# Murray International Trust (MYI · LSE) - Curation

> Murray International Trust: An investment trust that looks beyond the US mega-caps, spreading investments across Europe, Asia and Latin America. It has raised…

- Full showcase: https://ai.curationcorp.com/showcase/Murray-International-Trust-29537
- Tags: Investment Companies, Investment Funds, LSE
- Last updated: 2026-11-03

## Overview

Murray International Trust is a London-listed global equity income investment trust with a clear mandate: deliver an above-average dividend yield, grow that income ahead of inflation, and generate long-term capital growth alongside it. The portfolio spans North America, Europe, Asia Pacific and Latin America, with a lower US weighting than the mainstream global index and meaningful exposure to dividend-paying businesses outside the dominant tech names. Global indices have become unusually concentrated in US technology, while sticky inflation and geopolitical instability have made reliable income harder to find. Murray International sits away from the first, with low US and tech exposure, and addresses the second by sourcing dividends from quality businesses with the cash flows to sustain them through cycles, rather than chasing short-term yield. The investment case rests on two things. First, a 21-year record of consecutive dividend increases, funded by real underlying income rather than capital reserves, which puts the trust on the AIC's Dividend Heroes list. Second, genuine geographic and sector breadth in a global income market where many peers have quietly drifted toward US concentration. For investors who want global equity exposure that leads with income alongside capital growth, MYI offers a long track record, a differentiated portfolio, and one of the lowest cost structures in its sector.

## Bull case

- **Genuinely global income:** Global, benchmark agnostic approach to source income across markets and sectors
- **Dividend growth you can bank on:** 21 year dividend growth record, paid from income and revenue reserves
- **Research muscle with strong risk control:** Aberdeen’s global network of analysts are utilised to ensure the portfolio remains resilient

## Bear case

- **Emerging market volatility:** EM and FX exposure can raise volatility and make returns less predictable
- **Momentum markets:** May lag in fast, narrow rallies led by high growth and momentum names
- **Rating and gearing:** Share price can diverge from NAV, and gearing can magnify outcomes

## Key risks

- **Emerging Market Volatility:** The trust has meaningful exposure outside the UK and US, including emerging markets. That can broaden the pool of dividend opportunities, but it also raises volatility and makes outcomes more dependent on local politics, liquidity and risk appetite. Currency matters too. Income is earned in multiple currencies and translated into sterling, so FX swings can lift or dampen both income and returns.
- **Momentum Markets:** Murray International holds around 40% in North America, against roughly 50% in the benchmark, and very little in the mega-cap technology names that have driven recent index returns. When markets are led by a narrow group of AI and growth stocks, the trust will lag. The underlying businesses can be performing well and the dividend engine can be intact, but the headline numbers will look weaker than the index. Investors need to accept that this is the trade-off for genuine diversification.
- **Rating and Gearing:** The share price can trade at a discount or premium to NAV, and that can move on sentiment, not just portfolio performance. A widening discount can hurt returns even if the NAV holds up. Gearing can also amplify outcomes. This is a benefit of the investment trust structure as it can improve returns, but it can also deepen drawdowns. Borrowing costs also can bite if rates stay higher.

## Catalysts

- Extending the 21-year dividend record: The board has already raised the first interim 2026 dividend to 2.8p from 2.6p, signalling intent to extend Murray International's run of consecutive increases. With revenue reserves of around 13.9p, roughly 1.1x the annual payout, the income engine looks well stocked. Treasury issuance and discount discipline: After three years of buybacks, the board sold shares from treasury at a premium in February 2026, the first issuance since 2023. Continued two-way action on the rating reduces volatility and modestly enhances NAV.
- Emerging market income recovery: Murray International has meaningful exposure to Latin America and Asia ex-Japan. A continued recovery in emerging market dividends and currencies would lift both income and capital returns in a way few global peers can replicate. Less reliance on US mega-cap tech: The trust holds around 40% in North America versus 50% in the benchmark, with less concentration in dominant tech names. If market leadership broadens beyond AI winners, that more balanced profile should stand out.
- Compounding the Dividend Hero record: The trust's appeal rests on a multi-decade income story. Each additional year of growth, funded by income rather than capital unlike many peers, deepens the record and strengthens the case to investors focused on reliable real returns. Cheap debt and a structural cost edge: £110m of loan notes are still fixed at 2.56% until 2031, but a fresh £100m revolving facility drawn in August has pushed the blended cost of borrowing to 3.55% and gearing to around 9%. The 0.50% ongoing charge remains among the sector's lowest.

## Highlights

- **Genuinely Global Income:** MYI is not constrained by sector or geography, so the portfolio can look very different from the benchmark and many of its peers. In global equity income, the opportunity set is wider than the obvious US large caps, and the trust leans into that by building a genuinely multi region portfolio. Rather than treating "global" as a thin overlay on a US led index, it typically spreads exposure across North America, Europe and Asia Pacific, with additional allocations where dividend opportunities are compelling. That matters because it gives the income stream more than one engine. Different dividend cultures, sector mixes and economic cycles can all contribute at different points in time. It also lets the trust blend different sources of dividends, from healthcare and consumer staples to banks, telecoms and energy, which can help avoid becoming over dependent on a single style or theme.
- **Dividend Growth You Can Bank On:** The trust has delivered 21 consecutive years of higher dividends, achieved by sourcing repeatable income generation. The strategy is built around finding businesses with the capacity to pay and grow dividends through the cycle, rather than reaching for the highest yield available at a point in time. Over time, that can produce an income profile that feels more dependable, even if the day to day yield moves around with markets. For an investor, the appeal is discipline: differentiated equity exposure with an explicit income objective, and a track record that shows that this approach to sourcing sustainable dividends is working.
- **Research Muscle with Strong Risk Control:** The approach emphasises first hand research and strict quality criteria. Dividend investing often fails when yield is treated as a screen rather than a signal about business quality, so the real work is in underwriting cashflows and balance sheets. Aberdeen’s global network of research infrastructure is key to this process. The portfolio construction then tries to keep risk in proportion. It typically holds around 40 to 60 investments, with position sizing designed so that even the largest holdings are not large enough to dominate outcomes. This reduces the damage from a single dividend cut or a sector specific shock. It also supports a more balanced mix across geographies and industries, rather than a narrow basket of high yield stocks.

## Frequently asked questions

### Can the dividend keep growing without dipping into capital?

Unlike many of its peers, Murray International pays dividends from income rather than capital, which makes the sustainability question more meaningful. FY25 revenue per share rose nearly 20%, and reserves now stand at around 1.1x the annual payout. That cover gives the board headroom to keep raising the dividend even in years of weaker income. The risk is that a sustained dividend slowdown across global markets, or sterling strength reducing the value of overseas income, would eat into reserves faster than expected. So far, the evidence points to comfortable coverage, but income-focused investors will watch reserve trends closely.

### Is the lower US weighting a structural advantage or a long-term drag?

This is the central debate around Murray International. With roughly 40% in North America against 50% in the benchmark, the trust will lag when US mega-cap tech leads, as it did for much of the 2020s. Bulls argue the global equity income market is far more diversified than headline indices suggest, and that high-yielding US stocks offer less value than equivalents in Europe, Asia and Latin America. Sceptics counter that betting against US dominance has been a losing trade for over a decade. FY25, when non-US markets contributed strongly, supports the manager's case, but one year does not settle the argument.

### How much does the manager transition still matter?

Martin Connaghan and Samantha Fitzpatrick took over from Bruce Stout in 2024 after working alongside him for over twenty years. FY25 was their first full year with sole responsibility, and a 21.9% NAV return well ahead of benchmark suggests continuity rather than disruption. The deeper question is whether their style is genuinely different. Higher portfolio turnover and smaller top-ten weightings indicate a slightly more active, risk-aware approach. Investors will want to see this discipline maintained across a fuller market cycle before drawing firm conclusions.

### How effective is the board's discount and premium management?

Murray International's board operates an active two-way approach, buying back shares when they trade at a discount and issuing from treasury when they trade at a premium. In 2024 and most of 2025, that meant meaningful buybacks at discounts that averaged around 7-8%, which modestly enhanced NAV for remaining shareholders. By early 2026, the rating had moved enough to allow the first treasury issuance in three years. The mechanism cuts both ways and helps smooth the rating across cycles. The debate is whether this kind of discipline is sufficient on its own, or whether sentiment toward the underlying portfolio will always be the larger driver. Investors generally view active discount management as a positive structural feature, particularly in a sector where some peers have allowed discounts to widen unchecked.

### What would change the long-term valuation case?

The most meaningful shift would be a sustained broadening of global equity leadership beyond US tech, which would highlight the trust's geographic and sector diversity rather than penalise it. Continued dividend growth funded by real income, rather than reserves, would also reinforce the quality of the story. Conversely, a prolonged emerging market setback or a renewed widening of the discount would test patience. For long-term holders, the case rests on the combination of a rare income record, a globally diversified portfolio and one of the lowest cost structures in the sector continuing to compound quietly through cycles.

## Disclosure

Murray International Trust is a client of Curation and pays for this showcase. This is information, not investment advice. Capital is at risk.