Information  X 
Enter a valid email address

Hansa Trust to broaden its strategy

By BFN News | 08:25 AM | Tuesday 22 April, 2014


Hansa Trust's board is broadening its strategy to include exposure to other asset classes and geographies in addition to investments in special situation UK equities. Historically the investment manager, Hansa Capital Partners, has sought to implement its policy through the identification of special situations in UK equities and a strategic stake in Ocean Wilsons Holdings. But it says that following a review of the way in which the company executes its investment strategy and its offering to shareholders, the board is broadening its strategy to include exposure to other asset classes and geographies through a dynamic asset allocation process. It adds: "As a consequence of this review the board, in conjunction with its investment manager, has begun making a number of changes to the way in which the portfolio is invested. These changes, whilst not new to the company's investment approach, represent the exciting next steps in the company's evolution." Hansa says: "These changes have been driven by both developments in the global marketplace and a desire to take better advantage of the expertise and resource available to us at our investment manager. The company will retain its natural bias towards equities, reflecting the company's long-term investment horizon; however, the flexibility to hold other asset classes that help preserve capital will be increasingly valuable as valuations in equity markets from time to time become extended and the business cycle matures. "Typically, the non-UK equity exposure will be through funds managed by third party managers with whom the Investment Manager has a well-developed network of contacts. Importantly, these funds will complement our UK equity exposure, as we seek to identify those managers whose funds have superior long term returns. Many of these funds will not be readily available to the individual investor. "We are always on the lookout for unconventional investments, which larger, more traditional funds do not normally invest in. These more eclectic investments range from those sectors benefiting from structurally higher growth to assets which we believe stand on unwarranted discounts to their true intrinsic value, including other investment trusts. "This investment approach has led us to consider our portfolio across four different areas: UK Equities; Core Funds; Eclectic & Diversifying Funds; and Strategic Assets, each of which is expected to represent approximately 25% of the portfolio in due course; the weightings will vary reflecting the opportunities that exist at that time. "In light of this, the company will in future show its holding in OWHL as two separate investments. Our indirect investment in Wilson Sons, the Brazilian maritime services provider, via our holding in OWHL, will be shown as a Strategic Asset; our interest in the investment portfolio held by OWHL's subsidiary, Ocean Wilsons Investments Ltd, will be reported within the Eclectic & Diversifying investment portfolio to give shareholders greater clarity of their underlying exposure through the company." At 8:25am: (LON:HAN) Hansa Trust PLC share price was -10p at 920p (LON:HANA) Hansa Trust A share price was 0p at 898.5p Story provided by StockMarketWire.com

a d v e r t i s e m e n t