9th Dec 2015 11:04
LONDON (Alliance News) - Hansa Trust PLC on Wednesday backed its investment in Wilson Sons, which it owns through a holding in Ocean Wilsons Holdings Ltd.
The trust reported a negative 4.1% total return on net asset value over the six months ended September 30. Its net asset value fell to 1,091.4p per share from 1,138.6p over the course of the six months, including the dividend of 8.0p per share paid during the period. That compared to a return of 1.7% for the benchmark, which is absolute in nature, and negative 11.0% for the MSCI All Country World Index.
Excluding the Brazil-focused Ocean Wilsons Holdings, the company's NAV returned negative 3.6%, but the trust's investment manager remains positive about the investment.
"Undoubtedly our investment in Wilson Sons, via the holding in Ocean Wilsons Holdings, is weighing on sentiment but we remain of the view this is an excellent company that will emerge from the crisis in Brazil as a stronger and even more successful entity," Alec Letchfield of Hansa Capital Partners LLP said in a statement.
"Furthermore, at just 15% of the Hansa Trust assets, and with the trust standing on a 26% discount to NAV, you could argue you are getting this great company for free!" the manager noted.
More broadly, Letchfield said the current market setback represents one of the "most significant tests" since beginning the road to recovery following the financial crisis of 2008-09, "matched only by the Euro crisis of 2011".
Letchfield said Hansa Capital Partners does "not believe this heralds the next recession and bear market in the developed economies, but it is a situation we will monitor closely".
"However, we do expect to see ongoing volatility as the slowdown in China and other emerging markets plays out," Letchfield said.
Shares in the trust were up 0.9% at 801.84p on Wednesday, while shares in Ocean Wilsons Holdings were up 0.7% at 787.50p in London.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Hansa Inv.Ocean Wilsons