Skip to main content

Murray Income Trust PLC

 

Objective

The objective of Murray Income Trust PLC is to achieve a high and growing income combined with capital growth through investment in a portfolio of UK equities.



Manager's Monthly Report

January 2010


The FTSE All-Share Index increased by 4.3% in December on a total return basis, closing at a yearly high aided by continued reassuring global economic data and the decision by Abu Dhabi to bail out Dubai World. The FTSE SmallCap Index underperformed both the FTSE 100 and 250 Indices over the month, a function of its greater domestic exposure. From a sector perspective, autos and tobacco outperformed, while banks and general retailers lagged. Outside the UK economic data was generally positive, although it remained mixed domestically. Third quarter GDP was revised up marginally to -0.2%. The Monetary Policy Committee maintaining both interest rates at 0.5% and the scale of quantitative easing at £200bn. CPI inflation increased to 1.9% in November partly due to petrol price inflation. On a positive note, the unemployment claimant count unexpectedly fell in November and both the manufacturing and services PMIs remain in positive territory. The month was a quiet period in terms of trading. We added to Wood, a recent introduction to the Trust, and sold our residual holding in Tomkins following its strong share price performance given the belief that the market had overestimated the potential for margin recovery. In order to increase the level of income we wrote calls on AstraZeneca. Although conditions remain very accommodative, at some stage both monetary and fiscal stimuli will need to be withdrawn and in a number of cases reversed. We remain cognisant that the market may not necessarily be factoring in the full implications of this. We believe that volatility is likely to remain a significant characteristic of the market, however, where opportunities present themselves we will continue to add to our holdings which we believe are, in the longer term, attractively valued and maintain strong business models.


Source: Monthly Factsheet Aberdeen Asset Managers Limited