LONDON (Alliance News) - FTSE 250-listed Witan Investment Trust PLC on Thursday said in underperformed its benchmark in the first half of 2016, seeing a total return on net asset value of 6.4%.
This compared to a 7.7% return from its benchmark, a composite of the FTSE All-Share Index, the FTSE All-World North America Index, the FTSE All-World Europe (ex UK) Index, and the FTSE All-World Asia Pacific Index.
Excluding changes in the fair value of its debt, the trust's net asset value total return was 7.5%.
Witan Investment Trust said that whilst it underperformed its benchmark in the first half, over the longer term its performance remains ahead. The first half of 2016 "proved to be a testing period", it said.
"The difficult conditions for active managers were reflected in six of our external managers underperforming their benchmarks during the period, with returns ranging from -2.7% to +5.1%. Four of our external managers, as well as the direct holdings portfolio outperformed their benchmarks, achieving total returns of over 10%," Witan Investment Trust said.
It proposed a second interim quarterly dividend of 4.25 pence per share, which takes its total dividends for the first half to 8.5p per ordinary share, compared to 7.7p the previous year.
Witan Investment Trust said it had bought back 14.4 million of its shares in May at a 6.5% discount to NAV, and has continued to buy back during the volatile conditions before and after the EU referendum.
It added that it believes, when market conditions normalise, the recent discount widening should begin to reverse and will said it will continue to use its buyback authority to add value for shareholders.
Shares in Witan Investment Trust were flat at 826.74 pence Thursday.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Witan (WTAN)