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The half year report from Law Debenture has just been delivered showing total net asset return (NAV) for the six months to the end of June up +15%* compared to the FTSE All-Share return of +9.1%**. Shareholders enjoyed a +14.2%*** return including dividends. The board declared a first interim dividend of 8.375 pence,  an increase of +4.4% over the year and ahead of the CPI rate of inflation.

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The Independent Professional Services (IPS) division which makes up around 18% of the NAV was the largest contributor to income following strong revenues from their corporate trust and services divisions which allows the managers, James Henderson and Laura Foll to increase exposure to growth stories that don’t pay dividends and which have historically driven performance. Gains over the period were led by strong performance from industrials,  which make up nearly a quarter of the portfolio, particularly in defence related companies like Rolls-Royce, Babcock and BAE Systems.

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The trust’s continued strong performance allowed them to issue a further 1.3 million shares, raising £11.6 m. The trust trades at a 1.14 % discount to NAV.

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*NAV is calculated in accordance with the AIC methodology, based on performance data held by Law Debenture including fair value of the IPS business and long-term borrowings. NAV is shown with debt measured at par and with debt measured at fair value and both total returns account for shareholder returns through dividends.

** Source: Refinitiv.

***Calculated based on data held by Law Debenture for the period ended 30 June 2025.

Important information NAV performance is not the same as share price performance and investors may not realise returns in line with NAV performance. Tax assumptions and reliefs depend upon an investor's particular circumstances and may change if those circumstances or the law change.

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Comments from James Scott-Hopkins, Founder, EXE Capital Management

The views are those of the author only. The above does not constitute a recommendation to buy the fund and advice should be sought from your financial advisor as to the appropriateness of this fund in your portfolio. The value of investments can fall as well as rise. Past performance is no guarantee of future returns.‍

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