Alliance Witan PLC: A Year of Transformation and Growth

FTSE 100 Bound: The Witan Merger

2024 marked a pivotal year for Alliance Witan PLC, culminating in its promotion to the FTSE 100 following a landmark merger with Witan Investment Trust Plc. This strategic move unlocked significant economies of scale and enhanced share liquidity, positioning the company for continued growth and success.

Strong Performance in a Challenging Market

Despite a complex market landscape, Alliance Witan delivered a Share Price Total Return of 14.3%, reaching £12.44 per share by year-end. While the Net Asset Value Total Return of 13.3% trailed the MSCI ACWI benchmark (19.6%), the company's long-term performance remains competitive. The company also outperformed its peers in the more representative Morningstar peer group.

A key factor influencing benchmark performance was the concentrated gains in a handful of dominant US companies, a trend impacting many active global equity strategies. Alliance Witan's diversified approach, while limiting exposure to these mega-cap stocks, mitigates the risks associated with such market concentration as highlighted in the Investment Manager's report. The company’s focus on broader exposure to undervalued companies with growth potential offers long term value to their shareholders.

Dean Buckley, Chair of Alliance Witan, commented:

"The Company delivered strong outright gains for shareholders in 2024… Even so, the Company’s longer-term performance remains competitive, and demand for our shares was healthy last year, with the Company's discount narrowing, bucking the industry trend towards widening discounts. We also increased our dividend for the 58th consecutive year."

Dividend Hero: 58 Years of Consecutive Increases

Maintaining its impressive track record, Alliance Witan announced a fourth interim dividend of 6.73p per share, bringing the total dividend for 2024 to 26.70p—a 6% increase over the previous year and a testament to the company's commitment to shareholder returns. This achievement further cemented their status as an AIC Dividend Hero.

Navigating Discounts and Market Volatility

While investment trusts faced widening discounts in 2024, Alliance Witan's average discount narrowed to 4.7%, outperforming the AIC Global Sector average of 7.9%. The Board's strategic use of share buybacks and ongoing marketing efforts contributed to this positive outcome.

Looking Ahead: A Focus on Long-Term Value

Navigating a market characterized by geopolitical uncertainties and potential regulatory shifts, Alliance Witan maintains a cautiously optimistic outlook. The company's diversified portfolio, featuring a mix of established and underappreciated companies, is poised to deliver long-term value to shareholders.

The Investment Manager’s report details examples of numerous stocks with strong fundamentals and undervalued share prices. This disciplined, selective strategy, along with continuous monitoring and adjustments by the management team are key to Alliance Witan’s continued success.

"While the Index is highly concentrated, your portfolio has broader exposure to many good businesses that have not yet received the market recognition our Stock Pickers believe they deserve." - Dean Buckley

About Alliance Witan PLC

Alliance Witan's mission is to surpass inflation through a combination of capital growth and rising dividends. This is achieved by investing in a diverse range of global equities using a distinctive multi-manager approach, blending the top selections of some of the world's best active managers.