IT's with exposure to China

[DavidM13]

Hi Chaps,
Sorry I am getting a bit confused on exactly what the question is now regarding singapore, china, Papa NG. Can you let me know clearly what you want me to check in to and I can look to contact the relevant people. Many thanks!!

Hi David

Could you check the MIR GEO file for Schroder Oriental Income.

The latest file shows Papua NG at 13.83 %, with nothing for Singapore. I feel that PNG has been substituted for Singapore in error.

Thanks

Will do.

[jonesa1]

Singapore makes more sense - where was your info ? The monthly fact sheet on the SOI site is "unavailable"

Old age must be getting to me, just looked at the files again and you're right PNG replaces Singapore in June. The May data shows Singapore. The fact sheet is available on the AIC site and is nothing like the MIR data.

[jonesa1]

Hi Chaps,
Sorry I am getting a bit confused on exactly what the question is now regarding singapore, china, Papa NG. Can you let me know clearly what you want me to check in to and I can look to contact the relevant people. Many thanks!!

Any idea why the PNG data and fact sheet are so different? Which is likely to be the more reliable source?

[longview]

This morning Witan Pacific (WPC) board have announced they are changing investment managers to Baillie Gifford and investment focus to Chinese companies only, to be known as Baillie Gifford China Growth Trust.

WPC shares are up significantly today - how much due to the announcement we can only speculate.

You could surely get an idea of whether it is sentiment or the strength of the underlying holdings by looking at the movement in the discount/premium. If the discount has reduced or gone to a premium that would indicate a change in sentiment towards the Trust itself rather than the underlying holdings. I would imagine that that would be the case because surely after some years of disappointing performance under the multi manager approach this action is a positive one. One aspect not mentioned is that it is a bit of a slap in the face for Witan itself which was managing the Trust.

Dod

Although my initial comment concentrated on my concerns about change to investment policy I do consider the manger change to BG a postive and there is also proposed tender offer at low discount as you mentioned in your more expansive reply dod101. There was a standard statement from Witan about supporting the change and I think it will increase pressure on their performance managing of the main Witan IT.

It looks like a postive reaction by the market as published NAV for yesterday fell, with increase in price the discount reduced from 7.94% to 3.07% (cum income) and price is up again today.

[Dod101]

Although my initial comment concentrated on my concerns about change to investment policy I do consider the manger change to BG a postive and there is also proposed tender offer at low discount as you mentioned in your more expansive reply dod101. There was a standard statement from Witan about supporting the change and I think it will increase pressure on their performance managing of the main Witan IT.

It looks like a postive reaction by the market as published NAV for yesterday fell, with increase in price the discount reduced from 7.94% to 3.07% (cum income) and price is up again today.

You never know. BG might even get the bigger prize of Witan itself. Bet they are looking at it. I am not convinced by the multi manager approach. Alliance has gone down that route as well after being self managed for I think pretty much all of the Trusts previous 150 years or so. I do not know so much about Witan but, for Alliance, it has lead to a large number of holdings and much trading of the portfolio. It has to be more expensive as well given the fact that they need an overall manager and the individual investment managers.

Dod

[richfool]

Note Witan Pacific is not the same as Witan. If the change of manager relates to Witan Pacific (WPC), Baillie Gifford already manage top performing Pacific Horizon (PHI) trust and should be well experienced to take on Witan Pacific.

Witan Pacific is I believe the only trust in the Asia Pacific including Japan sector.

[DavidM13]

Note Witan Pacific is not the same as Witan. If the change of manager relates to Witan Pacific (WPC), Baillie Gifford already manage top performing Pacific Horizon (PHI) trust and should be well experienced to take on Witan Pacific.

Witan Pacific is I believe the only trust in the Asia Pacific including Japan sector.

That was the case until May 2019. The sectors Asia Ex Japan and Asian Inc Japan were merged and we introduced Income and smaller Companies Asia Pacific sectors to bring consistency with other parts of the world.

You can see sectors and and constituents on this link https://www.theaic.co.uk/aic/statistics/aic-sectors

I think PNG has to be wrong and its most likely Singapore but don't quote me as I haven't had confirmation yet.

[jonesa1]

Hi Chaps,
Sorry I am getting a bit confused on exactly what the question is now regarding singapore, china, Papa NG. Can you let me know clearly what you want me to check in to and I can look to contact the relevant people. Many thanks!!

Any idea why the PNG data and fact sheet are so different? Which is likely to be the more reliable source?

PNG was a typo, should have been MIR.

[DavidM13]

I can confirm that it should have been Singapore rather than Papa New Guinea. It was an entry error.

[Dod101]

Note Witan Pacific is not the same as Witan. If the change of manager relates to Witan Pacific (WPC), Baillie Gifford already manage top performing Pacific Horizon (PHI) trust and should be well experienced to take on Witan Pacific.

Witan Pacific is I believe the only trust in the Asia Pacific including Japan sector.

We know their are several incarnations of Witan and there is no 'if', Baillie Gifford has been appointed to manage Witan Pacific, and it will soon apparently be a predominantly China trust. They are I think well experienced in the Chinese market and have an office in Shanghai. The name will be changed to Baillie Gifford China Growth Trust.

Dod

[richfool]

There is some discussion of funds with exposure to China's EV's and green infrastructure, here:

https://citywire.co.uk/wealth-manager/n ... e/a1425369

[richfool]

The Telegraph thinks China has become uninvestable (full article maybe behind a paywall):

China has become uninvestable, but you can still profit from Asian stocks

Shelter your savings as Communist Party meddles with once-lucrative shares

With 1.4 billion people and an economy five times the size of Britain’s, China’s influence is visible in every part of our lives, from viral social media app TikTok to where our clothes and phones are made.

It is also increasingly influential in our pensions and investment accounts. Britain’s largest investment trust, Scottish Mortgage, has 17pc invested in China, a typical “all world” global stocks tracker has 4pc and some developing world funds have as much as 40pc.

That has proved a drag on returns this year, with a basket of China’s largest companies falling 26pc from its February peak. Shares in the country’s top tech stocks, Alibaba and Tencent, which are widely held by global and emerging market fund managers, have fallen around 40pc.

https://www.telegraph.co.uk/investing/s ... an-stocks/

I sold PHI and reduced my holding of JAGI some weeks ago, though have been pondering PAC (Pacific Assets) as a possible replacement for PHI. PAC has a higher exposure to India and only about 10% exp to China. I noted that Mid Wynd (MWY) (global growth trust) sold out of China early this year and has dome well since. SMT holds c 18% China.

For ETF holders, the article suggested aiming at developed world ETF's, (such as VEVE) as opposed to All World, as EM's hold a large slice of China.

[UncleEbenezer]

The Telegraph thinks China has become uninvestable (full article maybe behind a paywall):

That has proved a drag on returns this year, with a basket of China’s largest companies falling 26pc from its February peak. Shares in the country’s top tech stocks, Alibaba and Tencent, which are widely held by global and emerging market fund managers, have fallen around 40pc.

Sounds like a buying opportunity.

But hang on. Scottish Mortgage is somewhere around its all-time high. So only a buying opportunity there in the sense that SMT is always a long-term buy. Maybe more of a buying opportunity in the china specialists, which are indeed a little off their top?