Phil Doel’s F&C UK Select Trust delivered a net asset value total return of 9.2% over the first half of 2009, outperforming its benchmark, the FTSE All-Share Index, by 8.4%, according to interim results released today.
This was a significant turnaround in performance, after the trust lagged its benchmark by 12.5% in 2008.
F&C says it positioned the portfolio to benefit from the market rally in March. It has generated its strongest returns from the resources and financials sectors, particularly holdings in Indus Gas, Rio Tinto and Standard Chartered.
The trust’s largest investment at the end of June was Caithness Petroleum, an oil and gas production company which is not listed on the stock exchange.
Doel revalued his holding in Caithness in July, following news it had raised $50m (£30.3m) on the back of a potential discovery of large and exploitable gas reserves.
This fundraising increased the value of UK Select’s investment in Caithness by 130%, from £15.04 to £34.48 per share, which added 8.7% to the trust’s net asset value total return.