The manager of the Murray Income trust is preparing to buy into non-UK assets after shareholders voted to diversify away from concentrated UK sectors earlier this year.
Only 4% of the trust’s holdings are non-listed UK companies, despite the portfolio being able to hold up to 20% in international stocks. Charles Luke, co-manager of the £397m trust, said he plans to increase non-UK exposure to 10% next year as he expects these companies to grow their dividend by 16%. “In the current climate, the companies we like the look of are expensive and their dividend yields do not look particularly generous,” said Luke. “Next year the market assumes dividend yields will increase by about 16%, with 12% dividend growth in 2012.” The non-UK companies in the ...
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