Witan Investment Trust : NAV total return per share was 4.2% in 2020 following a strong recovery in performance in H2 2020

Witan Investment Trust's NAV total return per share was 4.2% in 2020 following a strong recovery in performance in H2 2020

Thursday, 11 March 2021

A summary of the results is below:

• Full-year NAV total return of 4.2%. The benchmark returned 9.5%
• Portfolio restructured to reflect a more global outlook and a new benchmark
• Second half performance turnaround: 22% total return, ahead of the new benchmark's 12%
• Ten-year NAV total return of 156%, compared with 142% for the benchmark
• Dividend increased by 1.9% to 5.45 pence, more than double that paid in 2010 and an unbroken run of increases since 1974
• Intention to use reserves to support and grow the dividend while cover rebuilds

'At the start of 2020, Witan changed its benchmark strategic asset allocation to reflect the increasing growth opportunities in the US and faster growing regions of the world, relative to those in the UK and Europe. Although implementing the transition in our benchmark was complicated by the changed economic environment, we have taken decisive action to restructure our portfolio to reflect the changed opportunities, while retaining established managers expected to perform well for Witan in the future. 2020 will certainly not go down as a good year for Witan. However, we pressed on with our plans during the exceptionally difficult conditions early in the year and since the early summer there has been a consistent and significant recovery in performance.

Andrew Ross, Chairman of Witan Investment Trust plc

Andrew Ross, Chairman of Witan Investment Trust plc said:

'Unlike the sudden pandemic-linked underperformance during February and March, the recovery was steady and persistent, through up and down months for the markets. Whereas at mid-year our total return of -14.7% was 12.6% behind our benchmark, the second half of the year showed a 22.2% total return, well ahead of the return on our benchmark, with outperformance in every month from June onwards. As a result, our total return for full year was a gain of 4.2% and, although there is more to do, we recovered most of the earlier shortfall against the benchmark index, which returned 9.5%. Our share price total return was 2.7%, reflecting a slightly wider discount than at the end of 2019.

We have made further strides this year in formalising and deepening our engagement on Environmental, Social and Governance ('ESG') issues with our investment managers and other service providers. This reflects our belief that investing in well-managed companies with sustainable, growing businesses is the foundation for achieving good returns for shareholders as well as a better future for the planet and its people.

The dividend for the year increased by 1.9% to 5.45 pence per share, ahead of the 0.6% rate of UK inflation at the year end. We used £19m of our revenue reserves to absorb the shortfall in current year revenue. The Board expects portfolio dividends to grow in coming years and it is the Company's intention to continue to make use of these retained earnings to increase the dividend to shareholders annually while cover is rebuilt. We have increased the dividend every year for the last 46 years, with the latest dividend being two and a half times that paid in 2010.'

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

'As noted by the Chairman, there was a significant turnaround in the second half which turned the first half-loss into a full-year gain in both net asset value and share price total return terms. During the early months of 2020, a review of our existing managers' suitability for our new asset allocation was underway, along with a search for additional global managers. As a result, contracts with four of the ten external managers in place at the start of the year were terminated and two new managers were appointed. These changes reduced our exposure to the UK and Europe, in favour of the US and specialist funds.

The timing of economies fully emerging from the renewed restrictions in place at the end of 2020 remains uncertain. Nonetheless it seems increasingly likely that 2021 will see a gradual but consistent reopening of activity. Although areas of the equity markets still have the scope to exceed expectations, this appears less likely of markets as a whole than a year ago, particularly as many of 2020's high-profile winners are also significant index components. Accordingly, greater selectivity in stock selection may be warranted as well as greater scepticism of the near-universal assumption that interest rates can be indefinitely suppressed.'

Andrew Bell, Chief Executive Officer of Witan Investment Trust

A video interview with Andrew Bell, Chief Executive Officer of Witan Investment Trust, discussing the 2020 full year results and the current outlook will be available at 9am on the Company's website at www.witan.com/witan-full-year-results-2020.

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*	Q2 2015 Q2 2016	Q2 2016 Q2 2017	Q2 2017 Q2 2018	Q2 2018 Q2 2019	Q2 2019 Q2 2020
Share Price (Total Return)	-2.5%	36.2%	10.9%	0.6%	-11.6%
Net Asset Value(Total Return)	7.3%	28.0%	8.7%	2.8%	-8.8%
Benchmark(Total Return)**	7.5%	22.8%	8.5%	6.1%	2.3%

^{* 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. 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 changed to MSCI International, replacing the previous FTSE source. For more information go to www.witan.com/support/legal-information.}