Baillie Gifford China Growth Trust plc

Interim / Quarterly Report • Oct 5, 2018

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RNS Number : 0463D

Witan Pacific Investment Trust PLC

05 October 2018

WITAN PACIFIC INVESTMENT TRUST PLC

(the "Company")

HALF-YEARLY REPORT AND FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 31 JULY 2018

Witan Pacific Investment Trust plc announces that its 2018 Half Year Report has been published. The full report can be accessed via the Company's website at www.witanpacific.com and will be made available on the National Storage Mechanism website: http://www.morningstar.co.uk/uk/NSM. It will be circulated to shareholders shortly.

The Directors have declared an interim dividend of 2.50p per Ordinary share, which will be payable on 29 October 2018 to shareholders whose names appear on the register at the close of business on 19 October 2018 (ex-dividend 18 October 2018).

FINANCIAL SUMMARY

Key data

	31 July 2018	31 January 2018	% change
Net asset value ("NAV") per share	380.82p	386.58p	-1.5%
Share price1	327.00p	344.00p	-4.9%
Discount1	14.1%	11.0%

Total Return

	6 months	1 year	3 years	5 years
NAV per share¹,2	-0.6%	5.5%	44.2%	51.1%
Share price¹,2	-4.0%	3.9%	40.7%	45.8%
Benchmark3	-0.1%	7.5%	51.6%	66.9%

Income

	31 July 2018	31 July 2017	% change
Revenue per share	4.71p	3.46p	+36.1%
Interim dividend per share1	2.50p	2.25p	+11.1%

Ongoing charges1 (6 months)

	31 July 2018	31 July 2017
Excluding performance fees	0.54%	0.50%
Including performance fees	0.54%	0.50%

1 Alternative Performance Measure not defined under Generally Accepted Accounting Practice in the UK ("UK GAAP") (for definitions see below).

2 Source: Morningstar.

3 Source: Morningstar. The benchmark for Witan Pacific Investment Trust plc is the MSCI AC Asia Pacific Index.

LONG-TERM PERFORMANCE ANALYSIS

Total returns since inception of multi-manager structure (31 May 2005)

	Cumulative return	Annualised return
NAV per share¹	242.9%	9.8%
Share price2	238.7%	9.7%
Benchmark2	233.4%	9.6%

1 Morningstar/Witan Investment Services. Alternative Performance Measure (see below).

2 Source: Morningstar. Alternative Performance Measure (see below).

CHAIR'S STATEMENT

SUMMARY

§ NAV total return of -0.6%, compared with benchmark -0.1%

§ Share price total return of -4.0%

§ Revenue per share 4.7p compared with 3.5p over the same period last year.

§ Interim dividend increased by 11.1% to 2.50p

Performance

During the six months ended 31 July 2018, Witan Pacific's NAV total return per share (capital and income combined) and its benchmark fell marginally by 0.6% and 0.1% respectively. The discount widened during the period, resulting in a fall of 4.0% in the share price on a total return basis.

Portfolio managers

Our portfolio managers' performance* over the period was mixed. Matthews Asia outperformed the benchmark with a total return of 1.4%. Robeco (-0.4%) marginally underperformed. Aberdeen was a little further adrift with a total return of -1.5%. Dalton registered a six-month loss of 2.7%. Only Dalton, who were appointed less than 12 months ago to manage 10% of the total portfolio, are currently behind their benchmark since appointment. The Board considers it to be too early to judge their performance.

Market background

The period started with a market correction in February affecting the Asia Pacific region alongside other global markets and replacing the recent rally and era of low volatility. Catalysts for this sell off included inflation worries and fears of a faster than expected pace of interest rate rises in the US, as well as heightened perceptions of the risk of trade wars between the US and its major trading partners. Markets generally continued to drift lower over the period, with the strengthening US dollar and higher oil prices having a negative impact. UK-based investors were largely insulated from this decline as Sterling depreciated over the period.

The region posted widely divergent results, with Australia leading with a rise of 6.4%. A small, but diverse, group of companies (including healthcare giant CSL) led this market higher. Indonesia was the laggard, falling 11.8% due to concerns over its exposure to higher energy prices, a widening trade deficit and higher debt funding costs. Taiwan, India, Hong Kong and Japan ended the period higher, whereas China, Korea, Singapore and the Philippines all posted losses. This period of consolidation has, at the date of this report, returned the benchmark to the level achieved in October 2017, despite corporate earnings having improved markedly over the period.

Japanese equities, which form 38% of our benchmark, gained 2% but were not entirely immune from global trade tensions and gains were also limited by domestic politics with Prime Minister Abe and his cabinet's deteriorating approval rating. The domestic economy continues to benefit from improved fundamentals and stronger exports (especially toward China) and reasonable wage growth. This has led to a moderate hike in inflation expectations and supported corporate earnings growth.

China has been the focus of the US trade tariff hikes. However, China's economy is now much less export-driven, so taxes on their shipments may have a more modest impact than commonly perceived. In contrast, domestic consumption accounts for the majority of China's economic growth and more than half of its GDP. Resilient corporate earnings and a relatively stable currency have provided support to stock prices.

The performance of industry sectors was also varied with Utilities rising by 11.8%, Energy stocks gaining 9.6% and Healthcare up 8.2%. Financials fell by 3.1% while the Technology sector declined by 2.2%. Asian currencies continued to oscillate, especially against Sterling, as local economic and political news interacted with the ebbs and flows of expectations for Brexit. In general, developed Asian currencies appreciated versus Sterling while emerging Asian currencies suffered in line with other emerging markets around the world.

North Korea, which was in the headlines at the start of the year, became a focal point for political analysts as President Trump finally met with Kim Jong-un. This was clearly a momentous occasion, but it is likely to be many months or years before any tangible benefits filter through.

Portfolio review

Details of the portfolio's key country and sector allocations, as well as the top twenty investments by size, follow this Statement. The portfolio is the result of the stock selection decisions of our four portfolio managers and, at the period end, was overweight China, Singapore and South Korea, and underweight Japan, Australia and Taiwan.

A number of our Chinese holdings made positive contributions despite the weakness in the overall Chinese market. Examples include Shenzhou International (a textile manufacturer), Hua Hong Semiconductor, China Petroleum and China Gas. In Japan, our holdings in Pigeon (a baby product company), Anritsu (electronics and communications) and Hoya (precision optics) did particularly well. Detractors include a long-held position in Minth Group (Chinese auto-parts), Rohm Co (Japanese semiconductor) and BGF Retail (Korean convenience stores). An underweight position in the Chinese internet giants (the so-called BAT stocks) was a net positive (relative to the benchmark) as they underperformed the region over the six-month period.

Outlook

Emerging market volatility, escalating trade tensions and geopolitical uncertainty are currently trumping economic growth, earnings growth and corporate governance improvements in influencing market levels in the short term. Exchange rate volatility has also increased and is likely to remain elevated as Brexit negotiations come to a head. Even though the global economy continues to expand at a steady pace, it appears likely that geopolitical uncertainties and shifts in monetary policy are likely to weigh on investor sentiment for a while to come. Meanwhile, earnings continue to improve against a supportive macroeconomic backdrop and governments in Asia are taking the opportunity to engage in reforms that will strengthen their economies and improve corporate business fundamentals in the long term. We expect the volatility in share prices which returned earlier in 2018 after a period of relative calm to continue. This can provide good opportunities for stock pickers such as our portfolio managers.

Share repurchases

The share price discount widened over the period. We continue to buy back shares when the discount at which they stand is at an anomalous and substantial level. During the period, the Company purchased 224,884 shares, which has added approximately £120,000 of value (0.2p per share) for shareholders.

Dividend

The Board aims to increase the annual dividend per share in real terms over the long term. Annual dividends have increased consistently for over thirteen years at an annualised rate in excess of 13%. I am pleased to report that the revenue earnings per share for the first half increased by 36.1% over the same period last year, due primarily to an increase in dividends paid by our portfolio companies, together with some one-off effects from changes to the manager line-up in September 2017. Witan Pacific also has a healthy revenue reserve amounting to 20p per share which can be used to supplement dividends in leaner years. The Board therefore proposes to pay an interim dividend of 2.50p per share and we are confident that, in the absence of unforeseen circumstances, the final dividend (payable in summer 2019) is likely to result in another full year of dividend growth for our shareholders.

Susan Platts-Martin

Chair

4 October 2018

* Individual manager's performance gross of fees.

Company Secretary contact details:

Link Company Matters Limited

Beaufort House, 51 New North Road

Exeter EX4 4EP

email: [email protected]

PORTFOLIO INFORMATION

Portfolio manager performance for the half year ended 31 July 2018 and from appointment to 31 July 2018

				Performance		Annualised performance²
	Appointment	Managed assets¹		Manager	Benchmark	Manager	Benchmark
	date	£m	%	%	%	%	%
Aberdeen	31 May 2005	59.3	24.9	-1.5	-0.1	+11.2	+9.6
Dalton	28 Sept 2017	22.4	9.4	-2.7	-0.1	+0.2	+8.7
Matthews	30 April 2012	96.9	40.6	+1.4	-0.1	+13.5	+11.3
Robeco	28 Sept 2017	59.8	25.1	-0.4	-0.1	+8.7	+8.7

Source: BNP Paribas. All performance figures are disclosed on a pre-fee basis.

¹ Excluding cash balances held centrally by the Company.

² Since appointment.

The Company's portfolio by sector analysis as at 31 July 2018

Sector	Portfolio %¹	Benchmark %²
Consumer Discretionary	14	12
Consumer Staples	11	7
Energy	4	3
Financials	19	20
Healthcare	4	6
Industrials	8	12
Information Technology	16	21
Materials	7	7
Real Estate	5	5
Telecom Services	5	4
Utilities	3	3
Other	4	-

¹ Source: BNP Paribas.

² Source: MSCI.

Geographical allocation

Country	Portfolio at 31 July 2018¹	Benchmark at 31 July 2018²
Australia	5%	11%
China/Hong Kong	31%	24%
India	6%	5%
Indonesia	2%	1%
Japan	30%	38%
Malaysia	1%	2%
Philippines	1%	1%
Singapore	5%	2%
South Korea	10%	8%
Taiwan	5%	7%
Thailand	2%	1%
Vietnam	2%	-
	100%	100%

¹ Source: BNP Paribas - Portfolio represents investments excluding cash.

² Source: MSCI.

TOP TWENTY INVESTMENTS

as at 31 July 2018

This period	Company	Country	% of total investments	Value £'000
1	Taiwan Semiconductor	Taiwan	2.4	5,614
2	Aberdeen Global Indian Equity Fund	India	2.1	4,921
3	Samsung Electronics	South Korea	2.1	4,816
4	China Construction Bank	China	2.0	4,646
5	China Petroleum (Sinopec)	China	1.8	4,277
6	Shenzhou International	China	1.8	4,234
7	HSBC	UK	1.8	4,147
8	Aberdeen Global China A Share Fund	China	1.7	3,950
9	Seven & I Holdings	Japan	1.6	3,833
10	Minth Group	China	1.4	3,187
11	Japan Tobacco	Japan	1.4	3,183
12	Rohm	Japan	1.3	2,941
13	Hyundai Mobis	South Korea	1.2	2,788
14	LG Chemical	South Korea	1.2	2,746
15	United Overseas Bank	Singapore	1.1	2,667
16	China Mobile	Hong Kong	1.1	2,652
17	BHP Billiton	Australia	1.0	2,392
18	China Gas	China	1.0	2,337
19	Nitori Holdings	Japan	1.0	2,331
20	Sumitomo Mitsui Financial	Japan	1.0	2,318
Totals			30.0	69,980

The value of the twenty largest holdings represents 30.0% (31 January 2018: 31.1%) of the Company's total investments. The full portfolio listing is published monthly (with a three-month lag) on the Company's website. The country shown is the country of incorporation or, in the case of funds, the country of risk.

REGULATORY DISCLOSURES

Related party transactions disclosures

During the period to 31 July 2018, related party transactions included dividends paid to Directors in respect of their shareholdings in the Company. Details of Directors' shareholdings and remuneration may be found in the Directors' Remuneration Report on pages 45 to 48 of the Company's Annual Report for the year ended 31 January 2018. The report is available on the Company's website at www.witanpacific.com.

There have been no other related party transactions.

Principal risks and uncertainties

The Directors have considered the principal risks and uncertainties affecting the Company's position. The principal risks faced by the Company for the remaining six months of the financial year include financial risks relating to markets, liquidity and credit. Market risk includes market price risk, currency risk and interest rate risk. Other risk categories include those relating to business strategy, market conditions, investment performance, reduction in income, operational failures and tax and regulatory changes or breaches. These risks and the way in which they are managed are described in more detail in the Annual Report for the year ended 31 January 2018 in the corporate review and in the notes to the financial statements.

The risks faced by the Company have not changed significantly over the six months to 31 July 2018 and are not expected to change materially in the next six months. The report is available on the Company's website at www.witanpacific.com.

Going concern

The financial statements continue to be prepared on a going concern basis. The approach used for the Annual Report is applied, including proper consideration of financial and cash flow forecasts, and it is believed that the Company has adequate financial resources to continue to operate for the foreseeable future.

CONDENSED INCOME STATEMENT

for the half year ended 31 July 2018

		(Unaudited) Half year ended 31 July 2018			(Unaudited) Half year ended 31 July 2017			(Audited) Year ended 31 January 2018
		Revenue  return	Capital  return	Total	Revenue  return	Capital  return	Total		Revenue  return	Capital  return	Total
	Note	£'000	£'000	£'000	£'000	£'000	£'000		£'000	£'000	£'000
(Losses)/gains on investments held at fair value through profit or loss		-	(3,997)	(3,997)	-	20,210	20,210		-	33,241	33,241
Exchange losses		-	(33)	(33)	-	(174)	(174)		-	(344)	(344)
Investment income	2	3,928	-	3,928	3,013	-	3,013		5,740	-	5,740
Management fees	3	(209)	(628)	(837)	(178)	(535)	(713)		(370)	(1,110)	(1,480)
Performance fees	3	-	-	-	-	-	-		-	-	-
Other expenses		(437)	(23)	(460)	(433)	(26)	(459)		(879)	(64)	(943)
Net return/(loss) before finance charges and taxation		3,282	(4,681)	(1,399)	2,402	19,475	21,877		4,491	31,723	36,214
Finance charges		-	-	-	(1)	-	(1)		-	-	-
Net return/(loss) before taxation		3,282	(4,681)	(1,399)	2,401	19,475	21,876		4,491	31,723	36,214
Taxation		(307)	-	(307)	(195)	(4)	(199)		(350)	(6)	(356)
Net return/(loss) after taxation		2,975	(4,681)	(1,706)	2,206	19,471	21,677		4,141	31,717	35,858
Return/(loss) per Ordinary share - pence	5	4.71	(7.41)	(2.70)	3.46	30.51	33.97		6.52	49.90	56.42

All revenue and capital items in the above statement derive from continuing operations. The total columns of this statement represent the Income Statement of the Company. The revenue return and capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies.

The Company had no other comprehensive income, recognised gains or losses other than those disclosed in this statement.

CONDENSED STATEMENT OF CHANGES IN EQUITY

for the half year ended 31 July 2018

	Called up	Share	Capital
	share	premium	redemption	Capital	Revenue
	capital	account	reserve	reserves	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Half year ended 31 July 2018 (unaudited)
At 31 January 2018	16,486	5	41,085	175,084	11,795	244,455
Net (loss)/return after taxation and total comprehensive income	-	-	-	(4,681)	2,975	(1,706)
Purchase of own shares	-	-	-	(738)	-	(738)
Dividends paid	-	-	-	-	(2,054)	(2,054)
At 31 July 2018	16,486	5	41,085	169,665	12,716	239,957
Half year ended 31 July 2017 (unaudited)
At 31 January 2017	16,486	5	41,085	148,762	10,697	217,035
Net return after taxation and total comprehensive income	-	-	-	19,471	2,206	21,677
Purchase of own shares	-	-	-	(4,917)	-	(4,917)
Dividends paid	-	-	-	-	(1,618)	(1,618)
At 31 July 2017	16,486	5	41,085	163,316	11,285	232,177
Year ended 31 January 2018 (audited)
At 31 January 2017	16,486	5	41,085	148,762	10,697	217,035
Net return after taxation and total comprehensive income	-	-	-	31,717	4,141	35,858
Purchase of own shares	-	-	-	(5,395)	-	(5,395)
Dividends paid	-	-	-	-	(3,043)	(3,043)
At 31 January 2018	16,486	5	41,085	175,084	11,795	244,455

CONDENSED BALANCE SHEET

as at 31 July 2018

		(Unaudited)	(Unaudited)	(Audited)
		31 July	31 July	31 January
		2018	2017	2018
	Note	£'000	£'000	£'000
Fixed assets
Investments held at fair value through profit or loss		233,671	228,117	240,565
Current assets
Debtors		1,598	1,276	1,899
Cash at bank and in hand		6,735	5,232	4,392
		8,333	6,508	6,291
Creditors
Amounts falling due within one year		(2,047)	(2,448)	(2,401)
		(2,047)	(2,448)	(2,401)
Net current assets		6,286	4,060	3,890
Net assets		239,957	232,177	244,455
Capital and reserves
Called up share capital	7	16,486	16,486	16,486
Share premium account		5	5	5
Capital redemption reserve		41,085	41,085	41,085
Capital reserves		169,665	163,316	175,084
Revenue reserve		12,716	11,285	11,795
Total shareholders' funds		239,957	232,177	244,455
Net asset value per Ordinary share - pence	8	380.82	366.32	386.58

NOTES TO THE FINANCIAL STATEMENTS

for the half year ended 31 July 2018

1 Accounting policies

a) Basis of preparation

The condensed financial statements have been prepared in accordance with Financial Reporting Standard 104 (Interim Financial Reporting) and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts'. They have also been prepared on a going concern basis and on the assumption that approval as an investment trust will continue to be granted.

The interim financial statements have been prepared using the same accounting policies as the preceding annual financial statements.

As an investment fund, the Company has the option, which it has taken, not to present a cash flow statement. A cash flow statement is not required when an investment fund meets all the following conditions: substantially all of the entity's investments are highly liquid and are carried at market value; and where a Statement of Changes in Equity is provided.

(b) Valuation of investments

All investments have been designated upon initial recognition as fair value through profit or loss. This is done because all investments are considered to form part of a group of financial assets which is evaluated on a fair value basis, in accordance with the Company's documented investment strategy, and information about the grouping is provided internally on that basis.

Investments are recognised and de-recognised at trade date where a purchase or sale is under a contract whose terms require delivery within the timeframe established by the market concerned, and are measured initially at fair value. Subsequent to initial recognition, investments are valued at fair value through profit or loss.

Listed investments have been designated by the Board as held at fair value through profit or loss and accordingly are valued at fair value, deemed to be bid market prices for quoted investments. Investments included in Level 2 in the Fair Value Hierarchy disclosures in note 9 consist of unlisted reportable funds within the portfolio, Aberdeen Global Indian Equity UCITS and Aberdeen Global China A Equity UCITS. These are priced daily using their net asset value, which is the fair value.

Changes in the fair value of investments held at fair value through profit or loss and gains and losses on disposal are recognised in the Income Statement as "Gains or losses on investments held at fair value through profit or loss". Also included within this caption are transaction costs in relation to the purchase or sale of investments, including the difference between the purchase price of an investment and its bid price at the date of purchase. All purchases and sales are accounted for on a trade date basis.

2 Investment income

	(Unaudited)	(Unaudited)	(Audited)
	Half year	Half year	Year
	ended	ended	ended
	31 July	31 July	31 January
	2018	2017	2018
	£'000	£'000	£'000
Income from investments held at fair value through profit or loss:
Overseas dividends	3,717	2,669	5,204
UK dividends	202	255	426
Scrip dividends	9	89	110
Total income	3,928	3,013	5,740

3 Transactions with the managers

On 27 May 2005, the Company appointed Witan Investment Services Limited as Executive Manager. Aberdeen Asset Managers Limited was appointed as portfolio manager on 31 May 2005. In April 2012, the Company appointed Matthews International Capital Management LLC. In September 2017, the Company appointed Robeco Institutional Asset Management B.V. and Dalton Investments LLC.

Each Management Agreement can be terminated at one month's notice in writing. Each portfolio manager is entitled to a base management fee, at rates between 0.20% and 0.85% per annum, calculated according to the value of the assets under their management.

Aberdeen is also entitled to a performance fee based on relative outperformance against the MSCI AC Asia Pacific Index (sterling adjusted total return). The performance fee is calculated according to investment performance over a three-year rolling period and is payable at a rate of 15% of the calculated outperformance relative to the benchmark (subject to a cap).

Any provisions included in the Income Statement at 31 July 2018 are calculated on the actual performance of the portfolio manager relative to the benchmark index. The provision assumes that both the benchmark index remains unchanged and that the portfolio manager's assets under management perform in line with the benchmark index to 31 May 2019, being the date the next performance period ends.

In addition, provisions are made where necessary for the performance periods ending 31 May 2020 and 31 May 2021, on the assumption that the portfolio manager performs in line with the benchmark to each period end. The total of these provisions amounts to £nil (31 July 2017: £nil and 31 January 2018: £nil).

	(Unaudited)	(Unaudited)	(Audited)
	Half year	Half year	Year
	ended	ended	ended
	31 July	31 July	31 January
	2018	2017	2018
	£'000	£'000	£'000
Charged to revenue return:
Management fee1	209	199	397
Management fee rebates2	-	(21)	(27)
	209	178	370
Charged to capital return:
Management fee1	628	597	1,190
Management fee rebates2	-	(62)	(80)
	628	535	1,110
Total management fees	837	713	1,480
Performance fees charged to capital return	-	-	-

1 The management fees stated above include fees paid to Witan Investment Services Limited of £150,000 (six months to 31 July 2017: £144,000 and full year to 31 January 2018: £296,000).

2 This figure relates to rebates of management fees associated with the Gavekal Asian Opportunities UCITS. The Company's investment in the Gavekal fund was sold in September 2017.

Management fees are charged 75% to capital return and 25% to revenue return.

The allocation percentages approximate to the split of historic returns between capital and income, and reflect the Board's expectation of the long-term split of returns in compliance with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts'. Performance fees, when payable, will be charged wholly to the capital account.

4 Dividends

An interim dividend of 2.50p per Ordinary share (2017: 2.25p) will be paid on 29 October 2018 to shareholders on the register on 19 October 2018.

5 Return per Ordinary share

The total return/(loss) per Ordinary share is based on the net loss attributable to the Ordinary shares of £1,706,000 (half year ended 31 July 2017: gain of £21,677,000; year ended 31 January 2018: gain of £35,858,000) and on 63,175,471 Ordinary shares (half year ended 31 July 2017: 63,819,054; year ended 31 January 2018: 63,560,181), being the weighted average number of shares in issue during the period.

The total return can be analysed as follows:	(Unaudited)	(Unaudited)	(Audited)
	Half year	Half year	Year
	ended	ended	ended
	31 July	31 July	31 January
	2018	2017	2018
	£'000	£'000	£'000
Revenue return	2,975	2,206	4,141
Capital (loss)/return	(4,681)	19,471	31,717
Total (loss)/return	(1,706)	21,677	35,858
Weighted average number of Ordinary shares in issue during the period	63,175,471	63,819,054	63,560,181
Revenue return per Ordinary share - pence	4.71	3.46	6.52
Capital (loss)/return per Ordinary share - pence	(7.41)	30.51	49.90
Total (loss)/return per Ordinary share - pence	(2.70)	33.97	56.42

The Company does not have any dilutive securities.

6 Provisions for liabilities and charges

This represents the estimated performance fees payable for the three-year performance fee periods ending 31 May 2019, 31 May 2020 and 31 May 2021. This accrual is based on actual performance to 31 July 2018 and the assumption that the portfolio manager performs in line with the benchmark from 31 July 2018 to the end of each fee period. Changes in the level of accrual for future performance periods could arise for one of three principal reasons: a change in the degree of relative performance, the time elapsed (since this would increase the proportion of the rolling three-year performance period to which the performance calculation would be applied) or the termination of the portfolio manager's contract.

7 Share capital

During the half year ended 31 July 2018, 224,884 Ordinary shares were repurchased and held in treasury, at a total cost of £738,000 (half year ended 31 July 2017: 1,624,554 Ordinary shares were repurchased and held in treasury at a total cost of £4,917,000; year ended 31 January 2018: 1,769,293 Ordinary shares were purchased to be held in treasury at a cost of £5,395,000).

As at 31 July 2018, there were 65,944,000 Ordinary shares of 25p in issue, of which 2,933,134 were held in treasury. Subsequent to 31 July 2018, a further 440,177 Ordinary shares were repurchased and held in treasury, at a total cost of £1,393,000 . As at 2 October 2018, there were 65,944,000 Ordinary shares of 25p in issue, of which 3,373,311 were held in treasury.

8 Net asset value per Ordinary share

Net asset values are based on net assets of £239,957,000 (31 July 2017: £232,177,000 and 31 January 2018: £244,455,000) and on 63,010,866 Ordinary shares in issue as at 31 July 2018 excluding shares held in treasury (31 July 2017: 63,380,489 and 31 January 2018: 63,235,750).

9 Fair value hierarchy

FRS 102 requires an entity to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs in making the measurements. The fair value hierarchy shall have the following classifications:

·      Level 1: The unadjusted quoted prices in an active market for identical assets or liabilities that the entity can access at the measurement date.

·      Level 2: Inputs other than quoted prices included within Level 1 that are observable (i.e., developed using market data) for the asset or liability, either directly or indirectly.

·      Level 3: Inputs are unobservable (i.e., for which market data is unavailable) for the asset or liability.

The financial assets and liabilities measured at fair value in the Balance Sheet are grouped into the fair value hierarchy at the reporting date as follows:

		Level 1	Level 2	Level 3	Total
		£'000	£'000	£'000	£'000
Financial assets and financial liabilities at fair value through profit or loss
As at 31 July 2018
Equity investments		224,800	8,871	-	233,671
Total		224,800	8,871	-	233,671

		Level 1	Level 2	Level 3	Total
		£'000	£'000	£'000	£'000
Financial assets and financial liabilities at fair value through profit or loss
As at 31 January 2018
Equity investments		231,508	9,057	-	240,565
Total		231,508	9,057	-	240,565

The valuation techniques used by the Company are explained in the accounting policies in note 1(b).

There were no transfers during the year between Level 1 and Level 2.

(a) Quoted equities and preference shares

The fair value of the Company's investments in quoted equities and preference shares has been determined by reference to their quoted bid prices at the reporting date. Quoted equities and preference shares included in Fair Value Level 1 are actively traded on recognised stock exchanges.

Investments classified as Level 2 are Aberdeen Global Indian Equity UCITS and Aberdeen Global China A Equity UCITS (31 January 2018: same).

10 Results

The results for the half years ended 31 July 2018 and 31 July 2017, which are unaudited and were not reviewed by the auditors, constitute non-statutory accounts within the meaning of Section 435 of the Companies Act 2006. The latest published accounts which have been delivered to the Registrar of Companies are for the year ended 31 January 2018; the report of the Auditor thereon was unqualified and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006. The comparative figures for the year ended 31 January 2018 have been extracted from those accounts.

RESPONSIBILITY STATEMENT OF THE DIRECTORS

in respect of the Half Year Report for the six months ended 31 July 2018

The Directors confirm, to the best of their knowledge, that this condensed set of financial statements has been prepared in accordance with Financial Reporting Standard 104 (Interim Financial Reporting) and gives a true and fair view of the assets, liabilities, financial position and profit or loss of the Company, and the interim management report (which comprises the Chair's statement, portfolio information and regulatory disclosures) includes a fair review of the information required by Rules 4.2.7 R and 4.2.8 R of the Disclosure Guidance and Transparency Rules of the United Kingdom Financial Conduct Authority.

The names and functions of the Directors of Witan Pacific Investment Trust plc are as listed below.

This Half Year Report was approved by the Board on 4 October 2018 and the above responsibility statement was signed on its behalf by:

Susan Platts-Martin

Chair

4 October 2018

DIRECTORS

Susan Platts-Martin - Chair

Dermot McMeekin - Senior Independent Director and Chairman of the Nomination and Remuneration Committee

Christopher Ralph - Independent Director

Andrew Robson - Independent Director and Chairman of the Audit Committee

Diane Seymour-Williams - Independent Director

All the Directors are members of both the Audit Committee and of the Nomination and Remuneration Committee.

GLOSSARY

Definitions of Alternative Performance Measures

Net asset value per share

This is the value of total assets less all liabilities of the Company. The net asset value, or NAV, per Ordinary share is calculated by dividing this amount by the total number of Ordinary shares in issue (excluding those shares held in treasury).

Net asset value total return

The movement in the net asset value per share adjusted to include the reinvestment of each dividend paid during the respective period's calculation.

Ongoing charge

The ongoing charge reflects those expenses of a type which are likely to recur in the foreseeable future, whether charged to capital or revenue as a collective fund, excluding the costs of acquisition and disposal and gains or losses arising on investments. The calculation is performed in accordance with the guidelines issues by the Association of Investment Companies.

Premium/discount

The amount by which the market price per share is either higher (premium) or lower (discount) than the net asset value per share expressed as a percentage of the net asset value per share.

Share price total return

The movement in Ordinary share price adjusted to include the reinvestment of each dividend paid during the respective period's calculation.

Footnote

Source MSCI. The MSCI information may only be used by you as an individual for your personal use, and as a corporate organisation for your internal use and it may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an "as is" basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the "MSCI Parties") expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.msci.com)

The content of the Company's web-pages and the content of any website or pages which may be accessed through hyperlinks on the Company's web-pages or this announcement is neither incorporated into nor forms part of the above announcement.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.

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