The Murray Income Trust

Founded in Glasgow on 8 June 1923, Murray Income Trust celebrates its centenary this year and today invests for a high and growing income from a portfolio predominantly of UK equities.

For most investors, one hundred years may be beyond their time horizon, but Murray Income’s growth over this period shows what is possible. The original Trust maintained an extremely broad mandate, allowing it to invest in securities of any kind, issued by any company or corporation in the United Kingdom or in any other foreign country. The Second Scottish Western Investment Company, as it was then known, started with initial share capital of £500,000. Fast forward to 30 June 2023 and its net asset value was £1bn. That is quite some appreciation.

This year’s centenary has been an important milestone, particularly as the portfolio has weathered a range of market environments over that period – from the oil price shocks of the 1970s, to the international debt crisis of the 1980s, the collapse of the Eastern bloc, to the technology boom and bust of the 2000s and the Global Financial Crisis and its aftermath in the 2010s.

In addition to the centenary celebrations, 2023 also marked the 50th consecutive year that Murray Income Trust has grown its dividend. It is incredible to think back on the economic context across that time and to reflect on the continual growth of the last 50 years.

The Association of Investment Companies (AIC) accords ‘dividend hero’ status to those select investment trusts which have raised their annual dividend consecutively for twenty years or more. Maintaining that ‘dividend hero’ status is both a source of pride for the Board and a priority for the future.

Representing a yield of 4.56%*, the Company’s dividend per share has grown from 0.47p in 1973 to 37.5p in 2023, representing a compound annual growth rate of 9.2%.

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