Highlights
NAV total return of 6.6% outperformed the benchmark's return of 5.5%
NAV total return over the last five years of 70.2%, 15.7% ahead of the benchmark
Dividend increased by 6.9% to 15.4p, 6.4% ahead of the rate of inflation
The 40th consecutive year of increased dividends
Share price rerated from a 6.1% discount to a 1.3% premium
Summary
In the year to 31 December 2014 Witan delivered a net asset value (NAV) total return of 6.6%, 1.1% more than our benchmark's total return of 5.5% and 5.4% more than the 1.2% return on the FTSE All-Share Index of UK shares. The share price total return was 15.1%, enhanced by the move during the year from a 6.1% discount at the end of 2013 to a 1.3% premium at the year-end. The total dividend for the year is 15.4 pence per share (2013: 14.4 pence), an increase of 6.9%, including the fourth interim dividend of 4.6 pence declared in February 2015 and payable on 2 April 2015. This marks the 40th consecutive year of rising dividends at Witan, with the current dividend per share more than 40 times that paid in 1974.
Over the past 5 years Witan has achieved an NAV total return of +70.2%, compared with the +54.5% return from our benchmark over this period. 2014 also marked the 10th anniversary of Witan's adoption of a multi-manager investment approach. Over the 10 years to the end of 2014, shareholders have enjoyed an NAV total return of 143.8%, compared with the benchmark's return of 117.0%.
In a year when market sentiment was less positive than in 2013, with no consistent market direction, investment selection was particularly important. Overall our managers outperformed, with additional contributions from the investment in Japanese equity market futures and the use of gearing.
