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(Alliance News) - Murray Income Trust PLC on Wednesday said that its portfolio had suffered from interest rate fluctuations in 2023, resulting in a slowdown in total returns and a drop in earnings per share.
At December 31, the Edinburgh-based investment company reported net asset value per share of 929.4 pence, up from 911.7p on June 30.
For the six months ended December 31, NAV total return was positive 4.5%, compared to positive 6.2% over the same period a year prior.
This lags slightly behind Murray's benchmark FTSE All-share index, which posted a 5.2% increase over the half-year. According to the firm, its NAV return experienced an adverse impact from interest rate movements over the period.
Earnings per share dropped to 14.2p over the period from 16.3p a year before.
As announced in November, the company's first three dividend payments for the year ending June 30 have all been 9.5p per share, compared to 8.25 for financial 2023.
The fourth interim dividend will be lower than 2023's final payment of 12.75p, Murray said, but is not expected to fall below 9.5p per share. This would result in a total dividend of at least 38.0p per share for the year.
Murray said that 2023 proved to be a "mixed bag" for equity markets, particularly in the UK, though the company's exposure to international markets through overseas stocks such as Accton Technology Corp and Novo Nordisk AS allowed its portfolio to claw back some of this lost value.
Looking ahead, Murray warned that the UK investment market continues to look "cheap" when compared to the international arena, but added that falling interest rates could attract the attention of potential investors.
Shares in the company were up 0.8% at 821.37 pence each in London on Wednesday morning.
By Hugh Cameron, Alliance News reporter
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