Independent Investment Trust generated a 13.9% return on net assets over the six months ended 31 May 2015 – well ahead of both the FTSE All-Share Index and the FTSE World Index which returned 7.5% and 6.0% respectively. The interim dividend is unchanged at 2p.
Within the technology and telecommunications weighting in the portfolio, two Chinese internet stocks, Baidu and Alibaba, held back performance. Baidu has warned that it intends to invest heavily in its business this year, implying a significant decline in its margins, while Alibaba has attracted unfavourable comment from the Chinese authorities on its policing of fake merchandise on its websites. UK holdings, FDM and Gamma Communications, reported encouraging trading conditions however.
One of the biggest contributors to their outperformance came from their allocation to UK house builders, in particular stakes in Crest Nicholson and Redrow. These did well after the election. Bids for insurance companies Brit and Catlin also helped.
They lost money on investments in MySale, Zulily and, furniture retailer, SCS.
IIT : Independent benefits from stakes in UK house builders