Initiation of coverage
315p
Net assets: ~£2.06 billion
Dividend yield: ~3.5%
Benchmark: MSCI ACWI High Dividend Yield in GBP
Murray International Trust investor relations
Snapshot
Aims to deliver an above-average dividend yield alongside long-term capital and dividend growth ahead of inflation.
Portfolio of around 50-60 global equity holdings plus a small allocation to fixed income instruments, with meaningful exposure to Europe, North America, Asia and Emerging Markets.
Co-managers Martin Connaghan and Samantha Fitzpatrick have worked on the Trust since 2019 and have led the strategy since July 2024, following the retirement of the previous lead manager.
One of the AIC’s ‘Dividend Heroes’, having increased its dividend for 21 consecutive years.
Sharesify podcast with Samantha Fitzpatrick of Murray International Trust
Quick investment view
| Factor | Rating |
| Income | 🟢🟢🟢🟢🟢 |
| Dividend Growth | 🟢🟢🟢🟢🟢 |
| Capital Growth | 🟢🟢🟢🟢⚪ |
| Value | 🟢🟢🟢🟢⚪ |
| Defensive Qualities | 🟢🟢🟢🟢⚪ |
| Volatility | 🟡🟡🟡⚪⚪ |
| AI Exposure | 🟡🟡⚪⚪⚪ |
Pros / Risks
Pros
- Long record of annual dividend increases, supported by income generated from the underlying portfolio and backed by significant reserves.
- Highly diversified portfolio across countries and sectors.
- Benchmark-agnostic approach allows the managers to avoid expensive markets.
- Significant exposure to emerging markets provides long-term growth potential.
- Focus on quality companies with resilient cash flows and pricing power.
- Complementary to many global equity portfolios, with limited exposure to lower-yielding mega-cap technology stocks (including the ‘Magnificent 7’), reflecting the Trust’s focus on income generation.
Risks
- Value-oriented portfolio characteristics can underperform during strong momentum-driven markets.
- Emerging market exposure increases political, regulatory and currency risk.
- Less exposure to mega-cap US technology companies has hurt relative performance during AI-led rallies.
- Uses gearing, which amplifies losses.
- Global income strategies may lag growth-focused portfolios during bull markets.
Profile
Murray International Trust seeks to provide investors with a combination of reliable income and long-term capital appreciation. Rather than tracking an index, the managers build a concentrated, high-conviction portfolio of companies they believe can grow both earnings and dividends over many years.
As a result of its bottom-up stock selection approach, the Trust invests right across the globe and actively adapts the portfolio as valuations become stretched and better opportunities emerge. At the end of May 2026, a little more than a third of the equity portfolio is invested in North America, just under a quarter in Europe ex-UK, and approximately 20% across Asia Pacific regions ex-Japan. UK assets present a little less than 10%, with around 8% in Latin American equities.
The Trust is designed for investors who value sustainable income rather than simply chasing the fastest growing or highest yielding stocks.
Investment Process
The managers follow a bottom-up stock selection process wherever they believe the best risk-adjusted opportunities exist.
Key characteristics they seek include:
- Strong balance sheets
- Consistent cash generation
- Sustainable competitive advantages
- Ability to grow dividends
- Sensible valuations
- High returns on invested capital
The result is a portfolio that often looks very different from the MSCI All Country World Index.
In the Portfolio
The portfolio typically contains around 50-60 equities.
Largest holdings currently include (31 May 2026):
| Holding | Weighting | Business | Investment case |
| Cisco Systems | 3.9% | Networking technology | Strong cash flow and shareholder returns |
| Philip Morris International | 3.4% | Global tobacco company | Strong cash generation and high dividend |
| Merck & Co. | 3.0% | Pharmaceutical company | Defensive earnings and drug pipeline |
| DBS Group | 3.0% | Singapore banking | Asian financial growth with attractive dividends |
| AbbVie | 2.9% | Pharmaceuticals | Income and pipeline growth |
| Johnson & Johnson | 2.8% | Healthcare | Diversified healthcare exposure |
| The Coca-Cola Company | 2.8% | Consumer staples | Defensive global brand with resilient cash flows |
| CME Group | 2.8% | Financial exchange operator | High recurring revenues and attractive margins |
| TotalEnergies | 2.7% | Integrated energy | Cash generation and shareholder returns |
| Enbridge | 2.5% | Canadian pipeline and energy infrastructure company | Stable regulated cash flows and attractive dividend |
Sector exposure is balanced between financials, healthcare, technology, industrials, consumer companies and energy, reducing reliance on any one investment theme.
Performance Analysis
Performance has been mixed over different market cycles.
| Period | Share Price | NAV Total Return | Benchmark MSCI ACWI High Dividend Yield* |
| YTD (mid-Jul 2026) | Positive, helped by narrowing discount | Mid-single-digit gain | Similar |
| 1 year | Strong positive return | Above benchmark return | Well ahead |
| 5 years | Healthy double-digit annualised return | Competitive but behind US-led global indices | Ahead during weaker equity markets but behind during AI rally |
| 10 years | Solid absolute returns with substantial dividend income | Respectable long-term returns | Below All World Indices due largely to underweight low yielding US mega-cap technology |
The trust has tended to outperform during periods when value stocks, income shares and emerging markets lead markets, while underperforming during periods dominated by expensive US technology shares.
For long-term income investors, reinvested dividends have contributed a significant proportion of total returns.
| As at 31 May 2026 | 1-year | 5-years | |
| Price | 360p | 35.1% | 88.7% |
| NAV | 353.3p | 27.3% | 86.9% |
| Benchmark | 26.6% | 79.3% |
Source: Murray International Trust
Costs and Charges
| Ongoing charges | 0.5% per annum on the first £500m of net assets and 0.4% thereafter |
| Performance fee | None |
The ongoing charge remains competitive for an actively managed global investment trust with specialist research resources.
Gearing
The trust typically employs modest gearing.
Current net gearing is approximately 4%-5%, allowing the managers to enhance returns over the long term without taking excessive balance-sheet risk.
The managers generally avoid aggressive leverage and adjust gearing depending on market opportunities.
NAV Discount
Since the start of 2026, the Trust’s share price has typically traded at a small premium to NAV allowing the Company to issue shares to meet excess demand.
During June 2026 the shares trade on a rough low single-digit premium to NAV, versus its five-year average 1.9% discount, and marginally above the wider IT Global Equity Income premium end of the investment trust sector universe in mid-2026.
Recent Manager Commentary
Co-managers Martin Connaghan and Samantha Fitzpatrick continue to argue that valuation discipline is becoming increasingly important after several years of exceptional performance from a narrow group of US technology stocks.
Recent portfolio updates highlight:
- finding attractive opportunities outside the US;
- favourable valuations across Asia and selected emerging markets;
- confidence in healthcare, financials and infrastructure-related businesses;
- continued focus on companies capable of sustaining dividend growth through economic cycles;
- belief that broadening market leadership should favour the trust’s diversified approach.
The managers believe today’s portfolio offers an attractive balance of income generation, downside resilience and long-term capital growth potential.
Investor Verdict
Murray International Trust remains one of the UK’s highest-quality global income investment trusts.
Its greatest strengths are its disciplined valuation approach, diversified international exposure and exceptional dividend record. Investors seeking dependable income alongside long-term capital growth are likely to find the trust particularly appealing.
The main trade-off is that the portfolio is unlikely to outperform when markets are driven almost exclusively by a handful of US technology giants. Investors wanting maximum exposure to artificial intelligence and mega-cap growth stocks may therefore prefer a more growth-oriented global trust.
However, for investors approaching retirement, building an income portfolio or seeking diversification away from expensive US equities, Murray International offers a compelling combination of global diversification, resilient dividend growth and experienced active management. Buying the shares while they continue to trade close to NAV provides an additional potential source of long-term value.
Overall verdict
| Overall assessment | Rating |
| Income | 🟢🟢🟢🟢🟢 |
| Portfolio Quality | 🟢🟢🟢🟢🟢 |
| Valuation | 🟡🟡🟡⚪⚪ |
| Risk | 🟡🟡🟡⚪⚪ |
| Long-term Investment Case | 🟢🟢🟢🟢🟢 |
At a glance
| Category | Rating | Comment |
| Income | Excellent | Long record of annual dividend increases and attractive yield. |
| Management | Excellent | Experienced Aberdeen team with disciplined, long-term investment process. |
| Portfolio Quality | Strong | Diversified portfolio of high-quality global businesses with resilient cash flows. |
| Charges | Low | Competitive ongoing charge for an actively managed global investment trust. |
| Balance Sheet | Conservative | Modest gearing provides flexibility without excessive leverage. |
| Growth Potential | Moderate | Strong long-term prospects but deliberately avoids chasing expensive growth stocks. |
| Valuation | Fair | Shares trade close to NAV after discount narrowed, reducing the valuation opportunity. |
| Emerging Market Exposure | Medium Risk | Offers diversification but increases political, currency and economic risk. |
| US AI Exposure | Limited | Underweight the Magnificent Seven compared with many global peers. |
| Overall Rating | Excellent | Attractive long-term global income trust for patient investors. |
Disclaimer: This research reflects the assessment of the author only.
*The MSCI ACWI High Dividend Yield Index has been the Trust’s benchmark since 1 July 2025. Was previously the FTSE All World Index.
Disclaimer: This content is for information only and is not investment advice. Always do your own research before investing. Click here to see full disclaimer.
