LONDON (Alliance News) - Murray Income Trust PLC on Tuesday said its net asset value per share performance in the first half outpaced its benchmark, but said its revenue was hit by dividend cuts and the short-term outlook for markets is uncertain.
The trust said its net asset value per share fell 1.0% in the half to the end of December, outperforming the FTSE All-Share index on a total return basis, as it fell 2.0% over the same period.
The fund said its total revenue for the half fell 7.2% year-on-year, mainly due to emerging markets bank Standard Chartered PLC having reduced its interim dividend and owing to the special dividend paid a year earlier by caterer and outsourcer Compass Group PLC not repeating.
The reduction in income for the fund was partly offset by higher option premiums and the group has benefited from the weakness of sterling against the dollar as around 30% of its investment income is dollar-denominated.
The trust said the outlook for equity markets in the second half of its financial year looks uncertain, with slowing economic growth and volatile commodity markets presenting challenging conditions for companies across the board. This is further exacerbated in the UK by the ongoing uncertainty about the UK's place in the European Union.
Despite this unclear short-term outlook, however, the trust said it remains confident it will be able to generate long-term returns and has the skills in house to successfully navigate through the difficult market conditions.
Shares in the trust were up 1.0% to 628.00 pence on Tuesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Murray Income Trust (MUT)