LONDON (Alliance News) - Alliance Trust PLC on Friday reported a rise in net asset value and pretax profit for the first half of 2016, although it underperformed its benchmark due to market conditions in the month of the Brexit referendum.
The trust reported net asset value per share of 591.4 pence on June 30, up from 561.1p at the end of 2015, and 545.9 pence a year before.
The trust's total return was 6.6%, falling short of its benchmark, the MSCI ACWI, which saw a total return of 12.0%.
Alliance Trust said this under-performance occurred in June, when its quoted holdings gave up the out-performance they had previously recorded.
"Investment performance in the period underperformed the benchmark, reflecting the turbulent market conditions around the EU referendum when the trust's quoted equity portfolio gave up the outperformance it had recorded over the prior five months," Non-Executive Chairman Robert Smith said in a statement.
After the immediate volatility caused by the UK's vote to leave the European Union, Alliance Trust said its net asset value rose again in July, reaching 626.2 pence at the close Wednesday.
The company reported a pretax profit of GBP212.9 million for the half year, up from GBP36.6 million a year before, despite seeing its income decline to GBP50.8 million from GBP63.4 million, as it reported a GBP191.0 million profit on the fair value of its designated investments.
It proposed a second interim dividend of 2.825 pence for the half year, taking its total dividend for the half to 5.650 pence, up from 5.065 pence the previous year.
Alliance Trust said it continues with its strategic review, and has undertaken a number of changes in the half year, including changing its board so it is entirely non-executive.
The review is progressing well, Alliance Trust said, and it expects to report on its outcome later in the year.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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