The Lemon Fool

A recent Citywire article on MYI and its poor performance. Is the key word, "eventually", in the penultimate paragraph?

Murray International (MYI) is the largest global equity income trust, with a market cap of £1.2bn, and is, by some distance, the highest yielding. However, its long-term returns are far behind those of competing trusts.

Over 10 years, MYI has returned an average of 6.7% a year. Over one year, its net asset value return is almost 20% behind that of JPMorgan Global Growth and Income (JPGI), for example.

There is a material difference in the investment approaches of MYI and JPGI. MYI follows a traditional equity income style of seeking out companies with higher-than-average yields. JPGI invests in higher-growth but lower-yielding shares and makes up any shortfall in its revenue account by distributing capital.

However, given that valuations are much higher in the US than they are in emerging markets and growth prospects for emerging markets are better, I wonder whether this stance may pay off eventually.

I am struggling to see an immediate catalyst for a renaissance in the fortunes of what was for many years a powerhouse in the sector. That does not mean that we should write it off, however. If you think it will come right at some point over the next couple of years, the trust’s 5.6% yield pays you to wait.

https://citywire.co.uk/wealth-manager/n ... d/a1406111

richfool wrote:A recent Citywire article on MYI and its poor performance. Is the key word, "eventually", in the penultimate paragraph?

Over the past 5 years It has just about kept up with a world tracker until the dip in March-April, from which it has made a poor recovery - so over 5 years its total return is around 40%, compared to 80% for a world tracker. That difference may be due to its high dividend focus - and it missed the bounce back in growth shares. And it also suffered from dropping from a premium around 5% to a discount around 5%. Maybe these problems will gradually correct themselves, but I suspect "eventually" is a key statement.

Thanks for this thread. I am an investor in MYI but the post caused me to look into JP Morgan G&I. Their financials are clear that the dividends paid far exceed the dividends received by the IT. The other thing I picked up was that it's pretty much a closet world tracker. Another contribution to my thinking that swings back and for between ETF trackers and "active" ITs. I do realise that MYI does look even worse compared to a benchmark! I keep coming back to thinking I may as well buy VWRL rather than JPGI.

Didn't JPGI undergo a ticker change to JGGI in Feb 2020? I note the Citywire article refers to " JPGI" too!

https://uk.advfn.com/stock-market/londo ... k/81822432


Over the last 3 years, a comparison of JGGI with VWRL ( and MYI). MYI has been a shocker!

Plus ca change. A few years back. MYI was praised for being a good steady investment. Wumph, a bad patch and suddenly it's all cobblers.

I doubt believe the managers have changed their approach all that much, so either they were always rubbish and we didn't know it, or we just have to wait for them to come back into fashion.

I'm for waiting rather than jumping hither and thither.

Arb.

PD that doesn't mean I'm not open to buying into other ITs to spread the risk!

PPS: Add Monks and Fundsmith and JGGI or VRWL look lackllustre too.

Throughout my investing career, at any particular time I've always found something or other with better go faster stripes!

Arborbridge wrote:I doubt believe the managers have changed their approach all that much, so either they were always rubbish and we didn't know it, or we just have to wait for them to come back into fashion.

I'm for waiting rather than jumping hither and thither.

MYI forms the core of my dividend growth portfolio and is one of my highest dividend yielders. However, I'm supplementing it with holdings which have a lower dividend yield and a faster dividend per share growth rate. I get the feeling it's 'eating' itself to pay the dividend.

Best wishes

Mark.

ADrunkenMarcus wrote:

Arborbridge wrote:I doubt believe the managers have changed their approach all that much, so either they were always rubbish and we didn't know it, or we just have to wait for them to come back into fashion.

I'm for waiting rather than jumping hither and thither.

MYI forms the core of my dividend growth portfolio and is one of my highest dividend yielders. However, I'm supplementing it with holdings which have a lower dividend yield and a faster dividend per share growth rate. I get the feeling it's 'eating' itself to pay the dividend.

Best wishes

Mark.

I'm supplementing it with holdings which have a lower dividend yield and a faster dividend per share growth rate. Very wise - so do I! I am notorious for hedging my bets.

I hold MYI and Henderson Far East, HFEL for their dividend. I accept they are not terrific capital growth investments but are great dividend payers.
Consequently I hold medium and upper medium level yielders like Witan and Law Debenture and bolster the capital growth with fashionable Baillie Gifford funds, USA Growth, Scottish Mortgage, Monks and also Smithson. It's a portfolio approach for me and the capital is recovering since March this too.

midgesgalore

midgesgalore wrote:It's a portfolio approach for me and the capital is recovering since March this too

Totally agree.

My accumulation units are currently at an all-time monthly high and MYI's relative lack of capital growth has been made up from other holdings.

Best wishes


Mark.

MYI does seem to be showing some signs of life with the share price touching 1102p today. Any recovery in MYI has a disproportionate positive effect on my portfolio as I have such a large holding, just as its recent poor performance has held me back.

Best wishes

Mark.

https://www.investegate.co.uk/murray-in ... 42206520H/

Dividend declared.

"The Board has today declared a third interim dividend in respect of the year ending 31 December 2020 of 12.0p net (2019: 12.0p) which will be payable on 19 February 2021 to Ordinary shareholders on the register on 8 January 2021, ex dividend date 7 January 2021."

Nice.

Best wishes

Mark.

Not sure I would call it nice. It is the least we can expect. The interim has been 12p for some time.

Dod

Dod101 wrote:Not sure I would call it nice. It is the least we can expect. The interim has been 12p for some time.

Dod

Could be worse, the annual dividend had increased 5.26%, 3.00% and 3.88% in the years ending 2017,18,19 (see link below to Dividend Data).

A maintained dividend is, for me, 'acceptable' in light of Covid 19. New buys/ top ups in March were at a yield of ~7%.

https://www.dividenddata.co.uk/dividend ... y?epic=MYI

monabri

Like me still around in the small hours. Of course you are right and I have held Murray International for a long while. I find that it does the business and have no problems with it. It just ticks along and I let it get on with it.

Dod

monabri wrote:A maintained dividend is, for me, 'acceptable' in light of Covid 19.

Absolutely. I am hopeful they can at least hold it in 2021.

MYI did go through a few years in the early 2000s with a frozen dividend and we may be in for something similar in the early 2020s, with either the dividend maintained or very slight growth as they seek to rebuild cover and reserves in time for the next 'once in a lifetime' crisis which we may be enjoying in 2028!

Best wishes

Mark.

Bruce Stout, MYI manager, is speaking next week at the AJBell free webinars I posted about here viewtopic.php?f=30&t=26583&p=362909#p362909

Scott.

Thanks for the head's up, Scott!

I'm working, unfortunately, but if anyone else gets to see it then I would be interested in his comments.

Best wishes

Mark.

https://www.investegate.co.uk/murray-in ... 00032548R/

"Three interim dividends of 12.0p per share (2019: three interims of 12.0p) have been declared during the year. Your Board is now recommending a final dividend of 18.5p per share (2019: fourth interim dividend of 17.5p) which is subject to shareholder approval. If approved at the Annual General Meeting, this final dividend will be paid on 18 May 2021 to shareholders on the register on 6 April 2021. Subject to this approval, total Ordinary dividends for the year will amount to 54.5p (2019: 53.5p), an increase of 1.9% which compares favourably with the 1.2% increase in the Retail Prices Index in 2020. This represents the 16th year of dividend increases for the Company and cements its position as an AIC 'Next Generation Dividend Hero'. The payment of the final dividend will use approximately £10.2 million from the Company's accumulated revenue reserves, amounting to approximately 15% of these reserves"