Wednesday 27 February 2013

Murray International (MYI)

One of my long held investment trusts, Murray International (MYI) has today reported results for the full year to 31 December 2012.

Once again the net asset total return of 14% has beaten the benchmark of 11.4% - as an income investor, I am pleased to see a proposed 9.5% increase in the dividend from 37p to 40.5p. The current yield is just over 3.5% based on a share price of 1150p. Dividends have now almost doubled from the 21p paid in 2007 during 5 years of the toughest trading conditions on record.

Total net assets for the trust increased 19% and take it to over £1 billion for the first time. Expenses, including performance fee, are just under 1% of NAV - the performance fees comprise 0.32% or around 1/3rd of the total expenses, which I think is acceptable given the record. What I don’t like is performance fees being levied for average returns.

Manager, Bruce Stout has done an excellent job since taking over the reins in 2004. The trust has become the most consistent global equity trust under his stewardship and has outperformed its benchmark in each of the past 11 years. According to figures from the Association of Investment Companies, £1,000 invested over the past 10 years would have produced a total return of £5,700. Dividend growth over the past 5 years is 11.5% p.a.

Here’s a link to the report on Investegate  
MYI final results

The review by Stout is well worth reading for his take on Western politicians and policy makers!

MYI has been one of the cornerstones of my income portfolio for several years and I am happy to continue for many more years based on performance so far.

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