Murray Share Discussion Threads

[uapatel] 08/2/2020 16:08

EV trucks

GREEN GARBAGE TRUCKS: As some automakers move to sleeker electric cars, Volvo is going in a different direction with its battery-powered trash collectors.

[davebowler] 05/11/2019 14:10

1 Nov NAV Murray International Trust with Debt Including 1167.61p Ordinary
at Fair Value Income

[davebowler] 14/8/2019 13:54

No Argentinian Bond exposure as far as I can see from the recent update.

[shieldbug] 28/6/2019 11:15

Investor sentiment not matching market reality? Is this a trend or a blip?

[whilstev] 21/6/2019 14:11

Very unusual for MYI to trade at a discount to NAV so this is a good time to buy.

[speedsgh] 12/3/2019 14:39

MYI feature in the Tempus column in The Times today with a HOLD recommendation.

Stout approach is not about to change -

[speedsgh] 12/3/2019 11:18

Apologies, eop001. My error. Links now removed.

[epo001] 12/3/2019 08:58

Those links, while interesting, are about MUT (income) not MYI (international).

[essentialinvestor] 06/9/2018 08:56

Surprised this is still above £11.

[essentialinvestor] 25/6/2018 16:25

App, we're on the same page, I was just referencing the recent erosion of NAV premium re performance.

Speed, sobering indeed.

[apparition1] 22/6/2018 13:29

I wasn't trying to say they are bad managers - on the contrary I remain a believer and was trying to point out that we shouldn't get too excited about short term moves after all this is an investment trust for Investors not for Day Traders!

[speedsgh] 22/6/2018 11:17

I note that the share price is now trading at a small discount to NAV which is the first time in a while.

[speedsgh] 22/6/2018 11:10

And this was his comment in the latest factsheet (30/4/18)...

"Disappointing first quarter economic growth in the United States and the UK provided
a stark reminder that the prolonged business cycle of the past nine years is becoming
increasingly fragile. With affordability of credit threatened by potentially higher interest rates, the ominous sound of deflating consumer confidence reverberated around those consumption based economies struggling to maintain momentum."

[speedsgh] 22/6/2018 11:09

Absolutely, EI. This was Bruce Stout's comment in the 2017 Annual Report released recently...

"Economic predictions are notorious for being wrong. Different schools of thought offer mutually exclusive theories about how the world works. Hardly surprising then that the next five years could be predicted to be anything from glorious to catastrophic. For those disciples of such speculative supposition, the allure of attaching theoretical substantiation is self-evident. Specific theory dictates specific actions. Within the minds of increasingly discredited Central Bankers, theoretical justification has been the constant companion of perfunctory policy and imprudent practice for the past decade. The implicit danger of continuing such a fallacy has never been so acute.

The reality is inescapable. No comparisons from economic history or chapters in economic text books exist that might remotely clarify, demonstrate nor describe the consequences of "normalising" interest rates in a chronically, debt dependent world. Withdrawing monetary stimulus, shrinking sovereign balance sheets, maintaining confidence and re-establishing positive real savings rates whilst simultaneously trying to avoid recession and control inevitable credit quality problems is essentially what is proposed. The likelihood of achieving such an exceptionally tough balancing act is virtually zero. In the real world, the monumental debt overhang means the more the cost of money rises, be it by balance sheet contraction or by interest rate hikes, the more likely credit dependent growth evaporates. Against this backdrop, great scepticism is warranted. Investment focus will continue to emphasise strong company balance sheets and realistic profit expectations, predominately in companies operationally exposed to countries around the world with sustainable, domestic, growth dynamics."

[essentialinvestor] 22/6/2018 10:24

App, you may be overlooking erosion of premium to NAV,
some were buying MYI at a near 6% premium, which was ridiculous imv,
particularly if you noted Bruce's market commentary and outlook.

He could not have outlined his market view more clearly.

[apparition1] 21/6/2018 18:02

The MSCI World index has dropped 4.9% since its peak in January so that portion of the drop can be put down to a general market decline. The remaining 8.3% of the 13.1% is poor stock picking over the short term. But if we get a more serious worldwide drop which the markets seem to be pushing towards at the moment maybe their stock picks will look better in the longer term

[alphacentaurus] 21/6/2018 17:05

Why does the share price keep dropping. Since Jan/Feb this year. What's driving it?

[speedsgh] 26/3/2018 15:49

Annual Financial Report (9/3) -

ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2017

Net asset value total return 2017: +14.7% (2016: +40.3%)
Benchmark total return 2017: +12.8% (2016: +25.8%)
Dividends per share {A} 2017: 50.0p (2016: 47.5p)
Revenue return per share 2017: 51.8p (2016: 51.2p)
Share price total return 2017: +11.0% (2016: +50.5%)
Premium to net asset value 2017: +1.3% (2016: +4.6%)
Net gearing {B} 2017: 10.7% (2016: 12.5%)
Ongoing charges ratio {B} 2017: 0.64% (2016: 0.68%)

{A} Dividends declared for the year in which they were earned.
{B} Net gearing/(cash) is calculated by dividing total assets less cash or cash equivalents by shareholders' funds expressed as a percentage.

Dividends and Dividend Policy

Three interim dividends of 11.0p per share (2016: three interims of 10.5p) have been declared during the year. Your Board is now recommending a final dividend of 17.0p (2016: 16.0p) which, subject to the approval of shareholders at the Annual General Meeting, will be paid on 18 May 2018 to shareholders on the register on 6 April 2018. If approved, the total Ordinary dividends for the year will amount to 50.0p, an increase of 5.3% from last year (2016: 47.5p). After accounting for the payment of the final dividend, the surplus revenue of approximately £2.3 million will be transferred to the Company's brought forward revenue reserves.

As I have alluded to in previous years, the Company's revenue is substantially derived from overseas companies, which pay dividends in local currencies that are then translated into Sterling upon receipt. The Company's revenue streams are, therefore, highly susceptible to the strength or weakness of Sterling. The Board and the Manager have previously investigated the merits of hedging expected annual revenues arising from the portfolio and found that introducing hedging strategies would add complexity and, for certain currencies, be very expensive to implement. Therefore, we have concluded that hedging would be unattractive to deploy. The inevitable consequence of this is that the annual revenue from the portfolio, when translated into Sterling, will experience volatility caused by Sterling's movements against the currencies of the underlying assets of the Company.

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.

Management of Premium and Discount

At the Annual General Meeting held in April 2017, shareholders renewed the annual authorities to issue up to 10% of the Company's issued share capital for cash at a premium and to buy back up to 14.99% of the issued share capital at a discount. During the year, no Ordinary shares were purchased for Treasury or cancellation; however, we sold 301,642 shares from Treasury at a premium to NAV. The Board will be seeking approval from shareholders to renew both authorities in 2018. As in previous years, both new shares and shares from Treasury will only be issued at a premium to NAV and shares will only be bought back at a discount to NAV. Resolutions to this effect will be proposed at the Annual General Meeting and the Directors strongly encourage shareholders to support these proposals.

During the year, the Ordinary shares have traded at an average premium to the NAV (excluding income) of 3.4%. 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. At the practicable date, the NAV (including income) per share was 1178.4p and the share price was 1226.0p equating to a premium of 4.0% per Ordinary share.

Gearing

At the year end, total borrowings amounted to £185 million, representing net gearing (calculated by dividing the total assets less cash by shareholders' funds) of 10.7% (2016: 12.5%) all of which is drawn in Sterling. On 31 May 2017, the Company agreed a new £60 million loan facility with The Royal Bank of Scotland plc ("RBS") which was drawn in full and fixed for five years at an all-in rate of 1.714%. The new facility has been used to repay a maturing £60 million loan with RBS. The Company also has a loan totalling £60 million that is due to mature in May 2018. The Directors are in the process of reviewing options for the replacement of this facility.

[arja] 14/6/2017 11:38

wish I had bought MYI 2 days ago and not TEM ! Not sure why this trust has done so well and a NOR situation

[steve3sandal] 12/6/2017 19:43

Also holding. Guessing it is the safe haven reputation of Stout, anywhere but FTSE 100/250 following the election, sterling, yield. What's not to like...apart from the premium again.

[scottishfield] 12/6/2017 14:01

Whats driving this today? (holder)