Witan Investment Trust has said it will continue to invest in funds which charge performance fees as it revealed a strong set of results for 2013.
The £1.5bn multi-managed trust produced a NAV total return of 29.4%, above the 20.7% returned by its benchmark, with the total dividend for the year rising 9.1% to 14.4p.
The strong returns were accompanied by a rise in its ongoing charges, from 0.97% to 1.12% once performance fees were taken into account.
That compares with an average of 0.77% for the AIC Global Growth sector and an average of 1.69% for the IMA Flexible Investment sector, Witan said.
Analysts at Numis added the charges remain "very low for a multi-manager vehicle".
Having completed a review of its underlying managers over the course of 2013, the trust has introduced a number of different holdings in recent months.
Chairman Harry Henderson and chief executive Andrew Bell (pictured) said Witan is increasingly invested in funds which do not levy performance fees - but they stand by their investment philosophy.
"The introduction of the RDR […] has led to questioning of the role of performance fees, as well as introducing greater transparency over the structure of fees charged by open-ended funds," they said.
"Over the past year, the proportion of our assets managed without performance fees has increased. However, the company believes that performance fees can be appropriate, provided that the resulting total fee is competitive."
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