Murray Income Trust: a rare star in the income sector

The Murray Income Trust is a reliable and promising pick in a struggling sector.

Bottles of Diageo spirits © Alamy
The fund’s investments in long-term growth include drinks group Diageo
(Image credit: © Alamy)

In the second quarter of 2020 dividends paid by UK companies fell by 57%. Just a quarter of dividend-paying constituents of the FTSE 350 maintained or increased payments. For the year as a whole, dividends paid by FTSE 100 firms are forecast to be 32% lower than last year.

As a result, the UK equity income section of the funds market has become something of a graveyard, with many five-year performances negative. The sector’s fall from grace has been exacerbated by the exaggerated expectations of the past, based on a combination of the hunt for income in a world of falling bond yields and interest rates, and a misunderstanding of the pattern of historic returns.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Max King
Investment Writer

Max has an Economics degree from the University of Cambridge and is a chartered accountant. He worked at Investec Asset Management for 12 years, managing multi-asset funds investing in internally and externally managed funds, including investment trusts. This included a fund of investment trusts which grew to £120m+. Max has managed ten investment trusts (winning many awards) and sat on the boards of three trusts – two directorships are still active.

After 39 years in financial services, including 30 as a professional fund manager, Max took semi-retirement in 2017. Max has been a MoneyWeek columnist since 2016 writing about investment funds and more generally on markets online, plus occasional opinion pieces. He also writes for the Investment Trust Handbook each year and has contributed to The Daily Telegraph and other publications. See here for details of current investments held by Max.