REG - Witan Inv Tst PLC - Annual Financial Report
18/03/2024 07:00
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RNS Number : 1426H Witan Investment Trust PLC 18 March 2024
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WITAN INVESTMENT TRUST PLC
This announcement contains regulated information
Annual Financial Report for the year ended 31 December
2023
Chairman's Report
2023 HIGHLIGHTS
· Full-year NAV total return of +12.7%. Share price total return +10.1%
· The benchmark returned +14.7%, the AIC Global sector's NAV total
return was +12.8% and UK CPI rose 4.0%
· Share price discount to NAV 7.8% at year-end (2022: 5.4%)
· The NAV uplift from share buybacks again offset the majority of the
Company's ongoing charges during the year
· Dividend increased by 4.1% to 6.04 pence, more than double that paid
in 2013 and an unbroken 49 year run of increases
· 2024 NAV total return to 13 March 5.9%
· Our CEO, Andrew Bell, has recently informed the Board that he plans
to retire from Witan during the coming year. The Company has decided to
undertake a review of its future investment management arrangements and (in a
separate announcement) to invite proposals for the future management of the
Company's portfolio.
A volatile but ultimately positive year for equities
At the start of the year, our portfolio benefited materially from a broad
equity rally, as fears of recession led to hopes of a turn in the monetary
cycle, encouraging investment in lower-rated companies and those with cyclical
exposure. However, continued central bank hawkishness chilled these hopes over
the summer, with rising bond yields exerting downward pressure on equity
valuations, such that a relative performance lead for Witan of over 3% by the
end of April reversed into a similar level of underperformance by late
October. Accumulating evidence of declining inflation then led to a softer
message from central banks, kindling hopes that the next move in rates would
be down, even if not imminently. This ushered in a two-month rally similar in
character to that at the start of the year, with a wider range of companies
and sectors participating, during which we recovered much of the lost relative
ground, ending at the highs of the year in total return terms. Our NAV total
return in the year was 12.7%, compared with our benchmark's total return of
14.7%. The share price total return was 10.1%.
Two features of 2023's equity returns are worth noting. The first was the
extent to which global equity indices were dominated by a small number of
US-based technology stocks. After a poor 2022, the technology leaders were
spurred on by strong earnings growth and enthusiasm for the rapidly growing
field of generative Artificial Intelligence ('AI'). 60% of the US market's
total return of 19.2% in sterling terms was delivered by seven leading
technology companies, with the remaining 493 stocks in the index delivering
under half of the market's return between them. Of the 14.7% return from
Witan's benchmark, 46%, or 6.7 percentage points was driven by these seven US
stocks, which represented 14% of our benchmark and 6% of our portfolio. This
was a difficult backdrop for fund managers to navigate without over
concentrating their portfolios. The second point to note is that, despite the
headwind presented by the narrow base of market returns, our core managers in
aggregate outperformed. Our lagging of the benchmark was entirely attributed
to weakness from the GMO Climate Change Investment Fund and Witan's holdings
in investment companies, which have both been strong areas for shareholders in
the past. We see prospects for both to recover in 2024.
Page 2 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2023
Chairman's Report (continued)
Andrew Bell's CEO report covers these points, as well as the macroeconomic
backdrop, in more detail.
Over the long term, since Witan adopted a multi-manager approach in 2004, our
NAV total return of 428% has broadly matched the 433% total return on our
benchmark, while the share price total return (510%) has been well ahead and
we have raised the dividend above the rate of inflation over the period.
Although our managers have at times struggled in the volatile and polarised
investment environments since 2020, we anticipate a convergence in performance
between the narrow range of companies that has driven market performance in
recent years and the broader swathe of more modestly rated companies which
have been out of favour during this period of heightened risk-aversion and
uncertainty about economic growth.
The evidence has begun to favour the conclusion that the US economy may
experience a soft landing, regaining control of inflation without a recession,
while weak economic conditions in the UK and Europe seem to have bottomed out,
better than earlier fears. The biggest economic disappointment has been the
mediocre economic rebound in China, following the ending of its Covid
restrictions. Whilst the financial sector impact of its housing downturn
appears largely a local issue, a range of sectors (luxury goods, industrials,
and commodities) suffered from weak demand in China, spreading the effects to
other markets.
To date in 2024, in continued positive market conditions, Witan's NAV total
return rose by 5.9%, slightly ahead of the return on the Company's
benchmark, which was 5.8%.
RESPONSIBLE INVESTMENT
We have developed a robust process to monitor our managers' approach to
investing responsibly, with a focus on how our investment policy can help
deliver prosperity for our shareholders as well as better outcomes for our
investee companies, their stakeholders and wider society. A key part of this
is our 'Sustainable by 2030' commitment, which involves detailed engagement
with our third-party managers and an assessment of their portfolio companies,
using the bespoke responsible investment framework we introduced in 2022. This
year our managers assessed over 300 of the companies in which they invest on
our behalf, on the ten different sustainability issues we specify.
The results of these assessments are shown in the responsible investment
section, which is on pages 16 to 23 of the Annual Report.
Last year we reported that we had committed to the Net Zero Asset Managers
Initiative ('NZAM'). As part of this commitment, we set decarbonisation
targets (known as the Initial Target Disclosure) in line with the NZAM
guidelines. Our target, which was set early in 2023, is to deliver (by 2030) a
50% reduction in our core portfolio's Weighted Average Carbon Intensity
('WACI'), compared with the 2019 baseline year. We (i.e. the companies within
our core portfolio) are well on the way to achieving this aim, as our
portfolio's WACI is currently 43% below the 2019 baseline level. It is
important to note that this commitment does not impose blanket exclusions on
our managers, as we believe that engagement with companies often has a greater
positive impact than divestment. We expect the lion's share of progress
towards our commitment to be made by companies improving their carbon
intensity, not simply by our managers selecting companies with low emissions,
leaving other (possibly less attentive) investors to press for change in the
heavier emitters.
Page 3 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2023
Chairman's Report (continued)
2023 DIVIDEND
A fourth interim dividend of 1.69 pence was declared in February 2024, payable
on 15 March 2024. As a result, the dividend for the year increased by 4.1% to
6.04 pence per share (2022: 5.80 pence). This year's dividend was covered 82%
by 2023 revenue earnings (2022: 84%), with a call of £7.0 million on our
revenue reserves (in 2022 we used £6.4 million).
The Board expects portfolio dividends to recover further in the coming years
and it is the Company's intention to continue to make use of retained earnings
to increase the dividend to shareholders annually until full cover is
restored.
We have increased the dividend every year for the last 49 years and the latest
dividend is more than double that paid in 2013. 2023's increase is ahead of
the rate of UK inflation (4.0% at the year-end) and Witan's dividend has grown
substantially ahead of UK inflation over the past 5 and 10 years.
BOARD COMPOSITION AND SUCCESSION
The Board currently consists of nine directors, eight of whom are
non-executive, representing a broad diversity in background, experience,
ethnicity, and gender. The Board fully meets formal corporate governance
guidelines on diversity but, above all, it has the right balance of skills to
oversee the Company's affairs. All directors stand for re-election each year.
Our CEO, Andrew Bell, has informed the Board that he plans to retire from
Witan during the coming year. The Board has taken the opportunity to review
the Company's future management arrangements and (in a separate announcement)
to invite proposals for the future investment management of the Company's
portfolio.
The process of considering proposals will take place over the coming months
and a further announcement will be made when a preferred option has been
chosen. In the meanwhile, Witan will continue to be managed by Andrew Bell and
the rest of the Executive Team, in accordance with the current investment
approach.
AGM
Witan was founded in 1909 but 2024 marks the 100th anniversary of our listing
on the London Stock Exchange. The ensuing years have been eventful and
transformative in many ways and the pace of change shows no sign of abating as
we progress through our second century. We welcome hearing shareholders'
views at any time but, in particular, very much look forward to being able to
meet shareholders again at this year's Annual General Meeting ('AGM'). Our
116th AGM will be held on 1 May 2024, at the Merchant Taylors' Hall. For those
not able to attend in person, there will be the opportunity to attend the
meeting virtually and put questions to the Board. Details will be included in
the formal notice of the meeting which will be sent to shareholders in early
April.
Andrew Ross
Chairman
15 March 2024
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WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2023
CEO's Review of the year
Inflation, volatile interest rates, East-West tensions, and war in the Middle
East. For those longer in the tooth, there is a sense of 1970s déjà-vu in
the conjunction of circumstances that faced investors in 2023.
In many developed economies, inflation reached levels not seen for several
decades. Having misjudged the balance between transitory factors driven by
supply disruptions and those driven by fiscal largesse, central banks adopted
and sustained a hawkish bias for much of 2023, until the dying months when
they began to declare advantage, if not victory. A year ago, we characterised
the peak of interest rates as likely to resemble Table Mountain rather than
the Matterhorn (a metaphor which has since been plagiarised by two central
bankers!) and we have been on the Table-top now for many months. Whilst
inflation currently remains above official targets, it seems probable that
rates will start to fall before 2% inflation is reached - it is easier to be
patient about the pace of convergence when the direction is clear.
At the start of the year, there was a concern that most of the world was
heading for a recession, engineered by the central banks to reduce inflation.
The one exception was China, confidently expected to rebound as it ended its
Covid-suppression restrictions. Although the UK and Europe have tiptoed near
the shallows of recession, the US has grown robustly, while China's recovery,
in the year of the Rabbit, lacked the staying power of the Duracell Bunny.
Forecasts for 2024 are for insipid growth but not recession. If inflation has
subsided without a widespread economic shakeout, this would suggest economies
are working better than in past inflationary bouts, which may be worth
something in terms of stock market valuations.
Perhaps surprisingly, despite the conflicts in the Middle East and in Ukraine,
energy costs, which surged in 2022, fell in 2023. Record US oil production,
the availability of alternatives to Russian gas and subdued growth worldwide
have taken the edge off this driver of inflation, albeit presenting a headwind
for developers of non-fossil energy sources. So far, the world has found a way
to work around the economic consequences of global conflicts, but they
constitute highly unpredictable "known unknowns".
If confirmed, the (so far) relatively painless re-establishment of "normal"
levels of interest rates (i.e. something close to the growth rate of an
economy aiming for 2% growth and 2% inflation) would be a significant
achievement by central banks. Economies need a base level for determining the
cost of capital and how to allocate it within the economy. Aside from the
long-term unsustainability of maintaining high real interest rates in
economies with so much debt, a recession would risk another round-trip towards
zero interest rates, losing the benefit of having restored a market-based cost
of capital. This seems another reason for policy rates to decline earlier than
expected, but much more gradually than they rose.
Despite the uncertainties associated with geopolitics and the adjustment to a
rapidly rising level of interest rates, 2023 was (eventually) a benign year
for equity returns. In sterling terms, the MSCI All Country World index
('ACWI') rose by 16%, led (again) by the US +19% with Europe +16% and Japan
+13% in silver and bronze medal positions. The UK and Emerging Markets brought
up the rear with returns of 8% and 4% respectively.
Page 5 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2023
CEO's review of the year (continued)
WITAN'S PERFORMANCE
Witan's NAV total return in 2023 was 12.7%, which was 2.0% short of the 14.7%
return from our benchmark. We entered 2023 expecting a stronger relative
performance, as 2022 had seemed to be passing the performance baton from the
rapidly growing but highly rated technology sector to a wider range of
lower-rated but modestly growing businesses. The early months of the year bore
this hope out, with a strong relative and absolute performance.
However, for a year which generated such healthily positive equity returns,
sentiment was unusually fickle. The periods of weakest growth momentum (the
first and last quarters) saw broad-based equity rallies which included many
cyclical companies, while the intervening months when the US was ostensibly
booming saw weak returns, disproportionately favouring highly rated growth
stocks which would usually have come under pressure from rising bond yields.
In other words, investor sentiment has been driven more by the perception of
interest rate moves than by economic growth.
The magic ingredient for equity markets was excitement over the prospects for
companies directly exposed to the accelerating development of generative AI.
This requires intensive use of specialist semiconductor processors (as
produced by the US tech giant Nvidia), to help the software models being
developed by other US tech giants (such as Alphabet, Meta, and Microsoft) to
"learn", or refine themselves to a level of interactive understanding able to
be applied usefully across a wide range of sectors. The double-dose of
immediate capital investment and ultimate hopes of boosting productivity (a
missing element of growth over the past 15 years) caught investors'
imagination, albeit initially through the narrow lens of seven technology
companies.
Our managers owned many of the "Magnificent Seven" but insufficiently in
aggregate to sustain returns when the market could focus on nothing else. Our
more broadly diversified portfolios prospered better when the market mood
shifted towards the year end to consider hopes of falling interest rates and
the potential of an upswing in the economic cycle.
Witan's portfolio is invested via a diversified group of mainstream and
specialist managers, with well-tested and resourced investment approaches. It
includes core holdings of quality growth companies offering compounding
earnings growth, technology specialists and exposure to sectors expected to
benefit from economic growth, from decarbonisation, and from the growth in
infrastructure spending.
PRINCIPAL PERFORMANCE DRIVERS
The financial statements in the Annual Report (see extracts on pages 25 to 32
below) set out the required statutory reporting measures of the Company's
financial performance. The chart on page 11 of the Annual Report shows the
contributions (in pence per share) attributable to the various components of
investment performance and costs, which together constitute the rise from the
234.1 pence starting NAV to the year-end NAV of 257.6 pence, after the payment
of dividends to shareholders.
A breakdown of the relative performance attribution in 2023 (based on the
Company's financial statements) is shown in the table on page 6.
Page 6 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2023
CEO's review of the year (continued)
Our core portfolio managers collectively outperformed during the year, but
their contribution was outweighed by weak performance from the GMO Climate
Change Investment Fund and by Witan's direct investments in specialist
investment companies. As a result, our overall portfolio returns lagged our
benchmark. Gearing was a significant positive contributor during the year,
even allowing for additional interest costs on the short-term portion of our
borrowings. As in 2022, Witan benefited from taking advantage of the widening
in our discount, buying 8.0% of our shares into treasury, which generated an
uplift in NAV of £11.5 million and offset the majority of our ongoing
charges.
BREAKDOWN OF THE PERFORMANCE ATTRIBUTION IN 2023 (%)
Net asset value total return +12.7 Portfolio total return (before costs) +11.7
Benchmark total return +14.7 Benchmark total return +14.7
Relative investment performance -3.0
Investment management costs -0.4
Investment contribution -3.4
Gearing impact +1.6
Borrowing costs -0.6
Gearing contribution +1.0
Effect of changed fair value of debt +0.1
Share buybacks +0.7
Other contributors +0.8
Other operating costs and tax -0.3
-0.3
Relative performance((1)) -2.0 -2.0
(1) N.B. Figures may not sum due to rounding.
PORTFOLIO STRUCTURE AND MANAGER PERFORMANCE
Our portfolio is structured with c.75% allocated to mainstream 'core' managers
(five global, one UK) and the 25% balance allocated to specialist regional or
sector managers; up to 15% may be invested in investment companies offering
exposure to faster-growing or otherwise attractive asset categories.
There were no changes to the six core managers in 2023, although allocations
were adjusted during the year, to take account of early outperformance in the
UK and to provide resources for share buybacks. We increased our allocation to
the GMO Climate Change fund in November, after several months of notably weak
performance by climate change and alternative energy portfolios. Despite a
subsequent sharp recovery, the fund was our weakest performer in 2023, with
the 11.7% fall contrasting with the 15.9% rise in its MSCI ACWI benchmark.
Although this was a strong performance relative to many others in its sector,
it was unable to shrug off the market's concerns about the effect of rising
interest rates, delayed projects and falling inventories in the renewable
energy sector. Prior to 2023, the fund had delivered strong relative and
absolute returns since purchase in 2019. We believe the long-term trend
towards sustainable energy and other climate change mitigation or adaptation
measures will prove more enduring than 2023's mixture of profit-taking and
hesitancy over the pace of the energy transition.
Page 7 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2023
CEO's review of the year (continued)
Our third-party managers implement mandates set by the Company. The managers'
mandates, benchmarks, investment styles and dates of appointment are shown on
pages 26 to 30 of the Annual Report. Their returns during the year and since
appointment are set out in the table below. Four of our six core external
managers outperformed their benchmarks. Artemis was ahead of the UK market by
7% and Jennison ahead of the MSCI ACWI by 19%, while Veritas and WCM also
outperformed their global benchmark by 0.4% and 4.7% respectively. GQG
particularly excelled, with its 25% return 21% ahead of its emerging market
benchmark and 9% ahead of the global equity index. Lansdowne's portfolio
followed the fortunes of the "broad versus narrow" equity path during 2023,
outperforming strongly during the early months, falling back over the summer,
and ending the year with a gain of 14.6%, just 1.3% behind its benchmark.
Lindsell Train's "buy and hold" portfolio of enduring brands and other themes
suffered from neither being on growth investors' buy lists, nor sought out by
those seeking cyclical recovery. A positive return of 8.0% was nonetheless
7.9% behind the global benchmark.
The other notable underperformer in 2023 was the directly held portfolio of
investment companies (discussed in the following section). This, together with
the GMO Climate Change mandate, offset positive contributions from the core
managers, from gearing and from share buybacks, which is why Witan's returns
for the year, while strongly positive and well ahead of inflation, were behind
the return from our composite benchmark.
We believe our diverse range of managers remains well-positioned for 2024
when, with a turn in the interest rate cycle and unusually wide valuation
spreads within the markets, we expect to see share returns more evenly spread
than in the unusually concentrated markets of 2023.
ASSETS UNDER MANAGEMENT AND INVESTMENT MANAGERS' PERFORMANCE
Investment manager and mandate Witan assets managed as at 31.12.23((1)) Performance in 2023 Performance since appointment((2)) %
Appoint- %
ment date
£m % Manager Benchmark Manager Benchmark
CORE
Jennison (Global) 31.08.20 137.2 7.6 34.5 15.9 4.2 10.6
Lansdowne (Global) 14.12.12 328.8 18.1 14.6 15.9 13.2 12.2
Lindsell Train (Global) 31.12.19 290.6 16.1 8.0 15.9 4.8 9.8
Veritas (Global) 11.11.10 313.7 17.3 16.3 15.9 12.0 11.0
WCM (Global) 31.08.20 211.4 11.7 20.6 15.9 7.1 10.6
Artemis (UK) 06.05.08 61.2 3.4 14.8 8.0 8.2 5.7
SPECIALIST
GMO (Climate Change) 05.06.19 115.5 6.4 (11.7) 15.9 10.1 10.7
GQG (Emerging Markets) 16.02.17 91.4 5.0 25.3 4.0 9.5 3.8
Unquoted Growth (Specialist Funds) 02.07.21 27.9 1.6 (14.7) 14.7 (12.5) 5.8
Witan Direct Holdings (Specialist Funds) 19.03.10 202.8 11.2 (2.9) 14.7 8.7 9.1
(1) Percentage of Witan's investments managed, excluding centrally
managed cash. In addition, a holding in a FTSE 250 ETF was purchased during
the second half of the year as a liquid means of increasing tactical exposure
to UK mid-cap companies. This represented 1.7% of assets at the year end.
(2) Percentages are annualised where the date of appointment was
more than one year ago.
(3) Source: BNP Paribas.
Page 8 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December 2023
CEO's review of the year (continued)
DIRECTLY HELD INVESTMENTS
The return on the portfolio of directly managed investment company holdings
was -2.9%, well behind the 14.7% rise in our composite benchmark. The
overriding factor here was the widening of discounts in the investment trust
sector, which was at its sharpest amongst the more specialist trusts.
The principal detractors were Syncona (-31.8%) and VH Global Sustainable
Energy Opportunities (-18.6%), both notable victims of widening discounts in
asset categories that were out of favour, as the former's net asset value
total return was a small decline of -2.3% and the latter's a rise of over 13%.
We took advantage of the extreme discounts in the private equity sector to add
a new holding, in HarbourVest Private Equity Ltd, on a near 50% discount. The
position had gained 10% by year end, principally from discount narrowing
following its introduction of a share buyback programme.
BlackRock World Mining Trust, which was further reduced early in the year,
declined 10.4% as disappointing economic news from China weighed on sentiment
towards commodities.
Positive returns were enjoyed by Princess Private Equity (+29.1%), which
reinstated dividend payments after a hedging misstep in 2022, and Schroder
Real Estate Investment Trust (+13.3%), both benefiting from narrower discounts
after price falls in 2022.
The direct portfolio was 11.3% of the investment portfolio at the start of the
year and 11.2% at the end of 2023. From inception in March 2010 to the end of
2022, it delivered a compound annual return of 9.6%, outperforming Witan's
benchmark by 0.9% p.a. Following the underperformance in 2023, the returns are
now +8.7% p.a., which is behind the 9.1% p.a. benchmark return. Whilst it is
disappointing to see a portfolio that had historically performed strongly for
Witan experience a second poor year, the cyclical factors pertaining to the
asset classes held look set for better times, as interest rates peak, while
the structural factors hindering institutional demand for investment companies
(and other UK equities) are receiving greater political and regulatory
attention and look to be past their worst.
The two specialist Unquoted Growth funds investing predominantly in unlisted
assets amount to 1.6% of assets. Lansdowne Opportunities Fund (0.9% of assets)
declined in value by c 1.3% during the year, with the fall in price of its
holding in Oxford Nanopore Technologies offsetting other, net positive, moves.
Lindenwood (0.7%), managed by Greenoaks Capital, experienced a 27% decline in
sterling terms, reflecting financing and valuation trends in the unlisted
technology sector and a decline in the dollar against sterling. Regular
reports (monthly and quarterly respectively) are received on these funds,
whose valuation policies follow private equity industry guidelines.
Page 9 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2023
CEO's review of the year (continued)
GEARING ACTIVITY DURING THE YEAR
Gearing ranged between 13% and 16% during the year. The average gearing level
of 14.5% was towards the upper end of the range Witan employs, reflecting our
positive view on equity markets. The widespread rises in markets meant that
the use of gearing was a positive influence, contributing 1.6% to returns, or
1.0% after interest charges. Gearing has contributed positively to returns in
seven out of the past ten years, as illustrated in the KPI chart on page 5 of
the Annual Report.
Under its Articles of Association, the Company may borrow up to 100% of the
adjusted total of shareholders' funds. However, the Board's longstanding
policy is not to allow gearing (as defined on page 116 of the Annual Report)
to be more than 20%, other than temporarily in exceptional circumstances.
At the end of 2022, net gearing (the total value of borrowings less cash) was
14.2% of net assets. At the end of 2023, gearing (on the same basis) was
14.2%.
STRUCTURE OF BORROWINGS
The Company has fixed-rate borrowings (including £2.6 million preference
shares) of £158 million, consisting principally of:
Secured Notes 2035 3.29% £21m
Secured Notes 2045 3.47% £54m
Secured Notes 2051 2.39% £50m
Secured Notes 2054 2.74% £30m
These borrowings were taken out in 2015-19, when interest rates were low,
providing Witan shareholders with low-cost borrowing at an average fixed rate
of 3.0%, for the next 24 years.
The Company also has a £125 million one-year facility (expandable to £150
million), providing additional flexibility, as well as enabling the Company to
borrow in currencies other than sterling, if deemed appropriate. The drawn
balance was £83.0 million at the end of 2023 (2022: £96.5 million). The
weighted average interest rate on the Company's fixed-rate borrowings is 3.0%
(2022: 3.0%). The average interest rate, including short-term borrowings, is
currently 4.0% (2022: 3.5%).
The fair value of the Company's fixed-rate debt (valued based on the relevant
gilt yield +1.4%) was little changed, after a sharp rise in gilt yields during
the first half of the year almost exactly reversed in the second. The debt
stands at a discount to its eventual repayment value, reflecting the low fixed
interest rates. As in previous years, the Company continues to follow AIC
guidance that fair valuing both assets and liabilities is the appropriate
basis for calculating NAVs.
Witan will either invest its long-term borrowings fully or neutralise their
effect with cash balances according to its assessment of the markets. The
Company's third-party managers are not permitted to borrow within their
portfolios but may hold cash.
Page 10 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2023
CEO's review of the year (continued)
DERIVATIVES ACTIVITY
A position in Japan equity index futures with a face value of £18.8 million
(1.2% of assets) was bought in January 2023 and sold later in the month for a
gain of £0.7 million.
DIVIDEND AND REVENUE PERFORMANCE
The Company has already paid three quarterly dividends of 1.45 pence per share
in respect of 2023 which, together with the fourth interim dividend of 1.69
pence per share, increases the total distribution for the year to 6.04 pence
(2022: 5.80 pence). This marks the 49th consecutive year of dividend growth.
At the end of 2022, retained revenue reserves were £31.3 million (after
deducting the fourth interim dividend payment). The purpose of such reserves
is to enable income payments to shareholders to be supported during leaner
times, and £7.0 million was used towards funding the 2023 dividend (2022:
£6.4 million). Revenue reserves were £24.2 million at the end of 2023, after
allowing for the fourth interim dividend payment.
Revenue earnings per share were 1.3% higher in 2023 at 4.84 pence per share
(2022: 4.78 pence). Although revenue earnings rose by 16% in the first half,
our caveat that this flattered the underlying position was borne out in the
second half, when a number of large exceptional dividends in the mining sector
paid in 2022 were not repeated in 2023. As a result, current year income cover
for the increased dividend declined from 84% in 2022 to 82% in 2023, albeit
still well up from the 65% cover in 2021.
The Board anticipates dividend cover improving further in coming years,
alongside continued annual dividend growth. Recognising the importance for
many shareholders of a reliable and growing income, the Board intends to
continue to use revenue reserves (and, if necessary, capital reserves) to
bridge what is expected to be a narrowing gap between portfolio revenue
earnings and the dividends paid to shareholders.
2024 DIVIDENDS
The first three quarterly payments for 2024 (in June, September, and December)
will, in the absence of unforeseen circumstances, be paid at a rate of 1.51
pence per share (2023: 1.45 pence), being one quarter of the 6.04 pence per
share full-year payment for 2023. The fourth payment (in March 2025) will be a
balancing amount, reflecting the difference between the three quarterly
dividends already paid and the payment decided for the full year.
WITAN'S SHARES IN THE MARKET - LIQUIDITY AND DISCOUNTS
Witan is a member of the FTSE 250 Index, with a market capitalisation of £1.5
billion.
The Board has always paid attention to discount-related issues and has, over
many years, made significant use of share buybacks, when Witan's shares have
stood at a discount as well as being prepared to issue shares at a premium to
NAV to meet demand from investors. Both actions are accretive to NAV, provide
liquidity in the market and help to moderate discount volatility.
It remains a long-term objective to create sustainable liquidity in Witan's
shares at or near to asset value and the robust actions taken over recent
years are evidence of this continuing commitment.
Page 11 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2023
CEO's review of the year (continued)
WITAN INVESTMENT TRUST DISCOUNT TREND
The discount trend during the past five years is illustrated in a chart on
page 15 in the Annual Report. Along with most others in the sector, the
discount widened significantly for much of 2023, with the average discount in
the investment company sector reaching an extreme level similar to that seen
in the financial crisis of 2008. In part, this reflected the substantial
number of companies launched in the past decade to invest in illiquid assets,
where investor sentiment has become more sceptical. Another influence was the
effect of regulatory and other changes on the propensity of UK institutional
investors and wealth managers to hold investment companies, a topic attracting
political and regulatory attention as concern has grown about the relative
decline of the UK stock market.
During the year, Witan was active in buying back shares. 54.1 million shares
were bought back (8.0% of the total at the start of the year), at an average
8.6% discount to NAV, which resulted in an uplift to NAV of £11.5 million, or
1.8 pence per share. For perspective, this sum exceeds the investment
management fees paid to our external managers, offsetting the vast majority of
the Company's ongoing charges. After the payment of dividends and the
substantial commitment to share buybacks, Witan's net assets grew from
£1,541.8 million at the end of 2022 to £1,561.7 million at the end of 2023,
with a total earnings per share for the year of 27.86 pence (2022: loss per
share 39.65 pence). The movement in total assets during the year is shown in
note 18 in the Annual Report.
The discount finished the year at 7.8% (2022: 5.4%) and the average discount
during the year was 9.0% (2022: 7.8%).
Discounts are affected by many factors outside the Company's control but where
it is in shareholders' interests (taking account of market conditions), the
Company remains prepared to buy back shares at a discount to NAV or to issue
shares (though only at a premium).
OUTLOOK
The world economy could be described as either reaching the end of one
economic cycle or entering the beginning of another. A surge in inflation,
associated with measures enacted to offset the pandemic and exacerbated by the
supply disruptions caused by the same pandemic, appears to be over.
Stimulating demand at a time when supply was under pressure has not proved to
be a winning formula. However understandable at the time, it has required some
cleaning up by the central banks.
Signs of improving inflation performance have been sufficient for central
banks (and markets) to conclude that interest rates are high enough to control
and curtail the inflation overrun but there is disagreement whether they have
simply reached a plateau or will soon need to be cut. Some point to fiscal
largesse (in the US) and to the fixing of loans at low rates by companies and
mortgagors as
reasons why the impact of the rapid rise in rates has simply been delayed and
will hit home hard in 2024. If so, rate cuts might be brought forward in order
to offset economic weakness. Others suggest that retained pandemic savings and
improving real incomes as inflation falls will sustain purchasing power,
allowing moderate economic growth to resume as inflation itself moderates. If
so, rates need not be cut urgently but could be reduced to prevent real rates
from increasing as inflation declines - a gently downward-sloping plateau, to
extend the geographical metaphor mentioned earlier in the report!
Page 12 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2023
CEO's review of the year (continued)
Either way, the likely conclusion is that global policy rates will decline
during 2024, which is a fundamentally different investing environment from
2022-23. Rather than speculating about how high discount rates will go and how
much collateral damage will be sustained by asset prices and those who took on
too much leverage at low rates, investors will be more inclined to look
through current conditions towards an economic upswing in 2024-25, when
financing costs and demand conditions may well be better than at present.
Rather than worrying about how economic growth rates might slow in 2024,
necessitating a defensive approach, time is on investors' side if the future
is seen as brighter and the cost of waiting reduces.
With the nature of growth in the coming decade shifting towards more
resource-intensive areas (infrastructure renewal, new energy investment,
defence) inflation seems likely to be higher in coming years than in recent
decades. Indebted governments will also have more of a bias to growth (and
slightly higher inflation) as the most plausible way to reduce their debt
burdens, avoiding explicit default. Consequently, a return to the recent
anomaly of zero (or negative) interest rates appears unlikely, as markets
price in the risk of a structurally higher inflation rate than the 0-2% which
has characterised much of the century so far.
Two notable "disruption" themes seem relevant. One is that the mantra of a few
years ago to stress test portfolios for the risks and opportunities from
technological change has evolved into a need (temporarily forgotten in 2023)
to find the winners and avoid the losers from the energy transition and
related moves to decarbonise economies. Lower conventional energy costs and
political argument over who should pay the costs of moving to initially less
efficient (but ultimately more sustainable) energy sources led to heavy losses
in the "new energy economy" sector in 2023. Nonetheless, the trend to "phase
down" fossil fuels is likely to prove inexorable. Secondly, AI, with the
potential to transform productivity in many service sectors, as well as
manufacturing, must now be added to the list of risks for specific companies,
even while it holds out promise as a spur to non-inflationary growth at the
whole economy level. With the development of the internet, initially the focus
was on a small number of technology companies, then on the wider universe of
companies whose businesses were transformed (for better or worse). Although
comparisons can be invidious, a similar broadening is likely with the
application of AI models.
Event risk is always an issue, however hard to evaluate. 2024 sees a record
proportion of the world's population taking part in elections of various
kinds. Some might produce changes in a given country (e.g. Argentina in 2023),
others might have ramifications elsewhere (e.g. the US) or prompt reactions
from other countries (e.g. Taiwan). Given unresolved global conflicts and a
lack of sure-footed and secure political leadership to handle them, there is
no shortage of potential geopolitical shocks. The fact that the days lengthen
from December to June does not guarantee trouble-free weather on the way.
Consequently, alongside a generally positive view of the world's medium-term
prospects, a heavy dose of watchfulness is warranted.
Andrew Bell
Chief Executive Officer
15 March 2024
Page 13 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December 2023
Strategic Report
PRINCIPAL RISKS AND UNCERTAINTIES
The directors have carried out a robust assessment of the principal and
emerging risks facing the Company, including those that would threaten its
business model, future performance, solvency, liquidity or reputation. These
risks, and the actions taken to mitigate them, are set out below.
Risks are inherent in investment and corporate management. It is important to
identify risks and ways to control or avoid them. Witan Investment Services
Limited ('WIS') has a Risk Committee in order to monitor compliance with its
risk management and reporting obligations as Witan's Alternative Investment
Fund Manager ('AIFM'). The Company maintains a framework of the key risks,
with the policies and processes devised to monitor, manage and mitigate them
where possible. Its detailed risk map is reviewed regularly by the Audit &
Risk Committee and the WIS Risk Committee, which report on pertinent issues to
their respective Boards.
The guiding principles remain watchfulness, proper analysis, prudence and a
clear system of risk management.
Where appropriate, the Witan and WIS Boards meet jointly to cover matters of
common interest. The WIS Board consists of six non-executive directors and one
executive director who are also directors of Witan, and one executive director
who is a Company employee. The Board's policy on risk management has not
materially changed during the course of the reporting period and up to the
date of this report.
Page 14 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2023
Strategic Report continued
The Company's key risks fall broadly under the following categories:
Market and investment portfolio (Increased)
Risk Mitigation
For an equity fund, a key risk of investing is a general fall in equity prices The Board seeks to manage these risks through:
and investment income, which could be exacerbated by gearing and the risks
associated with the performance of its investment managers and changes in · a broadly diversified equity benchmark;
Witan's share price rating.
· appropriate asset allocation decisions;
· selecting competent managers and regularly monitoring their
Other risks are the portfolio's exposure to country, currency, industrial performance, awareness of emerging risks and the robustness of their processes
sector and stock-specific factors (including those relating to the for taking account of those risks;
sustainability of the business model taking account of environmental, social
and governance factors). Political and macroeconomic topics such as Brexit, · paying attention to key economic and political events;
inflation, pandemics (e.g. Covid-19), trade wars and military conflicts (e.g.
the Russian invasion of Ukraine and the Middle East) can all be expected to · engagement with shareholders and other stakeholders
lead to market volatility.
· active management of risk, whether to preserve capital or capitalise on
opportunities;
· the application of relevant policies on gearing and liquidity; and
· share buybacks and issuance to respond to market supply and demand.
During the year, Andrew Bell, the CEO, managed the overall business and the
investment portfolio in accordance with limits determined by the Board and the
AIFM, on which the CEO reports at each Board meeting. The Board also regularly
reviews investment strategy and performance, supported by comprehensive
management information and analysis.
Operational and cyber (Increased)
Risk Mitigation
Many of the Company's financial systems are outsourced to third parties, The Witan and WIS Executive undertake a detailed due diligence programme,
principally BNP Paribas. Disruption to their accounting, payment systems or focused upon the operational and cyber arrangements including
custody records could prevent the accurate reporting and monitoring of the
Company's financial position. The potential impact of generative AI has been developments in AI, of all the Company's suppliers. BNP Paribas, as the
identified as an emerging risk this year. Company's depositary, has a key responsibility for monitoring such issues on
behalf of the Company. The Board and AIFM monitor the depositary as well as
its other suppliers. Details of the Board's monitoring and control processes
are explained further in the Corporate Governance Statement on pages 46 to 56
of the Annual Report.
Page 15 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2022
Strategic Report continued
Compliance and regulatory change
(Unchanged)
Risk Mitigation
The Company breaches compliance/regulatory requirements or fails to assess the The Board takes its regulatory responsibilities very seriously and compliance
impact. issues and potential regulatory changes are regularly reviewed by the Board
and its AIFM.
Details of the Company's corporate governance policies are set out in the
Corporate Governance Statement on pages 46 to 56 of the Annual Report. The
Board conducts an annual assessment of the effectiveness of its governance
processes.
There is also a three-yearly independent external review, the most recent of
which was in 2021. See page 55 of the Annual Report for further details.
Operational and regulatory risks are regularly reviewed by Witan's Audit &
Risk Committee and WIS's Risk Committee. WIS is subject to its own operating
rules and regulations and is regulated by the Financial Conduct Authority
('FCA'). The Company has established a modus operandi for the effective
coordination of its responsibilities and those of WIS, as its AIFM.
Operationally the multi-manager structure is robust, as the investment
managers, the custodian and the fund accountants keep their own records which
are regularly reconciled. The depositary, the AIFM and the Board provide
additional checks and safeguards. Management monitors the activities of all
third parties and reports any significant issues to the Board.
Page 16 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2021
Strategic Report continued
Accounting, taxation and legal (Unchanged)
Risk Mitigation
The Company must comply with sections 1158-59 of the Corporation Tax Act 2010 The accounting requirements are monitored by the CEO and AIFM and the Company
('CTA'). A breach could result in the Company losing investment trust status carefully monitors compliance with the applicable rules.
and, as a consequence, capital gains realised would be subject to corporation
tax.
These requirements offer significant protection for shareholders. The Board
receives reports from the CEO, the AIFM, the Company Secretary and the
The Company must comply with the provisions of the Companies Act 2006 Company's professional advisers to enable it to ensure compliance with all
('Companies Act') and with the UK Listing Authority's Listing Rules and applicable rules. WIS is authorised and regulated by the FCA to act as the
Disclosure Rules ('UKLA Rules'). A breach of the Companies Act could result in AIFM for Witan.
the Company and/or the directors being fined or becoming the subject of
criminal proceedings. Breach of the UKLA Rules could result in the suspension
of the Company's shares which would itself constitute a breach of the
provisions of the CTA.
Liquidity (Unchanged)
Risk Mitigation
The Company's portfolio of securities might not be realisable. The Company's portfolio consists mainly of readily realisable securities. The
Company and its AIFM regularly review liquidity needs (for example,
operational costs, loan servicing and repayment, shareholder dividends and
share buybacks) relative to the Company's portfolio income and the value and
tradability of the Company's assets.
Most of the likely liquidity requirements are foreseeable (for example,
timetabled loan payments and dividends) while others (such as share buybacks)
are subject to the Company's discretion. The Board is satisfied that
unexpected liquidity needs are not significant and could readily be met
without compromising normal portfolio management.
Page 17 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2021
Strategic Report continued
Environmental, social and governance factors (Unchanged)
Risk Mitigation
Failure to identify, understand or mitigate the risks arising from ESG issues Witan has a responsible investment policy which was developed by the Board in
may negatively impact investment returns, increase the potential for consultation with Witan's Executive team. This is discussed fully on pages 16
reputation risk to Witan and adversely affect the net asset value and/or price to 23 of the Annual Report. Witan expects its external managers to integrate
of Witan's shares. ESG factors into their investment processes. Witan requires managers to report
on any ESG issues in a timely manner and the Executive monitors the portfolios
using various third-party data providers to ensure that such issues are being
identified. Managers are also expected to report on engagement and voting
activities. The Executive holds regular ESG review meetings with each of the
managers where these activities, as well as evolving best practice and new
responsible investment initiatives, are discussed. The Executive presents its
findings to the Board on a regular basis.
CORPORATE AND OPERATIONAL STRUCTURE
Witan is an investment trust with a Premium Listing on the London Stock
Exchange. It has a single, wholly owned subsidiary, Witan Investment Services
Limited ('WIS') which acts as the Company's Alternative Investment Fund
Manager ('AIFM').
The overwhelming majority of the portfolio is in segregated accounts, held in
custody by the Company's depositary. The operations of the custodian and the
safeguarding of the Company's assets are supervised by the depositary.
The Company's investment managers may use services which are paid for, or
provided by, various brokers. They may place business, including transactions
relating to the Company, with those brokers. Under the requirements of MiFID
II, broker-provided services (other than the execution of transactions) must
either be minor non-monetary benefits or, for research received by investment
managers and charged to the Company, separately accounted for.
OPERATIONAL MANAGEMENT ARRANGEMENTS
In addition to the appointment of third-party investment managers, Witan and
WIS contract with third parties for other services, including:
· BNP Paribas for depositary services, custody, investment accounting and
administration;
· Frostrow Capital LLP for company secretarial services;
· MSCI, StyleAnalytics and Morningstar/Sustainalytics for monitoring of its
investment holdings; and
· specialist advice on regulatory compliance issues and, as required, legal,
investment consulting, financial and tax advice.
Page 18 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December 2023
Strategic Report continued
The service quality and value received from major service providers are
reviewed regularly by the Board.
The contracts governing the provision of all services are formulated with
legal advice and stipulate clear objectives and guidelines for the service
required.
STAFFING
The Company's policy towards its employees is to attract and retain staff with
the skills and expertise required to manage the affairs of an investment trust
company. Details of the Company's remuneration policies and required
disclosures are set out in the Directors' Remuneration Report on pages 60 to
72 of the Annual Report. Employees and those who seek to work at Witan are
treated equally regardless of age, gender, race, disability, marital status,
sexual orientation and religion. The Company currently has six direct
employees, three men and three women. The Board currently consists of eight
non-executive directors (four men and four women) and the CEO, Andrew Bell,
who is an employee. Given its outsourced model and the small number of direct
employees, the Group has no employment-related specific policies in respect of
environmental or social and community affairs. However, as described
elsewhere, an increased focus on ESG issues has been formalised by the
Company's commitments, which are detailed in the section on responsible
investment on pages 16 to 23 of the Annual Report.
WITAN INVESTMENT SERVICES
WIS is authorised and regulated by the Financial Conduct Authority. It is
authorised to act as Witan's AIFM and to provide marketing services.
WIS's principal activities are acting as Witan's AIFM, providing executive
management services to the Board of Witan and communicating information about
the Company to the market.
WIS's operational objectives for 2023 were:
● to fulfil its responsibilities as Witan's AIFM; and
● to control the net operating costs for Witan.
In 2023, WIS's sources of income were the fees (as AIFM or Executive Manager
and for marketing services) paid by Witan Investment Trust plc. The main costs
incurred were staff costs and professional advice to ensure compliance with
regulatory and accounting obligations.
Page 19 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2023
Strategic Report continued
COSTS
INVESTMENT MANAGEMENT FEES
Each of the third-party managers is entitled to a management fee, based on the
assets under management. The agreements can be terminated on one to three
months' notice. The base fee rates for managers in place at the end of 2023
ranged from 0.30% to 0.65% per annum. The weighted average base fee was 0.49%
as at 31 December 2023 (2022: 0.51%).
Witan takes care to ensure the competitiveness of the fees it pays. Many of
the fee structures incorporate a 'taper' whereby the average fee rate reduces
as the portfolio grows.
ONGOING CHARGES AND COSTS
The Company's established measure of the costs of operation is the Ongoing
Charges Figure ('OCF'). This represents the recurring costs of operating the
business (principally the investment management fees paid to our external
managers as well as the Company's fixed and variable overhead costs), as a
percentage of net assets. This is calculated in accordance with the AIC's
guidelines and provides a consistent basis for the comparison of costs from
one year to the next and relative to other investment companies. The OCF was
marginally lower in 2023 at 0.76% (2022: 0.77%).
The main cost headings within the OCF are set out in the table below on page
20. The figures for transaction costs, borrowing costs and the pro rata
ongoing charges of underlying funds are also included in the table, for easy
reference. In calculating the OCF, the Board does not consider it relevant to
consider the ongoing charges of investment companies in which the Company
invests, as the Company is not a fund of funds and to include ongoing charges
of some investee companies but not of others would not be appropriate. For
this reason, the Company has chosen not to include these costs as part of its
OCF but has disclosed below an estimate of this figure.
The Company exercises strict scrutiny and control over costs. The Board
believes that the OCF during the year represents good value for money for
shareholders, taking into account the benefits of manager style and portfolio
diversification in addition to active and engaged management over the longer
term.
The UK version of the EU PRIIPS regulations, which are applicable to UK
Investment Companies, mandates the preparation of a Key Information Document
('KID') calculated on a formulaic basis, which contains a different measure of
costs from the OCF, averaged over longer periods rather than specific to one
year. The other principal differences between the OCF and the KID measure are
the inclusion of transaction costs, borrowing costs, and the underlying costs
of holdings in other collective investments.
The Company's investment performance is reported after all costs.
Page 20 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2023
Strategic Report continued
ANALYSIS OF COSTS
2023 2022
% of average 2022 % of average
2023
Category of cost £m net assets £m net assets
Investment management base fees (note 4, page 31) 6.85 0.43 7.67 0.45
Other expenses (excluding those expenses not relating to the operation of the 5.41 0.33 5.38 0.32
subsidiary((1)) loan arrangement and one-off costs)
Ongoing Charges Figure 12.26 0.76 13.05 0.77
Pro rata ongoing charges of underlying funds((2)) 3.21 0.20 3.90 0.23
OCF plus look through fund costs 15.47 0.96 16.95 1.00
Portfolio transaction costs 1.28 0.08 1.84 0.11
Interest costs 9.86 0.61 6.29 0.37
Total costs including transaction costs, borrowing costs and underlying fund 26.61 1.65 25.08 1.48
costs
(1) those expenses not relating to the operation of the investment company
(2) this cost represents an estimate of the pro rata attributable fees charged
by the managers of the external
specialist collective funds held within the portfolio.
N.B. Figures may not sum due to rounding.
VIABILITY STATEMENT
In accordance with the UK Corporate Governance Code, the Board has assessed
the prospects of the Company over a longer period than the 12 months required
by the 'going concern' provision.
The Company's current position and prospects are set out in the Chairman's and
Chief Executive Officer's reports and the Strategic Report. The principal
risks are set out on pages 13 to 17.
The Board has considered the Company's financial position and its ability to
liquidate its portfolio and meet its expenses as they fall due and notes the
following:
● The portfolio consists of investments traded on major
international stock exchanges and there
is a spread of investments. In normal conditions, the current
portfolio could be liquidated to the extent of c. 85% (source: Bloomberg)
within five trading days and there is no expectation that the nature of the
investments held will be materially different in future.
● The closed-ended nature of the Company means that, unlike an
open-ended fund, it does not need to realise investments when shareholders
wish to sell their shares.
Page 21 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2023
Strategic Report continued
● The Board has considered the viability of the Company under
various scenarios, including periods of acute stock market and economic
volatility such as experienced in 2020, and concluded that it would expect to
be able to ensure the financial stability of the Company through the benefits
of having a diversified portfolio of listed and realisable assets. As
illustrated in note 14 to the accounts in the Annual Report, the Board has
considered price sensitivity risk (the sensitivity of the profit after
taxation for the year and the value of the shareholders' funds to changes in
the fair value of the Group's investments) and foreign currency sensitivity
(the sensitivity to changes in key exchange rates to which the portfolio is
exposed).
● In addition to its cash balances, which were £22 million at 31
December 2023 (2022 £35 million), the Company has a short-term bank facility
(which is renewable annually) which can be used to meet its liabilities, and
fixed-rate financing in the form of secured notes and cumulative preference
shares. With the exception of the short-term facility, this financing will
remain in place until at least 2035. Details of the Company's current and
non-current liabilities are set out in note 13 to the accounts in the Annual
Report.
● The expenses of the Company are predictable and modest in
comparison with the assets and there are no capital commitments currently
foreseen which would alter that position.
As well as considering the principal risks on pages 13 to 17 and the financial
position of the Company, the Board has made the following assumptions in
considering the Company's longer-term viability:
● The Company's remit of investing in the securities of global
listed companies will continue to be an activity to which investors will wish
to have exposure.
● Investors will continue to want to invest in closed-ended
investment trusts.
● The performance of the Company will continue to be satisfactory.
The Board is able to replace any of the current investment managers when it
considers it appropriate to do so.
● The Company will continue to have access to adequate capital
when required.
● The Company will continue to be able to fund share buybacks when
required.
● The Company bought back 54 million ordinary shares in 2023 at a
cost of £123 million and experienced no problem with liquidity in doing so.
It had shareholders' funds of £1.5 billion at the end of 2023.
Based on the results of its review and taking into account the long-term
nature of the Company and its financing, the Board has a reasonable
expectation that the Company will be able to continue its operations and meet
its expenses and liabilities as they fall due for the foreseeable future,
taken to mean at least the next five years. The Board has chosen this period
after reviewing its investment policy and evaluating the investment cycle and
the ability to deliver the Company's objectives over the short to medium term.
Forecasting over longer periods is imprecise. The Board has no information to
suggest this judgement will need to change in the coming five years. The
Board's long-term view of viability will, of course, be updated each year in
the Annual Report.
Page 22 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2023
Strategic Report continued
GOING CONCERN
In light of the conclusions drawn in the foregoing statement on liquidity risk
on page 16 and the Viability Statement, the directors believe that the Company
has adequate financial resources to continue in operational existence for at
least the next 12 months from the date of this Report. Therefore, the
directors believe that it is appropriate to continue to adopt the going
concern basis in preparing the financial statements. In reviewing the position
as at the date of this report, the Board has considered the guidance on this
matter issued by the Financial Reporting Council.
APPROVAL
This report was approved by the Board of directors on 15 March 2024 and is
signed on its behalf by:
Andrew Ross Andrew Bell
Chairman Chief Executive Officer
15 March 2024
Page 23 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2023
Statement of Directors' Responsibilities
in respect of the Annual Report and the financial statements
Responsibility statement
The directors as at the date of the Annual Report confirm, to the best of
their knowledge, that:
· the financial statements, prepared in accordance with UK-adopted
International Accounting Standards, give a true and fair view of the assets,
liabilities, financial position and profit or loss of the Company and the
undertakings included in the consolidation taken as a whole; and
· the Strategic Report includes a fair review of the development and
performance of the business and the position of the Company and the
undertakings included in the consolidation taken as a whole, together with a
description (on pages 13 to 17) of the principal risks and uncertainties that
they face.
The directors also confirm that the financial statements, taken as a whole,
are fair, balanced and understandable, and provide the information necessary
for shareholders to assess the Company's position, performance, business model
and strategy.
By order of the Board
Andrew Ross
Chairman
Andrew Bell
Chief Executive
15 March 2024
Page 24 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2023
Financial Highlights as at 31 December 2023
Key data
2023 2022
Share price 237.5p 221.5p
NAV per ordinary share (debt at fair value)((3)) 257.6p 234.1p
Discount (NAV including income, debt at fair value)((3)) 7.8% 5.4%
Dividend per share 6.04p 5.80p
Revenue earnings per share 4.84p 4.78p
Total earnings per share 27.86p (39.65)p
Net assets (£'000s) 1,561,665 1,541,809
Total return performance
1 year % return 5 years % return 10 years % return
Share price total return((1)(3)) 10.1 39.3 125.0
NAV total return((1)(3)) 12.7 48.0 125.1
Witan benchmark((1)) 14.7 69.6 144.2
MSCI UK IMI INDEX((2)) 8.0 36.3 64.3
MSCI ACWI INDEX((2) ) 15.9 78.2 193.2
UK CPI 4.0 23.4 32.8
Percentage of total funds((4))
North America 41%
Europe 21%
United Kingdom 17%
Investment Companies 11%
Asia ex Japan 5%
Japan 3%
Other 2%
Sector breakdown of the portfolio
Industrials 17%
Financials 16%
Information Technology 13%
Investment Companies 11%
Consumer Staples 9%
Healthcare 9%
Consumer Discretionary 8%
Materials 7%
Communication Services 6%
Energy 3%
Utilities 1%
Company size breakdown of the portfolio
Large Cap 73%
Mid Cap 11%
Investment Companies 11%
Small Cap 6%
(1) Source: Witan/Morningstar. (2) Source:
Morningstar. See also MSCI for conditions of use (www.msci.com).
(3) Alternative performance measure: The
financial statements on pages 87 to 112 of the Annual Report set out the
required statutory reporting measures of the Company's financial
performance. In addition, the Board assesses the Company's performance against
a range of criteria which are viewed as particularly relevant for investment
trusts, which are summarised in the key performance indicators on pages 4 and
5 of the Annual Report. Definitions of the terms used are set out on page 116.
A reconciliation of the NAV per ordinary share (debt at par value) to the NAV
per ordinary share (debt at fair value) is shown in note 18 on page 110 of
the Annual Report.. (4) Funds and ETFs included on a "lookthrough" basis.
Page 25 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2023
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2023
Year ended Year ended
31 December 2023 31 December 2022
Revenue Capital Total Revenue Capital
return return £'000 return return Total
£'000 £'000 £'000 £'000 £'000
Investment income (note 2) 41,251 - 41,251 43,605 - 43,605
Other income (note 3) 1,223 - 1,223 601 - 601
Gains/(losses) on investments held at fair value through profit or loss
- 165,476 165,476 - (303,607) (303,607)
Foreign exchange (losses)/gains on cash and cash equivalents
- (1,532) (1,532) - 87 87
---------- ---------- ---------- ---------- ---------- ----------
Total income 42,474 163,944 206,418 44,206 (303,520) (259,314)
Expenses
Management and performance fees (note 4) (1,712) (5,135) (6,847) (1,918) (5,754) (7,672)
Other expenses (5,390) (129) (5,519) (5,384) (101) (5,485)
---------- ---------- ---------- ---------- ---------- ----------
Profit/(loss) before finance costs and taxation
35,372 158,680 194,052 36,904 (309,375) (272,471)
Finance costs (2,528) (7,332) (9,860) (1,637) (4,657) (6,294)
---------- ---------- ---------- ---------- ---------- ----------
Profit/(loss) before taxation 32,844 151,348 184,192 35,267 (314,032) (278,765)
Taxation (1,335) (1,373) (2,708) (1,451) (338) (1,789)
---------- ---------- ---------- ---------- ---------- ----------
Profit/(loss) attributable to equity shareholders of the parent company
31,509 149,975 181,484 33,816 (314,370) (280,554)
---------- ---------- ---------- ---------- ---------- ----------
Earnings per ordinary share (note 5)
4.84p 23.02p 27.86p 4.78p (44.43)p (39.65)p
====== ====== ====== ====== ====== ======
The total column of this statement represents the Group's Statement of
Comprehensive Income prepared in accordance with IFRSs.
The revenue return and capital return columns are supplementary to this and
are prepared under guidance published by the Association of Investment
Companies.
The Group does not have any other comprehensive income and hence the total
profit/(loss), as disclosed above, is the same as the Group's total
comprehensive income.
All items in the above statement derive from continuing operations.
All income is attributable to the equity holders of Witan Investment Trust
plc, the parent company. There are no non-controlling interests.
Page 26 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2023
Consolidated and Individual Company Statements of Changes in Equity
for the year ended 31 December 2023
Group: Year ended 31 December 2023
Ordinary Share Capital Other
share premium redemption capital Revenue
capital account reserve reserves reserve Total
£'000 £'000 £'000 £'000 £'000 £'000
Total equity at 31 December 2022 50,018 99,251 46,498 1,303,740 42,302 1,541,809
Total comprehensive income:
Profit for the year - - - 149,975 31,509 181,484
Transactions with owners, recorded directly to equity:
Ordinary dividends paid (note 7) - - - - (38,748) (38,748)
Buybacks of ordinary shares (held in treasury)
- - - (122,880) - (122,880)
-------- --------- --------- ------------ --------- ------------
Total equity at 31 December 2023 50,018 99,251 46,498 1,330,835 35,063 1,561,665
Company: Year ended 31 December 2023
Ordinary Share Capital Other
share premium redemption capital Revenue
capital account reserve reserves reserve Total
£'000 £'000 £'000 £'000 £'000 £'000
Total equity at 31 December 2022 50,018 99,251 46,498 1,304,031 42,011 1,541,809
Total comprehensive income:
Profit for the year - - - 150,047 31,437 181,484
Transactions with owners, recorded directly to equity:
Ordinary dividends paid (note 7) - - - - (38,748) (38,748)
Buybacks of ordinary shares (held in treasury)
- - - (122,880) - (122,880)
-------- --------- --------- ------------ --------- ------------
Total equity at 31 December 2023 50,018 99,251 46,498 1,331,198 34,700 1,561,665
Group: Year ended 31 December 2022
Ordinary Share Capital Other
share premium redemption capital Revenue
capital account reserve reserves reserve Total
£'000 £'000 £'000 £'000 £'000 £'000
Total equity at 31 December 2021 50,018 99,251 46,498 1,747,379 48,895 1,992,041
Total comprehensive income:
(Loss) /profit for the year - - - (314,370) 33,816 (280,554)
Transactions with owners, recorded directly to equity:
Ordinary dividends paid (note 7) - - - - (40,409) (40,409)
Buybacks of ordinary shares (held in treasury)
- - - (129,269) - (129,269)
--------- --------- ------------ --------- ------------ ------------
Total equity at 31 December 2022 50,018 99,251 46,498 1,303,740 42,302 1,541,809
Company: Year ended 31 December 2022
Ordinary Share Capital Other
share premium redemption capital Revenue
capital account reserve reserves reserve Total
£'000 £'000 £'000 £'000 £'000 £'000
Total equity at 31 December 2021 50,018 99,251 46,498 1,747,595 48,679 1,992,041
Total comprehensive income:
(Loss)/profit for the year - - - (314,295) 33,741 (280,554)
Transactions with owners, recorded directly to equity:
Ordinary dividends paid (note 7) - - - - (40,409) (40,409)
Buybacks of ordinary shares (held in treasury)
- - - (129,269) - (129,269)
-------- --------- --------- --------------- --------- ------------
Total equity at 31 December 2022 50,018 99,251 46,498 1,304,031 42,011 1,541,809
Page 27 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for
the year ended 31 December 2023
Consolidated and Individual Company Balance Sheets
As at 31 December 2023
Group Company Group Company
31 December 31 December 31 December 31 December
2023 2023 2022 2022
£'000 £'000 £'000 £'000
Non current assets
Investments held at fair value through profit or loss
1,783,822 1,785,085 1,760,824 1,762,015
Right of use asset: property 125 125 196 196
-------------- -------------- -------------- --------------
1,783,947 1,785,210 1,761,020 1,762,211
-------------- -------------- -------------- --------------
Current assets
Other receivables 3,982 3,832 4,661 4,885
Cash and cash equivalents 22,434 21,624 36,352 34,888
----------- ----------- ----------- -----------
Total current assets 26,416 25,456 41,013 39,773
----------- ----------- ----------- -----------
Total assets 1,810,363 1,810,666 1,802,033 1,801,984
--------------- --------------- --------------- ---------------
Current liabilities
Other payables (7,339) (7,642) (6,242) (6,193)
Bank loans (83,000) (83,000) (96,500) (96,500)
---------- ---------- ---------- ----------
Total current liabilities (90,339) (90,642) (102,742) (102,693)
---------- ---------- ---------- ----------
Total assets less current liabilities 1,720,024 1,720,024 1,699,291 1,699,291
Non current liabilities
Other payables (160) (160) (218) (218)
Deferred tax liability on Indian capital gains (1,573) (1,573) (667) (667)
Borrowings:
Secured debt (154,071) (154,071) (154,042) (154,042)
3.4 per cent. cumulative preference shares of £1 (2,055) (2,055) (2,055) (2,055)
2.7 per cent. cumulative preference shares of £1 (500) 500) (500) (500)
---------- ---------- ---------- ----------
Total non current liabilities (158,359) (158,359) (157,482) (157,482)
---------- ---------- ---------- ----------
Net assets 1,561,665 1,561,665 1,541,809 1,541,809
Equity attributable to equity holders
Ordinary share capital 50,018 50,018 50,018 50,018
Share premium account 99,251 99,251 99,251 99,251
Capital redemption reserve 46,498 46,498 46,498 46,498
Retained earnings:
Other capital reserves 1,330,835 1,331,198 1,303,740 1,304,031
Revenue reserve 35,063 34,700 42,302 42,011
---------- ---------- ---------- ----------
Total equity 1,561,665 1,561,665 1,541,809 1,541,809
Net asset value per ordinary share 249.57p 249.57p 226.80p 226.80p
The financial statements of Witan Investment Trust plc (registered number
101625) were approved by directors and authorised for issue on 15 March 2024
and were signed on their behalf by
A J S Ross A L C Bell
As permitted by section 408 of the Companies Act 2006, the Company has not
presented its own income statement. The profit of the Company dealt with in
the accounts of the Group amounted to £181,484,000 (2022: loss of
£280,554,000).
Page 28 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for
the year ended 31 December 2023
Consolidated and Individual Company Cash Flow Statements
for the year ended 31 December 2023
Group Company Group Company
2023 2023 2022 2022
£'000 £'000 £'000 £'000
Cash flows from operating activities
Dividend income received 40,956 40,956 42,739 42,739
Interest received 1,073 1,008 299 291
Other income received 162 162 646 216
Operating expenses paid (11,235) (10,516) (14,095) (14,022)
Taxation on overseas income (1,490) (1,490) (1,870) (1,870)
Taxation recovered 628 628 2,640 2,640
---------- ----------- ---------- -----------
Net cash inflow from operating activities
30,094 30,748 30,359 29,994
---------- ----------- ---------- -----------
Cash flows from investing activities
Purchases of investments (538,699) (538,699) (797,777) (797,777)
Sales of investments 681,035 681,035 948,911 948,911
Overseas capital gain on tax on sales (468) (468) (518) (518)
Settlement of futures contracts 718 718 1,001 1,001
---------- ----------- ---------- -----------
Net cash inflow from investing activities
142,586 142,586 151,617 151,617
---------- ----------- ---------- -----------
Cash flow from financing activities
Equity dividends paid (note 7) (38,748) (38,748) (40,409) (40,409)
Buybacks of ordinary shares (123,048) (123,048) (132,281) (132,281)
Interest paid (9,694) (9,694) (6,044) (6,044)
Repayment of lease liability (76) (76) (67) (67)
Drawdown of bank loans 149,250 149,250 195,000 195,000
Repayment of bank loans (162,750) (162,750) (196,500) (196,500)
---------- ----------- ---------- -----------
Net cash outflow from financing activities
(185,066) (185,066) (180,301) (180,301)
---------- ----------- ---------- -----------
(Decrease)/increase in cash and cash equivalents
(12,386) (11,732) 1,675 1,310
Cash and cash equivalents at the start of the period
36,352 34,888 34,590 33,491
Effect of foreign exchange rate changes
(1,532) (1,532) 87 87
---------- ----------- ---------- -----------
Cash and cash equivalents at the end of the period
22,434 21,624 36,352 34,888
Page 29 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2023
Notes to the Financial Statements
for the year ended 31 December 2023
1. Accounting policies
The financial statements of the Group and parent company have been prepared in
accordance with UK-adopted International Accounting Standards ('IASs'). These
financial statements are presented in pounds sterling because that is the
currency of the primary economic environment in which the Group operates.
(a) Basis of preparation
The financial statements have been prepared on the historical cost basis,
except for the revaluation of certain financial instruments. The principal
accounting policies adopted are set out in the financial statements. Where
presentational guidance set out in the Statement of Recommended Practice
'Financial Statements of Investment Trust Companies and Venture Capital
Trusts' (the 'SORP') issued by the Association of Investment Companies (the
'AIC') in July 2022 is consistent with the requirements of IASs, the directors
have sought to prepare the financial statements on a basis compliant with the
recommendations of the SORP.
Judgements and sources of estimation uncertainty
In the application of the Group's accounting policies, management is required
to make judgements, estimates and assumptions about carrying values of assets
and liabilities that are not always readily apparent from other sources. The
estimates and associated assumptions are based on historical experience and
other factors that are considered to be relevant. Actual results may vary from
these estimates.
The directors do not consider that there are any significant estimates or
critical judgements in these financial statements.
(b) Going concern
The financial statements have been prepared on a going concern basis. The
Group's business activities, together with the factors likely to affect its
future development and performance, are set out in the Strategic Report in the
Annual Report. The financial position of the Group as at 31 December 2023 is
shown in the balance sheet on page 27. The cash flows of the Group for the
year ended 31 December 2023 are not untypical and are set out on page 28.
(c) Basis of consolidation
The consolidated financial statements incorporate the financial statements of
the Company and the entity controlled by the Company (its subsidiary) made up
to 31 December each year.
In accordance with IFRS 10 the Company has been designated as an investment
entity on the basis that:
· It obtains funds from investors and provides those investors
with investment management services;
· It commits to its investors that its business purpose is to
invest solely for returns from capital appreciation and
investment income; and
· It measures and evaluates performance of substantially all of
its investments on a fair value basis.
The subsidiary of the Company was established for the sole purpose of
operating or supporting the investment operations of the Company and is not
itself an investment entity. Therefore, under the principles of IFRS 10, the
Company has consolidated its subsidiary as it is a controlled entity that
supports the investment activity of the investment entity.
Control is achieved where the Company is exposed, or has the right, to
variable returns from its investment in the subsidiary and has the ability to
affect those returns through its power to direct the relevant activities.
Where necessary, adjustments are made to the financial statements of the
subsidiary to bring the accounting policies used by it into line with those
used by the Group. All intra-group transactions, balances, income and expenses
are eliminated on consolidation.
Page 30 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2023
Notes to the Financial Statements continued
(d) Presentation of the Statement of Comprehensive Income
In order to better reflect the activities of an investment trust company, and
in accordance with guidance issued by the AIC, supplementary information which
analyses the Statement of Comprehensive Income between items of a revenue and
capital nature has been presented alongside the Statement of Comprehensive
Income. In accordance with the Company's Articles of Association, net capital
returns may not be distributed by way of dividend. Additionally, the net
revenue is the measure the directors believe appropriate in assessing the
Group's compliance with certain requirements set out in section 1158 of the
Corporation Tax Act 2010.
2. Investment income
2023 2022
£'000 £'000
UK dividends from listed investments 12,676 11,869
UK special dividends from listed investments 78 1,589
UK stock dividends from listed investments 237 772
----------- -----------
Total UK dividends 12,991 14,230
----------- -----------
Overseas dividends from listed investments 27,446 28,522
Overseas special dividends from listed investments 814 832
Fixed interest - 21
----------- -----------
Total investment income 41,251 43,605
2023 2022
£'000 £'000
Analysis of investment income by geographical segment:
United Kingdom 12,991 14,251
North America 4,606 5,009
Continental Europe 7,169 5,906
Japan 1,263 1,517
Asia (ex Japan) 1,928 2,156
Latin America 2,424 5,735
Other 10,870 9,031
----------- -----------
Total investment income 41,251 43,605
3. Other income
2023 2022
£'000 £'000
Deposit interest 1,061 379
Stock lending income 145 222
Other income 17 -
----------- -----------
Total other income 1,223 601
At 31 December 2023 the total value of securities on loan by the Company for
stock lending purposes was £45,656,000 (2022: £35,380,000). The maximum
aggregate value of securities on loan at any time during the year ended 31
December 2023 was £61,910,000 (2022: £122,950,000). Collateral, revalued on
a daily basis at a level equivalent to at least 105% (2022: 105%) of the
market value of the securities lent, was provided against all securities on
loan.
Page 31 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2023
Notes to the Financial Statements continued
4. Management and performance fees
Year ended 31 December 2023 Year ended 31 December 2022
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Management fees paid to third-party managers 1,712 5,135 6,847 1,918 5,754 7,672
---------- ----------- ----------- ---------- ----------- -----------
Total management and performance fees
1,712 5,135 6,847 1,918 5,754 7,672
5. Earnings per ordinary share
The earnings per ordinary share figure is based on the net profit for the year
of £181,484,000 (2022: loss of £280,554,000) and on 651,467,218 ordinary
shares (2022: 707,617,951), being the weighted average number of ordinary
shares in issue during the year.
The earnings per ordinary share figure detailed above can be further analysed
between revenue and capital, as below. The Company has no securities in issue
that could dilute the return per ordinary share. Therefore the basic and
diluted earnings per ordinary share are the same.
2023 2022
£'000 £'000
Net revenue profit 31,509 33,816
Net capital profit/ (loss) 149,975 (314,370)
Net total profit/(loss) 181,484 (280,554)
Weighted average number of ordinary shares in issue during the year 651,467,218 707,617,951
Pence Pence
Revenue earnings per ordinary share 4.84 4.78
Capital earnings/(loss)per ordinary share 23.02 (44.43)
Total earnings/(loss) per ordinary share 27.86 (39.65)
6. Issued share capital
The number of ordinary shares of 5p each in issue at 31 December 2023 was
1,000,355,000 (2022: 1,000,355,000), of which 374,604,155 ordinary shares of
5p each (2022: 320,531,829) were held in treasury.
Page 32 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2023
Notes to the Financial Statements continued
7. Dividends
2023 2022
£'000 £'000
Amounts recognised as distributions to equity holders in the year:
Fourth interim dividend for the year ended 31 December 2022 of 1.60p (2021:
1.52p) per ordinary share
10,746 11,107
First interim dividend for the year ended 31 December 2023 of 1.45p
(2022: 1.40p) per ordinary share 9,550 10,003
Second interim dividend for the year ended 31 December 2023 of 1.45p (2022:
1.40p) per ordinary share
9,325 9,779
Third interim dividend for the year ended 31 December 2023 of 1.45p (2022:
1.40p) per ordinary share
9,134 9,584
Refund of unclaimed dividends (7) (64)
---------- ----------
38,748 40,409
====== ======
Fourth interim dividend for the year ended 31 December 2023 1.69p (2022:
1.60p) per ordinary share
10,464 10,746
====== ======
Total in respect of the year:
Set out below is the total dividend to be paid in respect of the year. This
is the basis on which the minimum distribution requirements of section 1158 of
the Corporation Tax Act 2010 are considered.
2023 2022
£'000 £'000
Revenue profits available for distribution (Company only) 31,437 33,741
First interim dividend for the year ended 31 December 2023 of 1.45p (9,550) (10,003)
(2022: 1.40p) per ordinary share
Second interim dividend for the year ended 31 December 2023 of 1.45p (2022:
1.40p) per ordinary share
(9,325) (9,779)
Third interim dividend for the year ended 31 December 2023 of 1.45p (2022:
1.40p) per ordinary share
(9,134) (9,584)
Fourth interim dividend for the year ended 31 December 2023 of 1.69p (2022:
1.60p) per ordinary share
(10,464) (10,746)
---------- ----------
Revenue reserves utilised in the year (Company only) (7,036) (6,371)
====== ======
8. 2023 Accounts
The figures and financial information for 2023 are extracted from the Annual
Report and financial statements for the year ended 31 December 2023 and do not
constitute the statutory accounts for the year. The Annual Report and
financial statements include the Report of the Independent Auditor which is
unqualified and does not contain a statement under either section 498(2) or
section 498(3) of the Companies Act 2006. The Annual Report and financial
statements have not yet been delivered to the Registrar of Companies.
Page 33 of 33
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2023
Notes to the Financial Statements continued
9. 2022 Accounts
The figures and financial information for 2022 are extracted from the
published Annual Report and financial statements for the year ended 31
December 2022 and do not constitute the statutory accounts for that year. The
Annual Report and financial statements have been delivered to the Registrar of
Companies and included the Report of the Independent Auditor which was
unqualified and did not contain a statement under either section 498(2) or
section 498(3) of the Companies Act 2006.
10. Annual report and financial statements
A copy of the Annual Report and financial statements to 31 December 2023 will
shortly be available for inspection at the National Storage Mechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) ) and on the
Company's website, www.witan.com (http://www.witan.com)
Copies of the Annual Report and financial statements will be posted to
shareholders in early April 2024 and will be available on the Company's
website (www.witan.com) or in hard copy format from the Registered Office,
14 Queen Anne's Gate, London, SW1H 9AA.
The Annual General Meeting will be held on Wednesday 1 May 2024 at the
Merchant Taylors' Hall, 30 Threadneedle Street, London EC2R 8JB. For further
details regarding arrangements, see the Notice of AGM which will be published
in early April 2024.
For further information please contact:
Andrew Bell
Chief Executive
Witan Investment Trust plc
Telephone: 020 7227 9770
James Hart
Investment Director
Witan Investment Trust plc
Telephone: 020 7227 9770
Isabella Seekings
Director of Marketing
Witan Investment Trust plc
Telephone: 020 7227 9770
- ENDS -
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incorporated into, or forms part of, this announcement.
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