Witan Investment Trust plc ("Witan")
Legal Entity Identifier: 213800XMW68XFT6D1X59
30 May 2017
Changes in Witan's Global Equity Management
Following a review of its five managers with a global equity remit, Witan has decided to consolidate the previous five portfolios into three, under the management of three of its existing managers. Lansdowne Partners (UK) LLP, Pzena Investment Management and Veritas Asset Management will each manage approximately 14.3% of Witan's overall assets (as at mid-May 2017). At the end of April 2017, they each managed between 10% and 13% of Witan's portfolio. The additional funds will come from the closure of the accounts managed by MFS Investment Management and Tweedy, Browne Company LLC, which managed 5% and 3% respectively.
Following this change, Witan will have nine external managers (covering UK, European, Asian, Emerging Market and Global markets), all of whom adopt an active management approach. In addition the Company's Executive team invests up to 10% of the assets in a range of collective funds covering specialist asset classes and actively adjusts the Company's gearing according to the degree of opportunity that the markets are perceived to offer.
Witan's CEO, Andrew Bell commented,
"The reason for the changes is to increase the performance potential of the overall combined portfolio. Although manager risk diversification is one of the benefits of the multi-manager approach, there is a balance to be struck between the resulting reduction in performance volatility and having a structure with the potential to deliver attractive levels of outperformance, which requires the portfolio to differ significantly from the index. One, albeit imperfect, measure of this potential is Active Share - the degree to which a portfolio differs from its benchmark (with 0% being a replica of the index and 100% having no holdings in common). On this measure, Witan's combined active share is expected to rise from 70% at the end of 2016 to 74% following this portfolio transition.
Witan continues to seek to increase the active content within its combined portfolio, to improve the potential to deliver good capital returns and build on our record of 42 consecutive years of dividend growth. We would like to thank both Tweedy, Browne and MFS for their stewardship of our shareholders funds over a number of years (since the inception of our multimanager approach in 2004, in the case of MFS).
- ENDS -
For further information please contact:
Andrew Bell, Chief Executive Officer
Witan Investment Trust plc
Tel: 020 7227 9770
[email protected]
James Hart, Investment Director
Witan Investment Trust
Tel: 020 7227 9770
[email protected]
Hannah Philp, Director of Marketing
Witan Investment Trust plc
Tel: 020 7227 9770
[email protected]
Notes:
Witan Investment Trust plc
Established in 1909, Witan is one of the UK's largest investment trusts, managing £2.0bn (source: Witan, as at 30.04.2017) on behalf of over 21,000 investors. Witan operates a multi-manager structure and currently has 9 external managers. Witan is listed in the 'Global Growth' sector and is a member of the FTSE 250 index. Registered as an Investment Company in England No 101625. For further details please visit www.witan.com.
Lansdowne Partners (UK) LLP
Lansdowne Partners (founded in 1998) manages assets for a diversified client base that includes some of the world's largest and most sophisticated investors. Assets under management are £14.8bn (source: Lansdowne, as at 31.12.16) across multiple equity investment strategies; European, Developed Markets, Global Financials and Global Energy, each with its own dedicated team of portfolio managers and analysts. Lansdowne Partners employs over 100 people in its London office. The investment philosophy is predicated on generating consistent, absolute risk-adjusted returns, through the use of exceptional investment talent within a leading-edge operational infrastructure. Central to Lansdowne Partners' investment philosophy is a rigorous process of fundamental bottom-up research. The Developed Markets Strategy is managed by Peter Davies and Jonathan Regis, who have been with Lansdowne Partners since 2001 and 2003 respectively and who have worked together for over 20 years. The Development Markets Long-Only Strategy leverages the fundamental stock analysis of the team, investing predominantly in mega-cap companies (+$10bn market cap) in developed markets.
Pzena Investment Management
Pzena Investment Management is a global, institutional investment manager with a strict focus on long-term classic value investing. The firm was founded in late 1995 and began managing assets on 1 January 1996. Pzena manages $30bn (source: Pzena, as at 31.12.16) in assets for leading endowments/foundations and pension plans and for individual investors from around the world. Pzena's team has grown to approximately 100 employees. The firm is based at its headquarters in New York City and has offices in Melbourne, Australia and in London, United Kingdom for business development and client service.
Veritas Asset Management (UK) Limited
Veritas is an affiliate of AMG Group, managing £13.8bn (as at 31.12.16) of assets, with the key objective of delivering long-term real returns to its clients. Veritas aligns its interests with clients' objectives and is committed to partnership. Veritas manages both segregated portfolios and funds, with either long-only or long-short real return mandates. Their clients include institutions, charities, trusts and private clients. The Real Return Group Limited was set up in 2003 as a boutique focused on real return investing. The Real Return Group Limited and Veritas Asset Management (UK) Limited merged in 2004. In 2013 Veritas Asset Management (UK) Limited completed a corporate reorganisation and Veritas Asset Management LLP was formed as a regulated fund management boutique running Global and Asian Equity mandates. Veritas Asset Management LLP is the UK operating company of the Veritas Asset Partners Limited group, of which Veritas Asset Management (Asia) Limited in Hong Kong is also a subsidiary. In 2014 Veritas Asset Management LLP partnered with AMG Group. AMG has a stake in a number of investment boutiques and is quoted on the NYSE.
Witan Performance
Performance (%) to 30.04.2017 |
1 Year |
3 Years |
5 Years |
10 Years |
Witan share price (total return) |
35.3 |
50.2 |
129.7 |
155.7 |
Net Asset Value (total return) |
29.8 |
50.6 |
106.3 |
132.7 |
Benchmark (total return) |
27.1 |
40.0 |
81.5 |
100.8 |
Relative NAV total return |
+2.7 |
+10.6 |
+24.8 |
+31.9 |
Discrete Performance (%) |
Q1 2012 Q1 2013 |
Q1 2013 Q1 2014 |
Q1 2014 Q1 2015 |
Q1 2015 Q1 2016 |
Q1 2016 Q1 2017 |
Witan share price (total return) |
23.3 |
18.7 |
20.8 |
-6.7 |
32.2 |
Net Asset Value (total return) |
20.7 |
11.3 |
15.1 |
0.4 |
28.9 |
Benchmark (total return) |
17.2 |
7.7 |
13.6 |
-2.9 |
28.9 |
Relative NAV total return |
+3.5 |
+3.6 |
+1.4 |
+3.3 |
0.0 |
Source: Morningstar / Witan. Total return includes the notional reinvestment of dividends. The discrete annual figures are to 31st March and are updated each calendar quarter. The Net Asset Value figures value debt at fair value and include the notional reinvestment of dividends.
Benchmark: Since 01.01.2017, Witan's benchmark is a composite of 30% FTSE All-Share, 25% FTSE All-World North America, 20% FTSE All-World Asia Pacific, 20% FTSE All-World Europe (ex-UK), 5% FTSE All-World Emerging Markets. From 01.10.2007 to 31.12.2016 the benchmark consisted of 40% FTSE All-World, 20% FTSE All-World North America, 20% FTSE All-World Europe (ex-UK) and 20% FTSE All-World Asia Pacific. From 01.09.2004 to 30.09.2007 the benchmark comprised of 50% FTSE All-Share and 50% FTSE All World (ex-UK). Source: FTSE International Limited ("FTSE"). FTSE is a trade mark of the London Stock Exchange Group companies and is used by FTSE under license. For more information go to www.witan.com/legal-information.
Please remember, past performance is not a guide to future performance, and the value of shares and the income from them can rise and fall, so investors may not get back the amount originally invested.
