AAlliance Trust has blamed the EU referendum for its slipping well behind a new benchmark in the first half of 2016, after a slide in June reversed gains of the previous five months.

Total shareholder return was 2.6per cent and net asset value (NAV) total return 6.6per cent, against 12 per cent for its world index benchmark.

The £3.3billion trust, which introduced the formal benchmark at the end of 2015, has underperformed it on both return measures over one, three and five years, its illustration shows.

Lord Smith of Kelvin, the chairman, said it was down to "turbulent market conditions around the EU referendum" but that the share price had since reached new highs.

He added: “In volatile markets we continue to make good progress against the initiatives outlined last year to enhance shareholder value.” He said costs were coming down and the savings and investment subsidiaries were “making good strides towards profitability”.

The chairman said a strategic review, announced after a short-lived approach from RIT Capital Partners was confirmed, had a “broad range of potential courses of action” and was progressing well.

The manager’s report says the financial sector held back performance as two core holdings - Prudential and Legal & General - performed poorly over the period. “Both companies have been hit by fears around the implications of the EU referendum, particularly the risk that higher interest rates and bond yields in the UK are now many years away.”

The trust also had 16.7per cent in the UK, against 6.4per cent for the benchmark, “which also pressured performance" the report says.