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Murray International Trust PLC said it was boosted by the performance of Philip Morris International Inc as its net asset value total return outperformed against its reference index. The Edinburgh-based trust said net asset value per share rose 3.4% to 287.9 pence as at June 30 from 278.4p at December 31. Murray announced an interim dividend of 2.6p per share, up 4.0% from 2.5p a year prior. NAV total return was 6.0% for the first half of 2025, outperforming its reference index, the FTSE All Share World TR index in sterling, which had a return of 1.0%. The company said the most significant contributors included Marlboro owner Philip Morris International, airport operator Grupo Asur and financial data provider Hong Kong Exchanges & Clearing Ltd. Philip Morris performed the best, amid substantial earnings growth and free cash flow as the company ‘leverages its traditional tobacco business to facilitate its transition into reduced-risk and smoke-free products, which now account for approximately 40% of its revenues,’ Murray International said. Among the sharpest detractors were pharma firm Merck & Co Inc, Baileys and Smirnoff owner Diageo PLC and pharma firm Bristol-Myers Squibb Co. Merck was a detractor despite ‘solid’ first-quarter results, as it ‘disappointed the market’ with a more subdued outlook for the rest of the year as it trimmed earlier guidance amid a slowdown in sales of its HPV vaccine Gardasil in China. Murray added: ‘Tariff-related headwinds and uncertainties, as well as broader sector concerns about the regulatory and pricing environment in the US, have also weighed on sentiment. Share price weakness also reflects investor concerns over the patent expiry of Keytruda, its leading cancer treatment, which occurs in 2028. We have taken advantage of the share price weakness we’ve seen this year to increase the size of this holding in the portfolio.’ Looking ahead, Murray Chair Virginia Holmes said global equity markets are navigating a complex macroeconomic environment, noting periods of volatility and weakness, with an uneven path likely ahead. Chair Holmes added: ‘In emerging markets, lower interest rates and a weaker US dollar may attract capital inflows, especially in Asia and Latin America. However, risks remain. Geopolitical tensions could lead to potential shocks, and concerns about the fiscal position of the US persist. Trade tensions may also influence market dynamics and have a spillover effect on inflation, which could restrict central banks’ ability to ease monetary policy as currently anticipated. In this environment, investors will benefit from a patient, globally diversified, and risk-aware approach, which is central to how our manager aims to meet the investment objectives.’ Murray shares were up 0.3% at 292.50 pence each on Friday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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