Hansa Trust PLC Edison issues review on Hansa Trust (HAN/HANA)

TIDMHAN

Hansa Trust PLC

25 July 2017

London, UK, 25 July 2017

Edison issues review on Hansa Trust (HAN/HANA)

Hansa Trust (HAN/HANA) seeks to be differentiated from peers by giving investors access to a portfolio of global equities, specialist funds and a strategic (c 20%) holding with exposure to Brazil, which began as a small position but has grown as a result of superior long-term performance. There is a long-term bias to equities but the focus on preserving and growing capital means that, at certain points in the cycle, the manager may invest more in defensive assets to dampen volatility. Strategy changes since the start of FY15 appear to be bearing fruit and recent NAV and share price performance have been strong, yet Hansa Trust remains at a wide discount to NAV relative to peers. This provides scope for the discount to narrow substantially should the positive performance trend be maintained.

At 20 July, Hansa Trust's A (non-voting) shares traded at a 32.4% discount to cum-income NAV while the ordinary shares were at a 29.7% discount. This is wider than peer discounts, possibly owing to ongoing concerns over Brazil, a perception of illiquidity as a result of the strategic investment in OWHL, or a lack of awareness of the revamped strategy. OWHL also trades below NAV (see Exhibit 4) creating a double discount; on a look-through basis the combined discount is 40.6%, meaning that each GBP1 invested in the trust buys exposure to underlying assets worth GBP1.68.

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July 25, 2017 10:49 ET (14:49 GMT)