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The Company currently conducts its affairs so that securities issued by Murray Income Trust PLC can be recommended by financial advisers to ordinary retail investors in accordance with the FCA’s rules in relation to non-mainstream investment products and intends to continue to do so for the foreseeable future.
The Company’s securities are excluded from the FCA’s restrictions which apply to non-mainstream investment products because they are securities in an investment trust.
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
Past performance is not a guide to future results.
See latest monthly factsheet below for performance history.
At close 07-Mar-2014Ord
|Net Dividend Yield||4.06%|
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 performance, a sector breakdown, the twenty largest investments and an outlook for the Trust.
The FTSE All-Share Index started the year on the back foot falling by 3.1% on a total return basis. The falls were driven by concerns over the impact of Federal Reserve ‘tapering’ on various emerging markets coupled with fears of the threat of deflation in the Eurozone. Tobacco and beverages underperformed while the travel & leisure sector outperformed over the month. From a size perspective the FTSE 100 Index underperformed both the FTSE SmallCap and 250 Indices.
UK macroeconomic data during the month continued to highlight an improving economic picture. The first estimate of fourth quarter 2013 GDP growth suggested an improvement of 0.7% compared to the third quarter. Output increased in services, production and agriculture but declined in construction. However, GDP is still estimated to be 1.3% below the peak reached in the first quarter of 2008. CPI inflation continued to fall reducing from 2.1% in November to 2.0% in December. During the month the International Monetary Fund upgraded its estimate for UK GDP growth in 2014 to 2.4% from 1.9% previously. The Monetary Policy Committee continued to leave interest rates unchanged noting that it saw no immediate need to raise rates even if the 7% unemployment threshold was reached in the near future. Overseas, the Fed moved to reduce the scale of its quantitative easing programme by another $10bn per month while suggesting that interest rates were likely to remain low for a protracted period. The result of these actions has led to a dislocation in a number of emerging market economies with capital outflows, weaker currencies and an increase in inflation. In Europe, a fall in the eurozone inflation rate to 0.7% raised concerns about the potential for deflation to derail the recovery in the region.
During the month we added to Standard Chartered, BHP Billiton and Unilever following share price weakness given concerns over their emerging markets exposure given the belief that the long term outlook for their end-markets remains bright. Conversely we sold the holding in WM Morrison Supermarkets as we believe that it will be difficult for the company to trade its way out of the structural and cyclical pressures that are present in the industry. Two call options were assigned which resulted in a marginal reduction to the holdings of both AB Foods and Provident Financial. We continued to write options to gently increase the income available to the Trust with calls in Compass, Rolls-Royce and National Grid, and puts in Inmarsat, Cobham and Nordea.
For the market to make significant further progress it is likely that we will need to see a recovery in earnings as a continuation of the rerating that we have seen over the past couple of years seems improbable. We believe that earnings do have the potential to recover, given the improving macroeconomic environment, which has been helped by significantly accommodative policies in developed economies. For the UK recovery to be enduring it would be helpful to witness real wage growth and a rebalancing of the economy rather than a reliance on the housing market and higher consumer borrowing. Valuations, although not so appealing on an absolute basis, remain attractive relative to other asset classes. Although a variety of challenges remain, companies are in decent shape and we believe that those with strong competitive positions, experienced management teams and healthy financial characteristics will be able to continue to deliver attractive returns over the longer term.
Source: Monthly Factsheet Aberdeen Asset Managers Limited