Fund Profile

Disclaimer

This is not substantive investment research or a research recommendation, as it does not constitute substantive research or analysis. This material should be considered as general market commentary.

Overview
A new version of this profile is available. View Latest
Overview

Murray International (MYI) is managed by Bruce Stout, who uses a high conviction approach on a global basis, with the aim of achieving an above-average dividend yield and long-term growth of capital and dividends.

MYI is primarily invested in equities, with quality and valuation characteristics being key in stock selection. This strategy has led the trust to have a portfolio significantly unlike the benchmark, with an active share of more than 90%. In recent years Bruce has been consistently underweight to the US market, in the belief that, buoyed by excessively loose monetary policy, it is historically overvalued. As well as equities the trust has significant fixed interest exposure, which is currently standing at 14.5% of the total NAV. This is mainly invested in emerging market debt, and helps to generate additional income and provide some portfolio diversification.

As discussed under Portfolio, the trust has struggled in performance terms relative to the benchmark and peers in recent times; its overweight exposure to emerging markets playing an important part in this. The underweight exposure to low-yielding technology and growth stocks, in particular in the US, has also been a factor since these sectors have in large part driven global returns.

While MYI has struggled in recent years compared to its benchmark, its discount has continued to trade close to NAV. An attractive level of dividend, with MYI currently yielding c. 5.3% (as at 07/07/2020), and consistent growth in dividends have likely ensured holders seeking income remain satisfied. In addition the board remains committed to managing the discount or premium, by buying in stock on attractive discounts and issuing shares at a premium.

Analyst's View

MYI has a clear strategy in place, with a top-down view of the global macroeconomic environment. This approach informs the manager’s view on valuations and the potential for earnings growth. Due to high valuations, Bruce has consistently run an underweight position to the US – instead favouring the Far East and emerging markets. This strategy has proven a headwind to relative returns in recent years, but should emerging markets start to outperform again MYI would be well placed to benefit. In the short term, concerns or hopes over the global economy and the US dollar will likely have a significant impact on the relative performance of Bruce’s preferred regions and stock characteristics.

Despite the often adverse economic and trading conditions experienced by emerging markets, the trust has successfully increased its dividend each year since 2004. Currently the portfolio is yielding an attractive 5.3%, the second highest in the sector behind only the small (£16m) Blue Planet investment trust.

Over the last decade the trust has struggled in terms of capital growth, largely due to the underweighting towards the US, significantly underperforming peers and the new benchmark. However, should we see a sea-change in environment, with sustained emerging market leadership and weaker US market returns, MYI is likely to return to the outperformance which it previously achieved. Meanwhile the high dividend yield is an attractive return in a low interest rate environment.

bull bear
Attractive yield and track record of dividend increases If the market environment of recent years persists, MYI will likely continue to underperform
Exposure to faster-growing consumer markets in a reasonably concentrated portfolio Emerging markets can often prove more volatile than developed markets
Clear-cut investment process Geopolitical conditions globally remain uncertain and pose a risk to EMs
Continue to Portfolio
2022 Kepler Income & Growth Rated Fund

This trust has been awarded a rating by Kepler Trust Intelligence for income & growth... Find out more

Fund History

26 Jan 2022 Fund Analysis
MYI offers investors one of the highest yields in its sector, coupled with a unique approach to income investing and a historically wide discount…
28 Jan 2021 Fund Analysis
MYI offers a high income from a highly differentiated approach…
20 Jan 2021 Kepler's top-rated investment trusts for 2021
We update our annual quantitative ratings for investment trusts…
22 Jul 2020 Fund Analysis
MYI offers capital growth and an attractive level of income through an equity and fixed income portfolio of global companies…
05 Jun 2020 Deep impact
Audio and presentations from our conference this week, where fifteen of the world's best fund managers described a profoundly altered investment landscape...
13 May 2020 Braving the new world
Join 15 of the UK's best known fund managers at the Kepler Trust Intelligence Virtual Summit to find out how they see the world after the pandemic...
08 Oct 2019 Fund Analysis
With a global portfolio skewed towards emerging markets, Murray International looks to invest in high quality companies with strong growth prospects at a reasonable price...
25 Jul 2018 Fund Analysis
Bruce Stout remains resolutely bearish and the portfolio continues to underperform against a momentum driven backdrop...
08 Nov 2017 Fund Analysis
A global equity income trust which has grown its dividend for more than years, with significant exposure to emerging markets and other-non sterling assets...
12 Oct 2017 Roaring back…
We analyse the drivers behind the significant outperformance of global active managers in 2017, following what was a very poor year for them in 2016...
22 Feb 2017 Into the wilderness...
In this detailed study of the global equity sectors, we analyse how managers are positioned in a world of high valuations and seismic political changes...
22 Mar 2016 Discounts in focus: AIC Global Equity Income
In our third edition of our discount in focus series, we analyse the AIC Global Equity Income sector and look at Murray International which currently trades at a much wider discount to its historic norm
View all

Welcome to Kepler Trust Intelligence

Kepler Trust Intelligence is authorised in the UK by the Financial Conduct Authority.
Please enter a valid email address
{{item.msg}}
Please enter a valid password
{{item.msg}}
Please enter a valid email address
{{item.msg}}
Please check your email. If an account exists you'll be sent instructions on how to reset your password.
Kepler Trust Intelligence is authorised in the UK by the Financial Conduct Authority. To ensure that we are able to provide content which is appropriate for you, please tell us a little about yourself.
Please choose an option
{{item.msg}}
Please enter a company name
{{item.msg}}
Please enter a location name
{{item.msg}}
Please choose an option
{{item.msg}}
Please enter a platform
{{item.msg}}
Please choose an option
{{item.msg}}
Please enter a trust
{{item.msg}}
?
The information contained herein is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities in the United States to or for the benefit of any United States person (being residents of the United States or partnerships or corporations organised under the laws thereof). The investment funds referred to herein have not been registered in the United States under the Investment Company Act of 1940 and units or shares of such funds are not registered in the United States under the Securities Act of 1933.
Please confirm
{{item.msg}}
Please select an option
{{item.msg}}
See benefits
A free Kepler Trust Intelligence account allows you to access premium content including the ‘Kepler View’ – our verdict on the trusts we cover – and historical research so you can see how our view has changed over time. An account also unlocks useful facilities like the ‘follow’ button which lets you keep track of the trusts you’re interested in and as a logged in user you can also download PDFs of our research, and choose the layout of the page you’re reading to suit your preference. We will not share your details unless you give us permission to do so, and we won’t bombard you with emails – we only send one a week.
Please select an option
{{item.msg}}
Please enter your first name
{{item.msg}}
Please enter your last name
{{item.msg}}
Please enter a valid email address
An account already exists with this email - have you forgotten your password?
{{item.msg}}
Please enter a valid password
{{item.msg}}
Please enter a valid password
{{item.msg}}
How will this information be used? Your answers help us to tailor our content to relevant investment trusts, and to ensure that the asset allocation and portfolio strategy research we produce is appropriate to our userbase.
Our Website uses Cookies Cookies are small text files held on your computer. They allow us to give you the best browsing experience possible and mean we can understand how you use our site. Some cookies have already been set. You can delete and block cookies, but parts of our site won’t work without them. By using our website you accept our use of cookies. For further information please refer to the Kepler Privacy Notice.
Need help?

One more thing...

Did you know, you can 'follow' individual trusts on Kepler Trust Intelligence? Use the functions below to set up alerts and we'll send you research and updates on your chosen trusts.

Suggested trusts to follow

Browse all funds
Need help?
Current Site Kepler Trust Intelligence is produced by the investment companies team at Kepler Partners and is the UK’s premier source of detailed qualitative research on investment trusts. Absolute Hedge is a market leading UCITS research database providing proprietary research on funds, themes and strategies in the UCITS space. Kepler Liquid Strategies is a Dublin domiciled UCITS fund platform featuring a number of best-of-breed fund managers. Kepler Partners is a corporate advisory and asset raising boutique specialising in the regulated funds market in Europe and investment trusts in the UK.