Wednesday, 21 August 2013

Murray Intl. Trust (MYI)

Murray International has today reported its half year results for the 6 months to 30th June 2013 (link via Investegate).

Shock, horror - they are in danger of failing to beat their benchmark index and spoiling the run of  the past 11 consecutive years that MYI has been able to keep ahead of its benchmark (40% the FTSE World UK and 60% FTSE World ex UK).

NAV total return for the half year was up 9.3% compared to 12.4% for the benchmark. I am sure Bruce Stout and his team will be hoping to turn things around during the second half of the year.

NAV has increased by £228m to £1.315bn compared to £1.087bn at the same time last year (+ 20%).

MYI v FTSE All Share 6m comparison
(click to enlarge)


The first two quarterly dividends have increased from 9.0p to 9.5p (5.5%). I have pencilled in 43p for the full year which would provide a forward yield of 3.9% based on the current share price of £10.95.

Interestingly, the company have been able to issue 3.8m new shares at a premium to NAV which has raised over £330m and which has improved liquidity. This should make the shares more attractive to fund managers and IFA platforms post RDR.

Looking ahead, the company remain sceptical about the prospects for recovery -

“Financial markets are likely to accept only grudgingly that the United States, and indeed most of the developed world, cannot continue unorthodox expansionary monetary policies indefinitely.  Having recently witnessed the destabilising effects of mere rhetoric towards withdrawing such stimulus, it is reasonable to assume that the effects on financial markets of actual implementation are likely to be similarly unpleasant”

concluding
“Coupled with unrealistic market expectations, it is clear why emphasising capital preservation is so important.  Widespread portfolio diversification via investment in high-quality companies with robust balance sheets and solid dividend growth remains at the core of overall investment strategy, and offers the best prospect of achieving the Company's investment policy".

More on this following the FY results.

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