Witan Investment Trust’s NAV total return of 21.3% outperformed its benchmark’s return of 20.3% in 2019.

Thursday, 12 March 2020

In 2019, Witan Investment Trust had a net asset value total return of 21.3%, outperforming the benchmark’s** return of 20.3%. The Company increased its dividend by 13.8% to 5.35p, the 45th consecutive annual rise.

The highlights of the results are:

  • The Net Asset Value (NAV) total return of 21.3% outperformed the benchmark’s** return of 20.3% by 1%
  • The share price total return was 22.1%, as the discount narrowed to 0.7% at the year-end (2018: discount of 1.3%)
  • The NAV total return over the last five years was 73.0% compared with 64.9% for the benchmark**
  • The dividend increased by 13.8% to 5.35p, more than double the level in 2009 and the 45th consecutive annual rise
  • Benchmark simplified and made more global from 2020
  • Increased emphasis on sustainability; Witan is a signatory to the UN-supported Principles for Responsible Investment

Harry Henderson, Chairman of Witan Investment Trust said:

“Witan shareholders enjoyed exceptionally strong returns in 2019, which were ahead of our benchmark, although patience was required. For much of the year, Witan’s gains were behind those of our benchmark, owing to relatively high weightings in the UK and exposure to more lowly-valued but out of favour stocks. However, both these factors proved beneficial towards the end of the year, resulting in a NAV total return of 21.3%, 1.0% ahead of our benchmark’s total return.

The dividend for the year increased by 13.8% to 5.35p per share, well ahead of the 1.3% rate of UK inflation at the year end. The divided is fully covered by revenue earnings with £6.1m added to revenue reserves. We have increased the dividend every year for the last 45 years, with the latest dividend being two and a half times that paid in 2009.

I shall be standing down as a director of the Company at the AGM in April after over 30 years on the Board including 17 as Chairman. It has been a pleasure and an honour to have served shareholders’ interests during a period when the investment world has experienced such unimaginable change. I am pleased to be handing over the Chairmanship to Andrew Ross.”

Andrew Bell, Chief Executive of Witan Investment Trust, said:

”Towards the end of 2019, markets looked beyond disappointing short-term news towards the prospect of improved growth and reduced political uncertainties in 2020.

The third-party managers, in aggregate, performed ahead of their benchmarks (before costs). Gearing was a significantly positive contributor, as gearing averaged 11% during a year of strong absolute portfolio gains.

The tentative signs of economic improvement at the end of 2019 have been overshadowed by the emergence of a highly infectious coronavirus. The initially rapid spread of the disease within China created fears of a global epidemic with major humanitarian and economic consequences. The resulting disruption to economic activity has heightened equity market sensitivity to news of the epidemic’s rate of infection.

Volatility is likely to persist until the disease has been brought under control worldwide. Faced with a public health issue for which there is no reliable forecasting model, allied to the ensuing substantial disruption to economic activity, equity investors have felt unable to quantify risks. This has resulted in substantial falls in equity indices, in case the inevitable short-term impact on growth precipitated a more enduring recession.

In contrast to the positive mood at the year end, which proved vulnerable to the shock of the coronavirus epidemic, markets had negative expectations by mid-March. Investment is a forward-looking activity, driven by new developments rather than what can be seen in a rear-view mirror, so for contrarians the signals may be shifting from red to green. Assuming the coronavirus epidemic is contained in coming months, a bounce back in activity is a reasonable expectation by the second half of the year, given the significant amount of stimulus already introduced (from fiscal policy as well as lower interest rates and oil prices).”

A video interview with Andrew Bell, Chief Executive Officer of Witan Investment Trust, discussing the 2020 full year results is available here.

- 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]

Alexis Barling, Director of Marketing
Witan Investment Trust plc
Tel: 020 7227 9770
[email protected]

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Discrete Performance*

Relative numbers may not add up due to rounding.

† Source: Morningstar / Witan total return includes the notional reinvestment of dividends.
‡ The Net Asset Value figures value debt at fair value and include the notional reinvestment of dividends.
# Witan’s benchmark is a composite of 85% Global and 15% UK. 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. From 01.10.2007 to 31.12.2016 the benchmark was 40% UK, 20% North America, 20% Europe (ex UK) and 20% Asia Pacific.
With effect from August 2020, the source for benchmark index performance data will be MSCI International, replacing the previous FTSE source.
For more information go to www.witan.com/support/legal-information.