Murray International investment trust has suffered from recent underperformance on the back of an un...
Murray International investment trust has suffered from recent underperformance on the back of an underweight position in the US and an overweight position in Europe.
The investment trust which is around £572.1m in size, is bottom in the International Income Growth sector over three months, one year and three years, according to figures from Standard & Poor's Micropal.
The trust is last out of six over the three months to 28 July on a share price fall of 3.2% and also last out of four in its sector over one year on a fall of 2.1%. The trust is bottom out of four over three years on growth of 25.8.
The portfolio's weightings include around 45% in the UK, 20% in Europe, 24% in the US and 3% in Japan.
Murray International's largest individual stock exposure is 5.2% in Robert Fleming and other holdings include 3.8% in BP Amoco, 2% in British Telecom, 2% in Atrium and 2% in Lloyds TSB.
David Briggs, who runs the Murray International trust, said: "The half-year performance is disappointing. We did not like the US valuations and we still don't. We were also overweight Europe which did poorly.
"Also affecting performance was the low exposure to cyclicals as part of the defensive positioning of the equity portfolio. Cyclicals enjoyed a worldwide rally during the second quarter.
"Towards the end of the second quarter equity exposure was reduced with net disinvestment from the UK of £17m and from the US of £12m. We have moved from a slight overweight to a slight underweight position in equities.
"Strong economic factors in the US continue to imply that its economy is not going to run out of steam for some time.
"Conversely, a primary risk to world markets lies with the US since valuations are markedly stretched and the earnings yield ratio is ominously close to the level reached in mid-1987. All this suggests caution and that is one of the reasons why the fund's exposure to equities has been reduced.
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