The Troy Income & Growth trust, which invests mostly in UK equities, faced a challenging six months as it lagged behind its benchmark.
The £226m trust posted a share price total return of 5.3 per cent in the six months ending 31 March, underperforming the FTSE All-Share index which produced a total return of 8.1 per cent over the same period.
David Warnock, the trust chairman, said it had been a challenging time for Troy Asset Management's investment style.
The company, which looks to provide an income and capital growth, managed a net asset value total return of 4.3 per cent.
However, a longer timeframe painted a more positive picture, with the trust delivering a NAV total return of 37 per cent over three years, outperforming the FTSE All-Share return of 24.9 per cent.
While the company issued 5.33m shares to the market during the six months, it bought back 120,000 shares because the market was oversupplied.
These shares were reissued ahead of the period end and as such there are currently no shares held in treasury.
The company’s ongoing charges figure has steadily declined to less than 1 per cent, from 1.39 per cent in 2009.
Despite Article 50 being triggered back in March, Mr Warnock said the UK's economic circumstances continue to reflect a "post-referendum" but "pre-Brexit" world.
As negotiations evolve over the next two years, and with a general election announced for the 8 June, the trust’s chair warned there is a “material risk” that sterling and UK equities will become increasingly volatile.
katherine.denham@ft.com
