16th Aug 2018 09:43
LONDON (Alliance News) - Murray International Trust PLC said on Thursday financial market sentiment soured by global trade tariffs resulted in a "particularly difficult" half-year for the trust.
Net asset value fell to 1,130.2p as at June 30 from 1,251.4p at the end of 2017, as its total return for the half came in at minus 8.0%, following a positive 14.7% return for the year to December 31.
The company's benchmark - 40% FTSE World UK and 60% FTSE World ex UK - returned 2.2% over the first half of 2018, and 12.8% over 2017.
"The period under review has been particularly difficult for the company as politics and protectionism dominated the financial landscape," said the company.
The trust cited trade tariffs between the US and its trading partners as denting marketing sentiment.
"The consequential rout, particularly in those Asian and Emerging markets most exposed to global trade, proved punitive," Murray International said, adding that the largest contributor to its overall negative return was its material exposure to these markets.
The company also noted the outperformance of US and Chinese technology stocks over the period, to which Murray, for "income reasons", has little exposure.
"Delivering the company's investment objective over the long term will best be achieved by investing in companies with sound fundamentals and competent managements, in combination with the Company's ability to construct a portfolio with wide global diversification," said Chairman Kevin Carter.
A second interim dividend for 2018 of 11.5p, up from 11.0p a year ago, will be paid in November.
Shares in Murray International were up 1.0% at 1,141.62 pence on Thursday.
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Murray International