Alliance Trust reported a net asset value (NAV) total return of 1.4 per cent during the six months to June 30 and total shareholder return of 2.7 per cent.
Alliance Trust suggested that its underperformance was a result of weakness in some of its income holdings during the second quarter of the year.
It confirmed its equity team had begun reducing the number of holdings in its equity portfolio to a record low 68 positions at the end of the period, down from 88 12 months ago.
Katherine Garrett-Cox, chief executive of Alliance Trust, said: “This concentration means that we are putting higher levels of conviction behind every holding and we are confident that this will deliver superior returns in the long term, albeit recognising that there can sometimes be periods of stock specific underperformance.”
She added that the “uncertain outlook” for Greece and China could continue to affect equity markets for some time to come though.
Karin Forseke, chairman of Alliance Trust, acknowledged the first half of 2015 had been a “particularly challenging period” for the investment company.
Earlier this year, Alliance Trust faced a very public battle with its largest shareholders Elliott Advisors, which resulted in the investment trust appointing two out of three non-executive directors requisitioned by the activist shareholder.
In its latest results, Ms Forseke said: “In the run up to our AGM a significant proportion of our shareholder base indicated that they sought change. The board has listened to these concerns and is actively engaged in addressing them. The board anticipates announcing, in the Autumn, the changes that it intends to make.”
She confirmed the search for another non-executive director was “approaching the final stages”.
Alliance Trust Investments’ specialist fund range recorded higher revenues and reduced losses, according to the results statement, with net inflows of £59m in the first half of the year.
