CT UK Capital underperforms as underweight on AstraZeneca, Shell

Fri, 22nd May 2026 11:02

(Alliance News) - CT UK Capital & Income Investment Trust PLC on Friday increased its dividend but said it underperformed the FTSE all-share index in the first half of its financial year.

The investment trust said its net asset value total return for the half-year to the end of March was 0.6%, compared to 8.9% for the FTSE all-share index.

This compares to a 1.6% fall a year prior, against a 4.1% rise in the FTSE all-share index.

The firm declared an interim dividend of 6.20 pence per share, made up of two 3.10p payouts, up 5.1% from 5.90p, or two 2.95p dividends, a year earlier.

"The board recognises the immense power of dividends in driving investment returns for shareholders, most of all when income is reinvested to maximise total returns. Despite a challenging investment backdrop, the combined dividend for the six-month period of 6.2 pence per share is an increase of 5.1% in comparison to the same period last year. This is ahead of the rate of consumer price inflation and represents an annual dividend yield of 4.1%," said Chair Nicky McCabe.

The company said "resilient" UK market performance at a headline level "belied a high degree of turbulence beneath the surface".

The portfolio's overall underweight exposure to Shell PLC and AstraZeneca PLC was the primary headwind, as the two stocks jumped 38% and 33% respectively during the period.

The firm also noted an adverse outcome for its holding in litigation finance firm Burford Capital Ltd, which saw its shares fall 65%.

"While the relative underperformance in the first six months of the year represents a disappointing outcome for shareholders, this has been an extra-ordinary investing backdrop and the board and your fund manager remain constructive about the scope for future investment returns," CT UK Capital added.

The fund manager believes that UK equities are still a "compelling" place to invest.

"As patient conviction investors, we will continue to avoid short-term trends and concentrate on company fundamentals with a view of targeting strong risk-adjusted returns to you, our shareholders," the company said.

Shares in CT UK Capital & Income Investment Trust were flat at 347.00p on Friday morning in London.

By Michael Hennessey, Alliance News reporter

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