Murray Income net asset value rises but lags benchmark; payout up

(Alliance News) - Murray Income Trust PLC on Tuesday said it lagged its benchmark index in a year ...

Alliance News 21 September, 2021 | 8:52AM
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(Alliance News) - Murray Income Trust PLC on Tuesday said it lagged its benchmark index in a year of "consolidation".

Net asset value per share stood at 934.6 pence at the end of June, up from 808.3p a year ago.

The trust's net asset value total return for the year to the end of June was 20.6%, just behind the the FTSE All-Share Index at 21.4%.

"After two very strong years of relative performance, this year was a year of consolidation," it said.

Murray Income aims to achieve a high and growing income combined with capital growth through investing in mainly UK equities.

It noted that the portfolio outperformed in the first and final quarters of the financial year but underperformed during the second and third quarters.

"Given the portfolio's focus on high quality companies, we would always expect to underperform in a 'dash to trash' rally. Indeed, in November following news of the efficaciousness of a number of vaccines, poor quality companies that had previously performed very poorly and where the market had questioned their ability to survive, rebounded strongly (albeit their income has not returned to previous levels)," said Murray Income.

The total dividend for the year was 34.50p, up 0.7% on the year prior to mark the 48th year of consecutive increase.

Looking ahead, the company highlighted that the UK economy is recovering much faster than expected, boosted by its vaccine roll-out.

"Many UK companies have adapted successfully and some sectors have already surpassed their 2019 highs. Yet UK stock market valuations still seem low by international and historical standards, particularly on a cash flow and yield basis," said Murray Income.

Shares in Murray were down 0.1% at 897.16p in London early Tuesday.

By Lucy Heming;

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Murray Income Trust Ord 883.00 GBX -0.34

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