A high-quality income-focused investment trust to buy now

First-rate companies with sustainable returns are the key to long-term dividend growth for the Murray Income Trust.

Happy people drinking in the sunshine
Raise a toast to reliable income stocks such as Diageo
(Image credit: © Getty Images/iStockphoto)

It’s easy to assume that an investment trust with the word “income” in its title is very much in the “value” camp, investing in companies with high dividends but that are mature, declining or mis-managed businesses.

Charles Luke, the manager of the £1bn Murray Income Trust (LSE: MUT) has different ideas, emphasising the importance of “quality” companies. This means those with high returns on invested capital based on the durability of the business model, the attractiveness of the industry, the strength of its financials, the capability of its management and a good environmental, social and governance (ESG) profile.

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.