LONDON (Alliance News) - Murray Income Trust PLC said Tuesday it underperformed the FTSE All-Share Index in the half year to end-December 2014.
In the six month period, it saw a negative total return on net asset value per share of 2.9%, compared to a negative total return of 0.4% from the FTSE All-Share Index.
The trust said that the UK equity market was "essentially flat" over the half year, although there was significant volatility caused by concerns such Ebola and the ongoing developments in Ukraine, although these were partly assuaged by further quantitative easing from the Bank of Japan and the prospect, later realised, of full quantitative easing from the European Central Bank.
Oil, gas and mining companies underperformed due to the lower oil and commodity prices, whilst technology and telecoms outperformed, Murray Income Trust said.
Looking ahead, the trust said political risk in the UK "complicates the picture", but said lower oil prices should act as a "potent stimulus", and there should be a period of real wage growth.
"No doubt there will be various speed bumps ahead, but your manager is sticking to the thesis that globally competitive businesses with robust financial characteristics and experienced management teams offer the best earnings and dividend growth prospects over the long term," the trust said in a statement to shareholders.
Shares in Murray Income Trust closed down 0.3% at 784.00 pence Tuesday.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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