Investment Trust Top 20: Murray International is sizzling hot


Originally published at:

The Top 20 most viewed investment trusts, reflects investors’ hopes and fears and tells something about what is going on in mind of investors’. Murray International (LON:MYI), the £1.5 billion market cap behemoth managed by the legendary dour Scot Bruce Stout, is number one, as the cautious income focused trust, which currently yields 4.4%, has…


Murray International is looking a little bit tempting now it’s gone to a discount.

Stout is a class act, if you’re looking for a fund that’s relatively cautious, and not looking to risk your hard earned savings too much and are content with gaining a good income and reasonably good long term returns.


Stout had a challenging time during the ‘dash for trash’ period a couple of years ago because of his discipline for only buying quality companies, not just what’s fashionable with the stock market.

I admire him for taking this line, because like @alexwind I want fund manager who is going to be a good steward for my hard earned pennies.

I’m not so keen on European Assets and their habit of paying 5% from capital. That’s tantamount to paying you your own money back. I’m not in to that nonsense.


@rabsteel, I think it is 6% and don’t see it as returning your capital, instead see it as returning your profit, and some income. Unless of course it makes a loss :joy:


Yes I agree with you there @james_pigott I don’t think that everyone necessarily understands this very well, I certainly didn’t understand it was from capital profits at one point, I thought it was simply shrinking the trust to give me some of my money back.


As I understand it these are not really profits in the sense of a surplus that arises by treating the investment assets as trading stock; but rather the increase in the capital value of the fund. Ask yourself what would happen to your dividend if the capital value of the fund fell!


Indeed, as I alluded to, if the NAV falls then your 6% will be smaller in monetary terms, it will also take assets from the fund manager just when he would rather keep them and wait for the recovery, making the trusts recovery that little bit slower, potentially. All that said, I do use this holding, and it is only for high income clients, and as part of a diversified portfolio. I think the natural yield is only about 2-3%, the rest comes from capital.