Investment trust Murray International (MYI) fell 0.8% to 958p as first half results revealed a worse performance than the market but the company kept its dividend for the period stable at 12p per share.
The company’s net asset value total return per share for the six months through June was negative 10.7%.
That compared to a 4.7% fall on its reference index, which comprised the FTSE All World TR Index from 27 April and prior to that a composite of 40% FTSE World UK and 60% FTSE World ex UK.
‘As I have stated previously, the board intends to maintain a progressive dividend policy given the company’s investment objective,’ chairman Kevin Carter said.
‘This means that in some years revenue will be added to reserves while, in others, revenue may be taken from reserves to supplement earned revenue for that year to pay the annual dividend.’
DIFFICULT TO PROVIDE CLARITY ON THE OUTLOOK
Carter said proffering a near-term outlook was made difficult by fluctuating clinical, political and economic events.
‘Without greater clarity on how the pandemic evolves and ultimately impacts health and recovery trajectories throughout the world, most forecasts are merely speculative,’ he said.
‘The longer term implications for the global economy, capital markets, future dividends, and even normal day to day living, are also largely unknowns at this stage.’
Stockbroker Stifel commented: ‘This was a tough 6 months for Murray International, with the NAV down -10.7%. ‘The trust has a focus on defensive income and does not generally invest in tech and growth stocks which performed relatively well during the period.
‘Importantly for an international investing trust that delivers a high yield, the revenue EPS was robust when compared to funds that invest in UK equities.
‘The revenue EPS only declined -7% which reflects the more stable level of international dividends, compared with those paid by UK companies.’