22nd Sep 2022 09:21
(Alliance News) - Murray Income Trust PLC on Thursday said its net asset value in its financial year underperformed against its benchmark, but the firm raised its annual dividend.
NAV per share at June 30 fell to 864.9 pence from 934.6 a year ago, the investment trust stated. NAV total return turned to negative 4.0% from a positive 21% return.
The 4.0% negative return underperformed against its benchmark, the FTSE All-Share index which returned a positive 1.6%.
Murray raised its dividend to 36.00 pence per share from 34.50p.
Noting a weaker second half, the firm said: "Performance attribution analysis shows that the underperformance can be pinned in broadly equal parts on style rotation and stock selection. Although your manager's investment style does not lead to a technology or an internet bias, its search for 'quality' means it will typically be underweight the 'value' sectors of the market. Additionally, like many other managers, their environmental, social & governance work has led them to have a low exposure to oil and gas stocks."
Looking ahead, Chair Neil Rogan stated: "We find ourselves in a scarcely credible era of uncertainty and without strong political, economic or social leadership. Domestic politics, geopolitical tensions and war, inflation, labour shortages, recession, strikes, energy shortages; all these factors have the capacity to heavily affect the outlook for the companies in which we invest. Every one of them is impossible to predict with confidence at the moment. So what is the outlook? In truth, we can't be sure."
However, he added: "We have great faith in our investment manager's long-term investment approach."
Murray Income shares were 0.5% lower at 793.00 pence each in London on Thursday morning.
By Tom Budszus; [email protected]
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