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LONDON (Alliance News) - Witan Investment Trust PLC on Wednesday said its investment managers "outperformed" their benchmarks significantly in 2015, while results for were helped also by borrowings.
The trust's net asset value total return of 6.4% om 2015 exceeded the benchmark's total return of 3.5%. The share price total return was 5.7%, as the shares moved to a 0.2% discount at the end of 2015 from a small premium at the end of 2014.
The trust increased its dividend for the year to 17.0 pence per share from 15.4p, while adding GBP2.4 million to its revenue reserves, marking the 41st consecutive year of rising dividends.
"Active investment selection was particularly important. During the year our managers outperformed their benchmarks significantly overall, with a modest additional contribution from the company's use of gearing," Chairman Harry Henderson said.
In 2015, the trust issued GBP75.0 million of 20 and 30 year debt, at borrowing yields below 3.5%. "The interest rates Witan secured are the lowest achieved in the sector for such long maturities for many decades. The board believes that fixing borrowing costs at such low rates will benefit future shareholder returns and the timing fits neatly with the scheduled repayment of our 8.5% debenture in 2016," Henderson added.
Over the past five years, Witan said it has achieved a NAV total return of 51%, compared with the 39% return from its benchmark over the same period. Over the 10 years to the end of 2015, shareholders have seen a NAV total return of 110%, the trust said, compared with the benchmark's return of 82%.
Since October 2007 the benchmark (based on the FTSE All-World indices) has been: 40% UK; 20% North America; 20% Europe exluding-UK; 20% Asia Pacific.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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