Witan’s results for the first half of 2015 show it beating its benchmark by 1.9% – delivering a total return on net assets of 5.5% compared with a return of 3.6% for the composite benchmark (the FTSE All-Share Index 40%, the FTSE All-World North America Index 20%, the FTSE All-World Europe (ex UK) Index 20% and the FTSE All-World Asia Pacific Index 20%). The share price return was 5.8%. The dividends in the first half totalled 7.7p compared with 7.2p for the equivalent period in 2014.
They rejigged their borrowings in April, issuing £21m of 20 year and £54m of 30 year fixed-interest debt at yields of 3.29% and 3.47% respectively. This anticipates the repayment of the Company’s 8.5% Debenture stock due in October 2016. In the meanwhile, the size of the Company’s short-term facility has been reduced from £70m to £25m, to reduce commitment costs. At the end of June, the drawn balance on this facility was nil.
Following the issues, the Company has £185m of fixed-rate borrowings, which will reduce to £140m when the Debenture is repaid. The average interest rate paid on the Company’s fixed-rate borrowings has declined from 7% (prior to the issue) to 5.6% and will fall further to 4.6% following repayment of the Debenture in 2016.
The fund has 4.5m more shares in issue than it did at the end of December as it attracts new investors.
Every manager outperformed their benchmark with the exception of Pzena (just 0.1% behind), Tweedy, Browne and Trilogy Global Advisors. Trilogy’s emerging markets portfolio fell in value by 3.9% vs. a 2.2% return on the benchmark. The best performing managers were Heronbridge (up 9% vs. 3% for their benchmark), MFS international (up 5.1% vs. a 0.5% fall in their benchmark), and Lindsell Train (up 6.9% vs. a 3% rise). The direct investments returned 4.4%.
WTAN : Witan outperformance continues