Witan Investment Trust plc 2011 Annual General Meeting 10 May 2011.

Witan Investment Trust plc

2011 Annual General Meeting

10 May 2011

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Disclaimer These slides are intended to highlight some features from Witan’s 2010 results, for

the use of shareholders, analysts and other professional investors. This material is for informational purposes only and does not constitute a solicitation or a

personal recommendation in any jurisdiction. Any reference to individual securities does not constitute a recommendation to purchase, sell or hold the investment. No reliance may be placed for any purpose on the information and opinions contained in this document or their accuracy or completeness. No part of this material may be copied, photocopied or duplicated in any form or distributed to any person that is not an employee, officer, director or authorised agent of the recipient, without Witan Investment Services Limited's prior permission.

Please remember that past performance is not a guide to future performance. Witan Investment Trust is an equity investment. The value of an investment and the income from it can fall as well as rise as a result of currency and market fluctuations and you may not get back the amount originally invested. Issued and approved by Witan Investment Services Limited. Witan Investment Services Limited is registered in England no. 5272533 of 14 Queen Anne’s Gate, London SW1H 9AA. The VAT registration number for Witan Investment Services Limited is 863 5738 89. Witan Investment Services Limited provides investment products and services and is authorised and regulated by the Financial Services Authority.

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2009: A positive year for Witan

The Chairman, Harry Henderson

The CEO, Andrew Bell

Glossary of Terms

Annual General Meeting: Agenda


Harry HendersonChairman

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Topics to cover

Performance in 2010

Changes in portfolio management

Disciplined attitude to costs

The longer term picture

Investment outlook

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2009: A positive year for Witan Strong absolute total return of 18.9%*

Outperformance of 3.4% over benchmark return of 15.5%*

Portfolio redirected along fully active lines

Active use of gearing

36th annual increase in the dividend* (n.b. Dividend growth should be viewed in the context of total investment return – see slides 13,14)

Good performance relative to peer group

2010: A strong year for Witan

*Please remember that past performance is not a guide to future performance. Witan Investment Trust is an equity investment. The value of an investment and the income from it can fall as well as rise as a result of currency and market fluctuations and you may not get back the amount originally invested. Please also see disclaimer on page 2.

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2009: A positive year for Witan

TER increased from 0.99% to 1.07%

Excluding performance fees, increase was from 0.72% to 0.81%

Owing to:

New savings plan administrator

Increased fees from active managers replacing index funds

Handover period for Executive Team changes

Advisers/legal fees re manager changes

Our approach: determination to minimise unproductive costs and to gain value where costs are necessarily incurred

Costs rose in 2010

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The longer term performance picture

Multi manager strategy adopted in September 2004 Since then:

• Witan NAV total return to end 2010: 87.2%*

• A compound return of 10.0% p.a.*

• Benchmark total return to end 2010: 72.6%*

• A compound return of 9.1%*

• (See also total investment returns shown on slides 13,14)


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Reasons for cautious optimism

Global growth continuing – double dip avoided

Profits and now dividends recovering

Interest rates remain low to promote recovery

Relative and absolute valuations for equities are competitive

Tempered by:

Middle East unrest, inflation rising, Japanese worries, European sovereign debt problems


Andrew BellChief Executive Officer

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Witan’s objectives

To be the preferred choice for wealth creation via equity investment

Provide a multi manager approach providing diversified exposure to global growth

Make money for shareholders, beat the peer group and outperform equity index comparators

Real dividend growth

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Highlights of 2010

NAV total return 18.9%, 3.4% points ahead of benchmark*

5 year NAVTR 38.1%, 6.7% p.a., 6.5% points ahead of benchmark*

Shift to 100% active management

More active portfolio management (stock picking, gearing, asset allocation)

36th consecutive year of dividend growth*

(n.b. Dividend growth should be viewed in the context of total investment return – see slides 13,14)


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Performance in the 5 years to 31st December 2010

All figures are total return (£) for the 31.12.06 31.12.07 31.12.08 31.12.09 31.12.10

discrete year ending on the date shown % % % % %

Share Price +12.1 +7.5 -24.9 +30.6 +18.9

Net Asset Value +10.7 +7.3 -23.3 +25.9 +18.9

Benchmark * +11.2 +8.1 -23.9 +24.5 +15.5

NAV total returnrelative to benchmark -0.5 -0.8 +0.6 +1.4 +3.4

Data Source: DataStream *Since 01.10.2007 the benchmark has been a composite of 40% FTSE All-Share/20% FTSE All-World North America/20% FTSE All-World Europe (ex UK) /20% FTSE All-World Asia Pacific. From 01.09.2004 to 30.09.2007 the benchmark comprised of 50% FTSE All-Share/50% FTSE World (ex UK)

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Performance since 2004*


Key

NAV = Net Asset Value

NAV Rel = NAV excluding dividends relative to Witan’s Benchmark

NAV TR Rel = NAV total return including dividends relative to Witan’s Benchmark

Source: DataStream

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Dividend growth - ahead of inflation*

2010 the 36th successive year of increase; Since 1975 dividend x30, RPI x9.4*

(n.b. Dividend growth

should be viewed in

the context of total

investment return –

see slides 13,14)

Source: Witan to

31.12.2010. CPI rebased

to 7.75p (Witan’s

dividend in 2000)*Please remember that past performance is not a guide to future performance. Witan Investment Trust is an equity investment. The value of an investment and the income from it can fall as well as rise as a result of currency and market fluctuations and you may not get back the amount originally invested. Please also see disclaimer on page 2.

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Discount and Buybacks

Buybacks address one

cause of discount

volatility and help NAV Important to address

causes of imbalances

(performance, unclear

investment policy) Aim for sustainable

sub10% discount 4% repurchased in 2010

Source: DataStream

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Main drivers of performance

2010 Portfolio outperformed, gearing and buybacks also contributed*

Previous headwinds were: Proportion in index-anchored portfolios; Low weighting in emerging/fast growth economies; Relatively inactive geographical allocation; Relatively inactive use of gearing; Lack of tactical responsiveness; Structure of gearing.


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Addressed headwinds during 2010

• “Proportion in index-type portfolios” – 20.6% end 2009. Now nil

• “Low weighting in emerging/fast growth economies” – 11.3% end 2009, 16.9% Dec 2010. Specialist manager appointed

• “Relatively inactive geographical allocation” –differential cash raising and futures used to adjust exposure in 2010

• “Relatively inactive use of gearing” – actively varied in H2 2010

• “Lack of tactical responsiveness” – activated use of Futures; centrally managed Growth Opportunities Portfolio (e.g. private equity trusts)

• “Structure of gearing” –multi currency facility to give tactical headroom and

ability to borrow in non-£ currency

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Expense efficiency a priority2010 2009 2008

TER 1.07% 0.99% 0.72%

Performance Fees £2.8m (0.26%) £2.6m (0.27%) £1.4m (0.13%)

Other Costs £6.2m £5.2m £5.0m

Av. Shareholders’ Funds £1.08bn £950m £1.05bn One off saving scheme migration costs and legal costs in 2010 Corporate overheads carefully managed. No plc-level fee levied. External costs

regularly reviewed to ensure value for money. Higher costs with outperformance preferred to low cost underperformance Even with the higher TER, Witan made strong gains and outperformed its

benchmark by 3.4%.*


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Multi Manager Structure

Set up in 2004, with 8 mandates, rose to 13 as passive % reduced

As at end 2010: 4 Global unconstrained stock pickers 4 active UK (1 smaller company) 2 pan-European 1 Asia, 1 Global Emerging Markets Growth Opportunities (directly held funds)

Benchmark 40% FTSE All Share, 20% each North America, Asia, Europe ex-UK

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Manager changes in 2010 2010 changes:

• Wellington (Europe ex-UK) replaced by Marathon (pan-European)

• Henderson UK Enhanced Index closed, replaced by Lindsell Train and NewSmith (both active)

• Brandes Japanese and Henderson US Enhanced Index closed

• Veritas appointed with a global mandate

• c.6% allocated to directly-held growth opportunities (e.g. private equity trusts)

• Trilogy £50m emerging markets mandate December 2010

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Witan Manager StructureManager Mandate 31/12/09

(%)31/12/10

(%)Henderson UK index + 15.5 -

Artemis UK 8.0 8.3

Lindsell Train UK - 9.5

NewSmith UK - 9.3

Henderson UK Smaller Cos 3.1 2.5

Marathon Europe ex-UK [UK pre-July] 7.3 11.2

Wellington Europe ex-UK 8.6 -

Varenne Europe ex-UK 2.5 2.6

Henderson US index + 5.1 -

Brandes Japan 5.7 -

Comgest Pacific ex Jap 6.0 6.6

Orbis Australia 1.7 -

Trilogy Emerging Markets - 4.2

Southeastern Global 15.0 12.8

MFS Global 12.0 9.7

Thomas White Global 9.5 10.0

Veritas Global - 6.8

Global Opportunities Portfolio Specialist - 6.5

Futures AssetAlloc/gearing - -

Source: Witan

31/12/2009 &

31/12/2010

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Witan Geographical Exposure

Region Dec 2009 Dec 2010 Difference

UK 34.2 37.2 +3.0

North America 23.1 17.7 -5.4

Europe 21.9 19.4 -2.5

Japan 9.5 2.3 -7.2

Asia/Emerging 11.3 16.9 +5.6

Growth Opps - 6.5 +6.5

Source: Witan

31/12/2009 &

31/12/2010

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Summary: using existing levers

Asset allocation – reduced Japan substantially, closed US index portfolio, added to UK/Europe mid year

Manager selection – changed European, UK, global and emerging market mandates

Gearing – more actively managed since Q2

Share buybacks – 4% repurchased 2010

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Summary: new performance levers

Stock picking vs. beta plays Active UK managers replaced Enhanced Index mandate; Veritas replaced US index and Japan mandates

Exposure to structural economic shifts Raised emerging economy exposure. Appointed specialist manager

Flexibility in borrowing facilities facility put in place

Ability to adjust tactical exposure selective use of index futures to raise gearing via favoured markets

Special situations and new asset categories Growth Opportunities portfolio – e.g. private equity trusts, property, distressed debt

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Witan in future Diversified exposure to global equities

Liquid: £1.1bn net assets

Focused on adding value, growing investors’ wealth and income*

Active management of risk appetite (both ways) through active managers and adjusting gearing

Eyes on long term returns, finger on the short-term pulse


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GlossaryTerm Definition

Absolute Return The actual growth rate, as opposed to relative (compared against)

Active Management/Passive Management Active funds, are where the stocks are actively chosen by a fund manager. Passive funds mirror the constituents of an index and are therefore not actively chosen, but matched

Beta A way to describe the movement of a share price or portfolio relative to the movement of an index

Buy-back Where shares have been bought back by the Trust to control the discount

Compound Return The annualised rate of growth

Discount The difference between the NAV and the Share Price

Distressed Debt An investment that provides funding for companies who find it difficult to borrow

Futures A derivative investment that in this case is predicting the future movements of an equity index

Gearing The ability to borrow against assets

Headwind A negative factor

Index + Beating the index

Index Funds Passive funds that look to replicate a stock market index

Liquid Easy to transact in the shares of

Mandate The remit for an investment manager

NAV/NAV TR Net Asset Value, the TR indicates whether the income is included or not

Outperformance/Underperformance Whether performance was better (out) or worse (under)

Private Equity An investment that provides funding for companies that are privately held (not quoted)

Risk Appetite The level of risk an investor is prepared to take

TER Total expense ratio. A percentage used to measure cost

Unconstrained Not held back by restrictions such as which sector or region

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Witan Investment Services 14 Queen Anne’s Gate,

London SW1H 9AA Tel: 020 7227 9770

Fax: 020 7227 9771

This document may not be reproduced in any form without the express permission of Witan Investment Services Limited and to the extent that it is passed on care must be taken to ensure that this reproduction is in a form which accurately reflects the information presented here. Whilst Witan Investment Services Limited believe that the information is correct at the date of production, no representation, warranty or undertaking, express or implied, is given as to the accuracy or completeness of the information or opinions in this document by any of Witan Investment Services Limited or their respective directors and no responsibility or liability is accepted by such persons for the accuracy or completeness of any such information or opinions or for any action taken on the basis of the contents of this document. No reliance may be placed for any purpose on the information and opinions contained in this document or their accuracy or completeness.

This document has been produced based on Witan Investment Services’ research and analysis and represents our house view. The information is made available to clients only incidentally. Unless otherwise indicated, the source for all data is Witan Investment Services. Any reference to individual companies is purely for the purpose of illustration and should not be construed as a recommendation to buy or sell or advice in relation to investment, legal or tax matters. Witan Investment Services (14 Queen Anne’s Gate, London SW1H 9AA) is authorised and regulated by the Financial Services Authority to provide investment products and services. We may record telephone calls for our mutual protection and to improve customer service.

This document does not constitute or form part of any offer or solicitation to issue, sell, subscribe or purchase any investment, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract for the same.

Please remember that past performance is not a guide to future performance. The value of an investment and the income from it can fall as well as rise as a result of market and currency fluctuations and you may not get back the amount originally invested. Tax assumptions may change if the law changes and the value of tax relief will depend on individual circumstances.

Witan Investment Trust plc 2011 Annual General Meeting 10 May 2011.

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