Witan Investment Trust : NAV total return per share was 15.8% in 2021; dividend increased for the 47th consecutive year

Witan Investment Trust's NAV total return per share was 15.8% in 2021; dividend increased for the 47th consecutive year

Wednesday, 16 March 2022

A summary of the results is below:

• Full-year NAV total return of 15.8%. The benchmark returned 19.9%
• Ten-year NAV total return of 233%, compared with 210% for the benchmark
• £10.7m NAV uplift from share buybacks offset the majority of the Company's ongoing charges during the year
• Dividend increased by 2.8% to 5.60 pence, more than double that paid in 2011 and an unbroken run of increases since 1974
• Following commitment to Net Zero Asset Managers initiative, new target adopted that our portfolio will consist entirely of sustainable businesses by 2030 or earlier

Andrew Ross, Chairman of Witan Investment Trust plc said:

"The outlook at the time of writing is dominated by the consequences flowing from the Russian invasion of Ukraine. Apart from the immediate suffering imposed on the Ukrainian people, the longer-term effects on international relations and economies are hard to predict. In investment terms, this calls for steady judgement and a long-term perspective.

2021 was a year of considerable progress for markets and it is pleasing to be able to report a 15.8% advance in the Company's NAV total return. However, progress was not smooth, with changing investor reactions to COVID-19 outbreaks, vaccination programmes, struggling global supply chains and rising interest rates causing erratic swings in market leadership.

These events were reflected in Witan's performance which showed a strong absolute trend and was ahead of our benchmark until the final furlong. Unfortunately, the last two months saw market leadership move away from the economically sensitive stocks which had served our managers well and a further dramatic shrinkage in the breadth of the performance in the US market.

Taking a longer-term perspective since Witan adopted a multi-manager approach in 2004, we have beaten the returns on our benchmark and raised the dividend well ahead of the rate of inflation. Over the ten years to the end of 2021, Witan achieved a NAV total return of 233% and a share price total return of 255%, both of which exceeded the benchmark's 210% return.

We recently announced that Witan had become a signatory to the Net Zero Asset Managers initiative ("NZAM"). As an investment company, we aim to make well-informed investment decisions, that ensure that the pursuit of prosperity is not achieved at the expense of the planet or its people. Indeed, we believe companies which disregard this will fail to deliver sustainable returns to shareholders in the long term. We are therefore adopting a new target to ensure that Witan is managed in line with these beliefs. The target is that our portfolio will consist entirely of sustainable businesses by 2030 or earlier. This is in addition to the portfolio carbon reduction targets which we will commit to as a signatory to the NZAM.

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

"Witan's net asset value total return in 2021 was 15.8%. This strong absolute return was outstripped late in the year by the return on our global benchmark which was 19.9%. Our share price total return was 11.9%, owing to the discount ending the year wider than at the end of 2020. For most of 2021, our performance was ahead of our global benchmark, but the end of the year coincided with renewed lockdowns and a setback to recovery hopes.

Despite the uncertainties created by Russia's aggression in Ukraine, our managers believe that being positioned for a recovery from the COVID-19 pandemic and the prospect of a broadening economic recovery remains appropriate, although the timing has become less certain and the risks have increased. Witan's portfolio includes core holdings of quality growth companies offering compounding earnings growth, as well as exposure to sectors expected to benefit from the post-pandemic reopening of economies, from decarbonisation, and from the growth in infrastructure spending.

Revenue earnings per share rose by almost 17% to 3.6 pence per share in 2021, with the recovery quickening through the year. The recovery in revenue earnings has facilitated an increase in the dividend, an increased level of dividend cover and a lower call on past revenue reserves. The dividend in 2021 increased by 2.8% to 5.60 pence, the 47th year of consecutive dividend rises and more than double the dividend paid in 2011. The Board anticipates dividend cover improving each year, alongside continued annual dividend growth."

A video interview with Andrew Bell, Chief Executive Officer of Witan Investment Trust, discussing the 2021 full year results and the current outlook is available on the Company's website at www.witan.com/witan-full-year-results-2021.

For further information please contact:

Andrew Bell, Chief Executive Officer
Witan Investment Trust plc
Tel: [phone]
[email protected]

James Hart, Investment Director
Witan Investment Trust plc
Tel: [phone]
[email protected]

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

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Notes to Editors

Witan Investment Trust plc

Established in 1909, Witan is one of the UK's largest investment trusts, managing £1.9bn (source: Witan, as at 31.12.2020) on behalf of over 25,000 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. 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*	Q4 2016 Q4 2017	Q4 2017 Q4 2018	Q4 2018 Q4 2019	Q4 2019 Q4 2020	Q4 2020 Q4 2021
Share Price (Total Return)	22.1%	-8.1%	22.1%	2.7%	11.9%
Net Asset Value (Total Return)	19.1%	-8.4%	21.3%	4.2%	15.8%
Benchmark (Total Return)**	15.5%	-6.6%	20.1%	9.5%	19.9%

<sup>* Source: Morningstar, percentage growth to 31st December 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.</sup>