The shares of the Witan investment trust have been driven to a premium after a strong year of performance in 2014.
The trust’s shares traded at a 6.1 per cent discount to the net value of its assets at the start of last year but traded at a 1.3 per cent premium by year-end.
Performance on the trust was strong, with the shares rising 15.1 per cent during the year, greater than the composite benchmark’s 5.5 per cent rise.
The dividend increased by 6.9 per cent to 15.4p, the 40th year the trust has increased payouts to shareholders.
“In a year when market sentiment was less positive than in 2013, with no consistent market direction, investment selection was particularly important,” chairman Harry Henderson said.
“Overall our managers outperformed, with additional contributions from the investment in Japanese equity market futures and the use of gearing.”
In terms of the rerating of the shares, Mr Henderson said the trust was able to reissue shares held in treasury and to issue new shares at a premium “to meet investor demand”.
He added it was “the first year since 1996 that the company has had more shares in issue at the end of the year than at the start”.
