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Witan Investment Trust announces 2011 results
Witan Investment Trust announces 2011 results
- Witan's NAV total return for the year was -10.9%, compared with the benchmark's* decline of 7%. This underperformance of 3.9% broadly offset the outperformance of 3.4% achieved in 2010. During a particularly volatile year for equity markets, the trust's gearing and a moderately positive view of the outlook for global economies were out of tune with the prevailing market mood, which was dominated from August onwards by concerns about the Eurozone's problems. On a more positive note, the same factors, together with our managers' stock selection, have enabled Witan to outperform during the recovery in markets in early 2012.
- The dividend was increased by 10.1%, the 37th consecutive annual rise. A second interim dividend of 6.55 pence per share is to be paid on 30 March 2012, which takes the total distribution for 2011 to 12.0 pence (2010: 10.9 pence). The increase is more than twice the 4.2% rate of consumer price inflation in 2011.
- A continued focus on cost control enabled Witan to reduce its TER (including performance fees) to 0.87% (2010: 1.07%). Excluding performance fees the TER fell from 0.81% in 2010 to 0.71%.
Harry Henderson, Chairman of Witan Investment Trust said:
"The key challenge in 2011 was the abrupt fall in markets in early August. We felt that the markets were acting over-emotionally and positioned the portfolio so that Witan would benefit from a recovery once the immediate uncertainties were overcome. This allowed us to recover part of the lost ground during the final quarter of the year. Since the year-end, Witan has recouped the whole of last year’s absolute decline and most of the underperformance.
"One notable positive feature for 2011 was the strong growth in revenue from dividends. This has enabled us to pay a substantially higher dividend as well as adding £2.6million to our revenue reserves, which now stand at £40.8 million; this is equivalent to 1.7 years' dividend payments. We have a policy of growing our dividend in real terms ahead of inflation and over the past 10 years dividends have risen 51%, compared with 29% for the consumer price index."
*Since 1 October 2007 the Witan Investment Trust benchmark has been:
40% FTSE All-Share Index, 20% FTSE All-World North America Index (£), 20% FTSE All-World Europe (ex UK) Index (£), 20% FTSE All-World Asia Pacific Index (£).
- ENDS -
For further information please contact:
Andrew Bell, Chief Executive Officer
Witan Investment Trust plc
Tel: 020 7227 9770
James Frost, Marketing Director
Witan Investment Trust plc
Tel: 020 7227 9770
Jain Castiau, Director
Cauldron Consulting
Tel: 020 3718 7237/07909 963 969
Jain.castiau@cauldron-consulting.com
Notes to Editors
Witan Investment Trust plc
Established in 1909, Witan is one of the UK's largest investment trusts, managing some £1.1bn on behalf of some 33,000 investors (as at 31.12.2011, source: Witan). Witan is in the AIC 'Global Growth' sector and is a member of the FTSE 250 index. Registered as an Investment Company in England No 101625.
Details of the current Investment Manager structure and the portfolio's geographical breakdown are set out on the following page.
Current investment management arrangements as at 31st December 2011
| Investment Manager | % of Witan's Assets under management | Equity Mandate | Investment Style |
| Artemis Investment Management | 8.2 | UK | Recovery/special situations |
| Lindsell Train | 10.8 | UK | Long-term growth from undervalued brands |
| NewSmith Asset Management | 9.7 | UK | Flexible, thematic |
| Henderson Global Investors | 2.2 | UK Smaller Companies | Growth at an attractive price |
| Southeastern Asset Management | 11.7 | Global | Value |
| MFS Investment Management | 8.1 | Global | Growth at an attractive price |
| Thomas White International | 8.8 | Global | Diversified growth at a reasonable price |
| Veritas Asset Management | 11.3 | Global | Fundamental value, real return objective |
| Marathon Asset Management | 8.9 | Pan-European | Capital cycles |
| Comgest | 6.5 | Asia Pacific (ex Japan) | Fundamental research |
| Trilogy Global Advisers | 4.0 | Emerging Markets | Fundamental, growth orientated |
| Witan Direct Holdings | 9.8 | Directly-held investments | Collective funds invested in mispriced assets, recovery situations or specialist assets |
Geographical Breakdown as at 31st December 2011
| Region | As at 31/12/2011 (%) | As at 31/12/2010 (%) | Change (%) |
| UK | 45.8 | 43.7 | +2.1 |
| Continental Europe | 16.7 | 19.4 | -2.7 |
| North America | 20.1 | 17.7 | +2.4 |
| Asia Pacific (ex Japan) | 11.7 | 12.2 | -0.5 |
| Japan | 1.5 | 2.3 | -0.8 |
| Latin America | 2.3 | 2.5 | -0.2 |
| Other | 1.9 | 2.2 | -0.3 |
