Witan Investment Trust’s NAV total return in the first half of 2023 was +8.7%
Tuesday 15th August 2023
A summary of the results is below:
- Witan’s NAV total return was +8.7%, 1.5% ahead of our composite global benchmark of 7.2%
- The discount widened to 9.9%, although this was less than the AIC Global sector average; 4.2% of our shares were bought into treasury, at an average discount of 8.5%
- A second interim quarterly dividend of 1.45p per ordinary share will be paid in September. Total dividends paid in respect of the period are 2.90p per ordinary share (2022:2.80p)
- Our revenue earnings for the first half rose 16% on the corresponding period of 2022
Andrew Ross, Chairman of Witan Investment Trust plc said:
“The first half of 2023 saw a degree of relief that earlier forecasts of global recession were not borne out. Global equities delivered positive returns in both quarters, but from contrasting sources. Europe was the strongest region in Q1 (with generally positive returns from most other regions), however in Q2, returns were almost wholly driven by the US (with most other regions - apart from Japan - delivering near zero, or slightly negative returns). This was a highly changeable environment for investors to navigate, both in terms of the rotating leadership within equity markets and due to the unfamiliar experience of bonds and cash offering genuine competition to equities, following a decade in which cash and bond income returns were negligible.
Against this backdrop, Witan outperformed in the first half of the year, with a NAV total return of +8.7% and a share price total return of +3.6%, owing to a 4.5% widening of the discount. For perspective, the AIC’s Global sector experienced an average +7.2% NAV total return, and a 7.5% widening in its discount to NAV.
Revenue earnings per share for the period were 2.90 pence, a rise of 16% from the level of 2.51 pence per share seen in the first half of 2022. The comparison between early 2023 and early 2022 may flatter the position, but we nonetheless expect revenue earnings to continue to show recovery from the pandemic setback. The Company has increased its dividend every year since 1974 (a 48-year record of increases) and the Board’s policy remains to grow the dividend each year. The full year’s dividend for 2023 is expected to show another year of growth.
The Company has been active (in absolute terms and relative to its peers) in buying back shares, buying 28.6m shares (4.2% of the total) into treasury in the period, at an average discount of 8.5%. This added £6.0m to the net asset value, which more than offset the Company’s investment management costs for the period.
As we approach the peak in interest rates worldwide and look towards better long-term growth prospects in 2024 and beyond, Witan’s managers will continue to select companies with sound business strategies, resilient finances, and good management, on the basis that companies which grow the fundamental value of their business will create sustainable returns for shareholders.”
A video interview with Andrew Bell, Chief Executive Officer of Witan Investment Trust, discussing the 2023 half year results and the current outlook is available on the Company’s website at here.
For further information please contact:
Andrew Bell, Chief Executive Officer
Witan Investment Trust plc
Tel: 020 7227 9770
[email protected]
Isabella Seekings, Director of Marketing
Witan Investment Trust plc
Tel: 020 7227 9770
[email protected]
Notes to Editors
Witan Investment Trust plc
Established in 1909, Witan is one of the UK's largest investment trusts, managing £1.8bn (source: Witan, as at 30.06.2023) on behalf of over 20,000 investors. Witan operates a multi-manager structure and currently has 8 principal managers. For further details please visit www.witan.com.
Issued and approved by Witan Investment Services Limited, FRN446227 on 14 August 2023. Witan Investment Trust is an equity investment. Please remember 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 fluctuations and you may not get back the amount originally invested.
| Discrete Performance* | Q2 2018 Q2 2019 | Q2 2019 Q2 2020 | Q2 2020 Q2 2021 | Q2 2021 Q2 2022 | Q2 2022 Q2 2023 |
|---|---|---|---|---|---|
| Share Price (Total Return) | 0.6% | -11.6% | 34.7% | -12.6% | 12.8% |
| Net Asset Value (Total Return) | 2.8% | -8.9% | 37.4% | -11.8% | 13.9% |
| Benchmark (Total Return)** | 6.1% | 2.3% | 24.5% | -2.6% | 11.2% |
* Source: Morningstar, percentage growth to 30th June each year. Total return includes the notional investment of dividends.
** Witan’s benchmark is a composite of 85% Global (MSCI All Country World Index) and 15% UK (MSCI UK IMI Index). From 01.01.2017 to 31.12.2019 the benchmark was 30% UK, 25% North America, 20% Asia Pacific, 20% Europe (ex UK), 5% Emerging Markets. For more information go to www.witan.com/support/legal-information.
Investment trusts and closed-ended funds are allowed to borrow. This is known as ‘gearing’. In a rising market, it will tend to enhance returns because of the investment fund’s increased exposure to the market. By the same token, however, it will tend to increase losses triggered by a falling market and a sufficiently large fall in value could mean you get nothing back at all. Funds may, however, increase or decrease their levels of gearing to suit market conditions. The share price may trade above and below the NAV per share representing either a premium or discount to the share price respectively.