REG - Witan Inv Tst PLC - Final Results
16/03/2022 07:00
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RNS Number : 8926E Witan Investment Trust PLC 16 March 2022
Page 1 of 34
WITAN INVESTMENT TRUST PLC
This announcement contains regulated information
Annual Financial Report for the year ended 31 December
2021
Chairman's Report
HIGHLIGHTS
· Full-year NAV total return of 15.8%. Share price total return 11.9%
· The benchmark returned 19.9%, led by the US, whose return was
disproportionately driven by five companies
· Ten-year NAV total return of 233%, compared with 210% for the
benchmark
· Share price discount to NAV 5.8% at year end (2020: 2.4%)
· The NAV uplift from share buybacks offset the majority of the
Company's ongoing charges during the year
· Dividend increased by 2.8% to 5.6 pence, more than double that paid
in 2011 and an unbroken run of increases since 1974
· Became a signatory to the Net Zero Asset Managers initiative in early
2022
Although this is the Annual Report for 2021, the outlook at the time of
writing is dominated by the consequences flowing from the Russian invasion of
Ukraine. Apart from the immediate suffering imposed on the Ukrainian people,
the longer-term effects on international relations and economies are hard to
predict. In investment terms, this calls for steady judgement and a long-term
perspective.
Looking back, 2021 was a year of considerable progress for markets and it is
pleasing to be able to report a 15.8% advance in your Company's NAV total
return. However, progress was not smooth, with changing investor reactions to
COVID-19 outbreaks, vaccination programmes, struggling global supply chains
and rising interest rates causing erratic swings in market leadership.
The relative fortunes of 'COVID winners' and 'COVID losers' in the market
tracked the fluctuations in news about the pandemic. The seasonal rise in
cases in the Northern hemisphere and the rapid spread of the new Omicron
variant meant that the year ended with renewed restrictions and a reversal in
the share prices of companies linked to the reopening of economies.
These events were reflected in Witan's performance, which showed a strong
absolute trend and was ahead of our global benchmark until the final furlong.
Unfortunately, the last two months saw market leadership move away from the
economically sensitive stocks which had served our managers well and a further
dramatic shrinkage in the breadth of performance in the US market. Of the 500
companies in the index, in both 2020 and 2021 a disproportionate share of the
US market's return (over 50% in 2020, over 30% in 2021) was generated by five
technology-related stocks. This late correction meant Witan's NAV return was
below the 19.9% return from our benchmark at the year-end.
We believe our managers were right to be positioned for a broadening of
economic recovery as, following the technology leaders' strong performance in
2021, the 2022 earnings prospects for a wider range of companies looked set to
improve. In the early weeks of 2022, there was a correction in the highly
rated technology sector and better performance from sectors seen as
beneficiaries from economic recovery, such as natural resources and
financials. However, the Russian invasion of Ukraine shifted the focus from
hopes of a recovery from COVID-19 to the uncertainties created by an outbreak
of war in Europe. This has made the outlook much less predictable, with much
Page 2 of 34
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2021
Chairman's Report (continued)
depending upon the duration, scale and outcome of the Russian aggression.
Andrew Bell's CEO report covers these points as well as the macroeconomic
backdrop in more detail.
The other aspect that impacted returns during the year was the widening of the
discount. After a number of years during which the shares traded close to
asset value, Witan is suffering from a sector-wide phenomenon of widening
discounts despite the continuation of our share buyback programme. Your Board
remains committed to this because we believe it offers heightened market
liquidity and NAV enhancement for long-term holders.
Taking a longer-term perspective, since Witan adopted a multi-manager approach
in 2004, we have beaten the returns on our benchmark and raised the dividend
well ahead of the rate of inflation. Over the ten years to the end of 2021,
Witan achieved a NAV total return of 233% and a share price total return of
255%, both of which exceeded the benchmark's 210% return.
RESPONSIBLE INVESTMENT
We have built on 2020's progress in formalising our engagement on
Environmental, Social and Governance ('ESG') issues with our investment
managers and continue to integrate ESG issues more deeply into our manager
selection, investment analysis, risk management and the central oversight of
our investment portfolio. Managing these risks is, in our view, inextricably
bound up with the delivery of strong and sustainable returns for shareholders,
not a separate activity.
The Responsible Investment section of the report is on pages 18 to 25 in the
Annual Report. This highlights our activities in 2021 and shows the
commitments your Board has made to the Net Zero Asset Managers initiative
('NZAM') and the UN Principles of Responsible Investment ('UNPRI'). It is
notable that all our delegated external managers are signatories to the UNPRI
and four out of eight have also committed to the NZAM in the past 12 months.
These initiatives provide a structured framework for engagement and reporting
on how we and our managers are addressing the regulatory and business risks
associated with corporate governance, changing social attitudes towards
business and meeting the objectives set out in the Paris Agreement on climate
change.
However, I would like to concentrate here on Witan's attitude to Responsible
Investment and our intentions for the future. As an investment company, we aim
to make well-informed investment decisions that ensure that the pursuit of
prosperity for our shareholders is not achieved at the expense of the planet
or its people. Indeed, we believe companies which disregard this will fail to
deliver sustainable returns to shareholders in the long term. Far from there
being a conflict between good returns and responsible investing, managing your
assets in line with these principles is key to achieving good returns that are
sustainable in terms of businesses' strategies as well as the enterprises'
wider acceptance by society.
We are therefore adopting a new target to ensure that Witan is managed in line
with these beliefs. The target is that our portfolio will consist entirely of
sustainable businesses (as defined on pages 20 and 21 of the Annual Report) by
2030 or earlier. This is in addition to the portfolio carbon reduction targets
which we will commit to as a signatory to the NZAM. It is important to stress
that this does not impose blanket exclusions on our managers (other than a
prohibition on 'controversial weapons') as we believe that engagement with
companies has a greater positive impact than divestment, as well as the
potential for better returns for shareholders. We will, of course, continue
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WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2021
Chairman's Report (continued)
working with our managers to ensure ESG issues are accounted for, to hold them
to account where necessary and if warranted make changes to the manager
line-up.
2021 DIVIDEND
A fourth interim dividend of 1.52 pence was declared in February 2022, payable
on 18 March 2022. As a result, the dividend for the year increased by 2.8% to
5.60 pence per share (2020: 5.45 pence), ahead of the 2.6% average rate of UK
consumer price inflation during the year. This was partly funded using £14.6
million from our revenue reserves (in 2020 we used £19 million).
The Board expects portfolio dividends to recover further in coming years and
it is the Company's intention to continue to make use of these retained
earnings to increase the dividend to shareholders annually while cover is
rebuilt. If necessary, realised capital reserves could also be used, as part
of a defined path towards our dividends once again being fully funded by
revenue earnings.
We have increased the dividend every year for the last 47 years. The latest
dividend is more than double that paid in 2011 and well ahead of inflation
over the period, albeit that dividend growth is likely to be slower in coming
years as dividend cover is rebuilt.
BOARD COMPOSITION
The Board consists of eight directors, seven of whom are non-executive,
representing a broad diversity in background, experience, ethnicity and
gender. This fulfils the primary need to have the right balance of skills to
oversee the Company's affairs while fully meeting formal corporate governance
guidelines on diversity.
In terms of length of service on the Board, there is a balance to be struck
between stability and change. Six of Witan's seven non-executive directors
have been appointed within the past two to six years, while Suzy Neubert, our
Senior Independent Director has, exceptionally, ten years' service on the
Board, providing an essential element of continuity. All directors stand for
re-election each year.
AGM
We very much look forward to being able to meet shareholders in person at this
year's AGM, after two years when the AGM had to be conducted remotely. Our
114th Annual General Meeting will be held on 5 May 2022, 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 at the end of March.
Andrew Ross
Chairman
15 March 2022
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WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2021
CEO's Review of the year
Recovery hopes clouded by Russian aggression
Although the Russian war against Ukraine currently overshadows the outlook for
2022, this report covers events in 2021. Where 2020 was defined by the shock
of the pandemic and the search for a way to combat it, 2021 marked a turning
of the tide, as vaccines, more effective treatment of the sick, help from
fiscal and monetary stimulus and the adoption of new systems of working and
routes to market began to alleviate the health consequences and economic costs
of COVID-19. Progress was uneven, with some countries experiencing the worst
of their outbreaks, while others saw improving trends. Consequently, despite
the case numbers through the year showing signs of improvement in the severity
associated with successive infection waves, the mood remained hesitant. This
was clearly illustrated by the reaction to the more contagious Omicron variant
towards the year end, with renewed lockdowns in some European economies and
the reintroduction of travel restrictions.
As noted in the Chairman's Statement, fluctuating hopes for an end to the
pandemic, and differing regional experience, were reflected in changeable
trends within investment markets. An early rise in bond yields and cyclically
sensitive stocks was reversed in the summer when a slowdown in economic growth
played on fears of renewed recession and rekindled interest in highly rated
faster-growing companies. This was followed in turn by a rise in inflation, as
companies were unable to meet the surge in demand from reopening economies.
There was unexpected disruption to production in key sectors, such as autos
and semiconductors, and in labour markets, where several factors (including
early retirement, reduced international mobility, health worries) have reduced
the number of people seeking employment in a resurgent economy. Energy prices
also rose sharply, as the growth in sustainable non-polluting sources of
energy is not yet sufficient to accommodate the world's growing overall demand
for energy at a time when oil and gas output has stalled due to supply
restrictions from OPEC and the effect of several years of weak capital
investment.
By the year end, some central banks began to curtail the exceptional liquidity
support provided during the crisis and to raise interest rates in response to
this rise in inflation, helped by confirmation of a revival in growth after
the pause during the summer.
Nonetheless, the developed world's equity markets enjoyed a buoyant year,
fuelled by abundant liquidity and sharply recovering earnings. Global equities
finished the year up 20%, led by a 30% rise in the US. The UK (+ 19%) and
Europe (+ 18%) also delivered a strong recovery. Emerging markets and Asia
fared less well, owing to slower vaccination rates and lockdowns associated
with successive pandemic waves. The Pacific Basin fell 2%, Japan rose only 2%
and Emerging Markets declined by 1%.
WITAN'S PERFORMANCE
Witan's net asset value ('NAV') total return in 2021 was +15.8%. This strong
absolute return was outstripped late in the year by the return on our global
benchmark, which was 19.9%. Our share price total return was 11.9%, owing to
the discount ending the year wider than at the end of 2020.
Page 5 of 34
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2021
CEO's review of the year (continued)
For most of 2021, our performance was ahead of our global benchmark, but the
end of the year coincided with renewed lockdowns and a setback to recovery
hopes.
Despite the uncertainties created by Russia's aggression in Ukraine, our
managers believe that being positioned for a recovery from the COVID-19
pandemic and the prospect of a broadening economic recovery is appropriate,
although the timing has become less certain and the risks have increased.
Witan's portfolio includes core holdings of quality growth companies offering
compounding earnings growth, as well as exposure to sectors expected to
benefit from the post-pandemic reopening of economies, from decarbonisation,
and from the growth in infrastructure spending.
PRINCIPAL PERFORMANCE DRIVERS
The financial statements on pages 86 to 111 in the Annual Report (see extracts
on pages 26 to 33 below) set out the required statutory reporting measures of
the Company's financial performance.
A 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 add up to the rise from the 236.0 pence starting NAV to
the year-end NAV of 267.4 pence, after the payment of dividends to
shareholders.
A breakdown of the relative performance attribution in 2021 (based on the
Company's financial statements) is shown in the table on page 6.
Witan benefited from maintaining a significant level of gearing during the
year (amplifying our portfolio gains) and from taking advantage of the
widening in our discount to buy back 8% of our shares, which generated an
uplift in NAV of £10.7 million (offsetting the majority of our ongoing
charges). In addition, the rise in gilt yields reduced the fair value of our
fixed-rate debt, benefiting the debt at fair value NAV. By contrast, our
external managers collectively underperformed significantly during the year,
so our overall returns lagged our benchmark. The benefits of gearing and
buybacks are meant to be the icing on the cake in performance terms, but in
2021 our cake did not fully rise to the occasion. This was a disappointing
relative outcome in the short term. However, the portfolio is positioned for a
normalisation of economic activity as the pandemic becomes less acute, while
paying close attention to the new risks posed by Russia's invasion of
Ukraine in late February.
Page 6 of 34
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2021
CEO's review of the year (continued)
BREAKDOWN OF THE PERFORMANCE ATTRIBUTION IN 2021 (%)
Net asset value total return 15.8 Portfolio total return (before costs) 13.5
Benchmark total return 19.9 Benchmark total return 19.9
Relative investment performance -6.4
Investment management costs -0.5
Investment contribution -6.9
Gearing impact 1.8
Borrowing costs -0.2
Gearing contribution 1.6
Effect of changed fair value of debt 0.9
Share buybacks 0.6
Other contributors 1.5
Other operating costs and tax -0.3
-0.3
Relative performance((1)) -4.1 -4.1
(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 2021, although the
allocation to Jennison was gradually increased. Their focus on companies with
exceptional growth prospects is attractive for the long term and we have taken
advantage of tactical opportunities to add to our small initial allocation
(which reflected the elevated performance of growth companies at their
appointment date in August 2020). During the first half of the year, we
reduced the Lansdowne allocation on several occasions following outperformance
and we added to Lindsell Train and GQG late in the year. This followed their
underperformance of global equities which we do not expect to be sustained,
although we can rationalise it given the cross-currents of 2021's markets
(with quality growth portfolios being derated and emerging markets
underperforming).
We sold the Matthews Asian portfolio in April and the Latitude global
portfolio in October, the former to remove a previous structural overweighting
of Asian equities, the latter to concentrate allocations upon our core global
managers.
We increased our allocation to the GMO Climate Change fund in May and October,
reflecting our increasing conviction in this as a long-term growth area. The
fund has delivered strong returns since purchase in 2019 and 2021's price
consolidation offered a good chance to increase our exposure.
We invested in two specialist funds during the year, both unavailable to
individual investors. The first, in July, was an £18 million investment in
Lindenwood, a fund managed by Greenoaks Capital Partners, a San Francisco
based specialist technology investor. The fund invests in selected
Page 7 of 34
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2021
CEO's review of the year (continued)
unquoted technology companies, seeking to identify future winners in the
sector at an earlier stage rather than simply investing in the known leaders
in the quoted markets. The second, in October, was to invest £20 million (1%
of assets) in the Lansdowne Opportunities fund, a fund which invests in mostly
unlisted companies capitalising on the intellectual property of the UK's
leading universities. Lansdowne has long-established links in this area and
the position was funded by realising assets from our existing Lansdowne global
portfolio.
Our third-party managers implement mandates set by the Company. Each manager's
mandate, benchmark, investment style and date of appointment are shown on
pages 28 to 31 of the Annual Report. Their returns during the year and since
appointment are set out in the table on page 8 below. Highly unusually, only
one of our external managers (GQG) outperformed its benchmark during the year,
despite many being ahead for most of the year. However, over the longer term
since inception, most of the principal current managers have outperformed
their benchmarks, despite a difficult performance environment in 2021. The
exceptions are Lindsell Train (appointed with a global mandate at the start of
2020, after nine years successfully managing a UK portfolio for Witan) and
Jennison (August 2020).
In the case of Lindsell Train, the market appeared to have an appetite for
either fast-growing profitable technology stocks or selected cyclical sectors
during 2021. The more steadily growing mainstream consumer areas favoured by
Lindsell Train were bypassed and, after many years when this strategy
performed well, they lagged the global benchmark by over 13% in 2021. There
was also adverse sentiment towards several holdings such as London Stock
Exchange (which completed a large acquisition in 2021) and some Japanese
holdings (affected by COVID-related weak conditions in the Japanese and
Chinese consumer markets). Jennison was ahead of the global market for much of
the year but, reflecting its focus on fast-growing companies, performance was
volatile, and the year-end coincided with a reversal in sentiment towards this
area. The weakest absolute performance came from GQG's emerging markets
portfolio. Although they outperformed the emerging market universe, emerging
markets had to contend with extended COVID-19 disruption (partly owing to the
delayed availability of vaccines) and with the lockdown and regulatory
disruptions to China's economy during the year.
The markets are no respecters of financial reporting calendars, with a dip in
our portfolio's relative performance coinciding with the year end. The
changeable investment environment meant that out of 11 sectors in total, the
only sectors to outperform global market indices in 2021 were information
technology and financials, together with two smaller sectors (energy and real
estate). This is an unusual assortment of 'winners' which is rarely held in
combination by active managers. Without being remotely complacent, we believe
Witan's external managers are well positioned, and appropriately diversified,
to deliver outperformance in coming years and the Board is closely focused on
securing a turnaround in the manager underperformance of the two pandemic
years.
Page 8 of 34
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December 2021
CEO's review of the year (continued)
INVESTMENT MANAGERS' PERFORMANCE
Witan assets managed as at 31.12.21((1)) Performance in 2021 Performance since appointment((2)) %
%
Appoint-
ment date
Investment manager and mandate £m % Manager Benchmark Manager Benchmark
CORE
Jennison (Global) 31.08.20 143.1 6.3 10.1 20.1 17.3 22.3
Lansdowne (Global) 14.12.12 431.6 18.9 17.5 20.1 15.4 14.2
Lindsell Train (Global) 31.12.19 335.6 14.7 4.0 20.1 8.6 16.5
Veritas (Global) 11.11.10 427.2 18.7 17.1 20.1 14.0 12.4
WCM (Global) 31.08.20 261.6 11.5 16.9 20.1 23.5 22.3
Artemis (UK) 06.05.08 142.3 6.1 16.0 18.7 9.2 5.8
SPECIALIST
GMO (Climate Change) 05.06.19 106.2 4.7 13.0 20.1 24.3 16.6
GQG (Emerging Markets) 16.02.17 148.8 6.5 0.2 (1.3) 11.0 6.7
Unquoted Growth 02.07.21 37.9 1.7 n/a n/a (5.2) 6.9
Witan Direct Holdings 19.03.10 247.9 10.9 18.8 19.9 12.0 10.1
(1) Amount and percentage of Witan's investments managed, excluding centrally
managed cash.
(2) The percentages are annualised where the date of appointment was more than
one year ago.
DIRECTLY HELD INVESTMENTS
The return on the portfolio of directly managed investment company holdings
was +19%, marginally lagging the 19.9% return from our composite benchmark but
the best absolute portfolio return during the year. The listed private equity
funds (amounting to 52% of the total) all delivered strong returns. Apax
Global Alpha rose 23.9% and Princess Private Equity was up 21.6%. We trimmed
the latter in December following a strong run. Electra Private Equity
delivered a 56.7% return over the year, despite falling back during a period
of market indigestion late in the year. This followed its split into two
separate companies, Hostmore being the Fridays restaurant chain and Electra
itself (renamed 'Unbound') consisting of an online retail platform including
the Hotter Shoes brand.
Our holding in Schroder Real Estate Investment Trust rose 45.3%, having been
depressed by poor sentiment towards the sector during the pandemic lockdowns.
We added significantly to the position at that time, since when the dividend
has increased, the NAV has risen, and the shares' discount has narrowed.
The BlackRock World Mining Trust delivered a return of 17.5% over the year.
This masks a period of significant earlier strength, when we reduced our
exposure before adding to it again during the summer, when the mining sector
weakened. The trust, although invested in an energy intensive
Page 9 of 34
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2021
CEO's review of the year (continued)
sector, is managed according to best ESG practice and gives Witan exposure to
metals (notably copper) that are essential to electrification programmes and
reducing the carbon intensity of the world economy. On the environmental
theme, we invested 1% of assets in the VH Sustainable Energy Opportunities
fund, to take advantage of growing investment in power generation which does
not require fossil fuels.
On the downside, after a strong 2020, Syncona had a disappointing year in
share price terms but not before we significantly pruned the position at
elevated prices. 2021's weak performance was principally due to a reduction in
its premium to NAV from over 30% at the start of the year to an estimated 6%
at the year end. The NAV fell by 4% during the year, owing to substantial
declines in three holdings listed on the Nasdaq market, where early-stage
biotech stocks were out of favour. The pandemic had delayed trials of their
innovative drug treatments, but a number of results are expected during 2022
which will determine future progress. Towards the year end, Syncona agreed the
sale of their largest holding, Gyroscope Therapeutics, to the Swiss
pharmaceutical company Novartis, for a price which represented a 55% IRR on
Syncona's investment and resulted in a 16% uplift to its prevailing NAV. This
continued the management team's successful record of profitable exits from
investments. Despite the price falls in its quoted holdings, which weighed on
its overall 2021 NAV performance, we believe Syncona gives Witan access to a
differentiated and successful investment area that mainstream managers cannot
offer.
The remaining holding of note, the NB Distressed Debt fund, which represents
under 0.4% of assets, is in run-off, awaiting the optimal opportunity to
realise the remaining investments. Its total return over the year was 4.4%.
The portfolio held 10.2% of assets at the start of the year and was 10.9% of
the investment portfolio at the end of 2021. Over the period since March 2010,
it has delivered a compound annual
return of 12%, outperforming Witan's benchmark by 1.9% p.a. Aside from
performance, it gives Witan's shareholders exposure to specialist asset
categories that our core managers (and many shareholders themselves) do not
cover.
GEARING ACTIVITY DURING THE YEAR
Gearing was varied according to opportunity during the year, ranging from 9.1%
to 13.4%. The average of 10.7% boosted returns by 1.8% in the year, or 1.6%
after taking account of the (mostly fixed) interest charges. Gearing has
contributed positively to returns in eight 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 115 of the Annual Report)
to be more than 20%, other than temporarily in exceptional circumstances.
Where appropriate, the Company may hold a net cash position.
At the end of 2020, net gearing (the total value of borrowings less cash) was
12.3% of net assets. At the end of 2021, gearing (on the same basis) was
11.3%.
Page 10 of 34
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2021
CEO's review of the year (continued)
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
The Company has a £150 million one-year borrowing facility, providing
additional flexibility over the level of gearing, as well as enabling the
Company to borrow in currencies other than sterling, if deemed appropriate.
The drawn balance was £98 million at the end of 2021 (2020: £109 million).
The average interest rate on the Company's fixed-rate borrowings is 3.0%
(2020: 3.0%). The average interest rate, including short-term borrowings, is
currently 2.1% (2020: 2.0%).
Witan will either invest its 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.
DERIVATIVES ACTIVITY
There was no derivatives investment activity during the year.
DIVIDEND AND REVENUE PERFORMANCE
The Company has already paid three quarterly dividends of 1.36 pence per share
in respect of 2021, which, together with the fourth interim dividend of 1.52
pence per share, increases the total distribution for the year to 5.60 pence
(2020: 5.45 pence). At the end of 2020, retained revenue reserves were £52
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 £14.6 million was used towards funding the 2021
dividend (2020: £19.0 million).
Revenue earnings per share rose by almost 17% to 3.6 pence per share in 2021,
with the recovery quickening through the year. The recovery in revenue
earnings has facilitated an increase in the dividend, an increased level of
dividend cover and a lower call on past revenue reserves.
The Board has reviewed the prospects for portfolio dividend growth in 2022 and
future years and, recognising the importance for many shareholders of a
reliable and growing income, intends to use revenue reserves to bridge what is
expected to be a narrowing gap between portfolio revenue earnings and the
dividends paid to shareholders. The Board anticipates dividend cover improving
each year, alongside continued annual dividend growth.
Page 11 of 34
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2021
CEO's review of the year (continued)
2022 DIVIDENDS
The first three quarterly payments for 2022 (in June, September and December)
will, in the absence of unforeseen circumstances, be paid at a rate of 1.40
pence per share (2021: 1.36 pence), being one quarter of the 5.60 pence per
share full-year payment for 2021. The fourth payment (in March 2023) 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 over
£1.8 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.
WITAN INVESTMENT TRUST DISCOUNT TREND
The discount trend during the past five years is illustrated in a chart on
page 15 of the Annual Report. Although the discount narrowed in the second
half of 2021, it remained wider than the pre-pandemic trend (along with many
of our peers), despite the more positive market environment. Witan was active
in buying back shares, helping to moderate the level of the discount, as well
as delivering an uplift to NAV. During the year 63.7 million shares were
bought back (8% of the total at the start of the year), at an average 7%
discount to NAV, which resulted in an uplift to NAV of £10.7 million, or 1.4
pence per share. For perspective, this sum exceeds the investment management
fees paid to our external managers, offsetting the majority of the Company's
ongoing charges.
The discount finished the year at 5.8% (2020: 2.4%) and the average discount
during the year was 6.9% (2020: 6.0%).
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). 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 the past two years are evidence of this continuing
commitment.
OUTLOOK
The early weeks of 2022 saw a contrast between the accelerating numbers of
cases of COVID-19 and increasing hopes that the Omicron variant responsible
was less of a threat to most of those infected. Effective vaccines and
improved therapeutic treatments for those most affected offer hope that 2022
will be the year when the world learns to coexist with a virus that is
becoming endemic. This, of course, depends upon the continued global vaccine
rollout, wider availability of treatments for those most seriously affected
and immunity holding up against future mutations of the virus.
Page 12 of 34
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2021
CEO's review of the year (continued)
The reopening in many economies that was interrupted in 2021 seems likely to
resume in 2022, which will deliver significant recoveries in the service
sectors which have been most affected, notably travel and hospitality. Supply
disruptions (caused by the speed of the bounce-back in growth during 2021,
allied to the impact of COVID-19 on component factories, ports and transport
logistics) are moderating, allowing a recovery in key manufacturing sectors,
including autos.
On top of this hoped-for cyclical rebound, there are two new drivers of future
growth, namely the interrelated areas of infrastructure and measures to combat
global warming. Over coming decades, the power generation, heating and cooling
of premises and transportation sectors are set to be re-engineered to reduce
dependence on coal and hydrocarbons.
This will create opportunities in the emergent industries as well as
obsolescence risks for incumbents. The US is also set to embark on a programme
of repairing and renewing its ageing civil engineering infrastructure, while
the EU has agreed a €750 billion Next Generation EU investment programme to
help support economies adversely affected by the pandemic.
Resurgent growth, damaged production systems (due to COVID-19 effects) and an
energy crisis caused by premature disinvestment in oil and gas have caused
inflation to surge in many economies. This has been exacerbated by the surge
in energy prices following Russia's military aggression in Ukraine. Whilst
some of the inflation drivers may be transient, others are potentially
structural - the cheapness of goods from emerging markets is waning, supply
chains are being shortened, pandemic- related changes in the workforce may
endure and governments seem set to run bigger deficits.
Central bank policy is turning. The Bank of England has raised rates twice and
the US Federal
Reserve is phasing out its liquidity-boosting bond purchases and signalling
rate rises during 2022. The resulting rise in bond yields has implications for
equities as well as for relative returns within the markets. Rapidly growing
companies (in many cases 'pre-profit') have been rerated in recent years due
to a lower discount rate being applied to the major proportion of their value
represented by sales far into the future. We have seen a reality check for
some of the most optimistically valued parts of the markets at a time of
improving dividend cheques from the laggards. As investors in undervalued
growth (rather than cheapness alone) we have been surprised by the widening
disparity in ratings within the markets.
We believe central banks will stop short of aggressive rises as, given the
debt burden in major economies, high rates would rapidly impact growth. This
is aside from the hard-to-forecast effect of the Russian invasion on economic
confidence, particularly in Europe. Furthermore, moderate inflation is an
effective way to reduce debt burdens, particularly if (as in the decades after
the Second World War) it coincides with consistent economic growth. Both
governments and central banks seem likely to seek (or condone) faster
inflation than the 2% norm of recent decades, while hoping that government
bond yields remain low. This policy, of financial repression, depends upon
buyers of government bonds either being surprised by inflation or being under
pressure to hold them (e.g. requirements for banks to hold gilts as liquidity,
pension funds and insurers matching assets and liabilities).
Page 13 of 34
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December 2021
CEO's review of the year (continued)
Although equity market valuations are high by historic standards, interest
rates remain exceptionally low. Rising interest rates will shift the burden
onto earnings growth to offset potential PE derating, acting as a headwind for
equities, presumably more so where valuations have expanded the most
speculatively. With the exceptional liquidity injections of recent years now
being withdrawn by central banks, amid rate increases aimed at tackling
unexpectedly high inflation, 2022 already looked like a year when a more
selective, value-conscious approach to equities was called for, while bond
yields below prevailing inflation rates appeared increasingly hard to justify.
Added to this, the actual and potential ramifications of the Russian military
aggression against Ukraine make the immediate outlook less predictable,
calling for steady judgement, a long-term approach and a focus on
distinguishing substance from mirage in investment terms.
Andrew Bell
Chief Executive Officer
15 March 2022
Page 14 of 34
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2021
Strategic Report
PRINCIPAL RISKS AND UNCERTAINTIES
The directors have carried out a robust assessment of the emerging and
principal 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
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 seven 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 15 of 34
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2021
Strategic Report continued
The Company's key risks fall broadly under the following categories:
Market and investment portfolio (Increased)
Risk Mitigation
As 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;
pandemics (e.g. COVID-19), trade wars and military conflicts (e.g. the Russian
invasion of Ukraine) can all be expected to lead to market volatility. · engagement with shareholders and other stakeholders
· 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 Chief Executive Officer ('CEO')) managed the
overall business and the investment portfolio in accordance with limits
determined by the Board and its 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 program,
principally BNP Paribas Securities Services ('BNPSS'). Disruption to their focused upon the operational and cyber arrangements of all the Company's
accounting, payment systems or custody records could prevent the accurate suppliers. BNPSS, as the Company's depositary, has a key responsibility for
reporting and monitoring of the Company's financial position. 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 48 to 56 of the Annual Report.
Page 16 of 34
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2021
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 48 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 late 2021. See page 55 of the Annual Report for further details.
Following the closure of the Company's savings plans, the risks associated
with the holding of and accounting for client assets has been substantially
reduced and will be eliminated in future.
Operational and regulatory risks are regularly reviewed by Witan's Audit
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 17 of 34
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 18 of 34
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2021
Strategic Report continued
COVID 19- Global Pandemic (Reduced)
Risk Mitigation
The COVID-19 pandemic has given rise to unprecedented challenges for The Board and the WIS Executive maintain close oversight of the Company's
businesses across the globe and the Board has taken into consideration the portfolio and monitors the investment income flows from its investee
risks, both investment and operational, posed to the Company by the crisis. companies. The Board monitors the effects of COVID-19 on the operations of the
Company and its service providers to ensure that they continue to be
appropriate, effective and properly resourced.
Environmental, social and governance factors (Unchanged)
Risk Mitigation
Failure to identify, understand or mitigate the risks arising from Witan has a Responsible Investment policy which was developed by the Board in
environmental, social and governance issues may negatively impact investment consultation with Witan's Executive team. Witan expects its external managers
returns, increase the potential for reputation risk to Witan and adversely to integrate ESG factors into their investment processes. Witan requires
affect the net asset value and/or price of Witan's shares. 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.
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 Securities Services London Branch for depositary services,
custody, investment accounting and administration;
· Frostrow Capital LLP for company secretarial services;
Page 19 of 34
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December 2021
Strategic Report continued
· RepRisk and Sustainalytics for ESG monitoring of its investment
holdings; and
· specialist advice on regulatory compliance issues and, as required,
procure legal, investment consulting, financial and tax advice.
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
71 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 has six direct employees, three
men and three women. The Board currently consists of seven non-executive
directors (four men and three women) and the Chief Executive Officer, 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 environmental, social and
governance issues has been formalised by the Company's membership of the
Institutional Investors Group on Climate Change since July 2019, a signatory
to the UN-supported Principles for Responsible Investment from February 2020
and a commitment to Net Zero Asset Managers initiative in early 2022.
WITAN INVESTMENT SERVICES
WIS is authorised and regulated by the Financial Conduct Authority. It is
authorised to act as Witan's AIFM, to provide marketing services and to give
investment advice to professional investors.
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 2021 were:
● to fulfil its responsibilities as Witan's AIFM; and
● to control the net operating costs for Witan.
In 2021, WIS's principal 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 20 of 34
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2021
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 2021
ranged from 0.30 % to 0.60 % per annum. The weighted average base fee was 0.51
% as at 31 December 2021 (2020: 0.51%). One manager, (covering 6% of Witan's
portfolio), has a performance-related fee, which is subject to capping in any
particular year.
Witan takes care to ensure the competitiveness of the fees it pays. Most of
the fee structures incorporate a 'taper' whereby the average fee rate reduces
as the portfolio grows.
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.
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 0.71% in 2021, 9% lower than the previous year (2020: 0.78%). When
performance fees due to third-party managers are included, the OCF was 0.73%
in 2021 (2020: 0.82%). The sole manager with a performance fee structure
significantly outperformed during 2020 and early 2021. This generated the
payment of a performance fee for that manager (which has a lower base fee than
comparable managers).
The main cost headings within the OCF are set out on page 21. 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. All the
costs measured showed an improvement on the previous year, either increasing
by less than the growth in net assets or declining in absolute terms.
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 account of longer-term performance.
Page 21 of 34
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2021
Strategic Report continued
The UK version of the EU PRIIPS regulations, which are applicable to UK
Investment Companies, mandate 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, however
measured.
ANALYSIS OF COSTS
2021 2020
% of average 2020 % of average
2021
Category of cost £m net assets £m net assets
Investment management base fees (note 4, page 32) 9.33 0.47 8.70 0.51
Other expenses (excluding loan arrangement and one-off costs) 4.81 0.24 4.91 0.28
Less expenses relating to the subsidiary (those expenses not relating to the (0.04) - (0.15) (0.01)
operation of the investment company)
Ongoing Charges Figure 14.10 0.71 13.46 0.78
(including investment management base fees)
Investment management performance fees (note 4, page 32) 0.39 0.02 0.58 0.04
Ongoing Charges Figure 14.49 0.73 14.04 0.82
(including performance fees)
Pro rata ongoing charges of underlying funds((1)) 4.37 0.22 4.34 0.25
OCF plus look through fund costs 18.86 0.95 18.38 1.07
Portfolio transaction costs including costs relating to manager changes. 3.95 0.20 3.58 0.21
Interest costs 5.21 0.26 6.43 0.37
Total costs including transaction costs, borrowing costs and underlying fund 28.02 1.41 28.39 1.65
costs
(1) 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 15 to 18.
Page 22 of 34
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2021
Strategic Report continued
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 more than 83% 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.
● 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 £33 million at 31
December 2021 (2020: £35 million), the Company has a short-term bank facility
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 15 to 18 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 63.7 million ordinary shares in 2021 at
a cost of £153.5 million and experienced no problem with liquidity in doing
so. It had shareholders' funds in excess of £1.9 billion at the end of 2021.
Page 23 of 34
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2021
Strategic Report continued
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.
GOING CONCERN
In light of the conclusions drawn in the foregoing statement on liquidity risk
on page 17 and the Viability Statement, 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 2022 and is
signed on its behalf by:
A J Ross A L C Bell
Chairman Chief Executive Officer
15 March 2022
Page 24 of 34
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2021
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 as adopted by the EU, 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 15 to 18) 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
A J Ross
Chairman
A L C Bell
Chief Executive
15 March 2022
Page 25 of 34
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2021
Financial Highlights as at 31 December 2021
Key data
2021 2020
Share price 252.0p 230.5p
NAV per ordinary share (debt at fair value)((3)) 267.4p 236.0p
Discount (NAV including income, debt at fair value)((3)) 5.8% 2.4%
Dividend per share 5.60p 5.45p
Total return performance
1 year % return 5 years % return 10 years % return
Share price total return((1)(3)) 11.9 57.4 255.3
NAV total return((1)(3)) 15.8 59.6 232.7
Witan benchmark((1)) 19.9 70.1 210.2
MSCI UK IMI INDEX((2)) 18.7 26.7 102.6
MSCI ACWI INDEX((2) ) 20.1 83.3 270.6
Percentage of total funds
North America 38%
United Kingdom 20%
Europe 17%
Other 4%
Asia Pacific ex Japan 5%
Japan 3%
Unquoted Funds 2%
Investment Companies 11%
Sector breakdown of the portfolio
Information Technology 14.6%
Industrials 13.2%
Investment Companies 11.3%
Healthcare 10.7%
Consumer Staples 10.5%
Communication Services 9.7%
Financials 9.1%
Consumer Discretionary 8.7%
Materials 7.4%
Energy 1.7%
Unquoted Funds 1.7%
Utilities 1.1%
Real Estate 0.3%
Company size breakdown of the portfolio
Large Cap 72.0%
Mid Cap 11.0%
Small Cap 4.0%
Unquoted Funds 1.7%
Investment Companies 11.3%
(1) Source: Morningstar.
(2) Source: Morningstar. See also MSCI for conditions
of use (www.msci.com).
(3) Alternative performance measure: The
financial statements on pages 86 to 111 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 and a reconciliation
of the NAV per ordinary share (debt at par value) to the NAV per ordinary
share (debt at fair value) are shown in note 18 on page 108 the Annual Report.
Page 26 of 34
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2021
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2021
Year ended Year ended
31 December 2021 31 December 2020
Revenue Capital Revenue Capital
return return Total return return Total
£'000 £'000 £'000 £'000 £'000 £'000
Investment income (note 2) 37,443 - 37,443 36,083 - 36,083
Other income (note 3) 129 - 129 604 - 604
Gains on investments held at fair value through profit or loss
- 248,107 248,107 - 57,813 57,813
Foreign exchange losses on cash and cash equivalents
- (1,178) (1,178) - (3,259) (3,259)
---------- ---------- ---------- ---------- ---------- ----------
Total income 37,572 246,929 284,501 36,687 54,554 91,241
Expenses
Management and performance fees (note 4) (2,331) (7,383) (9,714) (2,176) (7,103) (9,279)
Other expenses (4,815) (101) (4,916) (5,050) (260) (5,310)
---------- ---------- ---------- ---------- ---------- ----------
Profit before finance costs and taxation
30,426 239,445 269,871 29,461 47,191 76,652
Finance costs (1,366) (3,842) (5,208) (1,674) (26,815) (28,489)
---------- ---------- ---------- ---------- ---------- ----------
Profit before taxation 29,060 235,603 264,663 27,787 20,376 48,163
Taxation (1,432) (488) (1,920) (1,876) (398) (2,274)
---------- ---------- ---------- ---------- ---------- ----------
Profit attributable to equity shareholders of the parent company
27,628 235,115 262,743 25,911 19,978 45,889
---------- ---------- ---------- ---------- ---------- ----------
Earnings per ordinary share (basic and diluted) (note 5)
3.59p 30.53p 34.12p 3.08p 2.37p 5.45p
====== ====== ====== ====== ====== ======
The total column of this statement represents the Group's Consolidated
Statement of Comprehensive Income prepared in accordance with UK-adopted
International Accounting Standards.
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, 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 27 of 34
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2021
Consolidated and Individual Statements of Changes in Equity
for the year ended 31 December 2021
Group: Year ended 31 December 2021
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 2020 50,018 99,251 46,498 1,665,775 63,666 1,925,208
Total comprehensive income:
Profit for the year - - - 235,115 27,628 262,743
Transactions with owners, recorded directly to equity:
Ordinary dividends paid (note 7) - - - - (42,399) (42,399)
Buybacks of ordinary shares (held in treasury)
- - - (153,511) - (153,511)
-------- --------- --------- ------------ --------- ------------
Total equity at 31 December 2021 50,018 99,251 46,498 1,747,379 48,895 1,992,041
Company: Year ended 31 December 2021
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 2020 50,018 99,251 46,498 1,666,030 63,411 1,925,208
Total comprehensive income:
Profit for the year - - - 235,076 27,667 262,743
Transactions with owners, recorded directly to equity:
Ordinary dividends paid (note 7) - - - - (42,399) (42,399)
Buybacks of ordinary shares (held in treasury)
- - - (153,511) - (153,511)
-------- --------- --------- ------------ --------- ------------
Total equity at 31 December 2021 50,018 99,251 46,498 1,747,595 48,679 1,992,041
Group: Year ended 31 December 2020
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 2019 50,018 99,251 46,498 1,768,281 87,058 2,051,106
Total comprehensive income:
Profit for the year - - - 19,978 25,911 45,889
Transactions with owners, recorded directly to equity:
Ordinary dividends paid (note 7) - - - - (49,303) (49,303)
Buybacks of ordinary shares (held in treasury)
- - - (122,484) - (122,484)
--------- --------- ------------ --------- ------------ ------------
Total equity at 31 December 2020 50,018 99,251 46,498 1,665,775 63,666 1,925,208
Company: Year ended 31 December 2020
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 2019 50,018 99,251 46,498 1,768,439 86,900 2,051,106
Total comprehensive income:
Profit for the year - - - 20,075 25,814 45,889
Transactions with owners, recorded directly to equity:
Ordinary dividends paid (note 7) - - - - (49,303) (49,303)
Buybacks of ordinary shares (held in treasury)
- - - (122,484) - (122,484)
-------- --------- --------- --------------- --------- ------------
Total equity at 31 December 2020 50,018 99,251 46,498 1,666,030 63,411 1,925,208
Page 28 of 34
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2021
Consolidated and Individual Balance Sheets
As at 31 December 2021
Group Company Group Company
31 December 31 December 31 December 31 December
2021 2021 2020 2020
£'000 £'000 £'000 £'000
Non current assets
Investments held at fair value through profit or loss
2,217,455 2,218,571 2,162,722 2,163,877
Right of use asset: property 249 249 315 315
-------------- -------------- -------------- --------------
Total non current assets 2,217,704 2,218,820 2,163,037 2,164,192
-------------- -------------- -------------- --------------
Current assets
Other receivables 5,840 5,782 10,877 10,759
Cash and cash equivalents 34,590 33,491 36,145 35,152
----------- ----------- ----------- -----------
Total current assets 40,430 39,273 47,022 45,911
Total assets 2,258,134 2,258,093 2,210,059 2,210,103
--------------- --------------- --------------- ---------------
Current liabilities
Other payables (10,347) (10,306) (18,488) (18,532)
Bank loans (98,000) (98,000) (109,000) (109,000)
---------- ---------- ---------- ----------
Total current liabilities (108,347) (108,306) (127,488) (127,532)
---------- ---------- ---------- ----------
Total assets less current liabilities 2,149,787 2,149,787 2,082,571 2,082,571
Non current liabilities
Other payables (287) (287) (417) (417)
Deferred tax liability on Indian capital gains (886) (886) (398) (398)
Borrowings:
Secured debt (154,018) (154,018) (153,993) (153,993)
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 (157,746) (157,746) (157,363) (157,363)
---------- ---------- ---------- ----------
Net assets 1,992,041 1,992,041 1,925,208 1,925,208
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 1,747,379 1,747,595 1,665,775 1,666,030
Revenue reserve 48,895 48,679 63,666 63,411
---------- ---------- ---------- ----------
Total equity 1,992,041 1,992,041 1,925,208 1,925,208
Net asset value per ordinary share 269.93p 269.93p 240.14p 240.14p
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 £262,743,000 (2020: profit of
£45,889,000).
Page 29 of 34
WITAN INVESTMENT TRUST PLC
Annual Financial Report for
the year ended 31 December 2021
Consolidated and Individual Company Cash Flow Statements
for the year ended 31 December 2021
Group Company Group Company
2021 2021 2020 2020
£'000 £'000 £'000 £'000
Cash flows from operating activities
Dividend income received 37,986 37,986 37,152 37,152
Interest received 149 149 89 88
Other income received 361 141 1,142 281
Operating expenses paid (15,430) (15,316) (15,757) (14,733)
Taxation on overseas income (3,794) (3,794) (2,233) (2,233)
Taxation recovered 81 81 485 485
---------- ----------- ---------- -----------
Net cash inflow from operating activities
19,353 19,247 20,878 21,040
---------- ----------- ---------- -----------
Cash flows from investing activities
Purchases of investments (1,004,934) (1,004,934) (1,687,329) (1,687,329)
Sales of investments 1,194,779 1,194,779 1,859,846 1,859,846
Settlement of futures contracts - - 4,892 4,892
---------- ----------- ---------- -----------
Net cash inflow from investing activities
189,845 189,845 177,409 177,409
---------- ----------- ---------- -----------
Cash flow from financing activities
Equity dividends paid (note 7) (42,399) (42,399) (49,303) (49,303)
Expenses relating to issue of secured notes
- - (17) (17)
Buybacks of ordinary shares (150,942) (150,942) (120,437) (120,437)
Repayment of secured bond - - (85,750) (85,750)
Interest paid (5,167) (5,167) (6,529) (6,529)
Repayment of lease liability (67) (67) (70) (70)
Drawdown of bank loans 176,250 176,250 360,000 360,000
Repayment of bank loans (187,250) (1857,250) (301,500) (301,500)
---------- ----------- ---------- -----------
Net cash outflow from financing activities
(209,575) (209,575) (203,606) (203,606)
---------- ----------- ---------- -----------
Decrease in cash and cash equivalents
(377) (483) (5,319) (5,157)
Cash and cash equivalents at the start of the period
36,145 35,152 44,723 43,568
Effect of foreign exchange rate changes
(1,178) (1,178) (3,259) (3,259)
---------- ----------- ---------- -----------
Cash and cash equivalents at the end of the period
34,590 33,491 36,145 35,152
Page 30 of 34
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2021
Notes to the Financial Statements
for the year ended 31 December 2021
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 April 2021 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 2021 is
shown in the balance sheet on page 28. The cash flows of the Group for the
year ended 31 December 2021 are not untypical and are set out on page 29.
(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 31 of 34
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2021
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. 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
2021 2020
£'000 £'000
UK dividends from listed investments 11,693 10,549
UK special dividends from listed investments 455 104
UK stock dividends from listed investments 170 -
----------- -----------
Total UK dividends 12,318 10,653
----------- -----------
Overseas dividends from listed investments 24,502 25,122
Overseas special dividends from listed investments 623 257
Overseas stock dividends from listed investments - 51
----------- -----------
Total investment income 37,443 36,083
2021 2020
£'000 £'000
Analysis of investment income by geographical segment:
United Kingdom 12,318 10,653
North America 4,407 5,840
Continental Europe 5,614 5,236
Japan 1,450 1,933
Asia Pacific (ex Japan) 2,709 3,764
Latin America 2,147 -
Other 8,798 8,657
----------- -----------
Total investment income 37,443 36,083
3. Other income
2021 2020
£'000 £'000
Deposit interest 3 81
Stock lending income 126 281
Income from the subsidiary company's third party business - 242
----------- -----------
129 604
At 31 December 2021 the total value of securities on loan by the Company for
stock lending purposes was £57,111,000 (2020: £83,074,000). The maximum
aggregate value of securities on loan at any time during the year ended 31
December 2021 was £188,480,000 (2020: £128,597,000). Collateral, revalued on
a daily basis at a level equivalent to at least 105% (2020: 105%) of the
market value of the securities lent, was provided against all loans.
Page 32 of 34
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2021
Notes to the Financial Statements continued
4. Management and performance fees
Year ended 31 December 2021 Year ended 31 December 2020
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Management fees paid to third-party managers 2,331 6,994 9,325 2,176 6,528 8,704
Performance fee payable to third-party managers - 389 389 - 575 575
---------- ----------- ----------- ---------- ----------- -----------
2,331 7,383 9,714 2,176 7,103 9,279
5. Earnings per ordinary share
The earnings per ordinary share figure is based on the net profit for the year
of £262,743,000 (2020: profit of £45,889,000) and on 770,137,797 ordinary
shares (2020: 841,523,451), 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.
2021 2020
£'000 £'000
Net revenue profit 27,628 25,911
Net capital profit 235,115 19,978
Net total profit 262,743 45,889
Weighted average number of ordinary shares in issue during the year 770,137,797 841,523,451
Pence Pence
Revenue earnings per ordinary share 3.59 3.08
Capital earnings per ordinary share 30.53 2.37
Total earnings per ordinary share 34.12 5.45
6. Issued share capital
The number of ordinary shares of 5p each in issue at 31 December 2021 was
1,000,355,000 (2020: 1,000,355,000), of which 262,379,133 ordinary shares of
5p each (2020: 198,641,713) were held in treasury.
Page 33 of 34
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2021
Notes to the Financial Statements continued
7. Dividends
2021 2020
£'000 £'000
Amounts recognised as distributions to equity holders in the year:
Fourth interim dividend for the year ended 31 December 2020 of 1.43p (2019:
1.825p) per ordinary share
11,294 15,783
First interim dividend for the year ended 31 December 2021 of 1.36p
(2020: 1.34p) per ordinary share 10,563 11,536
Second interim dividend for the year ended 31 December 2021 of 1.36p (2020:
1.34p) per ordinary share
10,385 11,099
Third interim dividend for the year ended 31 December 2021 of 1.36p (2020:
1.34p) per ordinary share
10,157 10,885
---------- ----------
42,399 49,303
====== ======
Fourth interim dividend for the year ended 31 December 2021 of 1.52p (2020:
1.43p) per ordinary share
11,107 11,294
====== ======
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.
2021 2020
£'000 £'000
Revenue profits available for distribution (Company only) 27,667 25,814
First interim dividend for the year ended 31 December 2021 of 1.36p
(2020: 1.34p) per ordinary share (10,563) (11,536)
Second interim dividend for the year ended 31 December 2021 of 1.36p (2020:
1.34p) per ordinary share
(10,385) (11,099)
Third interim dividend for the year ended 31 December 2021 of 1.36p (2020:
1.34p) per ordinary share
(10,157) (10,885)
Fourth interim dividend for the year ended 31 December 2021 of 1.52p (2020:
1.43p) per ordinary share
(11,107) (11,294)
---------- ----------
Revenue reserves utilised (Company only) (14,545) (19,000)
====== ======
8. 2021 Accounts
The figures and financial information for 2021 are extracted from the Annual
Report and financial statements for the year ended 31 December 2021 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 34 of 34
WITAN INVESTMENT TRUST PLC
Annual Financial Report for the year ended 31 December
2021
Notes to the Financial Statements continued
9. 2020 Accounts
The figures and financial information for 2020 are extracted from the
published Annual Report and financial statements for the year ended 31
December 2020 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 2021 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 by the end of March 2022 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 Thursday 5 May 2022 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 by the
end of March 2022.
For further information please contact:
Andrew Bell
Chief Executive
Witan Investment Trust plc
Telephone: 020 7227 9770
Alexis Barling
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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