Witan Investment Trust’s NAV total return in the first half of 2024 was 11.0%
Tuesday 13th August 2024
A summary of the results is below:
- Witan’s NAV total return was 11.0%, versus our composite global benchmark of 11.7%
- The discount narrowed to 5.2%; 4.0% of our shares were bought into treasury, at an average discount of 8.9%
- The share price total return was 14.3%, owing to a narrowing of the discount since the end of 2023.
- A second interim dividend of 1.75p per ordinary share will be paid in September.
- Assuming shareholders approve the previously announced proposed combination between Witan and Alliance Trust to form Alliance Witan PLC, total dividends for the year are expected to amount to the equivalent of not less than 6.28 pence per share for current Witan/continuing Alliance Witan shareholders. This would be a 4% increase on the 6.04 pence per share paid in respect of 2023.
Andrew Ross, Chairman of Witan Investment Trust plc said:
“At the end of 2023, market analysts forecast significant cuts in interest rates in the early part of 2024, particularly in the US. These hopes retreated during the first half of the year, due to the resilience of US economic growth and slower than expected progress in reducing inflation towards target. The result has been a continued plateau in the level of US and UK interest rates since August 2023. Offsetting this, there was positive news around corporate earnings, centred on the boom in the semiconductor sector, and linked to investment in generative artificial intelligence systems. This was a constructive backdrop for equity markets, though negative for corporate bonds and interest rate sensitive sectors such as housing and real estate.
During this period, Witan’s NAV total return was 11.0%, clearly a strong positive return in absolute and inflation-adjusted terms. For much of the period, Witan was also ahead of our composite equity benchmark but in June, the strength in some of the largest US technology companies reasserted itself, pushing the return on our equity benchmark ahead to 11.7%. The share price total return was 14.3%, owing to a narrowing of the discount since the end of 2023.
Revenue earnings per share for the period were 2.79 pence, a decline of 4% from the level of 2.90 pence per share seen in the first half of 2023. This was due to an increase in “Other expenses” relating to corporate advisory costs, the underlying trend being a small rise. The Company has increased its dividend every year since 1974 (a 49-year record of increases), with this record set to be extended to 50 years in 2024. A second interim dividend of 1.75 pence per ordinary share (2023: 1.45 pence) will be paid on 13 September 2024, meaning the total 2024 dividends paid by Witan ahead of its proposed combination with Alliance Trust will amount to 3.26 pence per share. The final two dividends for 2024 are expected to be paid by Alliance Witan PLC in December 2024 and March 2025, after the combination of the two companies has taken effect.
The Company has been active in buying back shares, buying 24.8m shares (4.0% of the total) into treasury in the period, at an average discount of 8.9%. This added £5.6m to the net asset value, which more than offset the Company’s investment management costs for the period.”
A video interview with Andrew Bell, Chief Executive Officer of Witan Investment Trust, discussing the 2024 half year results and the current outlook is available on the Company’s website at www.witan.com/half-year-results-2024.
– ENDS –
For further information please contact:
Andrew Bell, Chief Executive Officer
Witan Investment Trust plc
Tel: 020 7227 9770
[email protected]
James Hart, Investment Director
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 30.06.2024) on behalf of over 20,000 investors. Witan operates a multi-manager structure and currently has 6 principal managers. For further details please visit www.witan.com.
Issued and approved by Witan Investment Services Limited, FRN446227 on 13 August. 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 2019 - Q2 2020 | Q2 2020 - Q2 2021 | Q2 2021 - Q2 2022 | Q2 2022 - Q2 2023 | Q2 2023 - Q2 2024 |
|---|---|---|---|---|---|
| Share Price (Total Return) | -11.6% | 34.7% | -12.6% | 12.8% | 21.4% |
| Net Asset Value (Total Return) | -8.9% | 37.4% | -11.8% | 13.8% | 15.0% |
| Benchmark (Total Return)** | 2.3% | 24.5% | -2.6% | 11.2% | 19.5% |
* 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.