Source - Alliance News

Murray Income Trust PLC on Friday said it beat its benchmark over its first half of its financial year and expects portfolio income levels to reach ‘new highs’ later in 2022.

The investment trust’s net asset value total return was 7.2% in the six months that ended December 31, ahead of 6.5% for the benchmark.

NAV per share at December 31 was 983.7 pence, up 5.3% from 934.6p at June 30.

Murray Income said dividend cuts made life difficult for income investors during the pandemic.

‘The UK Equity Income sector was already out of favour when Covid-19 hit and caused many companies to slash or suspend their dividends. There have been net redemptions of over £2 billion from the open-ended funds in the sector in each of the last two years, partly in response to Covid-19 but also due to a preference for growth and technology stocks elsewhere, particularly in the US, although this has started to reverse in early 2022,’ Chair Neil Rogan said.

In 2020, dividends for the UK market as a whole fell 44% on 2019 levels while 2021 dividends were up 22% on 2020. Dividends are expected to fall 7% in 2022, which would leave them still 21% below 2019 levels.

‘The company’s focus on quality companies has produced a very different experience and outlook: our manager reported a 13% reduction in our portfolio income in 2020, followed by an 11% recovery in 2021, and now projects portfolio income levels to reach new highs later in 2022. This is not necessarily repeatable, but places us well ahead of our original forecasts,’ Rogan said.

Murray Income has declared its first three dividends of the year, amounting to 24.75p a share, which is the same as the year prior. The company expects to announce a fourth interim dividend of at least 10p, which is up from 9.75p.

Looking ahead, Rogan said that there are a myriad of pressing uncertainties.

‘There are still so many fast moving influential variables that it remains very difficult to forecast the residual outcome with any true confidence. Known unknowns and unknown unknowns will undoubtedly cause setbacks. War in Ukraine is the most obvious source of volatility,’ Rogan said.

Murray Income shares were up 1.5% to 834.00p each in London on Friday morning. The wider FTSE 250 index was up 2.1%.

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