Alliance Witan’s 59th straight dividend rise – what the results really say
Alliance Witan has delivered its 59th consecutive annual dividend increase despite a tougher year for performance against its benchmark. The trust’s multi-manager, global equity approach kept absolute returns positive, discounts in check and costs competitive, but stock selection lagged a very punchy market led by a narrow group of winners.
Here’s my plain-English take on the numbers, what drove them, and why it matters for retail investors.
Headline numbers investors should know
| Metric | Figure | Why it matters |
|---|---|---|
| Share price (31 Dec 2025) | 1,282.0p | Sets your entry/exit level |
| Share Price Total Return | +5.4% | Includes dividends reinvested |
| NAV per share | 1,337.2p | Underlying portfolio value |
| NAV Total Return | +4.7% | After all costs, debt at fair value |
| Benchmark (MSCI ACWI) | +13.9% | Trust trailed a strong index |
| Discount to NAV | 4.1% | Narrowed vs 4.7% in 2024 |
| Total dividend (FY25) | 28.32p | Up 6.1%; 59th year of growth |
| Earnings per share (revenue) | 18.5p | Supports the dividend alongside reserves |
| Net assets | £5.1bn | Scale and FTSE 100 status aid liquidity |
| Ongoing charges ratio | 0.47% (0.59% ex waiver) | Competitive for an active multi-manager |
| Buybacks | 17.8m shares (4.7%) costing £223.6m | Added 0.2% to NAV; helped discount |
Dividend: 59 years and counting
The Board declared a fourth interim dividend of 7.08p, taking the full-year payout to 28.32p, up 6.1% year on year. Alliance Witan is proud of its AIC Dividend Hero status and says dividends are supported by revenue and reserves, with confidence that annual increases can continue. For investors who value rising income from global equities, that track record is a big draw.
Performance: why the trust lagged the benchmark
NAV total return was +4.7% and the share price total return was +5.4%, behind the MSCI ACWI’s +13.9%. In simple terms, the index’s gains were unusually concentrated, with AI-linked and a handful of mega-cap names doing much of the heavy lifting. Alliance Witan’s approach – blending high-conviction stock pickers and keeping diversification across regions, sectors and styles – didn’t chase those pockets of momentum.
Attribution tells the story
- Stock selection was the main drag at -8.9% relative, while asset allocation and gearing were small positives.
- Top contributors included underweight Apple (+0.5% attribution) and overweights in Ryanair (+0.3%), Safran (+0.3%), Taiwan Semiconductor (+0.3%) and NRG Energy (+0.2%).
- Detractors included Diageo (-0.8%) and being underweight NVIDIA (-0.5%), Broadcom (-0.4%) and Alphabet (-0.4%). ICON also hurt (-0.3%).
The US still rose about 10% in sterling terms, but non-US regions did better in 2025. Alliance Witan was also lighter on banks that rallied as net interest margins normalised. Management argues many AI-adjacent shares look speculative, and they prefer “substance over speculation”. That stance dented 2025 relative returns but fits the trust’s long-term quality-and-value bias.
Which stock pickers moved the needle
- Dalton (Japan) added the most value, helped by governance-driven gains at Fuji Media Holdings and strength in Samsung Electronics.
- GQG was the biggest detractor after rotating away from highly priced AI names into more defensive holdings.
- Line-up changes: Artisan replaced ARGA and Brown Advisory replaced SGA, boosting diversification and quality tilt. Early 2026 tweaks shifted capital towards Jennison, Sands, Lyrical and Vulcan and nudged gross gearing from 8.6% to 9.3%.
Discount, buybacks and costs: the plumbing looks sound
The discount averaged 4.8% during the year and finished at 4.1% – better than the AIC Global sector average of 7.0%. Active buybacks – 17.8 million shares, or 4.7% of the share count – were deployed at an average 5.1% discount and added 0.2% to NAV performance. The trust remains vocal about keeping the price near NAV, and the enlarged scale since combining with Witan in 2024 should help secondary market liquidity.
The ongoing charges ratio fell to 0.47% thanks to a management fee waiver linked to the Witan combination. Stripping that out, the OCR was 0.59%, still competitive for an actively managed, multi-manager global equity strategy.
Portfolio quality and valuation versus the market
Management highlights stronger underlying fundamentals than the index: portfolio return on equity was 16.4% versus 12.2% for MSCI ACWI, with a lower 1-year forward P/E of 18.5x versus 21.3x. In 2025, the trust says its holdings’ book values grew faster than the market, but multiples compressed; conversely, the index benefited more from multiple expansion than fundamental growth. If sentiment normalises, that quality-at-a-better-price profile could be a tailwind.
Selected top holdings at year end included Microsoft (£238.5m), Alphabet (£161.3m), Amazon (£119.3m), Mastercard (£111.0m) and Taiwan Semiconductor (£104.9m). The trust owns five of the “Magnificent Seven”, but with less concentration than the index.
“Hidden gems” the managers like
To illustrate the breadth beyond AI darlings, Stock Pickers flagged underappreciated names such as American Electric Power, Comcast, Ryan Specialty, Amadeus IT, Macnica Holdings, Experian, AerCap, Universal Music Group, Techtronic Industries and Revvity. These aren’t recommendations here – they’re examples of the kind of fundamentals-driven ideas sitting in the portfolio according to the managers.
Risks, gearing and resilience
Gearing ended 2025 at 8.7% gross (6.3% net). Borrowing facilities were streamlined post year end, reducing weighted average borrowing costs by 0.3%. Liquidity analysis suggested around 82% of the portfolio could be sold in a single day and a further 15% within 10 days without materially moving prices – helpful in stressed markets.
Big-picture risks flagged include market volatility, the Middle East backdrop and cyber/AI-related operational risks. The Board says it is “fully engaged” with the Investment Manager to improve relative performance after two years behind the benchmark.
What this means for retail investors
Positives
- Income dependability: 28.32p total dividend, +6.1%, with a 59-year growth streak and confidence it can continue.
- Discount discipline: ended at 4.1%, supported by sizeable buybacks and FTSE 100 scale.
- Valuation and quality edge: higher ROE and lower forward P/E than the index provides optionality if market leadership broadens.
- Costs kept in check: OCR 0.47% (0.59% ex waiver) is sharp for an active, multi-manager global mandate.
Watch-outs
- Relative underperformance: trailed MSCI ACWI by a wide margin in 2025, mainly from stock selection and AI-led market concentration.
- Style headwind risk: if AI megacaps keep running, a diversified, valuation-aware portfolio may lag again in the short term.
My take: if you want a core global equity trust with rising income, sensible discount control and a long-term, fundamentals-first process, Alliance Witan still fits. If you want full-throttle exposure to AI megacaps, this isn’t that – by design.
Housekeeping: AGM, reporting and how to stay informed
- AGM: Wednesday, 29 April 2026 at 3.00pm, WTW, 51 Lime Street, London, EC3M 7DQ, with a live stream option.
- Website: monthly factsheets, newsletters and events are available at alliancewitan.com. AGM/event details: Investor information and events.
Final word
2025 was a classic case of a concentrated market testing active managers. Alliance Witan’s response has been to keep faith with fundamentals, adjust the Stock Picker mix at the margin, and keep doing the simple things well – paying a higher dividend, buying back shares, and keeping costs competitive. That combination won’t win every year, but it tends to stack the odds in your favour over a cycle.
