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The value of investments and the income from them may go down as well as up and investors may get back less than the amount invested. The tax benefits relating to ISA investments may not be maintained. Please refer to the Key Facts documents contained in the ISA/Share Plan Brochure & Application form for general and specific investment risks attaching to the individual trusts.Read the detailed Risk Warning
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See latest monthly factsheet below for performance history.
At close 16-May-2013Ord
|Net Dividend Yield||3.72%|
Source: Morningstar, NAV = Net Asset Value, excluding income.
40 Princes Street,
Registered in Scotland as an Investment Company Number 12725
The objective of Murray Income Trust PLC is to achieve a high and growing income combined with capital growth through investment in a portfolio principally of UK equities.
In this webcast, Charles Luke gives an update on a wide range of subjects including portfolio activity, the twenty largest investments and an outlook for the Trust.
The FTSE All-Share Index ended the month higher for the tenth time in succession, rising by 1.4% on a total return basis. The market continued to make progress, despite the uncertainty caused by recent developments in Cyprus, as investors focused on a potential improvement in the global growth dynamic. The pharmaceutical and mobile telecoms sectors outperformed while the mining and banks sector underperformed. From a size perspective the FTSE 250 Index marginally outperformed the FTSE 100 Index.
Domestic macroeconomic data demonstrated mixed signals over the month. The services purchasing managers’ index (PMI) data for March was encouraging although the manufacturing data was slightly weaker than expected. The Budget was notable for increasing the flexibility of policy for the Monetary Policy Committee (MPC) and the scale of the downgrade by the Office for Budgetary Responsibility to GDP growth expectations for 2013 (from 1.2% to 0.6%). CPI inflation increased from 2.7% in January to 2.8% in February due for the most part to higher utility prices. Weakness in sterling is likely to result in the near term outlook for inflation being a little higher than previously expected. Nonetheless, the MPC left interest rates unchanged but three members (including the Governor) continued to vote for an increase in the size of the asset purchase programme.
During March we introduced one new holding, the insurer Hiscox. The company provides a balance between timely business written on internationally traded lines to generate profit, and the longer term growth and value potential from more niche areas with higher barriers to entry. This was funded by a reduction to the holding in Vodafone as speculation about the potential sale of its stake in Verizon Wireless resulted in a sharp upward move in the company’s share price. During the month we also marginally reduced the holdings of Roche, AB Foods and Compass, all companies that had performed strongly and where the valuation was looking fuller. We continued to write options as a means of gently increasing the income available to the Trust with calls in Whitbread, British American Tobacco and Unilever and puts in BHP Billiton, Linde and Casino amongst others. Although economies in mature markets have started the healing process, the outlook remains difficult and opaque. High levels of consumer and government debt, stress in the financial system, the future impact of austerity measures and challenges related to economic rebalancing remain significant barriers to enduring growth. However, the outlook has improved given the reduction of the most severe tail risks surrounding a collapse of the eurozone and a stabilisation in global growth prospects even if this has yet to be translated into improved corporate earnings. Those companies able to generate sustainable organic growth have continued to rerate but in aggregate, valuations still look reasonable, particularly so on a relative basis.
Source: Monthly Factsheet Aberdeen Asset Managers Limited