Murray International keeps head above water despite euro storm

Murray International Trust (MIT) beat its benchmark at the end of 2011 with its net asset value flat on the previous year.

The net asset value total return was 0.1% down on the previous year, while the benchmark index, to which Murray International compares its results, fell 4.6%.

The company certainly helped its case in the market by increasing total dividend 15.6% over 2010 to 37p per share.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

In today's statement MIT's Chairman, Kevin Carter, outlines the 2011 strategy very clearly: "the main investment management priority that evolved during the year was simply to preserve capital."

It's not difficult to see why, 2011 saw immense volatility in equity and debt prices, causing serious discomfort to managers like Murray International.

That volatility, however, didn't prevent the company from issuing £72m in new shares at a premium to the stock price, giving today's gloomy update a slight air of "protesting too much".

The outlook statement says: "these are disturbing times for international financial markets". Well, not that disturbing for Murray. Its shares are flat this morning, up 8% since last February and ahead by 54% since 2007.

BS