Witan suffers H1 losses of £327.3m as gearing proves costly

NAV falls 14.3%

Net asset value fell 14.3% at Witan investment trust over the first six months of the year while its share price tumbled 17% off the back of higher inflation and interest rates.

Witan admitted that while its employment of gearing had been historically beneficial, over the last six months, debt had dragged down performance. Total losses for the period rose to £327.3m, compared to a half year profit in 2021 of £205.6m. The company lagged its benchmark, losing 14.3% for investors compared with a 9.6% fall, although it beat its AIC Global Equity sector, which fell an average 19% over the period. Witan suffered most in the first quarter, as war in Ukraine weighed on market sentiment, losing 4.4% over the three months, while it bought back 4.2% of its shares fro...