MURRAY Income Trust has highlighted the potential for stock market volatility following Brexit after achieving a strong performance amid political uncertainty in its latest year.

The £587 million trust, which is managed by Aberdeen Standard Investments, achieved a 7.9 per cent net asset total return in the year to June 30 compared with 0.6% for its benchmark the FTSE All-Share index.

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Welcoming a return to form by the manager, Murray Income’s chairman Neil Rogan said the trust achieved its objectives of delivering a high and growing income combined with capital growth from a portfolio predominantly of UK equities.

“The Manager's relentless focus on quality has helped navigate successfully through some very uncertain times and a quicker reaction speed has helped to avoid any major mistakes in the past year,” said Mr Rogan.

He added: “The risk from Brexit is currently considered to be elevated due to continuing uncertainty about the political and regulatory outlook. In absolute terms, there is a risk of volatile markets post Brexit impacting the valuation of the portfolio even if the portfolio outperforms the market.”

Noting the trust’s managers Charles Luke and Iain Pyle belong to Aberdeen Standard Investments’ UK equity team, Mr Logan observed: “That there have been no changes to the wider team is testament to a successful merger between Aberdeen Asset Management PLC and Standard Life plc from our point of view.”

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In their report as managers Mr Luke and Mr Pyle said “it is difficult to be confident about the shape of the outcome of Brexit or the US-Sino trade war.”

They think their focus on good quality companies with strong competitive positions and robust balance sheets under the stewardship of experienced management teams, combined with a disciplined approach to valuations, will stand the trust in good stead.

The managers said the trust sold its holding in fund management giant Schroders in the latest year, noting: “Industry dynamics have become less favourable, in particular the impact of passive funds and rising regulatory costs.”

The trust added energy giant SSE to its portfolio in the belief the long term attractions of the company's network and renewable assets have been overlooked by the market.

Total dividends per share in respect of the year increased to 34p, up 2.3% from 33.25p last time.