WITAN INVESTMENT TRUST PLC Monthly factsheet January 2023
Monthly commentary
- Witan's NAV total return was a very solid 6.3%, which compares well to our benchmark's total return of 4.7%. Witan's share price total return was only 2.5%, as the discount to NAV widened to 8.9%.
After a drubbing in 2022, investors would be forgiven for wanting to emulate Rip Van Winkle and pull up the duvet to skip 2023 altogether. However, sentiment in January was clearly different from that which pervaded much of 2022. Markets, having been rattled by the combined effects of geopolitical upheaval, economic slowdown and monetary policy tightening, are reaching the conclusion that the worst is behind us. Whilst Central Bankers continue to talk tough, it appears that rates are near a peak, especially in the US, and that the risk of severe recession has receded, especially with Chinese economic re-opening and falling energy prices both helping to boost the argument for a 'soft-landing'. Certainly, investors appeared to have priced-in a more negative outcome than this for 2023, so equities benefitted from this less pessimistic interpretation of the future. Growth companies, which were under significant pressure last year, led the way in January, with the NASDAQ gaining 8.1%. Europe and the UK also performed well, with returns of 6.9% and 4.4% respectively. China was the best performing market, with a gain of 9.2%, while the US was one of last month's laggards, with a total return of 'only' 3.8%
Witan's NAV total return was a very solid 6.3%, which compares well to our benchmark's total return of 4.7%. Witan's share price total return was only 2.5%, as the discount to NAV widened to 8.9%. Although this discount is not out of kilter with many of our peers, we consider it to be unduly wide and a potential boost to returns for long-term investors. We also believe it is a good use of our own capital to, in effect, buy our portfolio for 91p in the pound. We therefore actively repurchased shares throughout the month.
As usual, our managers made some minor adjustments to their portfolios. These should be seen as a gentle nudge on the tiller rather than a change in course. Sandvik, a Swedish high-tech engineering group operating in the mining and metals sector, was the top purchase, for a second month in succession. Managers also added to Fiserv (a financial services technology provider), Airbus, Ashtead (a UK-based international industrial equipment rental company) and Booz Allen Hamilton (a US government consulting firm). On the sell side, there was some profit minor taking in Shell, BP and Thermo Fisher Scientific, as well as a part sale of Catalent.
Clearly, just as markets do not tend to fall in a straight line, nor should investors expect them to rise in a straight line. The next few months may yet be volatile as every data point is analysed to try to gauge whether we are out of the inflationary and recessionary woods and able to view the fertile plains of renewed economic growth. This, together with the unpredictable nature of Russia's barbaric actions in Ukraine, remind us that patience, selectivity and a long-term outlook are, as ever, key attributes of the successful investor.
Further information about the Company is available on Witan's
website,www.witan.com
31 January 2023
47 consecutive years of dividend rises
Share price | NAV per Share† | Premium (Discount) | ||
227.00p | 249.29p | (8.9%) | ||
Gross assets | Yield | Gearing | ||
£1.8bn | 2.47% | 13.9% |
Source BNP Paribas 31.01.23
- NAV is cum income with debt at fair value.
Investment objective
Achieve an investment total return exceeding that of the Company's benchmark over the long term, together with growth in the dividend ahead of inflation.
Our investment approach
A one-stop shop for global equity investment, offering growth in capital and income.
We search for the best managers around the world to create a portfolio diversified by region, investment sector and individual company level. Our multi- manager approach also reduces the potential risks arising from reliance on a single manager. Our highly experienced Board of Directors and Executive have many years' collective experience of both managing assets, selecting managers and of delivering sound, independent governance.
Investment team
ANDREW BELL | JAMES HART |
CEO | Investment Director |
Manager breakdown
Manager | Strategy | % |
Core | ||
Veritas | Global | 18 |
Lansdowne Partners | Global | 18 |
Lindsell Train | Global | 16 |
WCM | Global | 11 |
Jennison | Global | 6 |
Artemis | UK | 7 |
Specialist | ||
Direct holdings | Specialist Funds | 11 |
GMO | Climate Change | 6 |
GQG Partners | Emerging | 5 |
Unquoted funds | Specialist Funds | 2 |
*Please remember, past performance is not a guide to future performance, and the value of shares and the income from them can rise and fall, so investors may not get back the amount originally invested.
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Portfolio overview
Top 20 holdings (%)
GMO Climate Change Fund | 6.3 |
Apax Global Alpha | 2.6 |
Natwest | 1.8 |
Unilever | 1.8 |
Princess Private Equity | 1.7 |
BP | 1.7 |
BlackRock World Mining | 1.6 |
VH Global Sustainable Energy | 1.5 |
Microsoft | 1.4 |
AIB | 1.3 |
Canadian Pacific Railway | 1.2 |
Syncona | 1.2 |
Heineken | 1.2 |
Diageo | 1.2 |
RELX | 1.2 |
Mastercard | 1.1 |
Nintendo | 1.1 |
Thermo Fisher Scientific | 1.1 |
Alphabet | 1.1 |
UnitedHealth | 1.1 |
Top 10 Holdings | 21.7 |
Top 20 Holdings | 33.2 |
Regional breakdown (%)
North America | 36 |
Europe | 22 |
UK | 19 |
Asia | 5 |
Japan | 3 |
Other | 2 |
Investment Companies | 12 |
Sector breakdown (%)
Industrials | 16 |
Financials | 12 |
Information Technology | 12 |
Consumer Staples | 11 |
Health Care | 10 |
Consumer Discretionary | 8 |
Materials | 7 |
Communication Services | 7 |
Energy | 4 |
Utilities | 1 |
Investment Companies | 12 |
Portfolio characteristics
Active share (%) | 79 |
Number of holdings | 251 |
Portfolio changes
Top Purchases | £'000 |
Sandvik | 6,385 |
Ashtead | 2,623 |
Fiserv | 2,269 |
Airbus | 2,163 |
Booz Allen Hamilton | 2,120 |
Charter Communications | 1,396 |
Top Sales | |
Shell | 4,273 |
Catalent | 3,922 |
Thermo Fisher Scientific | 3,243 |
BP | 2,684 |
Enphase Energy | 2,012 |
Apple | 1,724 |
Tables in this document may not sum to 100% due to rounding.
Source: BNP Paribas as at 31.01.23
Performance and dividends*
Value of £10,000 invested over 10 years is £26,015†
30,000 | ||||
25,000 | ||||
20,000 | ||||
15,000 | ||||
10,000 | ||||
5,000 | ||||
Jan 2015 | Jan 2017 | Jan 2019 | Jan 2021 | Jan 2023 |
Dividend history (pence per share)
47 years of consecutive dividend growth
6 | n | 4th Interim | ||||||||
5 | ||||||||||
n | 3rd Interim | |||||||||
4 | n 2nd Interim | |||||||||
3 | n 1st Interim | |||||||||
2 | ||||||||||
1 | ||||||||||
0 | 2004 | 2006 | 2008 | 2010 | 2012 | 2014 | 2016 | 2018 | 2020 | 2022 |
Changed to quarterly dividend payments in 2013.
Total performance (%) †
Growth to 31.01.2023 | 3m | 6m | 1yr | 3yrs | 5yrs | 10yrs |
n Share Price | 4.5 | 1.9 | -1.7 | 12.0 | 18.9 | 160.2 |
n Net Asset Value‡ | 6.7 | 4.4 | 0.8 | 20.2 | 27.3 | 152.8 |
n Benchmark# | 4.9 | 2.0 | 1.6 | 30.2 | 44.5 | 151.9 |
NAV-Benchmark Relative | 1.8 | 2.4 | -0.8 | -10.0 | -17.2 | 0.9 |
Relative numbers may not add up due to rounding.
Discrete performance (%) †
Q4 2017 | Q4 2018 | Q4 2019 | Q4 2020 | Q4 2021 |
Q4 2018 | Q4 2019 | Q4 2020 | Q4 2021 | Q4 2022 |
-8.1 | 22.1 | 2.7 | 11.9 | -9.8 |
-8.4 | 21.3 | 4.2 | 15.8 | -10.2 |
-6.6 | 20.1 | 9.5 | 19.9 | -6.2 |
-1.9 | 1.3 | -5.3 | -4.2 | -3.9 |
-
Source: Morningstar / Witan, total return includes the notional reinvestment of dividends.
‡ The Net Asset Value figures value debt at fair value.
- Witan's benchmark is a composite of 85% Global (MSCI All Country World Index) and 15% UK (MSCI UK IMI Index). From 01.01.2017 to 31.12.2019 the benchmark was 30% UK, 25% North America, 20% Asia Pacific, 20% Europe (ex UK), 5% Emerging Markets. From 01.10.2007 to 31.12.2016 the benchmark was 40% UK, 20% North America, 20% Europe (ex UK) and 20% Asia Pacific. The benchmark changes since 2007 reflect a shift from the UK in favour of a more international strategic asset allocation, together with an index simplification from 2020.
For more information go to www.witan.com/support/legal-information.
*Please remember, past performance is not a guide to future performance, and the value of shares and the income from them can rise and fall, so investors may not get back the amount originally invested.
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Trust Information
Epic Code | WTAN |
AIC Sector | Global |
Launch Date | 1909 |
Financial Year End | 31 December |
Dividend Frequency | Quarterly |
Next Ex Dividend Date | 23 February 2023 |
AGM | April |
Shares in Issue (ex. treasury) | 675,966,208 |
Ongoing Charges‡ | 0.71% |
Excluding performance fee | |
Including performance fee | 0.73% |
Source: BNP Paribas as at 31.01.23.
‡Ongoing charges as disclosed in the Annual Report for the year ended 31.12.21. Information about other costs is also included in the Company's Key Information Document (KID) and disclosed in the table on page 43 of the 2021 Annual Report, both of which may be found on the Company's website.
Board of Directors
ANDREW ROSS | ANDREW BELL |
Chairman | CEO |
GABRIELLE BOYLE | RACHEL BEAGLES |
Non Executive Director | Non Executive Director |
SUZY NEUBERT | JACK PERRY |
Non Executive Director | Non Executive Director |
BEN ROGOFF | PAUL YATES |
Non Executive Director | Non Executive Director |
SHAUNA BEVAN | SHEFALY YOGENDRA |
Non Executive Director | Non Executive Director |
How to invest
Witan's shares can be traded through any UK stockbroker and most share dealing services, including online platforms that offer investment trusts.
Online platforms
A growing number of platforms offer investment trusts directly to investors including AJ Bell Youinvest, Barclays Smart Investor, Fidelity, Hargreaves Lansdown, Halifax Share Dealing Limited and Interactive Investor.
Advisers
Advisers who wish to purchase Witan shares for their clients can do so via a stockbroker or via a growing number of dedicated platforms. These include AJ Bell Investcentre, Fidelity Adviser Solutions, Nucleus, Novio, Transact and Standard Life Wrap.
For more information on the online platforms and how you can invest, click here
Please read the most recent Witan Key Information Document (KID) before placing an investment in Witan Investment Trust, which is available on the website www.witan.com.
Important information
This marketing communication is provided for informational purposes only and should not be construed as constituting an offer or a solicitation to buy or sell interests or investments in Witan Investment Trust plc. Any reference to individual securities does not constitute a recommendation to purchase, sell or hold the investment.
Please remember that past performance is not a guide to future performance. Witan Investment Trust is an equity investment. The value of an investment and the income from it can fall as well as rise as a result of currency and market fluctuations and you may not get back the amount originally invested. Investment trusts can borrow money to make additional investments on top of shareholders' funds (gearing). If the value of these investments falls gearing will magnify the negative impact on performance. The share price may trade above and below the NAV per share representing either a premium or discount to the share price respectively.
www.witan.com
This marketing communication is issued and approved by Witan Investment Services Limited FRN: 446227 on 10 February 2023. Witan Investment Services Limited is registered in England no. 5272533 of 14 Queen Anne's Gate, London, SW1H 9AA. Witan Investment Services Limited provides investment services and is authorised and regulated by the Financial Conduct Authority. Calls may be recorded for our mutual protection and to improve customer service.
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Disclaimer
Witan Investment Trust plc published this content on 10 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 February 2023 15:21:01 UTC.
