Murray International Trust vowed to stick to its guns by continuing to look for investment opportunities in emerging markets.
Chairman Kevin Carter used the trust’s half-year report to warn about the “perceived momentum of global economic recovery” and the risk it posed to future corporate profit and dividend growth.
The trust, which is managed by Aberdeen Asset Management from the group’s office in Edinburgh, saw total assets under management increase by 3.4% to £1.47 billion in the six months to June 30.
Net asset value total return for the period was 5.4% with net income reinvested.
Mr Carter said it was “crystal clear” the prevailing economic environment had become “distorted” through a combination of exceptionally low interest rates, a lack of pricing power for corporate, unsustainable debt levels and the “failure of unorthodox monetary policies”.
“Those expecting economic normality are likely to be disappointed,” Mr Carter said.
“For corporate management, a relatively opaque economic outlook with fiercely competitive downward pressure on selling prices suggests the struggle to deliver top line growth will continue.
“Protecting margins remains of prime importance but, with diminishing marginal benefits from cost cutting now apparent, companies need to explore new avenues for growth.”
He continued: “Unfashionable as it may be, we believe the best opportunities to satisfy the company’s investment objective are still to be found outwith developed markets.
“Therefore the portfolio continues its emphasis on emerging markets, Asia and broad global diversification.”
The trust also took the opportunity to lay out its response to the corporate risk arising from next month’s referendum.
The company said a Yes vote would prolong the uncertainty which already surrounded the vote until such times as the implications for the trust, both positive and negative, were understood and quantified in relation to the legislative and regulatory environment in which it operated.