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(Alliance News) - Murray Income Trust PLC on Wednesday said its outperformed its benchmark in its most recent financial year on "strong" stock selection.
Murray Income, a FTSE 250-listed investment trust managed by Aberdeen Standard Investments, reported a net asset value total return for its financial year ended June 30 of negative 5.3%. This was notably better than the negative 13% return from the FTSE All-Share Index, its benchmark.
The company's investment manager explained that: "Outperformance relative to the benchmark was evenly distributed across both halves of the year as stock selection proved to be strong in an environment where the focus on quality companies proved its worth again. As we saw during the period, these high quality companies provided the ability to participate when the equity market performed well given the structural growth characteristics of the holdings yet outperformed a falling market as their strong balance sheets and robust business models demonstrated defensive attributes."
Net asset value per share as at June 30 fell to 808.3 pence from 888.1p the year before.
Murray Income's total dividend per share for 2020 increased by 0.7% to 34.25p from 34.00p.
In July, Murray Income and Perpetual Income & Growth Investment Trust PLC unveiled plans for a tie-up, creating an investment manager with more than GBP1 billion in assets.
Chair Neil Rogan said: "It is a tough time to write an outlook section. There are too many variables that are difficult to predict, so any residual forecast would necessarily have a very low level of confidence. It is simply not a time for big predictions nor for taking large risks."
He added: "Quality companies with attractive dividend yields, sound growth prospects and strong balance sheets are likely to be prized more than ever. The company's focus on quality should mean that it is particularly well placed to serve shareholders who are searching for a reliable, diversified and growing income stream."
Shares in Murray Income were up 3.5% at 724.60p in London on Wednesday afternoon.
By Anna Farley; annafarley@alliancenews.com
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