Page 7 - DIY Investor Magazine | Issue 30

At Murray Income Trust, we look to diversify across the UK market – from larger to medium-sized companies.
We can add up to 20% in overseas listings, which brings in new sectors and ideas that may be under-represented in the UK market.
These factors – a focus on high quality, diversification, ESG and this overseas exposure - help to differentiate the Trust from its peers.
THE EQUITY INCOME SECTOR
This approach has helped us navigate a challenging time for the equity income sector in recent years.
Dividends from companies held in the Trust have been very resilient and we believe the equity income sector is generally in better health post-pandemic.
‘THERE IS STILL CONSIDERABLE SCOPE FOR A BOUNCE- BACK TRADE IN THE UK’
Companies that were previously over-distributing have pared dividends back to more realistic levels and earnings are encouraging.
While the past few years have been tough, it is important
to remember that academic evidence shows that over the long-term, a significant part of stock market returns come from dividends and their re-investment.
There is still considerable scope for a bounce-back trade in the UK.
At Murray Income Trust, we are positioning to benefit from that. Murray Income Trust is now in its 47th year of consecutive dividend increases to shareholders. 2020 was certainly among the toughest, but we see many reasons to be optimistic about the year ahead.
It may have recovered somewhat since the Brexit deal, but it has lagged for several years and international investors are still only lightly invested in the UK.
This should change as Brexit is increasingly in the rear view mirror and corporate earnings improve.
Financial year
Total dividend (p)
2020
34.25
2019 2018
34.00 33.25
2017 2016
32.75 32.25
DISCRETE PERFORMANCE (%)
Year ending
Share Price
30/06/21
18.5
30/06/20 30/06/19 30/06/18
30/06/17
Our priority is to find those companies growing their earnings and dividends over the long-term. In an ever-changing world, the market is likely to prize companies with strong business models and structural growth.
The UK equity market still has a valuation advantage over many of its peers.
(5.8) 13.2 3.3 23.5
Net
Asset 20.8 (5.3) 7.9 3.9 16.7 Value
FTSE
All- 21.5 (13.0) 0.6 9.0 18.1 Share
FIVE YEAR DIVIDEND TABLE (P)
7 DIY Investor Magazine | Sept 2021