Murray Income Trust trails benchmark, appoints new manager
By Josh White
Date: Friday 27 Feb 2026
(Sharecast News) - Murray Income Trust reported an 8.1% net asset value total return for the six months ended 31 December on Friday, trailing its benchmark, the FTSE All-Share Index, which delivered a 13.7% return over the same period.
The FTSE 250 trust, which aims to deliver a high and growing income alongside capital growth from a portfolio primarily of UK equities, said the share price total return was 9.4% for the half year, as the discount-to-NAV narrowed from 9.6% to 8.7%.
Its shares rose to 913p at the end of December from 854p at the start of the period.
The board said the relative underperformance followed a "sustained period of significant underperformance" and confirmed that, following a detailed strategic review, it had appointed Artemis Fund Managers as the new manager, effective from early March.
It said its investment objective, benchmark, gearing policy and dividend approach would remain unchanged.
A nine-month management fee waiver was agreed, and fees would be charged on the lower of net assets or market capitalisation.
The company said it expected its ongoing charges ratio to remain below 0.5% per annum, compared with 0.48% currently.
Chair Peter Tait said Artemis' disciplined, long-term approach to value creation and focus on compounding income and capital were a strong fit for the trust's objectives.
The new portfolio would be managed by Adrian Frost, Andy Marsh and Nick Shenton, supported by John Passmore and Jamie Lindsay.
For the year ended 30 June 2025, the total dividend rose 3.9% to 40p per share, marking the 52nd consecutive year of dividend growth and maintaining the trust's AIC Dividend Hero status.
Earnings per share for the six months to December came in at 13.9p, down from 15.2p a year earlier.
First and second interim dividends of 9.5p per share had been declared for the current financial year, and the board said it expected total dividends for the year to 30 June to exceed 40p.
The dividend yield stood at 4.4% at the period end.
Over the 2025 calendar year, UK equities delivered a total return of 24%, significantly ahead of US equities, which returned 8.6% in sterling terms, despite continued geopolitical tensions and persistent outflows from UK equity funds.
The board highlighted that UK dividends totalled £88bn last year, alongside £64bn of share buybacks, which it said could support future earnings and dividend growth.
At the portfolio level, performance was mixed.
Banks and mining stocks rose more than 35% over the period, while technology, real estate and beverages lagged.
The portfolio's bias towards quality companies detracted in a market environment that favoured value.
The trust held 49 positions at the end of December, including 10 overseas-listed stocks, with around 20% invested in mid-cap companies.
The weighted average price-to-earnings multiple was about 16x, compared with roughly 15x for the benchmark.
Among contributors, holdings in DBS and Nordea benefited from strong results, while the recovery in Rentokil and Close Brothers supported returns.
Detractors included Convatec, Relx and Sage, with the latter two affected by concerns over artificial intelligence disruption.
The manager reduced exposure to more cyclical and AI-related beneficiaries and increased cash to help fund buybacks and adopt a more defensive stance.
During the half year, the trust bought back 2.4 million shares, equivalent to 2.4% of outstanding share capital excluding treasury shares.
Net asset value per share rose to 1,000p as at 31 December from 944.8p on 30 June.
Tait, who would step down at the AGM in October after nine years on the board, said the focus in 2026 would be on trends in UK inflation and interest rates.
With the Bank of England having cut rates four times in 2025 to 3.75% and inflation expected to move closer to target, he said further rate reductions could provide support for domestic equities, even if the exceptional returns of 2025 were unlikely to be repeated.
At 1034 GMT, shares in Murray Income Trust were up 0.62% at 979p.
Reporting by Josh White for Sharecast.com.
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