Witan lags as returns from its global fund stars underwhelm

Witan Investment Trust, one of the oldest listed UK investment vehicles, failed to keep pace with global stock markets after differing fortunes for its managers Lindsell Train and Lansdowne Partners.

The 110-year-old trust, listed on the FTSE 250, employs 11 fund managers to run its £2.2 billion of assets and is a long-running favourite for retail investors.

The trust generated returns of 13.5% for the six months ending June, lower than the 14.9% targeted. Returns were pulled back by “weak” performances from hedge funds Lansdowne Partners and Pzena, it said.

Lansdowne Partners handles around £335 million for Witan in a fund run by well-known fund managers Peter Davies and Jonathon Regis. It made a return of 6%.

New York-based Pzena returned 10.45%. Both lagged the benchmark target of more than 16%.

On the flipside, Lindsell Train, the £22 billion UK-based fund manager, made a blockbuster return of 20.5% thanks to good stockpicking by fund manager Nick Train.

Witan chief executive Andrew Bell said “volatile” sentiment had dented performance of value stockpickers, who buy shares on the cheap hoping they will bounce back when the temporary gloom lifts.