Witan Pacific is replacing Nomura Asset Management with MW GaveKal and Matthews International Capital Management on the multimanager investment trust.
The trust’s board said the decision r reflects its objective to seek to enhance returns to shareholders by accessing a wider range of opportunities across the region. The other existing manager, Aberdeen Asset Management, keeps its mandate.
Matthews and GaveKal will manage around 35% and 10% of the trust’s assets respectively, with Aberdeen remaining in charge of the remainder.
Matthews is a leading Asian investment specialist based in San Francisco and manages $17.8bn in Asia Pacific equities and bonds. It will manage its portion of the trust’s assets in accordance with the firm’s Asia Dividend Strategy.
Meanwhile MW GaveKal, a Hong Kong based joint venture between Marshall Wace and GaveKal holdings and manages country specific and Asia Pacific regional portfolios with assets under management in excess of $1bn. Its unconstrained approach will manage exposure of equities, bonds and cash.
Witan Pacific chairman Gillian Nott said: ‘Following a careful review conducted in conjunction with a specialist external fund selection consultant (bfinance), the board has decided to appoint Matthews and MW GaveKal.
‘We believe this provides shareholders with a truly exciting combination of active managers - Aberdeen, whose quality stock picking approach has already been very successful for the trust, will be joined by Matthews, who will focus on choosing companies which offer attractive earnings growth and dividend paying characteristics, and MW GaveKal who combine stock selection with an active approach to asset allocation between bonds, cash and equities.'
She added: ‘The appointment of Matthews, with its focus on dividend growth, is expected to increase the overall portfolio yield and with it the scope to support the trust's dividend growth policy. The inclusion of MW GaveKal provides the potential to reduce the absolute volatility of the trust, particularly in down markets.’