Witan revises performance benchmark weightings from 2017
The trust’s investment approach remains unchanged
Following a review, Witan Investment Trust (WTAN) has announced changes in the composition of its performance benchmark, which will take effect from 2017. The trust’s investment approach remains unchanged and the revisions to the benchmark reflect changes in the investment universe from which the majority of portfolio holdings are selected. Witan’s composite benchmark provides a reference for performance comparison rather than a guideline for portfolio allocations. The benchmark has evolved over time, with the current benchmark in place since October 2007.
| Region | New weighting | Previous weighting |
| UK | 30% | 40% |
| North America | 25% | 20% |
| Asia Pacific (including Japan) | 20% | 20% |
| Europe ex-UK | 20% | 20% |
| Emerging Markets | 5% | 0% |
WTAN’s portfolio is actively managed and is not designed to track any index or combination of market indices. The trust’s managers select stocks on the basis of their potential to deliver above-average returns and to outperform market indices, and this investment approach remains unchanged. WTAN’s board believes the changes to the benchmark make it more comprehensive and a better reflection of the diverse investment universe to which the trust is exposed.
WTAN is a self-managed global investment trust which adopted a multi-manager investment approach in 2004, with the aim of reducing the performance volatility that can arise from dependence on a sole manager. Funds tend to be allocated to between 10 and 15 external managers who have high-conviction investment processes in both growth and value strategies, focusing on long-term fundamentals rather than short-term momentum. Global managers were allocated more than 40% of total assets as at the end of 2015; they are not constrained by regional allocations. The balance of the fund is allocated to regional managers and up to 10% is invested in collective funds selected by WTAN’s executive team.
Read Edison’s most recent research report on WTAN here.
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