Murray International says its net asset value total return, with net income reinvested, for the six months to 30 June 2016 increased by 30.1% compared with a total return of 10.0% on the Company’s benchmark (40% FTSE World UK and 60% FTSE World ex UK). Over the six month period the share price total return increased by 22.7% reflecting a move from a premium to a discount to NAV on which the shares traded.
Two interim dividends of 10.5p (2015: 10.5p) have been declared in respect of the period to 30 June 2016. The first interim dividend is payable on 17 August 2016 to shareholders on the register on 8 July 2016 and the second interim dividend will be paid on 17 November 2016 to shareholders on the register on 7 October 2016.
By far the largest contributing factor to positive overall portfolio returns was Sterling’s weakness; with close to ninety percent of net assets invested internationally, the currency’s depreciation proved positive for returns. In addition, increased portfolio diversification from constant recycling of profits over the past two years contributed both positive absolute and relative performance. This proved particularly relevant within the fixed income portfolio where recently established Emerging Market bonds significantly enhanced returns. On a regional basis within equity exposures, significant overweight positions in Asia and Latin America were positive from an asset allocation basis as both regional indices significantly increased in Sterling terms. Positive stock selection in Thailand, Taiwan, Singapore, Hong Kong, Chile and Brazil produced solid capital gains in excess of benchmark indices, as did defensively orientated exposures to the UK and North America. Despite negative local currency returns from Japan and European markets, the portfolio’s exposure to selective companies in these regions produced strong capital returns, further enhancing overall absolute and relative outperformance.
Following receipt of approval from shareholders at the general meetings held in April 2016, all remaining B Ordinary shares in issue on 30 June 2016 were converted into Ordinary shares with effect from 1 July 2016 and there was a bonus issue of one new Ordinary share for every 100 B Ordinary shares held. The final conversion and bonus issue resulted in the issue of 948,124 new Ordinary shares on 1 July 2016.
MYI : Murray International comes roaring back