AUS
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On Friday, Murray International Trust PLC (LSE:MYI) announced a cautious outlook amid ongoing geopolitical uncertainties, despite reporting an increase in net asset value (NAV). The NAV per share rose by 2.9%, reaching 276.7 pence as of June 30, up from 268.8 pence at the end of December.
Performance Compared to Reference Index
The trust's NAV total return was 5.5%, which fell short of the performance of its reference index, the FTSE All World Total Return (TR) index, which achieved a total return of 12.2%.
Investment Focus and Major Holdings
Murray International Trust, managed by abrdn PLC, invests in global equities with a focus on dividend yield and capital growth. The trust's top investments include Shell PLC, Siemens AG, Samsung Electronics Co., Zurich Insurance Group AG, and Merck & Co Inc.
Market Conditions and Investment Climate
The trust noted that the robust equity market returns observed in 2023 were partly driven by expectations of easing inflation and potential cuts in interest rates by central banks. The strength of equity returns, particularly in developed markets, in the first half of the year was unexpected.
Dividend Declaration
The company declared a second interim dividend of 2.5 pence per share, which represents a 4.2% increase from the 2.4 pence declared the previous year.
Outlook and Challenges
Looking ahead, Murray International Trust anticipates ongoing macroeconomic challenges will continue to influence financial markets. The current geopolitical environment is described as highly polarized and uncertain, necessitating caution. Even with potential interest rate reductions, the pace and extent of these changes may not meet market expectations.
Many heavily indebted nations face limited options for stimulating future growth. Although central banks may have managed to control inflation and navigate between recovery and recession, geopolitical developments could rapidly shift the economic landscape. Despite these conditions, the manager of the trust remains focused on achieving investment goals and seeking opportunities for diversification.
