The net asset value total return is down for the six months to 31 October by 9.9%, while its share price returned -9.8% over the same period.
One of the more significant investment changes since the end of April 2011 was the reduction of gearing through the sale of index futures.
In its report, the company said: “These sales were combined with the purchase of call options on the same indices, which had the effect of capping potential losses on the futures positions in the event of a rise in these indices. The net effect of these transactions was to take out some protection against falls in the European, UK and US markets without selling individual holdings.”
Some of the profits made were used to take advantage of lower equity valuations when the markets fell sharply in July and August.
The trust added £42.2m in equities, shifting its emphasis away from Europe and emerging markets, and reduced its net bond position, particularly in sterling and dollar-denominated bonds, by £27.1m.
Overall, the trust’s gearing fell from 110% of shareholders’ funds at the end of April to 93% at the end of October.
In other financial results, its earnings per share rose to 3.3p, up from 2.45p a year ago. The interim dividend remains at 0.5 pence.
