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Alliance Witan increased its dividend for the 59th straight year in 2025, though its diversified strategy lagged the AI-fueled market. See the key results & retail investor takeaways.
This article covers information on Alliance Witan PLC.
LON:ALWAlliance 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.
| 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 |
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.
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.
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.
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.
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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.
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.
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.
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.
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.
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.
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