The Board of Witan Investment Trust plc today announces unaudited Half Year Results for the six months ended 30 June 2011. The results show the Company’s net asset value total return for the period was 3.6%, compared with a benchmark return of 2.9%, a relative outperformance of 0.6%.
Eight out of the Trust’s 12 external managers (responsible for 60% of assets) outperformed their individual benchmarks. Those who underperformed for the half year saw improved performance between the first and second quarters.
An interim dividend of 5.45p (2010: 4.4p) per ordinary share has been declared by the Board, to be paid on 16 September 2011. This represents 50% of the total payment (of 10.9p) made in respect of 2010 and is a rebalancing between the first and second interim dividend payments. This has the effect that more of the dividend will be put into shareholders’ hands earlier, but the rise should not be extrapolated to the full year dividend.
The full year’s dividend is intended to be consistent with the Company’s policy to increase the total annual dividend at least in line with inflation. The second payment, normally announced in March, will be the difference between the total dividend declared for the year and the first payment of 5.45p. The Company has a 36 year record of dividend increases, including the recent downturn when market dividends were cut significantly.
Revenue earnings per share rose 22% compared to the first half of 2010, to 7.68p. This growth in earnings is down to the recovery in global dividend payouts for the first half of 2011, the return of BP to the dividend list and changes to the portfolio during 2010. A continuation of this rate of increase over the full year would close last year’s gap between earnings and dividends paid out.
Expenses declined in the first half of the year, resulting in the Total Expense Ratio (TER) falling to 0.45%, down from 0.52% for the first half of 2010. Without performance fees, the TER was 0.36%, down from 0.42% for 2010.
Andrew Bell, Chief Executive of Witan Investment Trust said:
“The positive absolute return during the first half of the year highlights the resilience of the multi-manager structure in delivering stable above benchmark returns even during periods of financial turbulence, as well as the sound overall performance of our managers.
“Since then, market conditions have been more turbulent, in response to concerns about economic growth and reflecting waning confidence in the ability of politicians in the Euro zone and in the US to handle their budget deficit problems effectively. Equity markets abruptly changed gear in early August from surprising resilience to exceptional volatility, producing steep falls worldwide.
“After recent stock market falls, residual complacency has been replaced by fear, possibly exaggerated by thin trading conditions. The key tactical question is whether the shock to market confidence from inept European and US handling of their debt problems can be contained before it has a serious impact on the wider economy. If this can be achieved, global equity markets appear increasingly attractive in absolute valuation terms and relative to the low returns available on cash or government bonds, investments traditionally (though not entirely correctly) regarded as low risk.”
- ENDS -
For further information please contact:
Andrew Bell, Chief Executive Officer
Witan Investment Trust plc
Tel: 020 7227 9770
Andrew.bell@witan.co.uk
James Frost, Marketing Director
Witan Investment Trust plc
Tel: 020 7227 9770
James.frost@witan.co.uk
Jain Castiau, Director
Cauldron Consulting
Tel: 0203718 7236/07909 963 969
Jain.castiau@cauldron-consulting.com
Notes to Editors
Witan Investment Trust plc
Established in 1909, Witan is one of the UK’s largest investment trusts, managing some £1,156m (as at 30.06.2011, source Witan) on behalf of some 40,000 investors. Witan is listed in the ‘Global Growth’ sector and is a member of the FTSE 250 index. Registered as an Investment Company in England No 101625.
www.witan.com
|
|
