Murray underperforms against benchmark, emphasises caution in outlook

Fri, 09th Aug 2024 09:47

(Alliance News) - Murray International Trust PLC on Friday highlighted a cautious outlook amid a fragile geopolitical environment as it reported an uptick in net asset value.

Murray said net asset value per share rose 2.9% to 276.7 pence at June 30 from 268.8p at December 31.

NAV total return was 5.5%, underperforming against its reference index, the FTSE All World TR index, which had a total return of 12.2%.

The Edinburgh-based investment trust, managed by abrdn PLC, invests in global equities for dividend yield and capital growth. Its top ten investments include Shell PLC, Siemens AG, Samsung Electronics Co, Zurich Insurance Group AG and Merck & Co Inc.

"If a primary driver of solid equity market returns in 2023 was the expectation of easing inflationary pressures and central banks cutting interest rates, one could be forgiven for being slightly surprised at the strength of equity market returns, particularly in developed markets, in the first half of this year," Murray said.

The company declared a second interim dividend of 2.5 pence per share, up 4.2% from 2.4p a year prior.

Looking ahead, Murray said: "As we look forward, macroeconomic difficulties are likely to continue impacting the direction of financial markets. The geopolitical environment, currently at its most polarised, fragile, and uncertain state in a very long time, demands our attention and caution. Even when interest rates begin to decrease, the cadence and scale of their decline could leave market participants disappointed.

"Numerous heavily indebted nations will still be confronted with fewer and fewer options to stimulate future growth. While Central Banks may have won the battle with inflation and walked the tightrope between recovery and recession, for now, the geopolitical environment could easily alter that in the blink of an eye. Notwithstanding the economic backdrop, our manager focuses squarely on delivering the investment objective and looking for opportunities that offer proper diversification."

Murray shares were 0.8% higher at 249.94 pence each on Friday morning in London.

By Tom Budszus, Alliance News slot editor

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