Murray International sticks to southern hemisphere

Date: Friday 06 Aug 2010

Investment trust Murray International is sticking to its southern hemisphere strategy as it expects deflationary pressures to make life very difficult for companies in the developed world.

NAV at the Aberdeen Asset-managed trust rose to 786.5p at end June, from 772.9p at end December. Total return over the six months was 3.7% against a benchmark that fell by 4.2%.

“Absolute and relative performance was enhanced by maintaining low levels of investment in the UK and having significant exposure to Asia and Latin America. Positive contributions from stock selection in Mexico, Malaysia, Indonesia and India were also material, as was the impact of reducing exposure to cyclical companies earlier in the year,” it said.

“Most of the Northern Hemisphere, around 60% of global GDP, is about to embark on the painful path towards fiscal rectitude and debt reduction,” Murray added.

"In growth markets, mainly in the Southern Hemisphere, rising real incomes, positive demographics and surplus savings support robust demand for goods and services. Fortunately, an increasing number of companies, located both in the developed and emerging world, are now in a position to capitalise on this growth. It is to such companies that the portfolio will remain exposed," Murray said.

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