Witan Investment Trust plc

December 2010

Andrew BellChief Executive Officer

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Witan’s objectives

Diversified exposure to global growth using a selection of high quality equity managers

To make money for shareholders and beat the peer group and relevant equity index comparators

Real dividend growth

Active management of risk to take advantage of positive markets and mitigate the effects of negative ones

3Source: Datastream

Improved performance since 2008 (no-one noticed)

4Source: Datastream : Figures based on NAV Return Peer group Witan, F&C, Scottish, Sc Mortgage, Monks, Bankers, Brunner, Alliance, Sc American, Elec & Gen, British Asset, MC Portfolio, RIT Cap, Law Deb

Improved ranking within peer group

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Dividend growth - ahead of inflation

2009 the 35th successive year of increase; 2010 interim since

raised

Source: Witan to 31.12.2009. CPI rebased to 7.6p (Witan’s dividend in 1999)

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Discount and Buybacks

Buybacks help NAV growth for

continuing shareholders and

address one cause of discount

volatility Average discount during 2009:

11.0%. 2010 avge11.1%; aim

for 10% sustainable discount

trend Active buyback policy

continues, over 3 ½ %

repurchased in 2010

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Drivers of performance

2004-8 Portfolio neutral/- , buybacks positive2009 Tailwind from gearing, buybacks 2010 Portfolio outperforming, buybacks, gearing

Historic headwinds: 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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Addressing headwinds during 2010

• “Proportion in index-anchored portfolios” – 20.6% end 2009, 19.4% June 2010, 3% Sept 2010. Now nil, replaced by conviction active managers

• “Low weighting in emerging/fast growth economies” – under review, 11.3% end 2009, 17% end November, EM manager appointed December 2010

• “Relatively inactive geographical allocation” – used differential cash raising (Japan, US) and futures to raise UK weight and add to Europe in Q2

• “Relatively inactive use of gearing” – raised from 6% in May to 10-11% Jul-Nov

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

• “Structure of gearing” – looking at multi currency facility to offset £ gearing interaction with overseas-dominated portfolio

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Expense efficiency a priority

2010H1 2009 2008

TER 0.51% (0.64%) 0.98% 0.71%

Performance Fees 0.1% (0.25%) £2.6m £1.4m

Other Costs £3.0m (£2.7m) £6.6m £6.0m

Av. Shareholders’ Funds £1.01bn £950m £1.05bn More active managers and better performance will tend to raise the TER; a

higher asset base and reviewing fees and costs will move it the other way Higher costs from outperformance preferred to underperformance with lower

costs No plc-level fees, corporate overheads carefully managed

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Multi Manager Structure

Set up in 2004

Initially 8 mandates, rose to 13 as passive % reduced

As at end 2009: 3 Global unconstrained stock pickers (now 4) 4 UK (1 “passive”, 1 smaller company) (All 4 active) 2 European (still 2, one changed) 1 each US, Japan, Asia, Australia (US, Japan, Australia closed,

EM added)

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

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Managers in 2009-10

2009 a year of consolidation – one change (Pimco in and

out). Gearing allocated to active UK managers

2010 changes (to date):– 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.5% allocated to directly-held growth opportunities (e.g. private equity trusts)

– £50m emerging markets mandate December 2010

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Witan Manager Structure

Manager Mandate Dec-09 Jun-10 Sep-10 Dec-10Henderson UK 15.5 15.6 - -

Artemis UK 8.0 7.8 8.0 7.6

Lindsell Train UK - - 9.0 9.1

Marathon UK (till June) 7.3 7.2 10.5 10.6

NewSmith UK - - 9.0 9.1

Henderson UK Smaller Cos 3.1 2.5 2.2 2.1

Henderson US 5.1 3.4 3.0 -

Wellington Europe ex UK 8.6 6.9 - -

Varenne Europe 2.5 2.7 2.8 2.7

Brandes Japan 5.7 5.6 4.5 -

Comgest Pacific ex Jap 6.0 6.4 6.4 6.4

Orbis Australia 1.7 1.6 1.6 -

Trilogy Emerging Markets - - - 4.4

Southeastern Global 15.0 13.9 12.9 12.7

MFS Global 12.0 11.3 10.7 9.3

Thomas White Global 9.5 9.8 9.4 9.7

Veritas Global - - - 6.8

Global Opportunities Portfolio Specialist - 3.4 5.4 5.4

Futures AA/gearing - 2.0 4.5 1.4

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Witan Geographical Exposure

Region Dec 2009 Nov 2010

UK 34.2 39 +4.8

North America 23.1 20 -3.1

Europe 21.9 20 -1.9

Japan 9.5 4 -5.5

Asia/Emerging 11.3 17 +5.7

Growth Opps - [*5.4] [+5.4]*Incl within UK %

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Summary: existing performance levers

Asset allocation – reduced Japan very 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 – 3.7% repurchased ytd

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Summary: new performance levers

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

Exposure to structural shifts in the global economy Raised emerging/faster growth economy exposure and appointed specialist manager

Flexibility in borrowing facilities WIP

Ability to adjust exposure tactically watchful use of index futures to raise gearing via favoured markets

Special situations and new asset categories Growth Opportunities portfolio

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Witan in future

Diversified exposure to high quality global equities

Ambitious to add value and grow investors’ wealth and income

Active management of risk appetite (both

ways) through active managers and gearing

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

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Witan Investment Services 201 Bishopsgate

London EC2M 3AE Tel: 020 7227 9770

Fax: 020 7227 9771

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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 (201 Bishopsgate, London EC2M 3AE) 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.