Manager outperformance drives rise in NAV return at Witan Investment Trust

FTSE 250-listed Witan Investment Trust generated a Net Asset Value (NAV) total return of 15.6 per cent, outperforming the benchmark's return of 13 per cent in the year ended December 31st.

FTSE 250-listed Witan Investment Trust generated a Net Asset Value (NAV) total return of 15.6 per cent, outperforming the benchmark's return of 13 per cent in the year ended December 31st.

The company reported that its NAV total return over the last five years was 18.7%, 3.7% ahead of the benchmark.

Advertisement - Article continues below

In the full year, the dividend increased by 10%, 7.0% ahead of the rate of inflation and the company reported that quarterly dividends would be introduced from 2013.

It said that the principal contributors to the NAV total return were a 2.0% outperformance by its managers and a 1.5% benefit from the use of gearing during a year of rising markets.

Additionall, there was a +0.5% contribution from a decline in the effect from marking its debt to market values and a +0.1% benefit from share buy-backs, the company said.

These factors were offset by the cost of borrowings, -0.6%, and by operating and investment management costs, -0.9%.

The company reported that falling inflation globally, quantitative easing and theoretical geopolitical events which did not materialise furher supported returns.

"The two principal drivers of the strong returns were more pro-active official policies to sustain economic growth, acting on the dry tinder of the low equity valuations which prevailed at the end of 2011," the company reported.

"Although arguments will continue over the policy of quantitative easing, it has undeniably helped offset the negative effects of contraction in the banking sector and kept interest rates low, which benefits borrowers."

"The positive returns for equity investors were assisted by a number of feared events which did not happen - Middle Eastern conflict did not lead to a spike in oil prices, the Euro did not implode and China did not slip into recession," the company added.




Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

UK Economy

What bounce back loans can tell us about how we’ll pay for all this

The government will guarantee emergency "bounce back loans" for small businesses hit by Covid-19. Inevitably, many businesses will default. And there'…
1 Jun 2020

This looks like the biggest opportunity in today’s markets

With low interest rates and constant money-printing, most assets have become expensive. But one major asset class hasn’t. John Stepek explains why com…
2 Jun 2020

These seven charts show exactly why you must own gold today

Covid-19 is accelerating many trends that were already in existence. The rising gold price is one such trend. These seven charts, says Dominic Frisby,…
3 Jun 2020