MUT enters its next chapter with a heavy weight management trio that have delivered exceptional total returns for investors…by Josef Licsauer
Overview
Murray Income Trust (MUT) has entered an exciting new chapter, with Artemis’s highly experienced trio, Andy Marsh, Nick Shenton and Adrian Frost, taking the helm on 02/03/2026. The managers hit the ground running, completing 98.7% of the Portfolio repositioning within a month, aligning MUT’s portfolio closely with the well-established Artemis Income strategy.
Performance under the new managers has started well. From April, once the portfolio transition was substantially completed, to 25/08/2026, MUT delivered NAV and share price total returns of 11.4% and 14.7%, respectively, versus the FTSE All-Share’s 7.7%. Though a short period to judge performance, the managers’ record on the open-ended side adds valuable context: under Adrian’s tenure, Artemis Income has delivered an annualised total return of 8.6%, 1.4 percentage points ahead of the FTSE All-Share’s 7.2%. This is a meaningful margin sustained over a quarter of a century, and that consistency shows with Artemis Income’s total return exceeding the index in 96% of monthly, five-year rolling periods since January 2002.
The new managers bring a proven record of delivering growing income too, having grown Artemis Income’s dividend by 7.4% annualised over the past five years, a track record that marries well with MUT. The trust is known for its exceptional Dividend record: 52 consecutive years of increases, with growth compounding at 8.8% per annum, comfortably ahead of inflation. Subject to shareholder approval, a 53rd consecutive increase looks on track with the new managers keen to extend that record, supported by the same cash-flow-driven process used on Artemis Income.
The manager transition also brought a restructuring to MUT’s Charges. Artemis is waiving its management fee for the first nine months before introducing a lower, tiered fee on the lesser of NAV or market capitalisation. The board expects the OCF to remain below 0.5%, competitive against the wider UK Equity Income sector.
Analyst’s View
We see this as a genuinely exciting move for MUT. Andy, Nick and Adrian are a heavyweight trio in UK equity income with an excellent record on the open-ended Artemis Income fund, and running that same strategy through a closed-ended structure now hands them tools they’ve never had before: gearing to amplify conviction and revenue reserves to smooth the dividend through weaker years, a genuinely powerful combination in our view. The speed of the transition impressed us too: completing almost the entire repositioning within a month lets investors judge the managers on stock selection now, not inherited positions, and their own purchases of nearly 100,000 MUT shares show real skin in the game.
This change also comes at a time when the broader backdrop looks compelling. UK equities continue to trade at a meaningful discount to global markets despite improving performance, record dividends and sustained overseas takeover interest. This disconnect, to us, suggests international investors are recognising value that domestic markets remain reluctant to price in, but value that the managers’ repositioned portfolio is potentially well placed to capture.
It’s still early days for the trio at MUT specifically, though the portfolio’s close mirroring of Artemis Income, where the same process has supported an excellent long-term record, gives us little reason to doubt continuity. Broader risks outside the managers’ control, however, from a more left-leaning government’s tax stance to the inflation and rate pressures from the Iran war, could weigh on UK sentiment more generally.
On balance, we think MUT is a genuinely compelling way to access UK equity income today: an experienced management team, one of the sector’s strongest dividend records and a highly competitive cost base, all at a Discount we think could reward those who act on it.
Bull
- New management team bring a wealth of experience and successful total return track record
- The trust has over a five-decade-long track record of growing the dividend
- Well-diversified list of UK businesses that also derive revenues overseas
Bear
- New managers’ additions may take time to impact an uptick in performance
- Exposure to medium-sized companies may bring more sensitivity to the UK economy
- Gearing can magnify gains on the upside but also losses on the downside
See the full researh on MUT here >
Disclaimer
This is a non-independent marketing communication commissioned by abrdn. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.
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