Murray Income

[Dod101]

Announcement of Fourth Interim Dividend

The Directors of Murray Income Trust PLC (the "Company") have declared a fourth interim dividend of 11.25p per Ordinary share in respect of the year ended 30 June 2022 (2021: 9.75p). As a result, the total dividend for the year is 36.00p per Ordinary share, a 4.3% increase on the previous year's total dividend of 34.50p per Ordinary share, and is the 49th year of consecutive increase.

The fourth dividend will be paid to shareholders on 15 September 2022 based on a record date of 19 August 2022 and an ex dividend date of 18 August 2022. This dividend follows the Company's first three quarterly interim dividends which totalled 24.75p per Ordinary share paid in December 2021, March 2022 and June 2022 (total for year ended 30 June 2021: 24.75p).

OK - maybe I'm being over-critical, but the statement that this is "the 49th year of a consecutive increase" (in the dividend) could be a bit misleading to a novice investor. Over the past year the total return has been -2.65%. So the capital share value has declined by 2.65% + 4.2% (the dividend). Hence their really was no dividend to issue from the investments over the past year - it was a return of capital. Maybe they should make that clear. OK - I know that MUT is not the only sinner among the Income ITs in this respect.
It could be argued that the current "dividend" has been extracted from excess un-issued income stored in previous good years - but the share price (which would include such surpluses) has only increased by 8.5% over 5 years - so there doesn't seem much of a surplus buffer there to continue with "dividends" which are not covered by total return.

A little pat on the back - their total return over 5 years is 34% compared to the FTSE all share index of 20%.

But you seem to forget that investment trusts are primarily income vehicles - they are obliged to return to shareholders not less than 85% of their revenue profits each year. The Directors of Murray Income are not referring to total return, merely the dividend return. Glad you added the pat on the back because MUT has gone from something close to a basket case some years back, to a decent investment over the last few years, helped by the reduction in fees after they absorbed the assets of Perpetual Income and Growth.

Dod

[monabri]

https://www.investegate.co.uk/murray-in ... 19469355E/

" Murray Income Trust PLC has today declared first, second and third interim dividends per share of 8.25 pence, totalling 24.75 pence per share, in respect of the year ending 30 June 2023 (2022: first, second and third interim dividends per share of 8.25 pence, totalling 24.75 pence per share), as follows "

[monabri]

Just in case anyone is looking at the Hargreaves Lansdown website it is stating what I believe to be a large but erroneous discount to NAV of 39%... (Sadly not a major bargain opportunity to buy into AZN, Diageo, Unilever, Relx etc )

The AIC website reports a 9% discount.

https://www.hl.co.uk/shares/shares-sear ... 25p-shares

[DavidM13]

Just in case anyone is looking at the Hargreaves Lansdown website it is stating what I believe to be a large but erroneous discount to NAV of 39%... (Sadly not a major bargain opportunity to buy into AZN, Diageo, Unilever, Relx etc )

The AIC website reports a 9% discount.

https://www.hl.co.uk/shares/shares-sear ... 25p-shares

We did our own QA and realised it was nonsense so blocked the import of that data. The problem was Morningstar put in the NAV that was 50% too high that the company accidentally released for the wrong fund. They overwrote it with the correct data two hours later but it didnt create a new estimate. Of course one wonders how a 50% extra NAV can be entered/imported without big red flags being waved around.

[Dod101]

Just in case anyone is looking at the Hargreaves Lansdown website it is stating what I believe to be a large but erroneous discount to NAV of 39%... (Sadly not a major bargain opportunity to buy into AZN, Diageo, Unilever, Relx etc )

The AIC website reports a 9% discount.

https://www.hl.co.uk/shares/shares-sear ... 25p-shares

We did our own QA and realised it was nonsense so blocked the import of that data. The problem was Morningstar put in the NAV that was 50% too high that the company accidentally released for the wrong fund. They overwrote it with the correct data two hours later but it didnt create a new estimate. Of course one wonders how a 50% extra NAV can be entered/imported without big red flags being waved around.

As I have said many times, individuals are much better off going to the horses mouth, ie the website of the company, than relying on data from a third party site.

Anyway I am grateful for the info.

Dod

[DavidM13]

Just in case anyone is looking at the Hargreaves Lansdown website it is stating what I believe to be a large but erroneous discount to NAV of 39%... (Sadly not a major bargain opportunity to buy into AZN, Diageo, Unilever, Relx etc )

The AIC website reports a 9% discount.

https://www.hl.co.uk/shares/shares-sear ... 25p-shares

We did our own QA and realised it was nonsense so blocked the import of that data. The problem was Morningstar put in the NAV that was 50% too high that the company accidentally released for the wrong fund. They overwrote it with the correct data two hours later but it didnt create a new estimate. Of course one wonders how a 50% extra NAV can be entered/imported without big red flags being waved around.

As I have said many times, individuals are much better off going to the horses mouth, ie the website of the company, than relying on data from a third party site.

Anyway I am grateful for the info.

Dod

Murray Income takes the estimated NAV from Morningstar also! You can see that all Aberdeen range of estimated NAVs are identical to the ones on our site as they are from the same source and for the same time. (Last nights closing estimate).

[Dod101]

Just in case anyone is looking at the Hargreaves Lansdown website it is stating what I believe to be a large but erroneous discount to NAV of 39%... (Sadly not a major bargain opportunity to buy into AZN, Diageo, Unilever, Relx etc )

The AIC website reports a 9% discount.

https://www.hl.co.uk/shares/shares-sear ... 25p-shares

We did our own QA and realised it was nonsense so blocked the import of that data. The problem was Morningstar put in the NAV that was 50% too high that the company accidentally released for the wrong fund. They overwrote it with the correct data two hours later but it didnt create a new estimate. Of course one wonders how a 50% extra NAV can be entered/imported without big red flags being waved around.

As I have said many times, individuals are much better off going to the horses mouth, ie the website of the company, than relying on data from a third party site.

Anyway I am grateful for the info.

Dod

Murray Income takes the estimated NAV from Morningstar also! You can see that all Aberdeen range of estimated NAVs are identical to the ones on our site as they are from the same source and for the same time. (Last nights closing estimate).

Is that so? They must surely have an independent valuation from time to time from their managers? I am not doubting what you but for instance, Scottish Mortgage undertake their own valuations of their unquoted stuff. Is that because it is subjective and unquoted whereas by definition publicly quoted securities are easily valued?

Dod

[DavidM13]

Just in case anyone is looking at the Hargreaves Lansdown website it is stating what I believe to be a large but erroneous discount to NAV of 39%... (Sadly not a major bargain opportunity to buy into AZN, Diageo, Unilever, Relx etc )

The AIC website reports a 9% discount.

https://www.hl.co.uk/shares/shares-sear ... 25p-shares

We did our own QA and realised it was nonsense so blocked the import of that data. The problem was Morningstar put in the NAV that was 50% too high that the company accidentally released for the wrong fund. They overwrote it with the correct data two hours later but it didnt create a new estimate. Of course one wonders how a 50% extra NAV can be entered/imported without big red flags being waved around.

As I have said many times, individuals are much better off going to the horses mouth, ie the website of the company, than relying on data from a third party site.

Anyway I am grateful for the info.

Dod

Murray Income takes the estimated NAV from Morningstar also! You can see that all Aberdeen range of estimated NAVs are identical to the ones on our site as they are from the same source and for the same time. (Last nights closing estimate).

Is that so? They must surely have an independent valuation from time to time from their managers? I am not doubting what you but for instance, Scottish Mortgage undertake their own valuations of their unquoted stuff. Is that because it is subjective and unquoted whereas by definition publicly quoted securities are easily valued?

Dod

Murray Income release "ACTUAL NAVS" to the stock exchange every day. You can see them all here https://www.theaic.co.uk/companydata/0P ... ents?nav=1 Click on the one from 27th October to see the offending release! Those are done based on their own valuation techniques. But I am talking about the estimated NAVs which are on the front page of their website not the ones released to the exchange.

The reason for this is, for example MUTs NAVs for last nights close do not get released to the market until about 1pm today. In the interim, to allow comparisons between last nights closing market price and a NAV to create a discount, solutions can rely upon the NAV estimate as the best proxy. This is preferable to comparing a NAV from 2 days ago with a price from 1 day ago.

The estimate from Morningstar is based upon the underlying holdings, taking in to account their market movements as well as currency, dilution, gearing, corporate actions, etc. And is reset each time a new "ACTUAL NAV" is released by the company. I hope that makes sense?

[mc2fool]

Murray Income release "ACTUAL NAVS" to the stock exchange every day. You can see them all here https://www.theaic.co.uk/companydata/0P ... ents?nav=1 Click on the one from 27th October to see the offending release!

In the releases, the table showing the various NAVs loses the leftmost few pixels for me, losing the left hand border of the table and choping the "M" of Murray Income almost in half. It's so under both Firefox and Chrome.

[DavidM13]

Murray Income release "ACTUAL NAVS" to the stock exchange every day. You can see them all here https://www.theaic.co.uk/companydata/0P ... ents?nav=1 Click on the one from 27th October to see the offending release!

In the releases, the table showing the various NAVs loses the leftmost few pixels for me, losing the left hand border of the table and choping the "M" of Murray Income almost in half. It's so under both Firefox and Chrome.

I see that. doesn't seem to happen on every day. I will play around and see why that may be.

Hope the rest of the post was helpful.

[Dod101]

Murray Income release "ACTUAL NAVS" to the stock exchange every day. You can see them all here https://www.theaic.co.uk/companydata/0P ... ents?nav=1 Click on the one from 27th October to see the offending release!

In the releases, the table showing the various NAVs loses the leftmost few pixels for me, losing the left hand border of the table and choping the "M" of Murray Income almost in half. It's so under both Firefox and Chrome.

I see that. doesn't seem to happen on every day. I will play around and see why that may be.

Hope the rest of the post was helpful.

Your post is very helpful and I can overlook the modest problems of presentation. I will look at this stuff slightly differently in future. Thank you.

Dod

[scotia]

Just in case anyone is looking at the Hargreaves Lansdown website it is stating what I believe to be a large but erroneous discount to NAV of 39%... (Sadly not a major bargain opportunity to buy into AZN, Diageo, Unilever, Relx etc )

The AIC website reports a 9% discount.

https://www.hl.co.uk/shares/shares-sear ... 25p-shares

I had a look at the HL site shortly after you drew attention to the anomaly. And yes - the incorrect 39% was shown, however the graph of discount showed a value around 9%. So I didn't rush off to buy MUT
It all looks OK today.

[kempiejon]

I must be subscribed to something as abrdn sent me a link to a online Q&A re the MUT.
https://abrdn.qumucloud.com/view/jU2a5BVmBdTJzrpi3p8Erh
I've not watched it so no comment on content

[richfool]

Edison issues update on Murray Income Trust (MUT).

London, UK, 1 November 2023

Edison issues update on Murray Income Trust (MUT): In a celebratory mood

Murray Income Trust (MUT) is currently celebrating two key milestones. This year marks its 100-year anniversary, and 50 years of consistently rising dividends. MUT’s FY23 dividend of 37.5p (up from 36.0p in FY22) represents a current yield of 4.7% and MUT’s board has stated that maintaining the trust’s record of annually increasing dividends remains a priority. Performance has improved after a rare bout of underperformance last year. In the year ended September 2023, MUT returned 14.5%, in line with the benchmark, and in the 10 years to September, it delivered an average annual return of 6.1% on an NAV basis, versus a market return of 5.6%. The trust’s managers, Charles Luke and Iain Pyle, are confident its exposure to some ‘unstoppable long-term trends’ means it is well-positioned to continue delivering positive returns and growing income over the long term.

MUT may appeal to investors seeking exposure to a diversified portfolio of high-quality, resilient, mainly UK stocks. The trust is diversified by sector and by income source: 80% of portfolio income is sourced from abroad, which provides significant protection from any deterioration in the UK’s economic climate. A programme of option writing provides a further modest, uncorrelated supplement to portfolio revenues. The trust’s good long-term performance track record of outright gains and outperformance of the market and most of its AIC peers should interest potential investors. Those seeking a regular, competitive and rising income will appreciate MUT’s commitment to its policy of annually increasing dividends, delivered via quarterly dividend payments. Another potential drawcard for investors is that UK equity valuations are currently low on an absolute and relative basis versus other major markets.

https://www.investegate.co.uk/announcem ... t-/7853252

I don't hold MUT, though I do hold DIG.

[Dod101]

Edison issues update on Murray Income Trust (MUT).

London, UK, 1 November 2023

Edison issues update on Murray Income Trust (MUT): In a celebratory mood

Murray Income Trust (MUT) is currently celebrating two key milestones. This year marks its 100-year anniversary, and 50 years of consistently rising dividends. MUT’s FY23 dividend of 37.5p (up from 36.0p in FY22) represents a current yield of 4.7% and MUT’s board has stated that maintaining the trust’s record of annually increasing dividends remains a priority. Performance has improved after a rare bout of underperformance last year. In the year ended September 2023, MUT returned 14.5%, in line with the benchmark, and in the 10 years to September, it delivered an average annual return of 6.1% on an NAV basis, versus a market return of 5.6%. The trust’s managers, Charles Luke and Iain Pyle, are confident its exposure to some ‘unstoppable long-term trends’ means it is well-positioned to continue delivering positive returns and growing income over the long term.

MUT may appeal to investors seeking exposure to a diversified portfolio of high-quality, resilient, mainly UK stocks. The trust is diversified by sector and by income source: 80% of portfolio income is sourced from abroad, which provides significant protection from any deterioration in the UK’s economic climate. A programme of option writing provides a further modest, uncorrelated supplement to portfolio revenues. The trust’s good long-term performance track record of outright gains and outperformance of the market and most of its AIC peers should interest potential investors. Those seeking a regular, competitive and rising income will appreciate MUT’s commitment to its policy of annually increasing dividends, delivered via quarterly dividend payments. Another potential drawcard for investors is that UK equity valuations are currently low on an absolute and relative basis versus other major markets.

https://www.investegate.co.uk/announcem ... t-/7853252

I don't hold MUT, though I do hold DIG.

I hold Murray Income and I am happy with its performance. Is there some connection with DIG. Who is DIG anyway?

These commentaries are bland and really not much help to the average reasonably informed investor (which applies to most of us here)

Dod

[bonrepos]

DIG IS DUNEDIN INCOME GROWTH TRUST.

[richfool]

And DIG is from the same" Abrdn" stable as MUT, as well as being in the same sector. DIG has a slightly higher dividend yield than MUT.

The article in the RNS link contains a link to a fuller Edison article.

[kempiejon]

And DIG is from the same" Abrdn" stable as MUT, as well as being in the same sector. DIG has a slightly higher dividend yield than MUT.

There was some disparaging talk, I think pre Lemon - Motley Fool days, that both were sub par dogs - Dugs and Mutts respectively, I have held MUT along with their global MYI Murray International never been that impressed with either. I had a brief fling with ITs so bought a couple to test the water. I never extended much cash into that experiment.

[scotia]

And DIG is from the same" Abrdn" stable as MUT, as well as being in the same sector. DIG has a slightly higher dividend yield than MUT.

There was some disparaging talk, I think pre Lemon - Motley Fool days, that both were sub par dogs - Dugs and Mutts respectively, I have held MUT along with their global MYI Murray International never been that impressed with either. I had a brief fling with ITs so bought a couple to test the water. I never extended much cash into that experiment.

Looking at them over 5 years their total return (for an Income IT) has not done too badly. But they both have drooped significantly over the past 6 months - WHY? I have included a developed world tracker ETF to give a rough idea as to how world markets are behaving



PS - on looking at their discounts, a significant part of the 6-month droop in DIG is due to the marked increase in the discount, and there is also a smaller increase in the discount of MUT
Edit - added ETF to the tracker

[kempiejon]

PS - on looking at their discounts, a significant part of the 6-month droop in DIG is due to the marked increase in the discount, and there is also a smaller increase in the discount of MUT

These discounts do get me thinking, the NAV are of large FTSE100 quoted companies they are well known so why do they widen so?

VEVE of course global, 65% USA only 5% UK the other 2 UK focused, I'm seeing that a global collective has been mostly better than UK.