16th Aug 2022 12:08
(Alliance News) - Witan Investment Trust PLC on Tuesday said its half-year performance suffered from macroeconomic shocks, but notes more positive developments in the period since.
In the first half of 2022, the global equities investor reported a total return of negative 14%, lagging behind its composite global benchmark return of negative 9.6%.
Its net asset value per share fell to 206.0 pence at the end of the period, from 252.0p at the end of December.
The underperformance stemmed mostly from the first quarter, when the markets started to react to the war in Ukraine, the company said.
The discount to NAV at which shares traded widened to 8.9% at the end of June compared to 5.8% six months before. To help remedy this, the firm continued to buy back shares, repurchasing a total of 30.7 million shares, or 4.2% of the total share capital, during the period.
"The first half of 2022 was an unusually tough environment for investors, with both equity and bond markets registering significant falls...In these circumstances, Witan's employment of gearing, while historically beneficial, proved a drag on returns, while our managers' expectations for a post-pandemic reopening of economies were also stymied by the impact of higher inflation and interest rates," the firm explained.
More positively for Witan, revenue earnings per share rose 39% year-on-year to 2.51p from 1.80p
The firm will pay a second interim dividend of 1.40p per share, edging higher than 1.36p a year before. It said its policy is still to grow the dividend annually.
Looking ahead, Chair Andrew Ross commented: "The mid-year period end coincided with a low point in market sentiment and performance. Between then and August 12 (the latest practicable date before the publication of this report), the NAV rose 11% to 252p and the share price by 14% to 235p, ahead of the benchmark's return of 9.9%.
"While noting that there remains ground to make up, there is reassurance for shareholders that absolute performance significantly recovered and the company outperformed during the summer rally."
Shares in Witan were down 0.2% to 236.00 pence each in London at midday on Tuesday.
By Elizabeth Winter; [email protected]
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