangible
nature of the underlying assets may also offer some correlation
benefits, when combined with broader financial markets, in addition
to inflation protection at a time when inflationary pressures may
be re-awakening. Real estate assets are fairly well defined (albeit
even here assets can range from prime city investments to
warehouses servicing the distribution activities of the on-line
retail sector). Infrastructure, in contrast is a far broader
church, covering regulated assets such as water, ports and toll
roads.
Unfortunately these assets have also seen their values driven up
by recent extraordinary monetary policy measures. As interest rates
were brought down, investors started looking outside of bonds to
those assets with similar characteristics and higher returns. Hence
real assets such as property and infrastructure have seen their
values rise, diminishing future return prospects. There are still
sub-sectors which offer higher prospective returns, but this often
means dipping into the more esoteric parts of the real estate and
infrastructure market with an accompanying increase in risks.
Other potential defensive assets include commodities. This is
arguably all commodities, which tend to be beneficial to portfolios
when combined with equities, but in practice mainly refers to gold.
Gold is very much a Marmite asset with 'gold--bugs' viewing it as
the ultimate preserver of capital, whereas others are more
sceptical. We are not saying we would never hold gold but we do sit
in the more sceptical camp. Its lack of income generation and the
fact that its price is largely determined by a combination of
demand for investment and also for jewellery and to a lesser extent
some commercial uses, makes it incredibly hard to value.
Undoubtedly its tangible nature and the inability of governments to
influence supply, as they can with fiat money, provides attractions
at points of maximum distress but hopefully these are rare!
And then of course there is cash. Cash is clearly an important
component of a portfolio's defensive positioning, not least because
it provides firepower to purchase assets which are falling in value
during bear markets. Again though, with interest rates low, the
returns on cash are negligible and there is an opportunity cost to
holding cash for extended periods of time, especially in rising
inflation environments which may well be the case going
forward.
Portfolio review and activity
Your Company returned 1.9% during the quarter, as its net asset
value per share increased from 1,320.2p at the end of June to
1,345.2p at the end of September. This performance takes its return
over the first six months of the financial year to 5.6%.
The second quarter performance was just behind the MSCI All
Country World Index, which rose by 2.1%, but ahead of the other two
Key Performance Indicators, beating the 0.8% increase of the UK CPI
and the 0.5% fall of the FTSE Gilts All Stocks Total Return
Index.
Core regional funds
The core regional silo produced positive performance over the
quarter, rising by 1.8%. Many of the core regional holdings
contributed to the performance, but the biggest contributors
included Japanese and European positions.
The two largest contributors were Goodhart Partners: Hanjo Fund
and Indus Japan Long Only Fund, which rose by 8.8% and 5.4%,
respectively, over the quarter. Both funds invest in Japan, and
they were able to outperform the country's rising market during the
period. The Hanjo Fund concentrates on small-cap companies, while
the Indus Fund invests mainly in large and mid-cap stocks. The
Indus Fund benefited from the strength of Nexon, a gaming stock
that was one of its biggest contributors over the quarter. The
company reported good earnings figures that were ahead of
consensus, as well as providing upbeat guidance for the rest of the
year. The managers of both funds continue to seek to take advantage
of improving corporate governance standards in Japan and there are
signs of progress being made on this front. Only four companies
listed on the first section of the Tokyo Stock Exchange now have no
outside directors at all, down from 587 in 2012, and there are
signs of increasing levels of shareholder engagement, with a record
number of shareholder proposals so far this year.
The portfolio has two positions in passive European holdings,
and both contributed to performance as the European markets
continued to do well this quarter. The iShares EURO STOXX Mid UCITS
ETF, which focuses on mid-cap European companies, returned 4.7%,
while the Vanguard FTSE Developed Europe ex UK Equity Index fund,
which invests broadly across Developed European markets, rose by
3.7%. The portfolio's position in the BlackRock European Hedge Fund
continues to do well this year, rising another 5.1% during the
quarter. The fund has an excellent track record despite a
relatively poor year in 2016. The fund's holdings of consumer
cyclicals have contributed to performance recently, with the gaming
stock Take-Two Interactive rising on the back of good results and
increasing recurrent revenue, as the company benefits from online
in--game purchases.
Emerging markets have performed very strongly this year and the
portfolio's position in Prince Street Institutional, which invests
throughout these markets, produced a good return of 7.0% over the
last three months. Frontier markets have not been as strong,
although they too have produced positive returns so far in 2017.
However, the portfolio's position in SR Global Frontier Markets
Fund declined by 4.0% during the quarter.
The largest detractor to performance over the three months has
been Pershing Square Holdings, which has continued to underperform.
The position declined a further 16.6% during the quarter, as it was
hurt by the fall of Chipotle Mexican, the restaurant chain that is
the fund's second largest holding, which was damaged by a norovirus
incident in Virginia, as well as a disappointing reception to a
significant new menu item.
Thematic and Diversifying
The portfolio has positions in three thematic sector funds,
which provide exposure to the financial, technology and healthcare
sectors. All three produced modestly positive performances over the
quarter. The portfolio's exposure to diversifying investments,
which includes funds following a wide range of strategies including
discretionary macro, systematic and event-driven, has been
increased over the last two years in order to provide sources of
returns that are less correlated to equity markets, given the
relatively high valuations of equities. During the quarter this
part of the portfolio experienced mixed performances. The Global
Event Partners fund continued to do well, rising by 1.2%, while a
new position in CZ Absolute Alpha, a UK long-short equity fund,
returned 1.9%. Detractors among the diversifying positions included
MKP Opportunity Fund and Schroder GAIA BlueTrend, which fell by
1.1% and 3.2%, respectively.
Global equities
When we are assessing a business's long-term prospects we spend
a significant amount of time evaluating management. If we have
bought a good business it should be generating capital and
executive management's primary responsibility is in allocating that
capital to generate the best long-term returns for shareholders.
The choices they have are to reinvest in the business or return the
cash to shareholders if they cannot invest it at an acceptable
return. Poor management teams tend to invest the capital, even if
they are unlikely to achieve an adequate return in a bid to build
their empires. Great management teams are pragmatic, opportunistic
and tend to invest counter-cyclically.
We prefer to have management teams invested alongside us, or if
not, at least a motivated controlling shareholder; the average
insider holdings in the companies we own is 17% of the shares
outstanding, versus just 1.8% for the S&P 500 and 3.1% for the
FTSE 350.
We built a position in EXOR during the third quarter. EXOR is a
holding company controlled by the Agnelli family (53% share) which
holds stakes in Fiat Chrysler, CNH Industrial, Ferrari, PartnerRe,
Juventus and The Economist. The chairman and CEO is John Elkann who
is a member of the Agnelli family. He has done an outstanding job
since taking over in 2003 and created a huge amount of value for
shareholders. Since becoming public in March 2009 the total return
of EXOR is 947%, versus 228% for the MSCI World Index.
The annualised return of over 30% speaks for itself. His ability
to take a long-term view thanks to his family's large stake in the
business is invaluable; he can afford to avoid focusing on
quarterly and even annual results, unlike many of his peers in the
wider market.
During his tenure he has spun off Ferrari, bought back stock
when EXOR was trading at a 40% discount, used those shares at a
higher price to buy the insurer PartnerRe, diversifying the company
away from cyclical end markets, and alongside Fiat CEO Sergio
Marchionne he engineered a deal with the bankrupt Chrysler to buy
it, using Chrysler's own cash.
At the holding company level, he re-domiciled EXOR to Holland in
order to reduce the tax rate to less than 1.5%, he reduced the
number of employees from 40 to 10 and he cut overall head office
costs (including his own salary) to less than 10bps of NAV. The
proportion of independent directors on the board has moved from 24%
in 2009 to 53% today. Finally, and perhaps the most telling, he
created a structure whereby holders of EXOR's companies receive
enhanced voting rights related to the length by which they have
held the shares.
Just because management are aligned with shareholders and it has
a strong track record, it does not necessarily follow that the
company is a good investment; to quote Elkann "one more condition
which I believe is indispensable: the price must be right". EXOR
trades at 70% of the value of the sum of its underlying holdings,
which provides us with a margin of safety. However, we believe the
holdings are themselves undervalued, so the discount to intrinsic
value is actually much larger. On this basis, if EXOR can compound
its returns at just one-third of its historic rate then it should
be an excellent investment.
Elsewhere the transition to a global equity portfolio has
continued with purchases of CBRE, Iridium Communications, Orion
Engineered Carbons, Samsung and TripAdvisor. In order to fund these
we sold our holding in Goals Soccer Centres and reduced our
holdings in UBM, NCC and Brooks Macdonald.
Ocean Wilsons Holdings
The political crisis in Brazil continues, affecting the
Company's exposure there through Wilson Sons. Brazil's president,
Michel Temer, who replaced Dilma Rousseff following her impeachment
last summer, presides over a government with record low approval
ratings and has recently himself been accused of criminal charges
by the chief prosecutor. The uncertainty that such events cause is
not helpful, but after many years of political turmoil in Brazil,
this has come to be expected. Meanwhile, Wilson Sons is beginning
to reap the rewards of its $1bn investment over the past ten years
and its rate of capital expenditure is now declining. Nevertheless,
the company's management remains committed to carrying out the
expansion project at the Tecon Salvador container terminal, which
has previously been agreed with the granting authority and is
viewed as crucial in preserving the terminal's competitive
positioning. Phase one of the project will see the quay length
almost doubled to 800m between the end of 2017 and 2019, and will
be followed by further investments to increase the capacity of the
terminal.
The Wilson Sons second quarter earnings, which were released in
August, were up considerably compared to the same quarter the year
before. EBITDA rose by 21.1%, or by 21.4% including the offshore
business on a pro forma basis, thanks to solid results in the
towage and terminals businesses. In the container terminals
division there was strong growth in import volumes at Tecon Rio
Grande, which were up 17.6%, driven by spare parts and steel
products. In towage, revenues increased by 6.0%, mainly driven by
the 5.7% operating volume increase, with better results in some
ports and an increased number of calls by grain ships. As expected,
there was a reduction in revenues from special operations as the
number of salvage and oil & gas operations declined.
Wilson Sons is considering the possibility of a listing on the
Novo Mercado segment of the stock exchange. This would require the
company to voluntarily adopt good corporate governance practices,
in addition to those required by Brazilian law and it is hoped this
would help boost the share liquidity, which would be welcomed by
investors.
The Ocean Wilsons Investment subsidiary was valued at $259.0m at
the end of June 2017, which was an increase of $20.1m (8.4%) from
the valuation at the end of December 2016 ($238.9m), after
dividends of $3.5m were paid from the portfolio. The portfolio
continues to be biased towards equities, both public and private,
reflecting its long-term nature.
The Ocean Wilsons Holdings share price has continued to perform
well this year, having started on a strong upward trajectory last
June. During the third quarter of 2017 the share price rose by
another 5.0%. It has risen by 11.7% over the last 12 months and by
16.7% on a total return basis, taking account of the 48.9 pence
dividend paid to the Trust in June. The share price represents a
discount to the look-through NAV of 35.9%, based on the market
value of the Wilson Sons shares, together with the latest valuation
of the investment portfolio.
Summary
Market timing is difficult. Whilst a handful of investors have
achieved legendary status through identifying past market tops, the
list of names that have tried to do this and failed is far longer!
This suggests a progressive approach to adding defensive assets is
prudent.
The challenge of course is to identify which assets are truly
defensive. With almost all assets having seen their prices buoyed
by the huge amounts of liquidity injected into markets, prices have
become increasingly interconnected. Hence the traditional defensive
asset class of choice, fixed income, where one would historically
have sought solace, is unlikely to perform this role to the same
degree in the next downturn and, indeed, may even be part of the
cause of the next bear market.
We have discussed some of the areas that may succeed in
preserving capital, although we suspect the skill of the individual
manager will become increasingly important in achieving this
goal.
Alec Letchfield
September 2017
Portfolio Statement
as at 30 September 2017
Investments Fair value Percentage
GBP000 of
Net Assets
Core Funds
Findlay Park American Fund 15,358 4.8
Vulcan Value Equity Fund 12,003 3.7
Select Equity Offshore, Ltd 11,029 3.4
Goodhart Partners: Hanjo Fund 10,285 3.2
Adelphi European Select Equity
Fund 8,792 2.7
Indus Japan Long Only Fund 8,617 2.7
Schroder ISF Asian Total Return 7,111 2.2
iShares EURO STOXX Mid UCITS
ETF 5,153 1.6
BlackRock European Hedge Fund 4,970 1.5
Prince Street Institutional
Offshore Ltd 4,819 1.5
CF Odey Absolute Return Fund 4,032 1.3
BlackRock Frontiers Investment
Trust PLC 4,010 1.2
Vanguard FTSE Developed Europe
ex UK Equity Index Fund 3,583 1.1
Pershing Square Holdings Ltd 3,175 1.0
NTAsian Discovery Fund 2,935 0.9
SR Global Fund Inc. Frontier
Markets 2,539 0.8
Total Core Funds 108,411 33.6
Strategic
Wilson Sons (through our holding
in Ocean Wilsons Holdings)* 68,586 21.2
Total Strategic 68,586 21.2
Thematic & Diversifying Assets
Ocean Wilson (Investments)
Limited (through our holding
in Ocean Wilsons Holdings)* 32,424 10.0
GAM Star Fund PLC - Technology 12,033 3.7
DV4 Ltd ** 11,842 3.7
Global Event Partners Ltd 7,914 2.4
Field Street Offshore Fund,
Ltd 3,741 1.2
SPDR MSCI World Financials
UCITS ETF 3,173 1.0
MKP Opportunity Offshore,
Ltd 2,760 0.9
Hudson Bay International Fund
Ltd 2,604 0.8
BNY Mellon Absolute Return
Bond Fund 2,295 0.7
JLP Credit Opportunity Fund 2,177 0.7
Keynes Dynamic Beta Strategy
Fund 1,909 0.6
Worldwide Healthcare Trust
PLC 1,616 0.5
Pareturn Gladwyne Absolute
Credit UCITS 1,606 0.5
GAM Systematic Core Macro
Fund 1,316 0.4
CZ Absolute Alpha UCITS Fund 1,286 0.4
Schroder GAIA BlueTrend 1,082 0.3
Total Thematic & Diversifying
Assets 89,778 27.8
Global Equities
Hansteen Holdings PLC 9,835 3.0
Brooks Macdonald Group PLC 3,865 1.2
UBM PLC 3,141 1.0
Berkshire Hathaway Inc 2,730 0.9
Samsung Electronics Co Ltd 2,684 0.8
NCC Group PLC 2,673 0.8
Hilton Food Group PLC 2,650 0.8
Alphabet Inc 2,539 0.8
SoftBank Group Corp 2,523 0.8
Interactive Brokers Group
Inc 2,516 0.8
Bayer AG 2,282 0.7
EXOR NV 2,125 0.7
CVS Health Corp 2,060 0.6
Liberty Global PLC 2,021 0.6
White Mountains Insurance
Group Ltd 1,908 0.6
Howard Hughes Corp 1,757 0.5
CBRE Group Inc 1,694 0.5
Orion Engineered Carbons SA 1,611 0.5
TripAdvisor Inc 1,268 0.4
Iridium Communications Inc 1,146 0.4
Four other investments 933 0.3
Total Global Equities 53,961 16.7
Total Investments 320,736 99.3
Net current assets 2,115 0.7
Net Assets 322,851 100.0
*Hansa Trust owns 9,352,770 shares in Ocean Wilsons Holdings
Limited ("OWHL"). In order to reflect Hansa Trust's exposure to
different market silos better, our interests in the two
subsidiaries of OWHL, Wilson Sons and Ocean Wilsons (Investments)
Ltd ("OWIL"), are shown separately above. The fair value of Hansa
Trust's holding in OWHL has been apportioned across the two
subsidiaries in the ratio of the latest reported NAV of OWIL, that
being the NAV of OWIL shown per the 30 June 2017 OWHL accounts, to
the market value of OWHL's holding in Wilson Sons, that being the
bid share price of Wilson Sons multiplied by the number of shares
held by OWHL at 30 September 2017.
**DV4 Ltd is an unlisted Private Equity holding. As such, its
value is estimated as described in Note 7 to the Financial
Statement and is listed as a Level 3 Asset in Note 9. All other
valuations are either derived from information supplied by listed
sources, or from pricing information supplied by third party fund
managers.
Financial Statements
Condensed Income Statement
For the six months ended 30 September 2017
(Unaudited) (Unaudited)
Six months Six months
ended ended (Audited)
30 September 30 September Year ended
2017 2016 31 March 2017
Revenue Capital Total Revenue Capital Revenue Revenue Capital Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Gains on investments
held at fair value
through profit or
loss - 13,333 13,333 - 42,294 42,294 - 52,575 52,575
Exchange gains on
currency balances - 81 81 - 2 2 - 111 111
Investment income 5,605 - 5,605 5,205 - 5,205 6,194 - 6,194
5,605 13,414 19,019 5,205 42,296 47,501 6,194 52,686 58,880
Investment management
fees (1,102) - (1,102) (980) - (980) (2,010) - (2,010)
Other expenses (606) - (606) (558) - (558) (1,123) - (1,123)
(1,708) - (1,708) (1,538) - (1,538) (3,133) - (3,133)
Profit before finance
costs and taxation 3,897 13,414 17,311 3,667 42,296 45,963 3,061 52,686 55,747
Finance costs - - - (2) - (2) (2) - (2)
Profit before taxation 3,897 13,414 17,311 3,665 42,296 45,961 3,059 52,686 55,745
Taxation (20) - (20) - - - - - -
Profit for the period 3,877 13,414 17,291 3,665 42,296 45,961 3,059 52,686 55,745
Return per Ordinary
and 'A' non--voting
Ordinary share 16.1p 55.9p 72.0p 15.3p 176.2p 191.5p 12.8p 219.5p 232.3p
The Company does not have any income or expense that is not
included in the Profit/(Loss) for the period. Accordingly the
"Profit/(Loss) for the period" is also the "Total Comprehensive
Income for the period", as defined in IAS 1 (revised) and no
separate Statement of Comprehensive Income has been presented.
The total column of this statement represents the Income
Statement, prepared in accordance with IAS 34. The supplementary
revenue and capital return columns are both prepared under guidance
published by the Association of Investment Companies.
All revenue and capital items in the above statement derive from
continuing operations.
Condensed Balance Sheet
as at 30 September 2017
(Unaudited) (Unaudited) (Audited)
30 30 31
September September March
2017 2016 2017
GBP000 GBP000 GBP000
Non--current assets
Investment in subsidiary at fair value
through profit or loss 629 629 629
Investments held at fair value through
profit or loss 320,736 291,446 299,671
321,365 292,075 300,300
Current assets
Trade and other receivables 2,138 1,929 4,106
Cash and cash equivalents 771 6,564 4,059
2,909 8,493 8,165
Current liabilities
Trade and other payables (1,423) (952) (985)
Net current assets 1,486 7,541 7,180
Net assets 322,851 299,616 307,480
Capital and reserves
Called up share capital 1,200 1,200 1,200
Capital redemption reserve 300 300 300
Retained earnings 321,351 298,116 305,980
Total equity shareholders' funds 322,851 299,616 307,480
Net asset value per Ordinary and 'A'
non--voting Ordinary share 1,345.2p 1,248.4p 1,281.2p
Condensed Statement of Changes in Equity
For the six months ended 30 September 2017
(Unaudited)
Capital
Share redemption Retained
capital reserve earnings Total
GBP000 GBP000 GBP000 GBP000
Net assets at 1 April 2017 1,200 300 305,980 307,480
Gains for the period - - 17,291 17,291
Dividends - - (1,920) (1,920)
Net assets at 30 September 2017 1,200 300 321,351 322,851
Condensed Statement of Changes in Equity
For the six months ended 30 September 2016
(Unaudited)
Capital
Share redemption Retained
capital reserve earnings Total
GBP000 GBP000 GBP000 GBP000
Net assets at 1 April 2016 1,200 300 254,075 255,575
Gains for the period - - 45,961 45,961
Dividends - - (1,920) (1,920)
Net assets at 30 September 2016 1,200 300 298,116 299,616
Condensed Statement of Changes in Equity
For the year ended 31 March 2017
(Audited)
Capital
Share redemption Retained
capital reserve earnings Total
GBP000 GBP000 GBP000 GBP000
Net assets at 1 April 2016 1,200 300 254,075 255,575
Gains for the year - - 55,745 55,745
Dividends - - (3,840) (3,840)
Net assets at 31 March 2017 1,200 300 305,980 307,480
Condensed Cash Flow Statement
For the six months ended 30 September 2017
(Unaudited) (Unaudited)
Six Six (Audited)
months months Year
ended ended ended
30 September 30 September 31 March
2017 2016 2017
GBP000 GBP000 GBP000
Cash flows from operating activities
Gain before finance costs and taxation
* 17,311 45,963 55,747
Adjustments for:
Realised gains on investments (7,089) (3,521) (4,234)
Unrealised gains on investments (6,244) (38,773) (48,341)
Effect of foreign exchange rate changes (81) (2) (111)
Decrease/(increase) in trade and other
receivables 1,385 17 (1,456)
Increase/(decrease) in trade and other
payables 1 (8) 25
Taxes paid (20) - -
Purchase of non--current investments (47,715) (30,176) (49,307)
Sale of non--current investments 41,003 29,956 50,439
Net cash (outflow)/inflow from operating
activities (1,449) 3,456 2,762
Cash flows from financing activities
Interest paid on bank loans - (2) (2)
Dividends paid (1,920) (1,920) (3,840)
Net cash outflow from financing activities (1,920) (1,922) (3,842)
(Decrease)/Increase in cash and cash
equivalents (3,369) 1,534 (1,080)
Cash and cash equivalents at 1 April 4,059 5,028 5,028
Effect of foreign exchange rate changes 81 2 111
Cash and cash equivalents at end of
period/year 771 6,564 4,059
*includes dividends received of GBP5,495,000 (2016:
GBP5,221,000) and interest received of GBP3,000 (2016:
GBP3,000).
Notes to the Condensed Financial Statements
1 ACCOUNTING POLICIES
The Financial Statements of the Company have been prepared under
the historical cost convention, except for the measurement at fair
value of investments, and in accordance with International
Financial Reporting Standards ("IFRS") as adopted by the European
Union.
The Half Year Financial Statements have been prepared in
accordance with International Accounting Standard 34 "Interim
Financial Reporting" and are consistent with the basis of the
accounting policies set out in the Company's Annual Report and
Accounts at 31 March 2017.
These Financial Statements are presented in Sterling, the
currency of the primary economic environment in which the Company
operates.
2 INCOME
(Unaudited) (Unaudited)
Six Six (Audited)
months months Year
ended ended ended
30 September 30 September 31 March
2017 2016 2017
GBP000 GBP000 GBP000
Income from quoted investments
UK dividends 460 897 1,701
Overseas and other dividends 4,842 4,209 4,254
Property income distributions 300 96 232
5,602 5,202 6,187
Other income
Interest receivable on AAA rated money
market funds 3 3 7
Total income 5,605 5,205 6,194
3 DIVIDS PAID
(Unaudited) (Unaudited)
Six Six (Audited)
months months Year
ended ended ended
30 30 31
September September March
2017 2016 2017
GBP000 GBP000 GBP000
Second interim dividend for 2017 (paid
May 2017): 8.0p (2016: 8.0p) 1,920 1,920 1,920
First interim dividend for 2017 (paid
November 2016): 8.0p (2016: 8.0p) - - 1,920
1,920 1,920 3,840
Note: The first interim dividend for 2018, payable in November
2017 will be 8.0p per share (2017, paid November 2016: 8.0p).
4 RETURN PER SHARES
The returns stated below are based on 24,000,000 shares, being
the weighted average number of shares in issue during the
period.
Revenue Capital Total
Pence Pence Pence
per per per
GBP000 share GBP000 share GBP000 share
Six months ended 30
September 2017 (Unaudited) 3,877 16.1 13,414 55.9 17,291 72.0
Six months ended 30
September 2016 (Unaudited) 3,665 15.3 42,296 176.2 45,961 191.5
Year ended 31 March
2017 (Audited) 3,059 12.8 52,686 219.5 55,745 232.3
5 FINANCIAL INFORMATION
The financial information contained in this Half Year Report is
not the Company's statutory accounts as defined in section 434-436
of the Companies Act 2006. The financial information for the six
months ended 30 September 2017, and 30 September 2016, has not been
audited or reviewed by the Auditors and has been prepared in
accordance with accounting policies consistent with those set out
in the Annual Report and Accounts for the year ended 31 March
2017.
The statutory accounts for the financial year ended 31 March
2017 have been delivered to the Registrar of Companies and received
an Audit Report which was unqualified, did not include a reference
to any matters to which the Auditors drew attention by way of
emphasis without qualifying the report and did not contain
statements under section 498 (2), (3) and (4) of the Companies Act
2006.
The Half Year financial information was approved by the Board of
Directors on 24 November 2017.
6 NET ASSET VALUE PER SHARE
The NAV per share is based on the net assets attributable to
equity shareholders of GBP322,851,000 (30 September 2016:
GBP299,616,000; 31 March 2017: GBP307,480,000) and on 24,000,000
shares, being the number of shares in issue at the period ends.
7 COMMITMENTS AND CONTINGENCIES
The Company has a commitment to DV4 Ltd, an unquoted property
investment company. As at 30 September 2017, the Company's
commitment was fully drawn and the interest free loan referred to
in past reports had been fully repaid (30 September 2016: undrawn
commitment GBP702,302; 31 March 2017: undrawn commitment GBPnil).
DV4 Ltd is an unlisted Private Equity holding. As such, its value
is estimated as described in Note 9 to the Financial Statement
where it is listed as a Level 3 Asset. All other valuations are
either derived from information supplied by listed sources or from
pricing information supplied by third party fund managers.
8 PRINCIPAL RISKS AND UNCERTAINTIES
The principal financial and related risks faced by the Company
fall into the following broad categories - External and Internal.
External risks to shareholders and their returns are those that can
severely influence the investment environment within which the
Company operates: including government policies, taxation, economic
recession, declining corporate profitability, rising inflation and
interest rates and excessive stock market speculation. Internal and
operational risks to shareholders and their returns are: portfolio
(stock and sector selection and concentration), balance sheet
(gearing), and/or administrative mismanagement. In respect of the
risks associated with administration, the loss of Approved
Investment Trust status under s.1158 CTA 2010 would have the
greatest impact.
A review of the half year and the outlook for the Company can be
found in the Chairman's Report to the Shareholders and in the
Portfolio Manager's Review.
Information on each of these areas is given in the Strategic
Report within the Annual Report and Accounts for the year ended 31
March 2017. In the view of the Board these principal risks and
uncertainties are applicable to the remaining six months of the
financial year as they were to the six months under review.
9 FAIR VALUE HIERARCHY
Fair Value Hierarchy
IFRS 13 'Fair Value Measurement' requires an entity to classify
fair value measurements, using a fair value hierarchy that reflects
the significance of the inputs used in making the measurements. The
fair value hierarchy has the following levels:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices included within Level 1
that are observable for the asset or liability, either directly (ie
as prices) or indirectly (ie derived from prices); and
Level 3: inputs for the asset or liability not based on
observable market data (unobservable inputs).
The financial assets and liabilities measured at fair value in
the statement of financial position are grouped into the fair value
hierarchy, are detailed below:
30 September 2017 (Unaudited) Level Level Level Total
1 2 3 GBP000
GBP000 GBP000 GBP000
Financial assets at fair value
through profit or loss
Quoted equities 163,760 - - 163,760
Unquoted equities - - 11,854 11,854
Fund investments 8,326 136,796 - 145,122
Investment in subsidiary - - 629 629
Net fair value 172,086 136,796 12,483 321,365
30 September 2016 (Unaudited) Level Level Level Total
1 2 3 GBP000
GBP000 GBP000 GBP000
Financial assets at fair value
through profit or loss
Quoted equities 157,111 - - 157,111
Unquoted equities - - 11,398 11,398
Fund investments - 122,937 - 122,937
Investment in subsidiary - - 629 629
Net fair value 157,111 122,937 12,027 292,075
31 March 2017 (Audited) Level Level Level Total
1 2 3 GBP000
GBP000 GBP000 GBP000
Financial assets at fair value
through profit or loss
Quoted equities 147,035 - - 147,035
Unquoted equities - - 11,860 11,860
Fund investments 5,167 135,609 - 140,776
Investment in subsidiary - - 629 629
Net fair value 152,202 135,609 12,489 300,300
There have been no transfers during the period between
levels.
The Company's policy is to recognise transfers into and out of
the different fair value hierarchy levels at the date of the event
or change in circumstances that caused the transfer to occur.
A reconciliation of fair value measurements in Level 3 is set
out in the following table:
(Unaudited) (Unaudited) (Audited)
September September March
2017 2016 2017
Equity Equity Equity
investments investments investments
GBP000 GBP000 GBP000
Opening Balance 12,489 12,614 12,614
Transferred from Level 1 - - 3,129
Purchases (Capital Drawdown) - - 702
Sales (Capital Distribution) - (462) (700)
Total gains or losses included in
gains on investments in the Income
Statement:
- on assets sold - 462 700
- on assets held at year end (6) (587) (3,956)
Closing Balance 12,483 12,027 12,489
As at 30 September 2017, the investments in DV4 Ltd and Acertec
Ltd have been classified as Level 3. The investment in DV4 has been
valued using the most recent estimated NAV as advised to the
Company by DV4, adjusted for any further drawdowns, distributions
or redemptions between the valuation date and 30 September 2017.
The most recent valuation statement was received on 21 August 2017,
with an estimated NAV based on the unaudited capital statement of
DV4 as at 30 June 2017. The value of Acertec has been based upon
the liquidation proceeds of this company due to Hansa Trust in
March/April 2018. If the value of the unquoted Level 3 equity
investments were to increase or decrease by 10%, while all other
variables had remained constant, the return and net assets
attributable to shareholders for the period ended 30 September 2017
would have increased/decreased by GBP1,185,401.
Investor Information
The Company currently manages its affairs so as to be a
qualifying investment trust for ISA purposes, for both the Ordinary
and 'A' non-voting Ordinary shares. It is the present intention
that the Company will conduct its affairs so as to continue to
qualify for ISA products. In addition, the Company currently
conducts its affairs so shares issued by Hansa Trust PLC can be
recommended by independent financial advisers to ordinary retail
investors, in accordance with the Financial Conduct Authority's
("FCA") rules in relation to non--mainstream investment products
and intends to continue to do so for the foreseeable future. The
shares are excluded from the FCA's restrictions which apply to
non--mainstream investment products, because they are shares in an
investment trust. Finally, Hansa Trust is registered as a Reporting
Financial Institution with the US IRS for FATCA purposes.
Investor Disclosure
The Company's AIFM, Maitland Institutional Services Limited,
hosts a Hansa Trust Investor Disclosure document on its website.
The document is a regulatory requirement and summarises key
features of the Company for investors. It can be viewed at:
www.maitlandgroup.com/wp-content/uploads/2017/08/Hansa-Investor-Disclosure-Document-2017-updated-30.10.17.pdf
Capital Structure
The Company has 8,000,000 Ordinary shares of 5p each and
16,000,000 'A' non--voting Ordinary shares of 5p each in issue. The
Ordinary shareholders are entitled to one vote per Ordinary share
held. The 'A' non--voting Ordinary shares do not entitle the
holders to vote or receive notice of meetings, but in all other
respects they have the same rights as the Company's Ordinary
shares.
Contact Details
Hansa Trust PLC
50 Curzon Street, London W1J 7UW
Telephone: +44 (0) 207 647 5750
Fax: +44 (0) 207 647 5770
Email: hansatrustenquiry@hansacap.com
Website: www.hansatrust.com
The Company's website includes the following:
- Monthly Fact Sheets
- Stock Exchange Announcements
- Details of the Board Statements
- Annual and Half Year Reports
- Share Price Data Reports
Please contact the Portfolio Manager, as below, if you have any
queries concerning the Company's investments or performance.
Hansa Capital Partners LLP
50 Curzon Street
London W1J 7UW
Telephone: +44 (0) 207 647 5750
Email: hansatrustenquiry@hansacap.com
Website: www.hansagrp.com
Please contact the Registrars, as below, if you have a query
about a certificated holding in the Company's shares.
Link Asset Service
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
Telephone: 0871 664 0300
(Calls cost 12p per minute plus your phone company's access
charge. If you are outside the United Kingdom, please call +44 371
664 0300. Calls outside the United Kingdom will be charged at the
applicable international rate. We are open between 9.00 am - 5.30
pm, Monday to Friday excluding public holidays in England and
Wales.)
Email: enquiries@linkgroup.co.uk
www.linkassetservices.com
Share Price Listings
The price of your shares can be found on our website and in the
Financial Times under the heading 'Investment Companies'.
In addition, share price information can be found under the
following:
ISIN Code
Ordinary shares GB0007879728
'A' non-voting Ordinary shares GB0007879835
SEDOL
Ordinary shares 787972
'A' non-voting Ordinary shares 787983
Reuters
Ordinary shares HAN.L
'A' non-voting Ordinary shares HANA.L
Bloomberg
Ordinary shares HAN LN
'A' non-voting Ordinary shares HANA LN
TIDM
Ordinary shares HAN
'A' non--voting Ordinary shares HANA
Useful Internet Addresses
Association of Investment Companies www.theaic.co.uk
London Stock Exchange www.londonstockexchange.com
TrustNet www.trustnet.com
Interactive Investor www.iii.co.uk
Morningstar www.morningstar.com
Edison www.edisongroup.com
Financial Calendar
Company year end 31 March
Annual Report sent to shareholders June
Annual General Meeting July
Announcement of Half Year results November
Half Year Report sent to shareholders December
Interim dividend payments November & May
Company Information
Registered in England & Wales number: 126107
BOARD OF DIRECTORS
Alex Hammond-Chambers
Jonathan Davie
Raymond Oxford
William Salomon
Geoffrey Wood
SECRETARY AND REGISTERED OFFICE
Hansa Capital Partners LLP
50 Curzon Street
London W1J 7UW
PORTFOLIO MANAGER
Hansa Capital Partners LLP
50 Curzon Street
London W1J 7UW
AUDITOR
Grant Thornton UK LLP
30 Finsbury Square
London EC2P 2YU
SOLICITORS
Dentons
(formerly Maclay Murray & Spens LLP)
1 Fleet Place
London EC4M 7RA
REGISTRAR
Link Asset Services
(formerly Capita Asset Services)
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
DEPOSITARY
BNP Paribas Securities Services
10 Harewood Avenue
London NW1 6AA
STOCKBROKER
Winterflood Investment Trusts
The Atrium Building
Cannon Bridge
25 Dowgate Hill
London EC4R 2GA
ADMINISTRATOR
Maitland Administration Services Limited
Springfield Lodge
Colchester Road
Chelmsford
Essex CM2 5PW
ALTERNATIVE INVESTMENT FUND MANAGER
Maitland Institutional Services Limited
Springfield Lodge
Colchester Road
Chelmsford
Essex CM2 5PW
Hansa Trust PLC
50 Curzon Street
London
W1J 7UW
T : +44 (0) 207 647 5750
F : +44 (0) 207 647 5770
E : hansatrustenquiry@hansacap.com
Visit us at
www.hansatrust.com
This information is provided by RNS
The company news service from the London Stock Exchange
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IR USOVRBAAAUAA
(END) Dow Jones Newswires
November 24, 2017 10:36 ET (15:36 GMT)
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