Murray International Trust, managed by Aberdeen Group, posted a robust first half following positive returns from investments in technology and mining stocks, but warned of “a growing set of risks that require careful attention”.
Strong performance was driven by holdings in companies such as Samsung Electronics and BE Semiconductor, while CME Group and Infosys were notable detractors. The trust also initiated new positions in Blackstone, Pfizer, Union Pacific, Fastenal, and ONEOK.
The company saw a 10.5% boost to net asset value (NAV) and total share price return of 9.9%, but below the 12.4% increase in its benchmark index. The NAV total return and share price total return remain ahead of the benchmark over one and five years.
It declared two interim dividends of 2.8p per share during the period and remains committed to a progressive dividend policy.
The shares in the trust ended the period trading at a 2.4% premium to NAV, compared with a 3% premium at 31 December 2025.
Martin Connaghan, senior investment director, said: “The outlook for global equity markets appears increasingly balanced between continued opportunity and a growing set of risks that warrant careful attention.
“Geopolitical uncertainty remains a central concern, with tensions in the Middle East showing little sign of durable resolution and the potential to disrupt energy markets and investor sentiment at short notice. Combined with ongoing frictions across other regions, this creates an environment where sudden shifts in risk appetite cannot be discounted.
“At the same time, there are emerging questions around the sustainability of the current economic expansion. While headline growth has remained resilient, there is mounting evidence of a more uneven, ‘K-shaped’ or divergent dynamic beneath the surface, with some companies and sectors continuing to perform strongly while others face increasing pressure.
“Strength in corporate investment, particularly the ongoing capital expenditure cycle linked to artificial intelligence and digital infrastructure, continues to mask potentially more fragile underlying consumption trends.
“This raises an important question for markets: if the AI-led investment cycle, which has been a key pillar of earnings growth and market leadership, were to moderate, where would valuation support come from?
“Current pricing in parts of the technology sector appears predicated on the persistence of exceptional growth rates, leaving limited margin for disappointment. A slowdown in capital spending, or even a reassessment of its pace and returns, could therefore have outsized implications for broader index performance.”
Virginia Holmes, the chair, commented: “Against a macro backdrop of significant uncertainty and volatility, the company has delivered robust performance, delivering both NAV growth and real capital growth ahead of the UK Retail Price Index, thereby meeting one of the company’s key investment objectives and performance benchmarks.
“In this environment, the company’s approach of maintaining a highly selective and disciplined investment style is more important than ever.
“A number of the portfolio’s technology picks delivered significant share price performances, benefiting from the AI-related demand in areas where they hold market-leading positions.
“The portfolio’s commodities holdings also benefitted, with BHP Group a standout performer as it successfully repositioned itself as a premier copper play. During the period under review, the manager introduced a handful of new companies, including Blackstone, Union Pacific and Pfizer, all selected for their compelling long-term growth characteristics.
“The outlook for global equity markets remains broadly positive, supported by resilient economic growth, albeit periods of volatility are to be expected.
“Given the company’s robust, disciplined portfolio approach, the board is very confident of the company’s ability to continue to deliver shareholder value, with long-term growth in dividends and capital ahead of inflation.”
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