Witan’s results for the year ended 31 December 2015 show it generating a net asset value total return of 6.4%, 2.9% more than its benchmark’s total return of 3.5%. The share price total return was 5.7%, as the shares moved from a small premium at the end of 2014 to a 0.2% discount at the end of 2015. The dividend for the year has been increased by 10.4% to 17.0 pence per share (2014: 15.4 pence). This marks the 41st consecutive year of rising dividends at Witan.
Demand for the shares allowed them to expand the fund by £83m over the course of the year.
Eight of their eleven external managers outperformed their benchmarks during the year, four of them by margins of over 5% (Lindsell Train, Landsdowne Partners, Marathon and Matthews). The direct portfolio underperformed, in part as they increased their exposure to BlackRock World Mining.
Witan’s fixed rate borrowings rose from £110m to £185m as they issued new 20 year and a 30 year debentures but will reduce to £140m when the old debenture is repaid in October 2016. 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, while the average borrowing term has doubled from 7 to 14 years.
WTAN : Another good year for Witan