Witan Investment Trust’s NAV total return was -8.4% in 2018. Dividend per share growth of 11.9%
Tuesday, 12 March 2019
In 2018, Witan Investment Trust had a net asset value total return of -8.4%, underperforming the benchmark’s* return of -6.5%. The Company increased its dividend by 11.9% to 23.5p, the 44th consecutive annual rise.
The highlights of the results are:
- The Net Asset Value (NAV) total return of -8.4% underperformed the benchmark’s* return of -6.5% by 1.9%
- The share price total return was -8.1%, as the discount narrowed to 1.3% at the year-end (2017: discount of 1.6%)
- The NAV total return over the last five years was 52.1% compared with 44.6% for the benchmark*
- The dividend increased by 11.9% to 23.5p, more than double the level in 2008 and the 44th consecutive annual rise
- The Board is proposing a five for one share split to improve liquidity and help regular savers
HARRY HENDERSON, CHAIRMAN OF WITAN INVESTMENT TRUST SAID:
“Witan has invested with a multi-manager approach since 2004. Over this period, we have beaten the returns on our equity benchmark and raised the dividend significantly faster than the rate of inflation. After several years of strong performance, our net asset value fell in 2018 and we underperformed, in what proved to be a challenging year.
For much of the year, Witan’s returns were positive and ahead of our benchmark, but the weakness towards the end of the year delivered a setback in both absolute and relative terms.
Despite the volatility in capital values, it was pleasing to be able to deliver a healthy rise in the dividend, fully funded by revenue earnings. A fourth interim dividend of 7.75 pence was declared in February 2019, making the dividend for the year 23.5 pence per share, an increase of 11.9%, well ahead of the 2.1% rate of UK inflation at the year end.
The Board is proposing a share split, whereby shareholders will receive five shares in place of every share currently held. Although this will make no fundamental difference to the value of shareholdings, the intention is to make Witan’s shares more accessible, particularly for those making regular savings or reinvesting dividends, where the approximately £10 share price in recent years may not be an ideal minimum size to deal in.”
ANDREW BELL, CHIEF EXECUTIVE OF WITAN INVESTMENT TRUST, SAID:
”Global equity markets were volatile during the year and, after a notably weak fourth quarter, they ended the year with moderate losses.
It was a year when macroeconomic and political worries dominated the headlines. This proved a less auspicious climate for stock pickers than 2017 and our investment managers as a whole were barely ahead of their benchmarks, providing little offset to our operating costs. Gearing was also a handicap during a year when markets ended in negative territory.
2018 started with apparently improving economic growth and a tangible mood of optimism, whereas in contrast 2019 started with sentiment overwhelmingly pessimistic. Although concerns over trade, recession and European disunity may yet be proved correct, recent developments suggest this is not a one-way bet. The risks are more fully recognised and positive surprises seem just as possible as unexpected shocks.
Given current equity valuations, against a background where interest rates are likely to remain well below historic norms, we believe that 2019 has the potential to deliver attractive investment returns, despite (or partly because of) the pervading gloom at the end of 2018. At the time of writing, our net asset value total return in 2019 was up 6.5%, erasing most of the loss sustained during 2018.”
– ENDS –
* Witan Investment Trust’s benchmark is a composite of the following equity regions: UK 30%, North America 25%, Europe (ex UK) 20%, Asia Pacific 20% and Emerging Markets 5%. From 01.10.2007 until 31.12.2016, Witan’s benchmark was a composite of UK 40%, North America 20%, Europe (ex UK) 20% and Asia Pacific 20%.
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]
Notes to Editors
Witan Investment Trust plc
Established in 1909, Witan is one of the UK's largest investment trusts, managing £2.0bn (source: Witan, as at 28.02.2019) on behalf of over 25,000 investors. Witan operates a multi-manager structure and currently has 10 appointed managers. For further details please visit www.witan.com.
Issued and approved by Witan Investment Services Limited. 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 2017 Q2 2018 | Q2 2018 Q2 2019 | Q2 2019 Q2 2020 | Q2 2020 Q2 2021 | Q2 2021 Q2 2022 | |
---|---|---|---|---|---|
Share Price | 10.9 | 0.6 | -11.6 | 34.7 | -12.6 |
Net Asset Value‡ | 8.7 | 2.8 | -8.9 | 37.4 | -11.7 |
Benchmark# | 8.5 | 6.1 | 2.3 | 24.5 | -2.6 |
Relative numbers may not add up due to rounding.
* Source: Morningstar, percentage growth to 31st December each discrete year. Total return includes the notional investment of dividends.
** Witan’s benchmark is a composite of 30% UK, 25% North America, 20% Asia Pacific, 20% Europe (ex UK) and 5% Emerging Markets. From 01.10.2007 to 31.12.2016 the benchmark comprised of 40% UK, 20% North America, 20% Europe (ex UK) and 20% Asia Pacific. For more information go to www.witan.com/support/legal-information.