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Murray International boosted by Fed pivot and sterling weakness

Murray International boosted by Fed pivot and sterling weakness – The £1.5bn market cap, global growth trust, Murray International (MYI), has reported half-year results to 30 June 2019. These are summarised below:

Six months ended – 30 June 2019

Year ended – 31 December 2018

Share price



NAV per share






Following widespread financial market weakness and negative portfolio returns in calendar year 2018, the company benefited from improving investor sentiment over the six month period. The company’s large exposure to Asia prospered from a combination of solid stock selection and a more favourable environment for financial and other interest-rate sensitive businesses.  Local currency strength against Sterling in Thailand, Indonesia and Singapore further bolstered performance of both capital and income returns.  The one exception to highlight in Asia was Japan, where stock selection was challenging and where there was an overall reduction in the position during the period.

We note that earlier in the year, MYI announced a fee cut after a disappointing year (click here to read this story)

Chairman’s outlook

Kevin Carter, chairman of the trust, had this to say on the fund’s outlook: “The pivot undertaken by global policy makers since December last year has clearly provided real support to global equity markets. For many investors, the default path of least resistance is usually viewed as being up, so the prospects of continuing monetary stimulus, notwithstanding clear signs of economic challenges ahead, will likely promote continued confidence. However, the path ahead is likely to become increasingly difficult for the global monetary authorities as they navigate the late cycle nature of this economic expansion. Re-establishing some form of economic orthodoxy in an environment of rising political and market pressure will not be straightforward.  The extraordinary monetary policies over the past decade have created an enormous legacy of indebtedness that remains the achilles heel for whatever comes next.

The sharp decline in global bond yields suggests that weaker global growth is likely to be on the horizon. At this stage of the cycle, not only will interest rate policy become increasingly ineffectual, but also the importance of faltering earnings growth will become progressively more influential. Valuation support, through solid earnings, strong balance sheets and well-covered dividends has been noticeably absent from investor considerations of late, but remains the fundamental prerequisite for capital preservation and growth over the long term.”

MYI: Murray International boosted by Fed pivot and sterling weakness


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