UK-focused Dunedin Income Growth Investment Trust said its net asset value had outperformed the market in the first half, but warned times would remain tough.
Net asset value per share up by 5.9% in total return terms, compared with the company's benchmark, the FTSE All-Share Index, which increased by 1.9%.
The firm's share price increased by 11.8% on a total return basis.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Chairman Roy Macnamara said that since the rise in the market, Dundein believed company valuations in general were no longer cheap.
"The analyst community seems reluctant to look more than twelve months ahead and still expects close to double digit earnings growth in 2013; we consider that this is a somewhat optimistic view," he said.
"Companies considered safe and secure which distribute a fair proportion of their profits to shareholders have become 'in vogue' investments in recent times.
"While we are inclined to agree with such a stance, we do keep a wary eye on valuations and bear in mind that these will be a key determinate of our investors' long-term returns," he said.
-
Santander launches new freebie for certain savings customers - are you eligible?Santander is offering a free four-year railcard to some customers from today. We explain who will qualify for the incentive
-
Lloyds axes foreign currency fees for Club Lloyds customersClub Lloyds customers will be able to withdraw their money abroad without incurring any extra fees
