The mandate, which will account for around 9% of the trust’s portfolio, will replace its existing Asia portfolio managed by Comgest. Unlike its predecessor, which was valued at around 6.5% of the portfolio, the remit will include Japan.
Matthews Asia will invest in companies that are paying high dividends, or have the potential to do so in the future. The firm has an established relationship with Witan, having been appointed as one of the managers of the Witan Pacific investment trust in April 2012.
Andrew Bell, chief executive of Witan Investment Trust, said: “The appointment of Matthews Asia reflects our belief that Asia’s economies have become increasingly interdependent and although Witan has benefited from being substantially underweight in Japan in recent years this will not always be the case. We therefore believe that having a manager with the ability to allocate capital actively on the basis of stock-specific factors across the entire region is preferable to predetermining allocations to Japan and Asia separately.”
Last week Witan announced a 10% increase in dividends, the 38th consecutive year in which returns had increased.
