Henderson's Geared Income & Growth Trust fell 9.2 per cent in the six months to the end of August.
Net asset value per income ordinary share fell by 15 per cent in the same period.
Henderson blames the poor performance on gearing which means that the shares suffer in a falling market.
But the quarterly dividend rate has been raised slightly from 1.7p to 1.8p per income ordinary share.
Portfolio manager Job Curtis says: "This has been a disappointing six months but it is relative to the current market conditions."