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(Alliance News) - Murray International Trust PLC on Friday said it underperformed against its reference index in 2020, with a decline in net asset value.
The trust's NAV total return for 2020 was 0.9% with net dividends reinvested, well below its reference index total return of 7.0%. The reference index was made up of 60% FTSE World excluding UK Index/40% FTSE World UK Index until April 2020 and then 100% FTSE All World TR Index from May 2020.
"Relative underperformance to the Reference Index must be noted but, given the prevailing portfolio orientation, is hardly surprising. Overall market conditions for dividend paying companies proved extremely hostile," the company's investment manager said.
As at December 31, the end of its financial year, Murray International 's net asset value per share stood at 1,138.2 pence, down 4.4% from 1,190.0p the year before.
The company upped its dividend, however, by 1.9% to 54.5p per share from 53.5p the year before.
Chair Kevin Carter said: "The discovery and rollout of a number of effective vaccines against the virus hold out the prospect of emergence from the pandemic. However, the lasting legacy of enormous debt obligations accrued by some nations in response to Covid will linger for years to come. Clearly, the path ahead is not likely to be smooth.
"From an investment perspective, the company's unconstrained global mandate offers great flexibility. Whilst the developed world's pandemic debt legacy may be long-lasting, numerous other parts of the world appear less constrained. Recent evidence already shows growth rebounding and business recovering in a number of Asian and developing countries that quickly contained infection rates last year. There is the prospect of improving corporate profits and above average dividend and capital growth from many high-quality companies exposed to these markets. Portfolio exposures will continue to focus on such businesses in pursuit of the company's long-term investment objective."
Shares in Murray International were down 1.3% at 1,105.01p in London on Friday morning.
By Anna Farley; annafarley@alliancenews.com
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