Murray International Trust plc (LON:MYI) posted an 8.5% rise in assets for the first half as investor sentiment improved after the US Federal Reserve adopted a more dovish stance and Asian markets recovered.
Net assets rose to £1.5bn at the end of June from £1.4bn at the end of 2018.
Net asset value per share grew 7.9% to 1,195p and the NAV per share discount was 3.6%, compared to a premium of 2.2% at 31 December.
The total return on NAV gained 10.6%, less than the 15.5% return for the company’s benchmark.
The trust said sentiment improved following widespread weakness and negative portfolio returns last year.
“The US Federal Reserve's surprising decision to suddenly reverse policy direction in favour of more accommodative interest rates unsurprisingly proved rather popular with global equity markets,” it said.
“The company's large exposure to Asia prospered from a combination of solid stock selection and a more favourable environment for financial and other interest-rate sensitive businesses.
“Local currency strength against sterling in Thailand, Indonesia and Singapore further bolstered performance of both capital and income returns.”
However, Japan stock selection was “challenging” with a reduction in the group’s position during the period, the company added.
Looking ahead, it said the sharp decline in global bond yields suggests that “weaker global growth is likely to be on the horizon”.
The group said while global equity markets have been supported by lower interest rate expectations, the “extraordinary monetary policies over the past decade have created an enormous legacy of indebtedness that remains the Achilles heel for whatever comes next”.