Trust in Focus: Murray International

INVESTING FOR INCOME: This closed-end fund is one of the highest rated among analysts, offers global diversification and yields an attractive 4.2%

Jackie Beard, FCSI 14 October, 2014 | 11:17AM

Despite some underperformance earlier this year, our confidence in Murray International (MYI) is intact.

While the long-term record here is strong, in 2013 the fund underperformed significantly. The team’s focus on quality and valuation meant it didn’t participate in the strong markets driven by low-quality names and the long-standing underweight to the US and Japan and overweight to emerging markets all held it back. But Aberdeen’s focus on quality, and its unconstrained, long-term investment approach, means it typically lags momentum-driven markets where low-quality names rally the most; hence, our concerns are muted.

Indeed, Aberdeen’s approach has been tried-and-tested across a variety of market conditions and we’ve seen them underperform significantly before. The team won’t be tempted into low-quality names to chase short-term gains, nor will they buy companies whose valuations they deem expensive; last year, the latter got more expensive still, further hurting performance. 

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Murray International Ord971.00 GBX1.04

About Author

Jackie Beard, FCSI

Jackie Beard, FCSI  is Director of Manager Research Services, Morningstar EMEA

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