Investment trust British Assets reported a net asset value total return of 13.1% during the six months period 31 March.

This compares to a total return of 12.6% for the composite benchmark index of 75% FTSE All-Share Index and 25% FTSE World (ex UK) Index.

The company's revenue earnings for the period were 2.4p per share (2009: 3.1p).

"Many potential hurdles need to be negotiated in the UK this year, not least government measures to reduce borrowing and the timing of the withdrawal of the exceptional monetary stimulus provided in the credit crisis," said chairman Lynn Ruddick.

"For now, a slump back into recession is unlikely, inflation is likely to remain subdued and liquidity conditions remain favourable. Indeed recent economic and corporate profit announcements have been positive. Many of the best performing stocks in 2009 paid no dividends at all."

"However, income remains scarce and we would expect to see investors shift attention to dividend paying stocks as 2010 progresses, which should be of benefit to the company's portfolio," she added.

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