Murray International (divi)

[Dod101]

Clearly, but we are just having some fun

Yes I understood that but just thought I would give jackdaws the answer anyway! These days we all need to lighten up a bit. I genuinely do not know why some get so uptight.

Dod

[Arborbridge]

puzzled . what is SMG ?

Sarah Michelle Gellar, I think. Yes Buffy the Vampire Slayer was excellent!

You and I think the same: third time round 144 episodes for me.

[ADrunkenMarcus]

MYI’s half year report is out today. Bruce does not mince his words!

They confirmed they intend to at least maintain the 55p dividend (2021) so I’m expecting a small nominal rise for 2022.

Ongoing charges reduced and it looks like revenue is recovering sharply.

Best wishes


Mark

[richfool]

MYI’s half year report is out today. Bruce does not mince his words!

They confirmed they intend to at least maintain the 55p dividend (2021) so I’m expecting a small nominal rise for 2022.

Ongoing charges reduced and it looks like revenue is recovering sharply.

Best wishes


Mark

RNS here:
https://www.investegate.co.uk/murray-in ... 00077769V/

Performance and Dividends

I am pleased to report that, in this challenging environment, the net asset value (NAV) total return, with net income reinvested, for the six months to 30 June 2022 increased by 3.8% compared with a decline of -10.5% for the Company's Reference Index (The FTSE All World TR Index). Over the six month period, the share price total return increased by 9.5%, reflecting a narrowing of the discount at which the shares traded to the NAV. The Manager's Review contains more information about both the drivers of performance in the period and the portfolio changes effected.

Two interim dividends of 12.0p (2021: 12.0p) have been declared in respect of the period to 30 June 2022. The first interim dividend is payable on 16 August 2022 to shareholders on the register on 8 July 2022 and the second interim dividend will be paid on 18 November 2022 to shareholders on the register on 7 October 2022. As stated previously, the Board intends to maintain a progressive dividend policy given the Company's investment objective. This means that in some years revenue will be added to reserves while, in others, revenue may be taken from reserves to supplement earned revenue for that year to pay the annual dividend. Shareholders should not be surprised or concerned by either outcome as, over time, the Company will aim to pay out what the underlying portfolio earns. The Board currently intends to pay a dividend for 2022 of no less than the 55.0p per share dividend paid for 2021. If necessary, the Board will again consider using some of the significant revenue reserves built up over prior years for occasions such as the current pandemic. The earnings from portfolio companies have continued to recover and, at the end of June 2022, the Balance Sheet revenue reserves amounted to £63.3m (June 2021: £58.2m).

Management of Premium and Discount

The Board continues to believe that it is appropriate to seek to address temporary imbalances of supply and demand for the Company's shares which might otherwise result in a recurring material discount or premium. Subject to existing shareholder permissions (given at the last AGM) and prevailing market conditions over time, the Board intends to continue to buy back shares and issue new shares (or sell shares from Treasury) if shares trade at a persistent significant discount to NAV (excluding income) or premium to NAV (including income). The Board believes that this process is in all shareholders' interests as it seeks to reduce volatility in the premium or discount to underlying NAV whilst also making a small positive contribution to the NAV. During the period under review, the Company has purchased for Treasury 528,233 Ordinary shares at a discount to the underlying exclusive of income NAV. At the latest practicable date, the NAV (excluding income) per share was 1238.5p and the share price was 1239.0p equating to a premium of 0.04% per Ordinary share.

Gearing

In May 2022, the Company utilised part of its £200m Shelf Facility, of which £50m had already been drawn down, through the issue of a £60 million 15 year Senior Unsecured Loan Note (the "Loan Note") at an annualised fixed interest rate of 2.83%. The Loan Note is unsecured, unlisted and denominated in sterling. The Loan Note ranks pari passu with the Company's other unsecured and unsubordinated financial indebtedness. The Company used the proceeds of the Loan Note to repay, and cancel in full, the Company's £60 million Fixed Rate Loan with The Royal Bank of Scotland International Limited, which matured on 31 May 2022. Following the drawdown and repayment, the Company's total borrowings remain at £200m, which represents a net gearing level of 11.1% based on the Company's NAV at 30 June 2022.

Ongoing Charges Ratio ("OCR")

The Board continues to focus upon delivering value to shareholders. During the review period the OCR has again fallen, from 0.59% to 0.55%, reflecting a modest increase in net assets over the period combined with the impact of the Board's continuing focus on reducing administrative expenses. A full breakdown of the OCR calculation is provided below.

Outlook

The world is in flux, with more unanswered questions shaping the future than for many a year. Will the trend of globalisation be reversed in an increasingly fractious political world, how long will inflation persist and how high will interest rates rise, will energy start being rationed, how deep will economic recessions be, how long before credit quality deteriorates? Negotiating the unchartered and unpredictable path through such a turbulent financial landscape is unlikely to be smooth. However, the strategy of owning quality businesses, real assets and a diversified portfolio has served shareholders well in the past and remains the preferred option for
the present.

[ADrunkenMarcus]

Thanks richfool (I was typing on my phone and couldn’t paste the link for some reason).

[richfool]

Thanks richfool (I was typing on my phone and couldn’t paste the link for some reason).

You're welcome.

Indeed, I'm using my laptop currently, but on occasions, often late at night, I check things on my smartphone, and trying to paste a link is one thing, but then trying to copy and paste extracts of text and switch between screens, let alone check my spelling on the small screen, is something else!

I note the global growth trusts are still performing better than MYI and the GG&I trusts over recent months (in terms of capital performance).

[richfool]

Edison issues review on Murray International Trust (MYI)

Murray International Trust (MYI) employs a team-based approach, headed up by Bruce Stout working closely with Martin Connaghan and Samantha Fitzpatrick, who are part of abrdn's global equity team. The trust offers investors a globally diversified portfolio of primarily equities (c 90%) with the balance in fixed income securities and cash, broadly split 50:50 between developed and emerging markets. MYI's portfolio is constructed independently on a bottom-up basis without consideration of the make-up of its global reference index. Nevertheless, as shown in the chart below, the trust's relative performance has improved over the last year, while it is now first out of the seven funds in the AIC global equity income sector over the last 12 months by quite some margin.

Given MYI's improving relative performance, one could argue that a higher valuation is warranted. The 5.1% discount to cum-income NAV is wider than the 1.0% to 4.8% range of average discounts over the last one, three and five years and compares with the range of a 0.0% premium to a 9.3% discount over the last 12 months. MYI's board has paid a higher annual dividend for the last 17 consecutive years and for 15 of these the increase has been above the prevailing level of UK inflation. Based on its current share price the trust offers an attractive 4.5% dividend yield.

https://www.investegate.co.uk/murray-in ... 00144521A/

https://www.edisongroup.com/publication ... nce/31370/

NOT INTENDED FOR PERSONS IN THE EEA
23 September 2022
Murray International Trust (MYI) employs a team-based approach, headed
up by Bruce Stout working closely with Martin Connaghan and Samantha
Fitzpatrick, who are part of abrdn’s global equity team. The trust offers
investors a globally diversified portfolio of primarily equities (c 90%) with
the balance in fixed income securities and cash, broadly split 50:50
between developed and emerging markets. MYI’s portfolio is constructed
independently on a bottom-up basis without consideration of the make-up
of its global reference index. Nevertheless, as shown in the chart below,
the trust’s relative performance has improved over the last year, while it is
now first out of the seven funds in the AIC global equity income sector
over the last 12 months by quite some margin.
NAV outperformance versus the reference index (one year to end-Aug 2022)
Source: Refinitiv, Edison Investment Research

The analyst’s view
MYI has broad appeal among retail investors with more than 25k shareholders. The
trust’s managers focus very much on both capital and income growth, while seeking
to protect capital during periods of market weakness. MYI is a traditional income
fund paying dividends out of revenue, not capital, using reserves when required.
The trust’s receipts are recovering nicely following COVID-19-induced weakness
and MYI looks on track for a return to a covered distribution. Despite volatile global
stock markets in recent quarters as investors grapple with higher prices and rising
interest rates, the trust has delivered a very commendable performance. Over the
last year its NAV and share price total returns of +13.4% and +15.4%, respectively,
compare with the reference index’s -0.4% total return.

NOT INTENDED FOR PERSONS IN THE EEA

Scope for a narrower discount and attractive yield
Given MYI’s improving relative performance, one could argue that a higher
valuation is warranted. The 5.1% discount to cum-income NAV is wider than the
1.0% to 4.8% range of average discounts over the last one, three and five years
and compares with the range of a 0.0% premium to a 9.3% discount over the last
12 months. MYI’s board has paid a higher annual dividend for the last 17
consecutive years and for 15 of these the increase has been above the prevailing
level of UK inflation. Based on its current share price the trust offers an attractive
4.5% dividend yield.

[ADrunkenMarcus]

As some will be aware, I have about 25% of my dividend growth portfolio in MYI as a core holding to juice up the current yield.

I’m therefore pleased to see signs of life in its recent performance!

Best wishes


Mark

[Dod101]

As some will be aware, I have about 25% of my dividend growth portfolio in MYI as a core holding to juice up the current yield.

I’m therefore pleased to see signs of life in its recent performance!

Best wishes


Mark

And a lot of its overseas holdings are based on the US Dollar so the weakness of sterling ought o give it a boost as well.

Dod

[richfool]

MYI is popular currently. It's also the subject of an article in the DT. I have extracted the parts relating to what they have done well. I particularly noted its holdings in energy stocks including WDS! I also noted the caution expressed around that sector.

What has driven the trust’s returns over the past year?

Performance has been robust. The trust has a sizeable allocation to oil and gas via Shell, TotalEnergies and Woodside Energy in Australia.

We have exposure to North American pipeline companies such as TC Energy and Enbridge, which have performed well in this environment. We also have decent exposure to metal and mining companies.

Businesses such as BHP and Vale, the Brazilian mining giant, were very robust in the early part of this year, generating huge cash flow and dividends.

There are businesses we cannot invest in as a result of our investment objective. These are high-growth technology, software or media companies that pay little or no dividend. There is nothing wrong with them, they just don’t satisfy our mandate. The lack of exposure to these businesses over the past 12 months has been a positive in light of the tech sell-off.
What do you think will happen to energy prices?

Typically when they are elevated, it is wise to be very cautious, especially if there is a recession on the horizon. I guess the market is grappling with what the supply-demand balance is at this point.

We would never try to predict oil and gas prices. Quite frankly, the chief executives of these companies have no idea – and they know far more about the industry than we do. Nevertheless, experience tells us that when any cyclical area of the market is experiencing elevated prices and a buoyant time, it is wise to be cautious.
Have you cut back on oil and gas?

We have taken our exposure down slightly. For example, we sold out of Schlumberger, the North American oil drilling services company, as we did not see it as a beneficiary of the current environment, given the financial discipline that the oil majors have been showing. It had performed quite well this year, so we sold out.
What was the last stock you bought for the fund?

Danone, which has been a serial underperformer over many years. We think there is a potential turnaround story. It has been quite sensible in terms of targets and interactions with investors so far, and we like the areas it is exposed to, such as water and specialised nutrition.

https://www.telegraph.co.uk/investing/f ... s-buy-oil/

[Dod101]

MYI is popular currently. It's also the subject of an article in the DT. I have extracted the parts relating to what they have done well. I particularly noted its holdings in energy stocks including WDS! I also noted the caution expressed around that sector.

What has driven the trust’s returns over the past year?

Performance has been robust. The trust has a sizeable allocation to oil and gas via Shell, TotalEnergies and Woodside Energy in Australia.

We have exposure to North American pipeline companies such as TC Energy and Enbridge, which have performed well in this environment. We also have decent exposure to metal and mining companies.

Businesses such as BHP and Vale, the Brazilian mining giant, were very robust in the early part of this year, generating huge cash flow and dividends.

There are businesses we cannot invest in as a result of our investment objective. These are high-growth technology, software or media companies that pay little or no dividend. There is nothing wrong with them, they just don’t satisfy our mandate. The lack of exposure to these businesses over the past 12 months has been a positive in light of the tech sell-off.
What do you think will happen to energy prices?

Typically when they are elevated, it is wise to be very cautious, especially if there is a recession on the horizon. I guess the market is grappling with what the supply-demand balance is at this point.

We would never try to predict oil and gas prices. Quite frankly, the chief executives of these companies have no idea – and they know far more about the industry than we do. Nevertheless, experience tells us that when any cyclical area of the market is experiencing elevated prices and a buoyant time, it is wise to be cautious.
Have you cut back on oil and gas?

We have taken our exposure down slightly. For example, we sold out of Schlumberger, the North American oil drilling services company, as we did not see it as a beneficiary of the current environment, given the financial discipline that the oil majors have been showing. It had performed quite well this year, so we sold out.
What was the last stock you bought for the fund?

Danone, which has been a serial underperformer over many years. We think there is a potential turnaround story. It has been quite sensible in terms of targets and interactions with investors so far, and we like the areas it is exposed to, such as water and specialised nutrition.

https://www.telegraph.co.uk/investing/f ... s-buy-oil/

All of that is very Bruce Stout. Despite what some say, I think Murray International is one of those ITs for all seasons.

Dod

[scotia]

Probably the best tracker comparison to the Murray International IT (MYI) is a high yield global ETF - e.g. Vanguard All-World High Dividend Yield ETF (VHYL).
Murray international current yield is 4.5%, and total return over 5 years is 21.8%
Vanguard VHYL current yield is 4.1%, and its 5 year total return is 35.3%

If high yield is not important, then a Vanguard FTSE All-World tracker (VWRL) has a current yield of 2.1% and a 5 year total return of 56.5%

The high yield offerings have had a good (total return) current year (Sep 2021 to 2022) - MYI = 16%, VHYL =9.7%, VWRL=-1%, and all three had similar total returns (around 22%) in the preceding year (Sep 2020 to 2021).

Going forward, with rising world interest rates, does high yield look likely to be a continuing better bet, and will MYI beat a simple tracker?
I suspect I'll stick with trackers.
(All numbers extracted from Hargreaves Lansdown, and rounded to 1 decimal place)

[richfool]

Probably the best tracker comparison to the Murray International IT (MYI) is a high yield global ETF - e.g. Vanguard All-World High Dividend Yield ETF (VHYL).
Murray international current yield is 4.5%, and total return over 5 years is 21.8%
Vanguard VHYL current yield is 4.1%, and its 5 year total return is 35.3%

If high yield is not important, then a Vanguard FTSE All-World tracker (VWRL) has a current yield of 2.1% and a 5 year total return of 56.5%

The high yield offerings have had a good (total return) current year (Sep 2021 to 2022) - MYI = 16%, VHYL =9.7%, VWRL=-1%, and all three had similar total returns (around 22%) in the preceding year (Sep 2020 to 2021).

Going forward, with rising world interest rates, does high yield look likely to be a continuing better bet, and will MYI beat a simple tracker?
I suspect I'll stick with trackers.
(All numbers extracted from Hargreaves Lansdown, and rounded to 1 decimal place)

I would suggest that the USA is the key factor in the stats you present.

MYI has generally maintained a much lower exposure to the USA, than its peers, (for reasons which are perhaps now becoming apparent) which has disadvantaged the trust's performance, ..... until the last year or so. Conversely, the trackers you refer to have a high exposure to the USA, which will have benefited their performance, ... until the last year or so.

I take the view that an active managed trust does at least have the flexibility and discretion to vary its geographical exposure. Whether it gets it right is another matter.

[simoan]

Edison issues review on Murray International Trust (MYI)

Murray International Trust (MYI) employs a team-based approach, headed up by Bruce Stout working closely with Martin Connaghan and Samantha Fitzpatrick, who are part of abrdn's global equity team. The trust offers investors a globally diversified portfolio of primarily equities (c 90%) with the balance in fixed income securities and cash, broadly split 50:50 between developed and emerging markets. MYI's portfolio is constructed independently on a bottom-up basis without consideration of the make-up of its global reference index. Nevertheless, as shown in the chart below, the trust's relative performance has improved over the last year, while it is now first out of the seven funds in the AIC global equity income sector over the last 12 months by quite some margin.

Given MYI's improving relative performance, one could argue that a higher valuation is warranted. The 5.1% discount to cum-income NAV is wider than the 1.0% to 4.8% range of average discounts over the last one, three and five years and compares with the range of a 0.0% premium to a 9.3% discount over the last 12 months. MYI's board has paid a higher annual dividend for the last 17 consecutive years and for 15 of these the increase has been above the prevailing level of UK inflation. Based on its current share price the trust offers an attractive 4.5% dividend yield.

https://www.investegate.co.uk/murray-in ... 00144521A/

https://www.edisongroup.com/publication ... nce/31370/

NOT INTENDED FOR PERSONS IN THE EEA
23 September 2022
Murray International Trust (MYI) employs a team-based approach, headed
up by Bruce Stout working closely with Martin Connaghan and Samantha
Fitzpatrick, who are part of abrdn’s global equity team. The trust offers
investors a globally diversified portfolio of primarily equities (c 90%) with
the balance in fixed income securities and cash, broadly split 50:50
between developed and emerging markets. MYI’s portfolio is constructed
independently on a bottom-up basis without consideration of the make-up
of its global reference index. Nevertheless, as shown in the chart below,
the trust’s relative performance has improved over the last year, while it is
now first out of the seven funds in the AIC global equity income sector
over the last 12 months by quite some margin.
NAV outperformance versus the reference index (one year to end-Aug 2022)
Source: Refinitiv, Edison Investment Research

The analyst’s view
MYI has broad appeal among retail investors with more than 25k shareholders. The
trust’s managers focus very much on both capital and income growth, while seeking
to protect capital during periods of market weakness. MYI is a traditional income
fund paying dividends out of revenue, not capital, using reserves when required.
The trust’s receipts are recovering nicely following COVID-19-induced weakness
and MYI looks on track for a return to a covered distribution. Despite volatile global
stock markets in recent quarters as investors grapple with higher prices and rising
interest rates, the trust has delivered a very commendable performance. Over the
last year its NAV and share price total returns of +13.4% and +15.4%, respectively,
compare with the reference index’s -0.4% total return.

NOT INTENDED FOR PERSONS IN THE EEA

Scope for a narrower discount and attractive yield
Given MYI’s improving relative performance, one could argue that a higher
valuation is warranted. The 5.1% discount to cum-income NAV is wider than the
1.0% to 4.8% range of average discounts over the last one, three and five years
and compares with the range of a 0.0% premium to a 9.3% discount over the last
12 months. MYI’s board has paid a higher annual dividend for the last 17
consecutive years and for 15 of these the increase has been above the prevailing
level of UK inflation. Based on its current share price the trust offers an attractive
4.5% dividend yield.

All very well and good, but important to note that Edison only provide paid for research to clients (in this case MYI) and so are very unlikely to say anything negative about any company they cover, for obvious reasons. As such, all those words are as much use as a chocolate teapot.

[monabri]

https://www.investegate.co.uk/murray-in ... 00047410R/

Declared 3rd March 2023

Proposed Final dividend of 20p
Ex Dividend - 6th April 2023
Pay Date - 5th May 2023

[mike]

The first interim dividend has been announced for the current financial year ending 21 Decemeber 2023, and we seem to be heading for another year of a small rise.

There has been no rise in the 12p interim, so following from recent years, we look to be receiving 3 x 12p and then the final which last year was 20p. So 36p plus 21p-ish for this year

The Board has today declared an unchanged first interim dividend in respect of the year ending 31 December 2023 of 12.0p net (2022: 12p) per Ordinary 25p share.

On the assumption that the Five for One Share Subdivision is approved by Shareholders at today's Annual General Meeting of the Company and becomes effective from admission of the new Ordinary 5p shares on 24 April 2023, this dividend will be adjusted for that Subdivision and an amount of 2.4p per Ordinary 5p share will then be payable on 16 August 2023 to Ordinary shareholders on the register on 7 July 2023, ex dividend date 6 July 2023*.

https://www.investegate.co.uk/murray-intnl-trust--myi-/rns/first-interim-dividend/202304211212360878X/

[ADrunkenMarcus]

Should this occur, we'd be looking (in old money) at 57p per share as a dividend, up about 1.8 percent. They are being cautious as the 2022 dividend was covered 1.07 times. Based on recent comments, it does seem like they are restraining the dividend per share growth (either to add to reserves or out of caution for the future outlook) in the knowledge that the current dividend yield is over 4 percent and therefore relatively high.

I have held since 2012 and dividend per share growth over a decade (in real terms) was 0 percent CAGR, so it maintained its purchasing power. Unless inflation falls further and faster than forecast in 2023 and 2024, MYI will be in a position of delivering negative real terms dividend growth over 11 years.

Best wishes


Mark.

[Arborbridge]

Should this occur, we'd be looking (in old money) at 57p per share as a dividend, up about 1.8 percent. They are being cautious as the 2022 dividend was covered 1.07 times. Based on recent comments, it does seem like they are restraining the dividend per share growth (either to add to reserves or out of caution for the future outlook) in the knowledge that the current dividend yield is over 4 percent and therefore relatively high.

Best wishes


Mark.

I think this year, we will see a lot of this. ITs - in cases where they paid from reserves, or lowered the cover from their normal - will want to rebuild by restraining the payout. It was fully expected, whereas OEICS income has increased rather better, but took a bigger hit in previous years as they have no "smoothing" mechanism.

Arb.

[ADrunkenMarcus]

I think this year, we will see a lot of this. ITs - in cases where they paid from reserves, or lowered the cover from their normal - will want to rebuild by restraining the payout. .

We will. I think this is particularly true with ITs that have a higher dividend yield to 'defend' (if I can put it that way). I hold MYI as a core, global holding with decent geographical diversification and appreciate that their reserves allowed continuing nominal dividend growth throughout COVID. However, real terms dividend growth will be harder to come by in the coming years. I think there is a natural danger with some companies which were overdistributing. 'Rebasing' (I hate the term) was probably a natural consequence.

Best wishes


Mark.

[richfool]

Murray International Trust PLC
Legal Entity Identifier (LEI): 549300BP77JO5Y8LM553
Announcement of Second Interim Dividend
4 August 2023

The Board has today declared an unchanged second interim dividend in respect of the year ending 31 December 2023 of 2.4p net (2022: 2.4p restated for the five for one share sub-division on 24 April 2023) per Ordinary 5p share which is payable on 17 November 2023 to Ordinary shareholders on the register on 6 October 2023, ex dividend date 5 October 2023.

The Board currently intends in 2023 at least to match the dividend payout of 11.2p (56.0p per share restated for share sub-division on 24 April 2023) in 2022.

https://www.investegate.co.uk/announcem ... nd/7677424

I hold MYI