logo-loader
Finance
Murray International Trust plc

Murray International Trust assets rise as investor sentiment improves after weak 2018

Looking ahead, the company said the sharp decline in global bond yields suggests that “weaker global growth is likely to be on the horizon”.

Murray International Trust plc -
Global equity markets have been supported by lower interest rate expectations

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”.

Quick facts: Murray International Trust plc

Price: £12.12

Market: LSE
Market Cap: £15.62 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Clear Leisure CEO confident of a positive outcome to its litigation issues

Francesco Gardin, chief executive and executive chairman of Clear Leisure PLC (LON:CLP), updates Proactive London on the firm's investments and ongoing litigation cases. This week the company's subsidiary, Clear Leisure 2017, agreed with Sipiem to buy the €10.8m legal action against the...

2 days, 14 hours ago

RNS

Portfolio Disclosures

2 days, 8 hours ago

Net Asset Value(s)

2 days, 11 hours ago

Net Asset Value(s)

3 days, 11 hours ago

Net Asset Value(s)

4 days, 11 hours ago

Net Asset Value(s)

5 days, 10 hours ago

Net Asset Value(s)

6 days, 11 hours ago

Net Asset Value(s)

1 week, 2 days ago

Month End Net Asset Value(s)

1 week, 3 days ago

2 min read