Witan posts small underperformance ahead of Alliance trust merger vote

Held back by June US tech stock rally

The June rally in US tech stocks held Witan (WTAN) back from beating its benchmark in the first half of the year, as shareholders get ready to vote on the trust’s merger with Alliance trust (ASTS) next month.

In its half-year results today (13 August), Witan reported a net asset value total return of 11%, slightly trailing its composite equity benchmark, which gained 11.7% over the period. Outgoing chair Andrew Ross noted Witan was outperforming its benchmark "for much of the period", but the June rally in US tech stocks, which drove major indices to new highs, ultimately pushed the benchmark ahead. In the first half, the trust bought back 4% of its shares into treasury at an average discount of 8.9%. This added £5.6m to the net asset value, which the trust said more than offset its invest...