The £2.6bn Foreign & Colonial investment trust has announced a 10.1% net asset return for the six-months to 30 June.
The un-audited interim statement also revealed the per share dividend grew 10.2% to 2.70p, to be paid on 11 September, while the share price increased 7% to 304.5p
F&C says it exceeded its 40% FTSE All Share and 60% FTSE World ex UK benchmark of 7.4%, and the total size weighted average return of its closest competitors at 8.6%.
Private equity was boosted by a £62m investment and now represents 6.5% of the portfolio, closing in on F&C’s 10% target.
Trust manager Jeremy Tigue says it has been a good period for shareholders.
“The four key tools at our disposal - stock selection, asset allocation, the use of gearing and share buybacks – each made a positive contribution,” he says.
“We were right to remain underweight the US and benefited significantly from significant overweight positions in emerging markets and developed Asia.
“Stock selection from our team was particularly strong in Asia and also positive in major markets such as the UK and Europe.”
Tigue says he “feels” similarities between today’s markets and those in 1987.
“Although there have been pockets of problems, predominantly from the slowdown in the US housing market, the world's economic fundamentals are in good shape,” he says.
"There is a clear disconnect between market behaviour and the underlying economic picture.
“In this respect 2007 is starting to feel very similar to 1987 when markets took a short, sharp hit, providing savvy investors with a breadth of opportunities."
A sustained bear market is unlikely, but Tigue says the "cards are stacked towards a further correction".
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