(Alliance News) - Edinburgh Investment Trust PLC on Monday reported an increase in asset value over the first half of its financial year as the firm sees the foundations of a strong long-term track record beginning to take shape.
The investment trust, which invests primarily in UK securities, said net asset value per share at September 30 was 676.13 pence, up 6.7% from 633.54p at March 31.
NAV total return in the half year was 9.8%, beating the FTSE All-Share's 8.0%.
Chair Glen Suarez said: "It is encouraging to see the foundations of a strong long-term track record beginning to take shape. While growth in NAV has been encouraging, over the last six months the discount has widened."
The share price discount to NAV widened to 9.3% on September 30 from 4.5% at March 31. Edinburgh Investment Trust shares were up 0.2% to 628.03 each in London on Monday morning.
"Finally, we are very pleased to have secured much more efficiently priced debt, and we are optimistic that the portfolio's long-term returns should be enhanced."
Edinburgh Investment Trust left its interim dividend unchanged at 6.0p per share.
Looking ahead, Manager James De Uphaugh said: "There are several compelling reasons to think that the UK equity market can generate further attractive returns on a medium-term view. The gains we are reporting on for the last six months were despite a combination of tempering growth rates here and abroad, ongoing supply bottlenecks, and rising energy prices.
"There is no question pricing pressures are more prevalent now than in other inflationary spikes over the last decade, but we take reassurance from the fact that the portfolio is dominated by companies that have pricing power and strategic strength that we believe will afford greater protection against cost inflation."
De Uphaugh added that he believes the market is taking a short-term view of the prospects for many businesses in the UK, which provides opportunities for investors willing to look through the current macroeconomic headwinds.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Edinburgh Investment Trust PLC (EDIN)