Witan Investment Trust outperforms benchmark in first half

11th Aug 2015 08:11

(ShareCast News) - Witan Investment Trust outperformed its benchmark index in the first half of the year, thanks to improving macroeconomic conditions.For the six months to the end of June, the group's net asset value total return was 5.5%, ahead of the 3.6% delivered by its benchmark, which is a composite of four indices - the FTSE All-Share Index 40%, the FTSE All-World North America Index 20%, the FTSE All-World Europe and the FTSE All-World Asia Pacific Index 20%.Group chairman Harry Henderson and group chief executive Andrew Bell cited sustained growth in the US and UK markets and improving conditions in other regions as the main reason for its performances in the first six months of the year."The US and UK economies are growing at rates that have brought forward expectations that current near-zero interest rates will soon start to rise, although the authorities have been careful to reassure that the pace of tightening will be gradual," they said in a joint statement.However, they both warn of the risk posed by some emerging economies."China's economy has been slowing for some years, amid concerns that a period of excessive property and infrastructure investment had left its banks exposed to bad debts," they said."This year has also seen the puffing up and bursting of a domestic stock market bubble, which risks undermining confidence in China's nascent financial markets."Despite the difficulties experienced in certain areas, however, Henderson insisted there seemed to be more "economic tailwinds than headwinds"."Corporate earnings are improving, the effect of low oil prices should support consumer demand in oil-importing countries and liquidity trends remain positive," he said.Witan shares were down 0.59% to 799.22p at 0832 BST on Tuesday.