Is to achieve significant growth in our investors’ wealth by investing in global equity markets, using a multi-manager approach.*
Is to achieve an investment total return exceeding that of the Company’s benchmark(1) over the long term, together with growth in the dividend ahead of inflation.
Portfolio structure
Witan's portfolio consists of two primary components: core and specialist. The core portfolio provides shareholders with access to a select but diversified group of managers investing in high-quality, predominantly large and mid-sized companies. The specialist portfolio recognises that there are many attractive investment opportunities which fall outside the remit of most mainstream fund managers due to their size, domicile, or their unlisted or specialist nature.
- Managers employ a range of approaches to select from a broad universe of high-quality companies throughout the world.
- The core portfolio includes companies with enduring cash flows, underappreciated growth prospects or undervalued, often cyclical businesses.
- Managers with the potential to deliver superior growth through specialist regional or sectoral expertise.
- Direct Holdings in collective funds. Actively managed with no fixed allocation.
- Investments in unquoted growth funds.
- Provides exposure to specialist asset classes and other opportunities including Emerging Markets, Climate Change, Private Equity and Life Sciences.
Choosing our managers
The Executive team works closely with the Board to select third-party managers from across the world. The team uses a variety of networks, databases and comprehensive due diligence to identify and interview potential managers. Shortlisted managers present to the Board, which takes the final decision on appointment.
What we look for from our managers
We aim to appoint managers with the following attributes who have an identifiable ‘edge’ to enable them to outperform over the long term.
Capital allocation
The Executive team seeks to add to performance by varying the use of gearing and a range of additional levers to adapt to different conditions.
Capital allocation framework
The Company seeks to set gearing at levels appropriate for market conditions. Gearing can help boost returns when assets go up in value but can detract value when markets fall. To limit the risk to shareholders’ capital in down markets, Witan’s longstanding policy is not to allow gearing to be more than 20%, other than temporarily in exceptional circumstances. Where appropriate the Company may hold a net cash position.
Witan sometimes uses ETFs and derivatives as cost effective tools to adjust the portfolio’s geographic or sector allocation to control risk or take advantage of short-term opportunities. This can be an efficient mechanism to address a stock market event or an evolving investment view.
Value creation
We aim to generate total returns which exceed the benchmark over the long term.
Over the long term Witan has generated growth in both capital and income on behalf of our shareholders. Our managers seek out high quality companies not by geography or sector but by their specific prospects for creating value over the long term.
Witan has grown its dividend for the last 49 years.*
Responsible investment
Far from there being a conflict between good returns and responsible investing, owning well-managed businesses with attractive and undervalued growth prospects is key to achieving returns that are sustainable. Well-run businesses incorporating resilient business practices with sustainable cash flows are likely to perform better than companies which are at risk of disruption, litigation, regulation, or loss of business because of poor ESG practices.
As an investment company, Witan aims to make well-informed investment decisions to ensure our pursuit of prosperity for our shareholders is not detrimental to people and the planet.
*Witan Investment Trust is an equity investment. Please note that past performance is not a guide to future performance. The value of an investment and the income from it can fall as well as rise as a result of currency and market fluctuation and you may not get back the amount originally invested.
Discrete performance (%) †
| Q2 2019 Q2 2020 | Q2 2020 Q2 2021 | Q2 2021 Q2 2022 | Q2 2022 Q2 2023 | Q2 2023 Q2 2024 | |
|---|---|---|---|---|---|
| Share Price | -11.6 | 34.7 | -12.6 | 12.8 | 21.4 |
| Net Asset Value‡ | -8.9 | 37.4 | -11.8 | 13.8 | 15.0 |
| Benchmark# | 2.3 | 24.5 | -2.6 | 11.2 | 19.5 |
|
Relative numbers may not add up due to rounding. |
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