Total distribution for the year is 13.2 pence per share, a 10% increase on the previous year. The trust is one of a number to be introducing quarterly dividend payments in 2013.
The trust also outperformed its benchmark by 2.6% in terms of net asset value total return at 15.6%. The trust’s benchmark is a composite of the following four equity regions: UK 40%, North America 20%, Europe (ex UK) 20% and the Asia Pacific 20%.
The outperformance is attributed to two factors; a 2% aggregate outperformance by Witan’s managers, and a 1.5% benefit from the use of gearing during a year of rising markets, offset by operating and borrowing costs.
The trust has appointed two new managers in the past three months. Lansdowne Partners took on the trust’s £30m, long only global equity strategy in December, while Matthews Asia were drafted in to replace Comgest on the trust’s £110m Asia portfolio.
Harry Henderson, Chairman of Witan Investment Trust said:“Equity markets made widespread gains during 2012 despite headwinds from downgraded growth expectations in many regions. This positive market trend has continued in the early part of 2013, amid signs that economic performance was improving from last year’s weakness, with fewer downside risks than appeared likely during the middle of 2012. Although the world appears some way from a return to robust economic growth, sentiment is less fearful, as evidenced by the inflows into equity funds in recent months.
“In this environment, a more selective approach is likely to be required, since less return is on offer from a general levitation in the level of market indices and more depends upon the growth prospects, business resilience and quality of management of individual companies. This is reflected in Witan’s increased focus on managers with greater thematic or stock-specific concentration in their portfolios.”
Broker view
Charles Cade, head of investment company research at Numis Securities, said of the results: "Witan’s portfolio has undergone significant changes since Andrew Bell was appointed CEO in February 2010, and all of the managers now have an active mandate, with no exposure to index trackers (the changes in manager are summarised in the table below).
"Gearing and asset allocation are actively managed and the expense ratio is very low for a multi-manager vehicle at 0.69% of average net assets (0.97% including performance fees paid). The fund currently trades at an 11% discount, a level which is protected through an active buyback policy. As a result, Witan remains one of our favoured Global Growth funds."
