Witan Investment Trust

Global Growth

Rated Fund 2013-19. Makes good use of external managers

Since the arrival of chief executive Andrew Bell in 2010, Witan’s performance has improved signi­ficantly and the investment trust continues to be a good core holding for lower-risk investors.

Most of its portfolio is managed by external fund managers. When the trust ­first adopted this approach in 2004, there was a heavy allocation to index-tracking funds, which resulted in mediocre performance. Under Bell, the trust has become actively managed.

Bell decides the asset allocation, chooses external managers running different geographical portfolios – 10 of them at the end of 2018 – and manages a directly invested portfolio that accounts for 10% of the trust’s £2 billion of assets.

The blend of different active approaches and styles aims to improve returns and smooth out the volatility normally associated with a single manager. Such an approach tends to increase the cost of investing, but Witan’s scale means its ongoing charges are a reasonable 0.76%.

Although its yield is relatively modest, at just shy of 2.2%, it has clocked up 44 consecutive years of annual dividend increases.

Founded in 1909, Witan played an important role in the history of the investment trust industry. Having originally been created as a family trust to manage the Henderson family estate, Witan sponsored the setting up of the investment group Henderson in 1932 to manage its investments. The trust became self-managed in 2004, but there is still a member of the Henderson family on the board – the current chairman Harry Henderson.

For most of the past two years, its shares have traded at a small single-digit discount to net asset value. The widest discount in recent history was 9% in 2015.

Narrative and ratings content all as of 01 January 2019.

See all Money Observer rated funds
Name
Witan Investment Trust
Manager
Witan Investment Services Limited
Type
Closed Ended Investment Company
ISIN
GB0009744060
Sector
Global
Launched
17/02/1909
OCF
0.79 %
Risk Rating
3
3 Year Sharpe
1.33
3 Year Alpha
2.61
Yield
2.2 %
Benchmark
FTSE Emerging TR GBP
Fund Size
£ 1.9 billion
NAV
1,104
Gearing
113
Discount Premium
-3
To long term growth in income and capital through active investment in global equities. The portfolio is diversified by geographical region, industrial sector and at the individual stock level. It typically uses between 10 and 15 investment managers. The blend of different active approaches and styles aims to deliver added value for shareholders while smoothing out the volatility normally associated with a single manager.
Holding %
Syncona Ord 2.43 %
Apax Global Alpha Ord 2.09 %
Vonovia SE 2.00 %
BlackRock World Mining Trust plc 1.58 %
Delta Air Lines Inc 1.36 %
Diageo PLC 1.20 %
BP PLC 1.11 %
Unilever PLC 1.08 %
Lloyds Banking Group PLC 1.08 %
Charter Communications Inc A 1.04 %
Region %
United Kingdom 33.33 %
United States 23.66 %
Eurozone 14.68 %
Asia - Emerging 8.93 %
Asia - Developed 6.60 %
Japan 5.62 %
Sector %
Financial Services 16.37 %
Industrials 15.96 %
Technology 13.73 %
Consumer Cyclical 12.80 %
Consumer Defensive 12.75 %
Healthcare 9.42 %
Basic materials 5.77 %
Communication Services 5.09 %
Name
Witan Investment Services Limited
Address
SW1H 9AA, London, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

Bevis Comer
Joined 06/17/2013
Peter Davies
Joined 12/14/2012

Davies is a portfolio manager of Lansdowne, he joined the firm in 2001. Davies was formerly a director of Merrill Lynch Investment Management working on the US team covering technology stocks until 1993; he joined the UK specialist team in 1994.

Nick Train
Joined 09/01/2010

Nick Train co-founded Lindsell Train Limited in 2000. He is the portfolio manager for UK equity portfolios and jointly manages Global portfolios. Before founding Lindsell Train he was head of Global Equities at M&G Investment Management, having joined there in 1998 as a director. Previously he spent 17 years (1981 – 1998) at GT Management which he left soon after its acquisition by Invesco. At his resignation he was a director of GT Management (London), Investment Director of GT Unit Managers and Chief Investment Officer for Pan-Europe. Nick has a BA honours degree in Modern History from Queen’s College, Oxford.

Derek Stuart
Joined 06/05/2008

Derek manages the Artemis UK Special Situations Fund, which he launched in March 2000, and segregated accounts alongside Andy Gray. He trained in fund management at Ivory & Sime and was promoted in 1992 to run UK equity income portfolios. Derek co-founded Artemis in 1997.

Data provided by Morningstar.

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