Charles Luke

Key highlights include:

• Dividend Increase: The annual dividend was raised by 2.7%, marking 51 consecutive years of growth.
• Fee Reduction: The investment management fee has been lowered to a competitive 0.35% for the first £1.1bn of net assets.
• Performance: Net Asset Value (NAV) total return reached 9.9%, slightly underperforming the benchmark FTSE All-Share Index.
• Share Buybacks: Over 7 million shares were repurchased during the year.

Charles Luke, manager of Murray Income Trust plc, said: “Our investment process encompasses a patient buy and hold approach and longer-term returns remain positive when comparing the Net Asset Value (based on debt at fair value) to the Benchmark over five years, with the Net Asset Value per share (based on debt at fair value, annualised) outperforming the FTSE All-Share Index by 0.2%.

“On the other hand, the Share Price has underperformed the Benchmark over five years by approximately 0.9% (annualised) on a total return basis as the discount to NAV has widened. The widening of discounts has been a relatively common theme within the investment trust sector.

“Turnover within the portfolio was 18%, the same as the prior year. The pattern of trades reflected the ongoing desire to improve, where possible, the quality of the portfolio and maintaining the focus on attractive capital and dividend growth. Active share (the proportion of the portfolio that differs from the benchmark) remained stable and was 67% at the end of the year.

“Our aspiration in terms of portfolio construction is simple: to invest in good quality companies with attractive growth prospects through a sensibly diversified portfolio with appealing dividend characteristics. Furthermore, the ability to invest up to 20% of gross assets overseas is helpful in achieving these aims with 13 overseas-listed companies in the portfolio at the period end representing approximately 20% of gross assets.”