Murray International (MYI)

Murray International (MYI) offers investors a benchmark-agnostic approach to delivering long-term capital growth alongside a high yield and a growing dividend. MYI has been managed by industry veteran Bruce Stout since 2004, who will retire in June 2024. However, Bruce has worked closely with Martin Connaghan and Samantha Fitzpatrick since 2001, and in June 2023, Martin and Samantha were made co-managers of the trust to help ensure a smooth transition (see Management).

As discussed in Portfolio, the investment process is expected to remain consistent. The managers look to maintain a well-diversified, benchmark-agnostic portfolio, limiting the exposures to any one geography or sector. The importance of generating an attractive yield has led to a lower allocation to typically growthier, lower yielding markets such as the US, when compared to standard global equity indices in favour of Europe and a meaningful allocation to the emerging markets and Asia. In addition, the valuation-sensitive approach has influenced the trust’s sector allocation which is typically geared to higher yielding sectors such as telecommunications, energy, and materials. An allocation to emerging markets fixed income has bolstered yield in the past, however, this has significantly reduced since the pandemic, reflecting the valuation opportunities and the strength of underlying holdings. The Dividend has returned to being fully covered, providing a yield of 4.6%

Strong Performance has tended to occur in value-driven environments such as 2022. However, during periods of growth dominance MYI has tended to lag broader equity markets with higher technology exposures. That said, the diversification has resulted in some downside protection. The manager’s caution is reflected in the historically low level of Gearing following the repayment of £60m tranche of debt in in May 2023.

MYI currently trades on a 5% Discount which is at the wider end of the trust’s long-term discount range and compares to a five-year average discount of 2%.