Witan Pacific Investment : Half Yearly Report

WITAN PACIFIC INVESTMENT TRUST PLC

(the 'Company')

Half-Yearly Report and Financial Statements for the six months ended 31 July 2015

Witan Pacific Investment Trust plc announces that its 2015 Half-yearly Report has been published. The full report will be made available on the National Storage Mechanism website: http://www.morningstar.co.uk/uk/NSM and can be accessed via the Company's website at www.witanpacific.com.It will be circulated to shareholders shortly.

FINANCIAL SUMMARY

Key data

Cumulative Performance (Total Return)

Income

Ongoing charges (6 months)

* Source: Datastream. Dividends reinvested.

With effect from 28 March 2014 the Company's policy is not to employ gearing.

LONG-TERM PERFORMANCE ANALYSIS

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

^* Source: Datastream. Dividends reinvested.

CHAIRMAN'S STATEMENT

Performance and investment approach

The period from 31 January 2015 to 31 July 2015, which is the first six months of our financial year, saw a slight decline in your Company's net asset value, and a small positive return for its shares. This stability masks a relatively sharp contrast between further gains in the Japanese equity market, offset by overall falls in value in the mainland Asian and Australian markets, in sterling terms. To be more specific: the regional benchmark index provided a total return of -1.1%, while the Company's net asset value total return was -0.2%. This relative outperformance of 0.9% was amplified by a slight narrowing of the discount on which our shares trade, to generate a share price total return of +1.3%, which is 2.4% ahead of the benchmark. We provide more detail on the moving parts behind this result below.

There has been some turmoil in markets from the middle of June and particularly since the end of the reporting period. The Chinese 'A' share market which had risen very sharply in recent times and peaked in mid-June, continued to fall sharply. The 'A' share market has historically been the preserve of domestic investors but moves to liberalise ownership have taken place in recent years. Its fall took with it to some extent, the prices of Hong Kong-listed Chinese shares owned by overseas investors and other shares with significant Chinese exposure. Other investment worries included falling commodity prices which adversely affect some of the largest companies in the region, concerns about the possibility of rising interest rates in the US, and the willingness of the Chinese authorities to let their currency weaken. These combined to unnerve investors in the short term.

Through the multi-manager structure adopted by the Company, and through the experience of our managers, we seek to reduce the impact of such turbulence although we cannot by any stretch of the imagination make our portfolio immune. We would expect, but cannot guarantee, that in such difficult times the portfolios are likely to fall by a little less than the market as a whole and so far, in the period since the half year end, that has been the case.

In terms of quantitative characteristics which we observe, the aggregate level of gearing of the companies in which we invest is lower than average, we have slightly more stable earnings growth, and lower correlations with general equity market moves. Our equity investments are well diversified, but we maintain an active approach to investment management.

HIGHLIGHTS

§ NAV total return of -0.2%, compared with the benchmark -1.1%

§ Share price total return of 1.3%

§ 5 year NAV total return of 37.6%, compared with the benchmark 37.4%

§ Outperformed in 7 out of the 10 years since becoming multi-manager in May 2005

§ Interim dividend increased by 2.4% to 2.15p

There have been no significant changes in the investment styles of each of the three managers appointed by the Company over the period. The Board visited all three managers in March for face to face updates on investment matters, on organisational structures and on anything else which might affect the management of the assets entrusted to them. We were pleased to see the development of the risk management structures and reporting at GaveKal in Hong Kong and, following some disappointing performance in 2013, the team appears to be better placed and has been performing well over the last 18 months or so. We visited Aberdeen in Singapore and discussed team development, their engagement with some of their larger holdings and their relative scepticism about China and Japan. We also visited Matthews in San Francisco, spending time talking about the impact of the developing slowdown in China. They remain reasonably confident and we discussed whether there was a point in the future at which we could invest a small part of the portfolio they manage in the domestic 'A' share market, which currently we do not do. We also visited other fund managers, who kindly gave us their views of the investment outlook as well as providing an introduction for us as we monitor and review our existing managers. That is not to say that we have any thought at the moment of making changes in the shorter term, but it is helpful to understand other approaches to give us context.

Performance analysis

The overall portfolio, which is formed of the combination of your three managers' sub-portfolios, outperformed by 1.6% (before costs), relative to the benchmark's total return of -1.1%. Within this, Matthews' portfolio outperformed by about 5.6%, GaveKal outperformed by about 0.4% (after fees), and Aberdeen underperformed by about 2.0%. The major detractors from relative performance were an underweight position in Japan, whose market performed very strongly and some individual stock performance in the Aberdeen portfolio. However, these detractors were outweighed by good asset allocation decisions by GaveKal, particularly strong stock selection by Matthews and an overall underweight position in Australia (particularly in Australian Banks).

Board

Alan Barber retired from the Board and as Chairman of the Audit and Management Engagement Committee at the AGM held in June 2015. The Board has benefited greatly from his experience and expertise over the years, for which we record our thanks on shareholders' behalf. He has been replaced by Andrew Robson, who joined the Board in July 2014 and is a qualified accountant with substantial corporate finance and investment company experience.

Dividend

We indicated in 2012 that we expected over the long term to be able to increase our dividend in real terms, as a consequence of the strength of the companies in which we invest in the Asia Pacific region and of the growing willingness of companies to distribute profits to shareholders. Although revenue earnings came under pressure in 2013 and 2014, owing to weakness in portfolio dividends as well as strength in sterling (which reduces the value of dividends paid in regional currencies when translated into sterling), after careful consideration the Company took the view that the underlying prospects for growth in dividends from the portfolio remained good. Consequently, the dividend was raised by more than the inflation rate in both years, even though this meant drawing modestly on the Company's (substantial) revenue reserves to support the pay-out.

We are pleased to report that the current year has shown a return to growth in dividends received from the portfolio, as well as abatement in the strength of sterling. Revenue earnings per share in the first half of the current financial year were 2.8p, an increase of 27% on the figure at the same stage in 2014. Whilst caution is necessary in extrapolating such a trend it supports the Board's hope that dividend cover would rebuild during the current and forthcoming years. Consequently, the Company will pay an interim dividend of 2.15p per share for this half year period, a rise of 2.4% compared with that paid for the same period last year.

Buybacks

We have continued to use our buyback powers to buy back shares in accordance with our policy, which is to do so when the shares stand at a substantial and anomalous discount to net asset value. Over the period we bought back 22,478 shares, and since the end of July, we have bought back a further 38,000 (full details can be found in Note 7).

Outlook

At the time of writing, there is market concern about the prospects for economic growth, causing significant market and currency moves in Asian markets. As outlined above, the major topics on which commentators focus are the Chinese economy, the Chinese 'A' share market, the weakening of the Chinese currency, the weakness of commodity prices for some of the countries in the region, possible currency instability, the timing of US rate rises and the concern that all of this might result in more systemic problems. There are also differing views of the ability of the Japanese economy to maintain its Abe led momentum.

However, our managers, when we visited them, were confident about the longer term growth in the region and the benefits of social and corporate reform, although they did express some concerns about the level of the Chinese 'A' share market. Falls in commodity prices benefit a number of economies in the region yet most recent market reactions have been seen in the share prices of commodity producers. Valuations, which were not particularly depressed earlier in the year, are coming down quite sharply. This perhaps reflects worries over future corporate prospects but provides a better investing background. Amid all this, Aberdeen and Matthews are careful selectors of stocks and the current environment will provide opportunities. Gavekal have the objective of negotiating the turmoil to our advantage, combining top-down assessments with stock selection. Despite the recent turbulence, we expect current conditions will provide opportunities for our managers and we retain our longer term perspective and confidence in the companies in which we can invest in the region.

Sarah Bates

Chairman

29 September 2015

Company Secretary contact details:

Capita Company Secretarial Services Limited:

1st Floor, 40 Dukes Place, London EC3A 7NH

email: WitanPacificInvestmentTrustPLC@capita.co.uk

CONDENSED STATEMENT OF COMPREHENSIVE INCOME

for the half year ended 31 July 2015

All revenue and capital items in the above statement derive from continuing operations.

The total columns of this statement represent the profit and loss account 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 recognised gains or losses other than those disclosed in the Condensed statement of comprehensive income.

CONDENSED STATEMENT OF CHANGES IN EQUITY

for the half year ended 31 July 2015

CONDENSED STATEMENT OF FINANCIAL POSITION

at 31 July 2015

CONDENSED STATEMENT OF CASH FLOWS

for the half year ended 31 July 2015

NOTREES TO THE FINANCIAL STATEMENTS

for the half year ended 31 July 2015

1 Accounting policies

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investments and in accordance with applicable Accounting Standards, pronouncements on interim reporting issued by the Accounting Standards Board and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies' ('SORP') revised December 2005 and January 2009. All of the Company's operations are of a continuing nature.

The accounting policies used for the year ended 31 January 2015 have been applied.

These condensed financial statements are the first since FRS 102 (The Financial Reporting Standard applicable in the UK and Republic of Ireland) came into effect for accounting periods beginning on or after 1 January 2015. An assessment of the impact of adopting FRS 102 has been carried out and found that no restatement of balances as at the transition date, 1 January 2014, or comparative figures in the Condensed Statement of Financial Position or the Condensed Statement of Comprehensive Income is considered necessary.

2 Income

3 Transactions with the Managers

On 27 May 2005, the Company appointed Witan Investment Services Limited as Executive Manager and Aberdeen Asset Managers Limited and Nomura Asset Management U.K. Limited as Investment Managers. In April 2012, the Company appointed Matthews International Capital Management LLC and GaveKal Capital Limited to replace Nomura. Each Management Agreement can be terminated at one month's notice in writing.

Each Investment Manager is entitled to a base management fee, at rates between 0.20% and 0.75% 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 Free 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).

The provisions included in the Condensed statement of comprehensive income at 31 July 2015, are calculated on the actual performance of Aberdeen relative to the benchmark index. The provision for the rest of the year assumes that both the benchmark index remains unchanged and that Aberdeen's assets under management perform in line with the benchmark index to 31 May 2016, being the date the performance period will end. In addition, provisions are made for the performance periods ending 31 May 2017 and 31 May 2018, on the assumption that Aberdeen performs in line with the benchmark to each period end. The total effect of these provisions amounts to £3,000.

* The management fee stated above includes fees paid to Witan Investment Services Limited of £117,000 (six months to 31 July 2014: £105,000 and full year to 31 January 2015: £218,000).

^ The figure relates to a rebate of management fees associated with the GaveKal Asia Opportunities UCITS Fund.

4 Dividends per Ordinary share

An interim dividend of 2.15p per Ordinary share (2015: 2.10p) will be paid on 19 October 2015 to shareholders on the register on 9 October 2015.

5 (Loss)/return per Ordinary share

The loss per Ordinary share is based on the net loss attributable to the Ordinary shares of £310,000 (half year ended 31 July 2014: net return £15,052,000; year ended 31 January 2015: net return £27,728,000) and on 65,933,041 Ordinary shares (half year ended 31 July 2014: 65,990,883; year ended 31 January 2015: 65,967,247) being the weighted average number of Ordinary shares in issue during the period.

6 Provision for liabilities and charges

This represents the estimated performance fees payable for the 3 year performance fee periods ending 31 May 2017 and 31 May 2018, if any. This accrual is based on actual performance to 31 July 2015 and the assumption that Aberdeen performs in line with the benchmark from 31 July 2015 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 elapse of time (since this would increase the proportion of the rolling 3 year performance period to which the performance calculation would be applied) or the termination of Aberdeen's contract.

7 Share capital

During the half year ended 31 July 2015; 22,478 Ordinary shares were repurchased and held in treasury, at a total cost of £55,000, (31 July 2014: 104,000 Ordinary shares were repurchased for cancellation and 31 January 2015: no shares were issued or purchased). As at 31 July 2015 there were 65,944,000 Ordinary shares of 25p in issue, of which 22,478 were held in treasury. Subsequent to 31 July 2015, a further 38,000 Ordinary shares were repurchased and held in treasury, at a total cost of £88,000. As at 29 September 2015 there were 65,944,000 Ordinary shares of 25p in issue, of which 60,478 were held in treasury.

8 Net Asset Value per Ordinary share

Net asset value per Ordinary share is based on 65,921,522 Ordinary shares of 25p each as at 31 July 2015 (31 July 2014: 65,944,000 and 31 January 2015: 65,944,000).

9 Reconciliation of net revenue return before finance costs and taxation to net cash inflow from operating activities

10 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 used in making the measurements. The fair value hierarchy shall have the following classifications:

· Class A: quoted prices for identical instruments in active markets;

· Class B: prices of recent transactions for identical instruments; and

· Class C: valuation techniques using observable and unobservable market data.

The financial assets and liabilities measured at fair value in the Statement of Financial Position are grouped into the fair value hierarchy at the reporting date as follows:

(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 Class A are actively traded on recognised stock exchanges.

11 Results

The results for the half years ended 31 July 2015 and 31 July 2014, 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 2015, 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 2015 have been extracted from those accounts.

REGULATORY DISCLOSURES

Related party transactions disclosures

During the period to 31 July 2015, related party transactions included dividends paid to Directors in respect of their shareholdings in the Company. Details of Directors' share holdings and remuneration may be found in the Directors' remuneration report on pages 40 to 43 of the Company's Annual Report for the year ended 31 January 2015. 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 investment strategy, investment management resources, regulatory requirements, operational structure and the external economic and financial environment. 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 2015 in the corporate review and in the notes to the financial statements. The risks faced by the Company have not changed significantly over the first 6 months of 2015 and are not expected to change materially in the remaining 6 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.

RESPONSIBILITY STATEMENT OF THE DIRECTORS

in respect of the Half Year Report for the six months ended 31 July 2015

The Directors confirm, to the best of their knowledge, that this condensed set of financial statements has been prepared in accordance with United Kingdom Generally Accepted Accounting Practice 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 Chairman's statement, regulatory disclosures and portfolio information) includes a fair review of the information required by Rules 4.2.7 R and 4.2.8 R of the Disclosure 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 on page 29 of this Half Year Report which is available to view in full on the Company's website at www.witanpacific.com.

This Half Year Report was approved by the Board on 29 September 2015 and the above responsibility statement was signed on its behalf by:

Sarah Bates

Chairman

29 September 2015