Important information: investment values and income from investments can go down as well as up, so you may get back less than you invest.
Global markets are increasingly being driven by a handful of mega-cap technology stocks, leaving investors more exposed to a narrow group of companies and their growth expectations. For those looking to diversify, the challenge is finding a genuinely differentiated overseas fund.
A good example is the Murray International Trust. Its significant underweight to the US and relatively low exposure to technology provides a clear contrast, while its focus on income and capital growth provides a useful complement to more growth-oriented strategies.1
Perhaps that helps explain its popularity among clients of Fidelity International. The year-to-date best-seller stands out from both its index and peers, particularly through its more modest allocation to the US.2 Of course, this positioning can work both ways, but for investors concerned about market concentration and stretched valuations, the trust offers a distinctive alternative.
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Objective and approach
Murray International aims to achieve an above average dividend yield, with long-term growth in dividends and capital ahead of inflation, by investing mainly in global equities.3 The trust focuses on businesses with sustainable cash flows, strong balance sheets and the ability to increase dividends over time.4
As part of the Aberdeen stable of funds, every investment is assessed against strict quality criteria. First-hand research, supported by the firm's global presence and proprietary tools, means they can often identify companies whose qualities are not yet fully recognised by the market.5
Rather than relying on individual ‘star managers’, the approach draws on the insight and analysis of the wider investment team to assess and select holdings. This gives them the conviction to focus on their best ideas and build a portfolio that can be very different from its benchmark and peer group.6
The portfolio
At the end of August, the trust held 55 shares and three bonds, with its 20 largest positions accounting for just over half of the assets. These included Merck, Philip Morris, Coca Cola and Bristol-Myers Squibb, with the highest individual stock weighting being a modest 3.5%.7
Murray International top 10 holdings
- Merck
- AbbVie
- DBS Group
- Philip Morris
- Coca Cola
- Johnson & Johnson
- Bristol-Myers Squibb
- CME
- TotalEnergies
- Cisco Systems
Source: Murray International investment trust factsheet, 31 August 2026
The main geographic allocations were North America 40.1%, Europe ex UK 21.9%, Asia Pacific ex Japan 19.4% and the UK 10%.8 This compares with a US weighting of just over 50% in the benchmark.9
Portfolio turnover was 12.7% in the first half of the year. New positions were added in Blackstone, Pfizer, Union Pacific, Fastenal and ONEOK. These were partly funded by reductions in Samsung Electronics, Taiwan Semiconductor Manufacturing Company, Cisco Systems and others following strong gains.10
Performance
On a share price basis, the trust has outperformed its benchmark over the past one, three and five years. Over the latter, for example, it gained 103.7%, comfortably ahead of the 76% increase in the index.11 Please remember that past performance is not a reliable indicator of future returns.
The benchmark is the MSCI ACWI High Dividend Yield index in sterling. This comprises stocks from developed and emerging markets with higher dividend income and quality characteristics, which helps explain its low technology weighting of just 5.9%.12 In the more commonly used MSCI ACWI the figure is 33.2%.13
Attractive source of income
Two quarterly dividends of 2.8p per share were declared in the first half of the year, representing a 7.7% increase on the equivalent period in 2025. The total distributions of 5.6p were comfortably covered by earnings per share of 7.05p.14
If the payments were maintained at this level, it would give the trust a prospective yield of 3.1%, although it is likely that the final payment will be higher. Please note that this income is not guaranteed.
Murray International is one of the AIC's dividend heroes, having increased its distributions for 21 consecutive years. The Board is committed to maintaining the progressive policy and has revenue reserves of £85m available to support it, equivalent to 1.2 times the 2025 pay-out.15
Discount and costs
The strong performance has meant that the trust typically traded at a small premium to NAV during the first half of the year, with new shares issued in response. The Board continues to believe that, in normal market conditions, it is appropriate to address temporary imbalances in the supply and demand of the company’s shares.16
According to the half-year report, the latest ongoing charges figure had fallen slightly to 0.47%.17 This appears competitive for an actively managed global trust with a strong long-term track record.
How does the manager see it?
Writing in the latest factsheet, the manager said that geopolitical tensions remain elevated, while questions over global growth, inflation and trade policy continue to create uncertainty for markets. Rising bond yields during August also highlighted shifting investor expectations and contributed to periods of market rotation.18
“Despite this backdrop, we remain focused on building a globally diversified portfolio of quality companies capable of delivering sustainable income and long-term capital growth. We believe this disciplined approach provides a strong foundation for navigating a range of market environments on behalf of shareholders.”19
- More on Murray International Trust
Source:
1,10,14,15,16,17 Murray International Trust, half year report to 30.6.26
2 Peel Hunt, 7.8.26
3,7,8,11,18,19 Murray International Trust, factsheet, 31.8.26
4,5,6 Murray International Trust, website
9,12 MSCI ACWI High Dividend Yield index, factsheet, 30.9.26
13 MSCI ACWI index, factsheet, 30.9.26
| (%) As at 30 Sept |
2021-2022 | 2022-2023 | 2023-2024 | 2024-2025 | 2025-2026 |
|---|---|---|---|---|---|
| Murray International | 12.2 | 6.0 | 13.2 | 23.8 | 24.3 |
Past performance is not a reliable indicator of future returns
Source: Morningstar, total returns in GBP terms from 30.9.21 to 30.9.26. Excludes initial charge.
Important information: - investors should note that the views expressed may no longer be current and may have already been acted upon. This investment trust invests in overseas markets and so the value of investments can be affected by changes in currency exchange rates. The shares in Murray International investment trust are listed on the London Stock Exchange and their price is affected by supply and demand. The trust can gain additional exposure to the market, known as gearing, potentially increasing volatility. Before investing, please read the relevant key information document which contains important information about the fund. Eligibility to invest in an ISA and tax treatment depends on personal circumstances and all tax rules may change in the future. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.
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