Edison issues review on Murray Income Trust (MUT)

RNS Number : 3766Q

Murray Income Trust PLC

18 October 2019

 

London, UK, 18 October 2019

Edison issues review on Murray Income Trust (MUT)

Murray Income Trust (MUT) has significantly outperformed its FTSE All-Share Index benchmark and the majority of peers over the past year, in large part due to its focus on high-quality companies with strong balance sheets, which have held up better than others in recent bouts of market volatility. Manager Charles Luke takes a long-term approach, giving time for company fundamentals to win through and reducing trading costs. The trust has an increased focus on mid-cap and smaller companies (now c 30% of the portfolio) and also has the ability to invest up to 20% (currently c 11%) overseas. The manager highlights MUT's attractive income characteristics, with a 4.0% yield, above-average dividend growth and dividend security, and a 46-year record of increasing its annual payouts.

At 16 October 2019, MUT's shares traded at a 4.0% discount to cum-income NAV. This was an increase from the narrowest point in three years (3.4%, in May 2019) but is well below the average discounts over one, three and five years, which range from 6.2% to 7.7%. The discount has narrowed on the back of strong NAV performance; while the higher share price has also caused MUT's dividend yield to dip to 4.0%, the portfolio continues to enjoy higher forecast dividend growth than the index.

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