MUT : Murray Income’s rating declines
Over the year to 30 June 2014 Murray Income generated a total return on net assets of 14.0%, ahead of the return on its benchmark which was 13.1%. The share price lagged the net asset value however and so the return to shareholders was 9.4%. The dividend for the full year rose to 31.25p from 30.75p.
The fund’s outperformance was driven by its gearing. The manager’s report says food retailers and banks were weak but, thankfully, the portfolio was underweight banks. The report highlights the performance of the fund’s holdings in Associated British Foods (on the back of Primark), Provident Financial, Astra Zeneca and Aberforth Smaller Companies : ASL. These positive contributions were offset by falls in the prices of Centrica, Tesco, William Morrison and Standard Chartered.