Witan raises dividend with aid of gearing

The introduction of gearing to the £1.1bn Witan investment trust early last year has helped the multi-manager portfolio outperform its benchmark in 2009.

Over the year to 31 December 2009, the trust’s NAV climbed 25.9% on a total return basis, 1.4% ahead of its benchmark. The rise has been attributed to the introduction of 6% gearing in February and a 5.1% share buyback over the course of the year. Gearing enhanced returns by 2.5%, with the buyback adding 0.8%. Witan investment trust has increased its dividend for the 35th consecutive year, paying a 10.5p per share, an increase of 2.9% on the previous year. Although previous years have seen the trust gradually reduce exposure to UK equities, chairman Harry Henderson says it intends ...