Marketing communication
Investment approach
The Artemis team uses its longstanding approach to income investing, honed over 25 years. The fund managers seek an attractive total return driven both by dividends and capital growth.
Although the level of dividends from any company cannot be relied upon, the team looks for high cash flow, which they regard as the best indicator a company can sustain its dividend. Cash flow is the money remaining after a company has covered all its costs.
Investment trusts can use gearing – the ability to borrow additional money to invest – and the team uses this power conservatively, targeting a borrowing range of 8-10% of the trust's net asset value (NAV). The goal is to amplify gains when share prices rise, although if they fall, gearing can amplify losses.
Stockpickers foremost
The portfolio is shaped primarily by our company selection process, as the team seeks to diversify sources of cash flow across approximately fifty companies
Ownership mindset
We view ourselves as owners of companies, engaging with management teams on how they allocate cash flow to us as investors and back into their businesses
Conservative gearing
The trust can borrow cash to invest, aiming to boost performance, and the team targets a modest level of borrowing at 8-10% of the value of the portfolio
Growth and income
Our process is built for different market conditions, focusing on well-managed companies and not pursuing dividends at the expense of potential share price growth
Starting with an attractive yield can tilt the argument, which is why dividends are an outcome of our investment process, rather than central to it. Instead, free cash flow – which offers an objective picture of a company’s health and profitability – is our North Star.”
The managers explain their longstanding approach to income investing, their focus on cash flow and how they are managing the trust's portfolio.
Gearing: borrowing additional cash to invest
One of the attractive features of managing money in an investment trust is the ability to use gearing - or borrowing additional cash to invest - to enhance long-term returns. The team uses gearing conservatively, borrowing within a range of 8-10% of the trust's net asset value (NAV). The Board has set its gearing limit at a maximum of 25% of NAV at the time of draw down.
It should be noted that using gearing is likely to lead to magnified volatility in the trust's NAV - and just as gearing can boost a trust's investment gains, it can also magnify losses.
Net gearing is defined as a percentage, with net debt (total debt less cash/cash equivalents) divided by shareholders’ funds. As at 30 September 2026. The gearing range of 8-10% is an internal limit and may be subject to change.
Murray Income investment team
Third party endorsements are not a recommendation to buy. For sources, dates and other information, visit www.artemisfunds.com/endorsements
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The team explain their longstanding approach to investing, what they focus on and how they will be managing the Murray Income Trust.
Murray dividends
View our dividend history and learn how income from Murray can be received as cash or reinvested for future capital growth
Portfolio and performance
See how the trust is positioned, view its performance versus the wider market and read our latest investment commentary
How to invest in Murray
Murray Income Trust can be bought on many online investment platforms, via stockbrokers or with the help of a financial adviser