Thursday, 12 September 2013

Murray Income Trust - Full Year Results

Murray Income Trust has been in my basket of income focused investments for several years.

In 2013 it will be celebrating its 90th year as an investment trust. It is currently managed by Charles Luke and his team at Aberdeen Asset Management. It is essentially a UK growth & income trust but like several others in this sector, the management have been gradually increasing their exposure to larger, high-quality overseas listed companies. These currently make up 15% of the portfolio and include Roche and Nestle.

Murray Income Trust has this week issued its  results for the full year to 30th June 2013 (link via Investegate).

Share price total return is up 21.5% over the year compared to the FTSE All Share Index of 18.9%. The board are proposing a final dividend of 9.75p making a total of 30.75p for the full year - an increase of 3.4% compared to 2012.  It has a record of increasing annual dividends in each of the past 30 years. At the current share price of around 782p, the yield is 3.9%.

12m share price (via Digital Look)

The trusts performance benefited from its underweight position in mining and oil. It also benefited from a modest exposure to smaller companies via holdings of Aberforth IT and Dunedin SC Trust - both have increased over 40%. Aberforth has become a top 20 holding in the portfolio.

The managers policy is to buy and hold for the longer term - portfolio turnover is reasonably low at under 10% and this helps to keep ongoing costs at 0.75%.

“Our aim is to ensure that the Company's capital is employed as effectively as possible and to that end we will always seek to improve the earnings and dividend generating capability of the Company's holdings if we feel that valuations remain attractive.

Our belief is that companies with strong competitive positions, robust balance sheets and experienced management teams will generate attractive earnings and dividend growth over the long term which should translate into healthy share price appreciation“  Charles Luke.

Its not an investment that is going to shoot the lights out but I regard it as a solid, middle-of-the-road steady performer.

As ever, please DYOR.

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