Hansa Investment Company Limited Edison issues review on Hansa Investment Company
November 20 2020 - 9:56AM
RNS Non-Regulatory
TIDMHAN
Hansa Investment Company Limited
20 November 2020
London, UK, 20 November 2020
Edison issues review on Hansa Investment Company (HAN/HANA)
Investors looking at Hansa Investment Company (Hansa IC;
HAN/HANA) may have been perplexed in the past as to why its
strongly performing multi-asset fund portfolio sits alongside a
large strategic holding in a Brazilian maritime services company,
Wilson Sons (WSON) and a value-oriented selection of direct
equities. In this short update, we seek to address this question
and argue that Hansa IC's deep 'double discount' (c 45%) to net
asset value and near-2% dividend yield could mean long-term
investors can effectively afford to wait for an exit from or
reappraisal of the WSON holding, and/or a rerating of the equity
portfolio.
Discussion over the WSON holding has dominated the discourse
around Hansa IC, but is arguably less relevant given it is now only
c 10% of the fund. Letchfield deserves credit for his fund
selections, which have allowed investors to access global growth
themes such as technology and healthcare while retaining a degree
of downside protection via the 'diversifying' silo. While the
value-oriented direct equity portfolio has detracted from recent
returns, it acts as a foil to the more growth-focused fund
selections and could be beneficial if there is a change in market
leadership from growth to value. Although Hansa IC's discount to
NAV is to some extent understandable, it remains wider than we
believe is justified by the underlying holdings.
Click here to view the full report.
All reports published by Edison are available to download free
of charge from its website
www.edisongroup.com
About Edison: Edison is an investment research and advisory
company, with offices in North America, Europe, the Middle East and
AsiaPac. The heart of Edison is our world-renowned equity research
platform and deep multi-sector expertise. At Edison Investment
Research, our research is widely read by international investors,
advisers and stakeholders. Edison Advisors leverages our core
research platform to provide differentiated services including
investor relations and strategic consulting.
Edison is authorised and regulated by the Financial Conduct
Authority .
Edison is not an adviser or broker-dealer and does not provide
investment advice. Edison's reports are not solicitations to buy or
sell any securities.
For more information please contact Edison:
Sarah Godfrey, +44 (0)20 3681 2519
Mel Jenner, +44 (0)20 3077 5720
investmenttrusts@edisongroup.com
Learn more at www.edisongroup.com and connect with Edison on:
LinkedIn https://www.linkedin.com/company/edison-investment-research
Twitter www.twitter.com/Edison_Inv_Res
YouTube www.youtube.com/edisonitv
This information is provided by Reach, the non-regulatory press
release distribution service of RNS, part of the London Stock
Exchange. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
NRAKZMZMDGFGGZM
(END) Dow Jones Newswires
November 20, 2020 09:56 ET (14:56 GMT)
Hansa Investment (LSE:HAN)
Historical Stock Chart
From Apr 2024 to May 2024
Hansa Investment (LSE:HAN)
Historical Stock Chart
From May 2023 to May 2024