The trust delivered a 1.1% relative outperformance (versus a 4% benchmark return) in the six months to 30 June.
An interim dividend of 6p per ordinary share will be paid on 14 September, up from 5.45p at the same point last year, as the company aims to maintain its record of increasing its dividend every year since 1974.
Chairman Harry Henderson highlighted a contrast between the confident mood of equity markets in the early months of the year and the increased caution which has characterised the summer months. Following the early rally, gearing was moderately reduced to 7.0% from 10.5%.
“In a reprise of 2010 and 2011 the catalysts were disappointing economic indicators and continued turmoil in the eurozone,” he said.
“Despite the anaemic economic backdrop and continuing instability in Europe, global equities held on to modest gains in the first half of 2012.”
Tug of war
He added: “The tug-of-war for equities between relatively low valuations and the event risk from politics may make for a continued bumpy ride. It is more than usually important to take an investment viewpoint focusing on fundamentals rather than a short-term trading view dominated by sentiment. From present valuations time should be on the side of the equity investor, subject to the usual caveats of diversification and ensuring one can emotionally and financially tough out the shorter-term turbulence.”
Witan’s Total Expense Ratio (TER) rose slightly to 0.52% for the first six months (in 2011 it was 0.46%) as a result of higher performance fees. Without performance fees the TER was 0.37%.
The managers currently used by Witan are: Thomas White, MFS Investment Management, Southeastern Investment Management and Veritas for global; and Artemis, Lindsell Train, NewSmith Asset Management and Henderson Global Investors for UK.
Pan-Europe is covered by Marathon Asset Management, emerging markets by Trilogy and Asia Pacific by Comgest.
