Edison issues review on Hansa Trust (HAN/HANA)

RNS Number : 7425M

Hansa Trust PLC

01 May 2018

 

London, UK, 1 May 2018

Edison issues review on Hansa Trust (HAN/HANA)

Hansa Trust (HAN/HANA) has undergone a transformation in the past four years and now offers investors a blend of core regional equity funds; thematic exposure to areas including technology; diversifying assets such as hedge funds; direct holdings in global equities; and a longstanding strategic stake in Brazilian maritime services firm Wilson Sons (WSON). The aim is to preserve and grow capital, while giving investors access to assets they would be unable or unlikely to access individually. Possibly as a result of the c 30% holding in Ocean Wilsons Holdings (the majority owner of WSON) and the dual share classes with the majority of voting shares owned by the Salomon family, Hansa Trust has tended to trade at a wide discount to NAV. However, manager Alec Letchfield notes that in an environment of extended equity market valuations, this could be viewed as a margin of safety compared with funds that trade close to or above NAV.

At 27 April 2018, Hansa Trust's A shares traded at a 28.9% discount to cum-income NAV. This was broadly in line with short- and longer-term averages, although it represents an appreciable narrowing from a 12-month widest point of 34.6%. Because OWHL also trades at a discount to the value of its underlying assets, the look-through discount for Hansa Trust is currently c 34%, meaning an investment of £1 buys exposure to £1.52 of assets. Hansa Trust's shares currently yield 1.6%. The trust aims for long-term dividend growth, which may be supported by the expectation of higher dividends from WSON (see page 4).  

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