Fund Profile

Disclaimer

Disclosure – Non-Independent Marketing Communication

This is a non-independent marketing communication commissioned by Witan. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.

Overview
WTAN’s differentiated approach remains attractive despite short term performance challenges…
Overview

Witan employs a differentiated multi-manager approach to investing with an objective to grow capital and income from global equities. The highly-diversified Portfolio is designed to provide all the benefits of active management but with few of the disadvantages, such as key man risk.

Witan aims to provide a ‘one-stop shop’, with selection and monitoring of underlying managers as well as a directly-invested portfolio of other investment trusts providing a broadly diversified portfolio and a high active share when compared to the benchmark. Witan is very different to other global trusts or multi-manager products due to the in-house executive team which is aligned fully with Witan’s shareholders.

Currently, the manager roster includes eight delegated managers running segregated accounts with full visibility given to Witan’s executive team on every investment. Although there is expected to be a low level of turnover of managers, the executive team has been active recently in allocating capital between them. Managers are selected to provide a range of different approaches and styles, ensuring that the portfolio as a whole is never overly exposed to one sector, style or theme. Re-allocation activity, which can be contrarian, looks to capture a portfolio’s underappreciated growth prospects by balancing that potential for growth with an attractive valuation.

Since the adoption of the current ‘manager of managers’ approach, Witan has outperformed its benchmark and delivered dividend growth well ahead of inflation. The period since the pandemic has presented challenges in a very changeable market environment and short-term performance has suffered.

Witan is one of the leading trusts of the AIC’s ‘dividend heroes’, having delivered 47 years of dividend increases. Over the past 10 years, dividend growth has averaged 8.8% per annum. At the current share price, Witan yields 2.5% on a historic basis.

Kepler View

Witan offers a differentiated approach to multi-manager investing. As we discuss in the ESG section, the board and executive team are taking industry-leading steps towards investing only in what they view to be ‘sustainable’ companies, which they hope to achieve by 2030 or before. In this regard and in our view, Witan adds another feather in its cap with its ambition to provide a one-stop shop for global equity investors, especially those who want a responsible ESG-aware manager.

In other ways, outside of ESG, Witan might be considered to have an element of future-proofing: with highly active managers underpinning the strategy, Witan’s overall exposure will be dynamic and able to adapt to the investment environment as circumstances change. In our view, one of the advantages that Witan has when compared to other global trusts is that a manager is only ever a contributor to the track record. Furthermore, it means that it is far easier to rotate the manager roster to keep up with market events and expectations or take in new, emerging opportunities. Over time, we think this should ensure that long-term performance relative to the benchmark is more consistent than peers.

Witan has seen its discount widen recently but not by as much as many peers in the global sector. The current discount of 6.8% has been supported partially by buybacks. Having traded at a premium prior to the Brexit referendum, it is possible that should performance start to improve and confidence return to markets, Witan could experience a re-rating.

Bull

  • ‘Manager of managers’ approach offers diversified exposure within a clear portfolio structure
  • Majority of global managers complemented by specialists means portfolio is likely to be differentiated to other global trusts
  • A reliable dividend, progressively growing for the past 47 years

Bear

  • Higher exposure to UK than many global peers means this could influence relative performance
  • Poor performance in H1 2020 and so far during 2022 means long term-track record has been affected
  • Gearing can exacerbate the downside
Continue to Portfolio

Fund History

03 Aug 2022 Fund Analysis
WTAN’s differentiated approach remains attractive despite short term performance challenges…
30 Mar 2022 You say tomato…
Do it yourself or put it into a global fund and leave it to the experts - our analyst debate the merits of each approach...
08 Dec 2021 Fund Analysis
Witan continues to adapt to a changing investment environment...
19 Aug 2021 Pandemic immunity
We ask which global equity trusts have outperformed through the different stages of the pandemic…
16 Jun 2021 A better class of travel*
Sharing many features of a traditional family office, investment trusts offer a sophisticated, cost effective solution for managing family wealth...
09 Jun 2021 Fund Analysis
A solid period of outperformance means WTAN is back in business...
16 Dec 2020 Fund Analysis
Witan has bounced back from Q1 2020, making the 7.6% discount potentially attractive…
07 Sep 2020 Fund Analysis
WTAN has had a challenging 2020, but a refreshed line-up of managers makes the 7.8% discount potentially attractive…
03 Dec 2019 Fund Analysis
Highly active multi-manager approach offering a ‘one-stop shop’ for capital appreciation and income…
23 Oct 2019 Sail away: the best trusts to escape the UK
We look under the hoods of Global sector trusts to see which offer the best diversification prospects for UK investors...
15 Apr 2019 Fund Analysis
Witan follows a highly active ‘manager of managers’ approach, using a range of third-party managers to gain exposure to global equity markets...
26 Jul 2018 Fund Analysis
This well known global generalist has been hurt by its UK exposure this year as the Brexit debacle trundles on...
25 Jul 2018 The Endurance Growth Portfolio
The purpose of the Endurance Growth Portfolio is to generate long-term capital growth with a bias towards quality and defensive characteristics...
14 Dec 2017 Race to the bottom
Ahead of the new PRIIPS rules we examine the progress investment trust boards are making in reducing costs...
24 May 2017 Fund Analysis
12 Jul 2016 Fund Analysis
12 Jul 2016 Taking the bull by the horns
We examine the boards which have done most to fight for their shareholders' interests in an unforgiving arena...
12 Jul 2016 Anarchy in the UK
We collate the reactions of the City's leading investment companies analysts in the wake of the EU referendum...
20 Apr 2016 A wild ride for Endurance Growth
Our long term growth model portfolio has had a white knuckle ride since launch in July...
19 Apr 2016 Fund Analysis
19 Apr 2016 Brexit discount slump is a buying opportunity
Analysts believe a sharp bounce is likely if the public comes down in favour of a 'remain' vote.
15 Mar 2016 First class trusts at knockout discounts
A fire-sale by a fund of investment trusts dumping assets worth more than £650m is good news for discount hunters...
13 Oct 2015 Analyst
Our roundup of the experts' views sees light at the end of the mineshaft for BlackRock World Mining, and a return to form for Harry Nimmo...
07 Sep 2015 RIT Cap stands out amid market chaos
RIT Capital, the most risk averse member of The Endurance Growth Portfolio, has eked out a positive return against a backdrop of plunging markets this summer
07 Jul 2015 Fund Analysis
10 Jun 2015 The Endurance Growth Portfolio
Five investment trusts with outstanding long-term growth prospects
View all

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