The Lemon Fool

An interesting discussion on Trustnet with MYI's managers, which includes dividend cover. Short extract:

Murray International: People are still getting to grips with the idea money isn't free anymore
29 September 2023

The management team of the global income trust talks about the implication of higher interest rates, explains their allocation and discusses the future of the trust.

By Jean-Baptiste Andrieux, Reporter, Trustnet.
After 20 years at the helm of the Murray International Trust, manager Bruce Stout recently announced he will retire in June 2024. Under his tenure, the trust has built a reputation for its focus on defensive businesses that have the capacity to retain both earnings and dividends while keeping valuation in mind.

This approach was rewarded during the 2000s and through the global financial crisis and the trust has returned 640.5% to investors since Stout took over. However, it has struggled in the past 10 years during an era in which growth stocks have dominated markets.

https://www.trustnet.com/news/13391503/ ... ee-anymore

I hold MYI.

With great respect, not much new there, with some daft questions thrown in.

Dod

Dod101 wrote:With great respect, not much new there, with some daft questions thrown in.

Dod

Well, each to his own, I suppose. I found it quite interesting as it gave me an insight into the thinking of the managers for when Bruce Stout leaves next year, and it also reassurred me on the dividend cover, which turned out to be greater than I had thought; as well as discussing the rationale behind a number of MYI's holdings..

Agree and I think they should all do everything possible to get their IT messages across. I’m having a rash of these retirements which says much about my own advancing years. First Bruce, then Jon Bennett HEFT, and now James De Upaugh at EDIN. I’m hoping Job Curtis and Nick Train keep going for a few more investing years. On a serious note but off topic can anyone throw a few rising stars to consider? Or how I might find them?

I was about to buy MYI using InvestDirect (HSBC) but it is not available to buy. I 'phoned and it is set to sell only. I went all the way through getting a price, ticking that I'd read the KID etc but when it came to placing a buy order no banana. They will get back to me within 10! days. Bloody nonsense.

Best wishes,

Steve

Steveam wrote:I was about to buy MYI using InvestDirect (HSBC) but it is not available to buy. I 'phoned and it is set to sell only. I went all the way through getting a price, ticking that I'd read the KID etc but when it came to placing a buy order no banana. They will get back to me within 10! days. Bloody nonsense.

Best wishes,

Steve

I looked via Interactive Investor. They say the number of shares available to buy is only 1424. Maybe there is a squeeze on them today for some reason. They seem to be a bit volatile in terms of price. Even so InvestDirect should surely have offered to manually try to fill your order. That is what II have done for me in similar circumstances. InvestDirect is not the most dynamic or forward thinking platform but I use them for what I perceive as a good level of security and that is more important than the occasional irritation but I can understand your frustration.

I would metaphorically jump up and down in rage if I were you.

Dod

Dod101 wrote:

Steveam wrote:I was about to buy MYI using InvestDirect (HSBC) but it is not available to buy. I 'phoned and it is set to sell only. I went all the way through getting a price, ticking that I'd read the KID etc but when it came to placing a buy order no banana. They will get back to me within 10! days. Bloody nonsense.

Best wishes,

Steve

I looked via Interactive Investor. They say the number of shares available to buy is only 1424. Maybe there is a squeeze on them today for some reason. They seem to be a bit volatile in terms of price. Even so InvestDirect should surely have offered to manually try to fill your order. That is what II have done for me in similar circumstances. InvestDirect is not the most dynamic or forward thinking platform but I use them for what I perceive as a good level of security and that is more important than the occasional irritation but I can understand your frustration.

I would metaphorically jump up and down in rage if I were you.

Dod

Well, I was just quoted 229.06p for as many MYI as I wanted to buy using HL (tried an order for 5k shares). IMHO I would consider changing broker because InvestDirect sound like a bunch of muppets.

simoan wrote:

Dod101 wrote:
I looked via Interactive Investor. They say the number of shares available to buy is only 1424. Maybe there is a squeeze on them today for some reason. They seem to be a bit volatile in terms of price. Even so InvestDirect should surely have offered to manually try to fill your order. That is what II have done for me in similar circumstances. InvestDirect is not the most dynamic or forward thinking platform but I use them for what I perceive as a good level of security and that is more important than the occasional irritation but I can understand your frustration.

I would metaphorically jump up and down in rage if I were you.

Dod

Well, I was just quoted 229.06p for as many MYI as I wanted to buy using HL (tried an order for 5k shares). IMHO I would consider changing broker because InvestDirect sound like a bunch of muppets.

I currently have 4 brokers … and have previously had others. Each broker seems to have good and bad points which are more or less important for each of us and may depend on the particular holdings or trading patterns. I try to be calm but I did tell the lady that a) she needs to get back to me and b) the timescale is absurd and c) this might influence me to keep holdings with other brokers.

Best wishes,

Steve

Steveam wrote:

simoan wrote:Well, I was just quoted 229.06p for as many MYI as I wanted to buy using HL (tried an order for 5k shares). IMHO I would consider changing broker because InvestDirect sound like a bunch of muppets.

I currently have 4 brokers … and have previously had others. Each broker seems to have good and bad points which are more or less important for each of us and may depend on the particular holdings or trading patterns. I try to be calm but I did tell the lady that a) she needs to get back to me and b) the timescale is absurd and c) this might influence me to keep holdings with other brokers.

Best wishes,

Steve

Always worth having multiple accounts for risk mitigation but not being able to buy a liquid Investment Trust such as MYI is close to the pits IMHO. We can all whinge about cost, poor communications, late dividend payments, or whatever, but the most basic service a broker provides is being able to trade investments as and when we wish to.

simoan wrote:

Dod101 wrote:
I looked via Interactive Investor. They say the number of shares available to buy is only 1424. Maybe there is a squeeze on them today for some reason. They seem to be a bit volatile in terms of price. Even so InvestDirect should surely have offered to manually try to fill your order. That is what II have done for me in similar circumstances. InvestDirect is not the most dynamic or forward thinking platform but I use them for what I perceive as a good level of security and that is more important than the occasional irritation but I can understand your frustration.

I would metaphorically jump up and down in rage if I were you.

Dod

Well, I was just quoted 229.06p for as many MYI as I wanted to buy using HL (tried an order for 5k shares). IMHO I would consider changing broker because InvestDirect sound like a bunch of muppets.

InvestDirect are a bunch of muppets but I value their perceived security. Anyway I am not the one trying to buy them.

Dod

Just remembered this thread and I like to complete things …

InvestDirect explained that, for some reason, they did not have an up to date Costs and Charges Document and were not allowed to sell without showing me this … they requested an up to date C&CD and once that was received and approved they informed me. They - Invest Direct - are a bit slow and cumbersome but, as Dod mentioned above, very secure. Job done.

Many thanks, Steve

An unchanged third interim dividend for MYI:

Murray International Trust PLC

Legal Entity Identifier (LEI): 549300BP77JO5Y8LM553

Announcement of Third Interim Dividend
1 December 2023

The Board has today declared an unchanged third 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) which will be payable on 16 February 2024 to Ordinary shareholders on the register on 5 January 2024, ex dividend date 4 January 2024.

The Company operates a Dividend Reinvestment Plan (DRIP) which is managed by the registrar, Link Asset Services, and the deadline for elections under the DRIP will be 26 January 2024.

https://www.investegate.co.uk/announcem ... nd/7917155

Par for MYI, it's Q4 that usually shows any change, Q1-3 has been 2.4p since 2019 but the final ha, s grown from 3.5p to 4.0p

Final results for FY ending December 2023 issued today.

Annual dividend increase of 2.7% to 11.5p, and the revenue reserve increased to not far below the average for the years before Covid.

Bruce Stout, the retiring manager, is on top form in his valedictory manager's review. I suggest you don't read it if you're not at your best this morning, as you certainly won't be afterwards !

https://www.investegate.co.uk/announcement/rns/murray-international-trust--myi/annual-financial-report-/8064935

For holders - Final dividend of 4.3p, ex-div 25 April, paid 20 May.

mike wrote:Final results for FY ending December 2023 issued today.

Annual dividend increase of 2.7% to 11.5p, and the revenue reserve increased to not far below the average for the years before Covid.

Bruce Stout, the retiring manager, is on top form in his valedictory manager's review. I suggest you don't read it if you're not at your best this morning, as you certainly won't be afterwards !

https://www.investegate.co.uk/announcement/rns/murray-international-trust--myi/annual-financial-report-/8064935

For holders - Final dividend of 4.3p, ex-div 25 April, paid 20 May.

As there was so little news for my holdings this morning, I had a quick read. I must admit I agree with a lot of what he says about the state of the global economy but I don’t really like the asset allocation of this IT. He bangs on about how emerging markets, in particular Latin America has been shunned by investors, but he himself has completely missed out on the returns being made through obvious signposted structural changes in both Japan and India; in particular the government reforms that have led to much increased shareholder returns in Japan. For an equity income trust I find that unforgivable.

Of most interest for debt watchers like myself is that they were unwilling to rollover a £60m bond that matured in May last year and instead chose to sell assets to cover the repayment. They were offered a 5 year term at a 6% coupon and decided against it. I think this will be a recurring theme with companies rolling over debt in the next 12 months if interest rates do not fall as quickly as some hope or expect.

Just a lurker on these cos they were on the wish list. A change of manager might cause a ripple in the matrix.

As for the 6% coupon, I think it might be right to get rid. Maybe they can get the sold investments back later on a dip. At least they don't have that outgoing to contend with. I suppose if it was 4% or less the scales might tip.

Glad the reserve has increased.

Not read the link yet.

mike wrote:Annual dividend increase of 2.7% to 11.5p, and the revenue reserve increased to not far below the average for the years before Covid.

This is good news as it is the dividend which attracts so many people. The final is therefore up 7.5%. I wonder if they will make a slight increase of the three interims for 2024, because they have been flat for some time and otherwise the final might get proportionally out of whack. They have continued to add to reserves, as you noted.

I do however hope that we will see an improved performance in the years ahead, both on the dividend front and in total return. The dividend per share on a real terms basis has basically tracked inflation since my first purchase in 2012: there has been no real terms growth over that period (largely due to the 2022-23 inflation which wiped out progress). The share price is about where it was then, too, and that is in nominal terms.

Best wishes


Mark.

mike wrote:Bruce Stout, the retiring manager, is on top form in his valedictory manager's review. I suggest you don't read it if you're not at your best this morning, as you certainly won't be afterwards !
https://www.investegate.co.uk/announcement/rns/murray-international-trust--myi/annual-financial-report-/8064935

Going out with a bang! Its difficult to see from his outpourings of doom where we should see anything apart from a crash of gargantuan proportions.

MYI in Yellow versus Vanguard's S&P500 "VUSA" in the blue corner .... He's not been reading the tea-leaves correctly for the last 5 years. as a professional manager he has thus been in denial for the last 5 years at least.

He had no idea 5 years ago so maybe his crystal ball is not that reliable ?

Total Return:

source : https://www.hl.co.uk/funds/fund-discoun ... ion/charts

monabri wrote:MYI in Yellow versus Vanguard's S&P500 "VUSA" in the blue corner .... He's not been reading the tea-leaves correctly for the last 5 years. as a professional manager he has thus been in denial for the last 5 years at least.

He had no idea 5 years ago so maybe his crystal ball is not that reliable ?

Total Return:

source : https://www.hl.co.uk/funds/fund-discoun ... ion/charts

Thanks for the illustration, and point taken.

Though to be fair, Bruce and MYI has historically held a significantly lower exposure to the US than the norm or indeed his peers, and VUSA's performance would reflect the very good performance of the US over recent years.

Whilst I have had my doubts about MYI over recent years, I do hold MYI, though primarily for its defensive stance, its dividend yield and its exposure to other regions including EM. I get my US exposure from the likes of: BRSA, JGGI, VEVE along with ATST.