abrdn.com
Murray Income Trust PLC
Annual Report 30 June 2024
An investment trust founded in 1923 aiming
for high and growing income with capital growth
For more information visit murray-income.co.uk
abrdn.com
Front cover image: Looking East along the River Clyde in Glasgow,
to the Clyde Arc and the Finnieston Crane
Founded in 1865, HSBC is one of the largest banking and financial
services organisations in the world, with 41 million personal, wealth
and corporate customers, operating from a strong capital base and
through a diversified business model. HSBC was one of several new
stocks purchased by the Company during the Year.
Murray Income Trust PLC 109
Directors
Peter Tait (Chair)
Alan Giles (Senior Independent Director)
Stephanie Eastment (Chair of the Audit Committee)
Angus Franklin
Nandita Sahgal Tully
Company Secretaries and Registered Office
abrdn Holdings Limited
1 George Street
Edinburgh EH2 2LL
Registered in Scotland under company number SC012725
Website
murray-income.co.uk
Points of Contact
The Chair or Company Secretaries at the Registered
Office of the Company
Email: murray.income@abrdn.com
Legal Entity Identifier
549300IRNFGVQIQHUI13
United States Internal Revenue Service
FATCA Registration Number (“GIIN”)
8Q8ZFE.99999.SL.826
abrdn Social Media Accounts
Twitter: @abrdnTrusts
LinkedIn: Murray Income Trust PLC; abrdn Investment Trusts
Alternative Investment Fund Manager
abrdn Fund Managers Limited
Authorised and regulated by the Financial
Conduct Authority
Investment Manager
abrdn Investments Limited
Authorised and regulated by the Financial
Conduct Authority
Registrar (for direct shareholders)
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online website where shareholdings can be managed
quickly and easily, including changing address or
arranging to pay dividends directly into a bank account, or
to receive electronic communications. To register,
shareholders will need their Investor Code which may be
found on their share certificate or by contacting the
Registrar by email at shareholderenquiries@linkgroup.co.uk
Alternatively, please contact Link Group –
By phone:
0371 664 0300 and +44 (0) 371 664 0300 (international).
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rate. Lines are open between 09:00 - 17:30, Monday to
Friday excluding public holidays in England and Wales
By post:
Link Group
Central Square
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Leeds LS1 4DL
Independent Auditor
PricewaterhouseCoopers LLP
144 Morrison Street
Edinburgh EH3 8EB
Depositary
BNP Paribas SA, London branch (formerly BNP Paribas
Trust Corporation UK Limited, until 31 May 2024)
10 Harewood Avenue
London NW1 6AA
Solicitors
Dickson Minto W.S.
16 Charlotte Square
Edinburgh EH2 4DF
Stockbroker
Investec Bank plc
30 Gresham Street
London EC2V 7QP
Additional Shareholder Information
Murray Income Trust PLC 1
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Peter Tait, Chair
Investment Objective
The Company aims for a high and
growing income combined with capital
growth through investment in a portfolio
principally of UK equities.
Overview
Performance Highlights 2
Strategic Report
Chair’s Statement 4
Investment Manager’s Report 8
Performance 13
Financial Highlights and Dividends 15
Overview of Strategy 16
Promoting the Success of the Company 24
Portfolio
Ten Largest Investments 27
Portfolio 28
Sector Comparison with the Benchmark 30
Summary of Investment Changes During the Year 31
Governance
Board of Directors 34
Directors’ Report 37
Statement of Corporate Governance 46
Directors’ Remuneration Report 47
Audit Committee Report 51
Statement of Directors’ Responsibilities 54
Independent Auditors’ Report to the Members
of Murray Income Trust PLC 55
Financial Statements
Statement of Comprehensive Income 64
Statement of Financial Position 65
Statement of Changes in Equity 66
Statement of Cash Flows 67
Notes to the Financial Statements 68
Corporate Information
Information about the Manager including
Investment Process 89
Investor Information 95
AIFMD Disclosures (Unaudited) 98
General
Alternative Performance Measures 100
Glossary of Terms 103
Notice of Annual General Meeting 104
Additional Shareholder Information 109
Contents
2 Murray Income Trust PLC
Net asset value total return
ABC
Share price total return
AB
+9.9% +7.6%
2023: +8.8% 2023: +4.9%
Benchmark total return
AD
Ongoing charges
B
+13.0% 0.50%
2023: +7.9% 2023: 0.50%
Earnings per share (revenue) Dividend per share
37.4
p
38.50
p
2023: 38.7p 2023: 37.50p
Discount to net asset value
BC
Dividend yield
B
10.5% 4.5%
2023: 8.2% 2023: 4.5%
A
Total return as defined on page 102.
B
Considered to be an Alternative Performance Measure. Further details can be found on pages 100 to 102.
C
With debt at fair value.
D
The Company’s benchmark is the FTSE All-Share Index.
Net Asset Value per share
c
Dividends per share Mid-market price per share
At 30 June – pence Year ended 30 June – pence At 30 June – pence
807.7
835.7
871.0
911.7
957.9
20 21 22 23 24
34.25
34.50
36.00
37.50
38.50
20 21 22 23 24
768.0
871.0
832.0
837.0
857.0
20 21 22 23 24
Performance Hi
g
hli
g
hts
Murray Income Trust PLC 3
Strategic Report
Haleon, a stock held in the investment portfolio, is a world-leading
consumer health company with category-leading brands including
Panadol and Advil (pain relief), Sensodyne (oral health), Centrum
(vitamins and minerals), Otrivine (respiratory) and Tums (digestive
health). The company is well positioned to play a vital role for people
all around the world, in a sector that is growing and more relevant
than ever, reflecting longer-term demographic trends.
4 Murray Income Trust PLC
Highlights
· Annual dividend increased by 2.7%, the 51
st
year of
consecutive growth.
· Investment management fee reduced to a competitive
0.35% for the first £1.1bn of the Company’s net assets
from 1 July 2024.
· Net Asset Value (“NAV”)
A,B
total return of 9.9% for
the Year.
· Share price
A,B
total return was 7.6% as the discount,
calculated on a fair value NAV, widened from 8.2%
to 10.5%.
· Over 7.0 million shares (6.3% of the total) bought back
by the Company during the year ended 30 June 2024.
A
Considered to be an Alternative Performance Measure. Further details may be found
on pages 100 to 102.
B
With debt at fair value.
It has been a turbulent but positive period for world stock
markets in the year ended 30 June 2024 (the “Year”).
Global indices ended higher across the board with the
MSCI World Index up 21.5% in Sterling terms. The UK’s FTSE
All-Share Index (the Company’s Benchmark) ended the
Year with a positive total return of 13.0%. One of the
drivers for positive market returns was the fall in inflation
across the major global economies.
In the UK, for example, the Consumer Prices Index fell from
6.8% to just 2.0% over the Year and was in line with the
Bank of England inflation target for the first time in three
years. UK food price inflation also fell to 2.5% in June, its
lowest level since October 2021. The hoped-for corollary
of subsiding inflation is the potential for interest rates to fall.
As a leading indicator, the UK stock market has already
risen modestly in anticipation of such a move, the first step
of which occurred in early August, after the Year end, with
a cut announced by the Bank of England, from 5.25% to
5.00%. Perhaps interest rates will not decline as far or as
fast as had been anticipated at the start of the calendar
year, but it does seem likely that they will end 2024 at a
lower level.
Investment Performance
Over the Year, the Company’s NAV per share (with debt
at fair value) rose 9.9% in total return terms, as compared
to the Benchmark total return of 13.0%. The share price
total return was 7.6% reflecting the discount widening
from 8.2% to 10.5% (based on NAV with debt at fair value).
Further details of the portfolio performance, including
attribution, may be found in the Investment Manager’s
report on pages 9 and 10. Performance returns over the
longer term are shown in the table below.
From 30 June 2024 to 12 September 2024, being the latest
practicable date prior to approval of this Report, the NAV
per share (with debt at fair value) returned 1.1% as
compared to 2.0% for the FTSE All-Share Index (both
figures on a total return basis). The share price total return
was 0.7%, reflecting the discount widening from 10.5%
to 11.0%.
Dividend
The Board announced, on 30 July 2024, its 51
st
consecutive
year of growing dividends. For the year ended 30 June
2024, the dividend increased from 37.5p to 38.5p per
share, a rise of 2.7%. Revenue per share for the year was
37.4p, a slight decrease on last year’s 38.7p. The Board
understands that, whilst the short term outlook for
dividends is complicated by the increasing use of share
buybacks by certain listed companies, one of the positive
features of investment companies is their ability to smooth
distributions to shareholders. The Board is confident in
keeping its dividend growing in future years as it possesses
revenue reserves, as at 30 June 2024, equivalent to 55% of
the current annual dividend.
.
3 years ended 5 years ended 10 years ended
30 June 2024
(
annualised
)
30 June 2024
(
annualised
)
30 June 2024
(
annualised
)
Performance (total return) % % %
Share price
A,B
3.9 4.6 5.5
Net asset value per Ordinary share
A,B,C
4.9 5.7 6.0
FTSE All-Share 7.4 5.5 5.9
Source: abrdn & Morningstar
A
Total return as defined on page 102.
B
Considered to be an Alternative Performance Measure. Further details may be found on pages 100 to 102.
C
With debt at fair value.
Chair’s Statement
Murray Income Trust PLC 5
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
The Association of Investment Companies (the “AIC”)
awards Dividend Hero status to investment trusts which
have raised their annual dividend consecutively for twenty
years or more. Maintaining that Dividend Hero status is a
source of pride for the Board as it pursues its long term
objective of a high and growing dividend income
combined with capital growth from a diversified portfolio
consisting primarily of UK equities.
Discount and Share Buybacks
There has been turbulence in investment companies over
the last 18 months or so, with discounts to NAV coming
under pressure, particularly for those vehicles comprising
less liquid assets. The UK equity income sector, despite the
greater liquidity of its underlying stocks, was not immune
from the overall trend as indicated by the widening of the
Company’s discount, as noted above.
One reason for the higher level of discounts in the UK equity
sector has been a widespread lack of enthusiasm for UK
equities over the past few years. UK funds, in general, have
not seen any net monthly inflows since July 2021. Many
reasons have been put forward for this, including the
uncertainty caused by Brexit, then the Covid epidemic, not
to mention the recent political uncertainty, with four UK
Prime Ministers in the past five years. UK Defined Benefit
pension schemes have also sharply reduced their exposure
to UK equities over the past two decades. Part of the reason
for widening discounts can also be put down to the
underlying interest rate environment. When interest rates
are high or rising, markets tend to trade in a ‘risk-off’ mode
with limited enthusiasm overall, given the competing
attractions of high interest paying deposit accounts. When
interest rates start to fall, however, investors are more likely
to be in ‘risk-on’ mode, looking for attractive opportunities
as deposit rates fall. One such opportunity could be
accessed through buying investment trusts at prices which
represent higher than average discounts to net asset value.
Share buybacks across the investment trust sector are
currently running at record levels. Total investment trust
buybacks during 2023 amounted to £3.9bn. In the six
months ended June 2024 alone, buybacks reached
£3.7bn. At 30 June 2024, the average discount for
investment companies, excluding 3i Group plc, stood at
15%. During the course of the Year, the Board has pursued
a policy of buybacks in order to limit the volatility of the
discount. The share buyback policy also aligns the views of
the Board with that of shareholders in seeking to maintain
an orderly market in the shares, enhance shareholder
returns by buying shares at a discount and highlighting the
overall value in being able to buy a good quality portfolio
of liquid, readily tradable assets at a discount.
The Company bought back just over 7.0 million shares,
6.3% of the shares outstanding at the beginning of July
2023. This compares to a figure of 4.3% for the previous
year. These shares were bought at an average discount of
8.9%, with a corresponding positive impact on the NAV
total return of 0.6% over the Year. The shares bought back
are kept in Treasury meaning there is the potential for
them to be reissued should the Company return to a
sustained premium to NAV in the future.
The Board monitors the discount level closely and will
again be requesting shareholders’ approval at the AGM to
renew the Company’s buyback and issuance powers. As
at 30 June 2024, there were 104,685,001 (2023:
111,720,001) Ordinary 25p shares in issue with voting
rights and 14,844,531 (2023: 7,809,531) shares held in
Treasury. Between 1 July 2024 and 13 September 2024,
the latest practicable date prior to approval of this Report,
the Company bought back an additional 1,005,021 shares,
resulting in 103,679,980 shares in issue, and a further
15,849,552 shares in Treasury.
Gearing
The Company’s net gearing was 9.1% at 30 June 2024
(2023: 10.3%) and the Board’s policy towards gearing
remained unchanged during the Year. The Company has
in place £100 million of long term borrowings made up of
£40m loan notes redeemable at par in November 2027
and £60 million loan notes redeemable at par in May 2029.
These combined have a weighted interest cost of 3.6%.
Reduction and Simplification of Investment
Management Fees
The Board is pleased to report that it has reached
agreement with the Manager to reduce and simplify its
management fee. The new annual fee structure, back-
dated to the start of the Company’s financial year on 1
July 2024, will be simplified from three tiers to two tiers with
0.35% charged on the first £1.1bn of net assets, falling to
0.25% for net assets above that level. Until 30 June 2024,
the annual management fee was 0.55% of the first £350m
of net assets, 0.45% on net assets from £350m and £450m
and 0.25% on any net assets in excess of £450m. The
Board is confident that this is a competitive fee structure
within the overall investment trust industry. For example, at
its current size of approximately £1bn of net assets, the
annual management fee of the Company would be 0.35%
of net assets under the new basis as compared to 0.375%
on the former basis, equivalent to a reduction of £250,000.
6 Murray Income Trust PLC
Board Composition
Alan Giles, currently Senior Independent Director, has
indicated that he will not seek re-election as a Director at
the forthcoming Annual General Meeting (“AGM”) and will
retire from the Board at the conclusion of the meeting.
Alan was appointed a Director following the merger
between the Company and Perpetual Income and
Growth Investment Trust plc in November 2020. The
Board shall miss Alan’s wise counsel and the considerable
experience of listed companies which he brought to its
deliberations. I, and the Board, wish him well in his
future endeavours.
I am pleased to announce that Stephanie Eastment has
agreed to become the Company’s Senior Independent
Director, replacing Alan, while Nandita Sahgal Tully will
take over from Stephanie as Chair of the Audit
Committee. As referenced in the Half-Yearly Report,
Angus Franklin joined the Board as a non-executive
director in January of this year following the retirement of
previous Chair, Neil Rogan and fellow director, Merryn
Somerset Webb.
The Board has commenced a search for a new Director,
with a view to having someone in situ by the end of this
calendar year or early 2025.
Investment Process
Our Manager’s investment process is best summarised as
a search for good quality companies at attractive
valuations, with the potential for sustainable dividend
growth. The Manager defines a quality company as one
capable of strong and predictable cash generation,
enduring high returns on capital and with attractive
growth opportunities over the longer term. These typically
result from a sound business model, a robust balance
sheet, good management and strong environmental,
social and governance characteristics.
Investment People
abrdn is our appointed investment management
company. Charles Luke has been our lead portfolio
manager since 2006 and works alongside Co-Manager,
Iain Pyle, and Rhona Millar, as members of the Manager’s
39-strong Developed Markets Equities team.
Sustainability and ESG
Sustainability and ESG (environmental, social and
governance) continue to be at the top of UK’s regulatory
agenda. In April of this year, the FCA published its
guidance on new anti-greenwashing rules which aim to
protect consumers by ensuring that sustainable products
and services are accurately described.
Whilst the Company does not have a sustainability
objective and its investment policy does not have specific
sustainability characteristics, ESG analysis is integrated
into the Manager’s investment process. The Board
delegates the management of the portfolio to the
Manager and endorses its approach to integrating ESG
into portfolio construction and investee company
engagement (further details can be found on pages 90
to 93).
Overview
In addition to the significant widening of discounts across
the investment trust sector, we have also witnessed
unprecedented corporate actions and mergers over the
past year with eight transactions completed and two
more announced in 2024 to date. If discounts remain high,
that trend is likely to continue. In some cases the activity is
due to potential corporate buyers seeing the value in the
underlying assets. In some cases, this is due to investment
trust boards, themselves, reviewing their own policies, the
overall trends in their sectors and the scope for greater
liquidity and economies of scale through judicious merger.
On a longer term basis, however, despite all the
turbulence, UK equities have returned 9.6% p.a. over the
past 50 years. Crucially, about 40% of this return has
derived from dividend income – highlighting the genuine
attractions of long term income investing. This is especially
important for shareholders in this Company. There
remains significant demand for a reliable income stream
from many investment trust shareholders, and Murray
Income Trust is well placed to fulfil this with its current yield
of 4.5% and its record of consistent dividend growth over
more than half a century.
It is also the case, as observed by Charles Luke in his report
(see page 8), that UK equities are cheap by international
standards. Whilst few commentators would argue that
there is good value in the UK equity market and in those
investment trusts trading at higher than average
discounts, there is still the question of what might be the
catalyst to unlock that value. I mentioned above the
impact that lower interest rates could have. I also make no
bones about the fact that the UK Government can play a
big role in creating the conditions for making the UK equity
market a more attractive long-term place to invest. There
are many initiatives which can be undertaken. I can report
that I, as Chair of your Company, have written to Tulip
Siddiq, the new Economic Secretary to the Treasury,
urging her to reform the rules governing cost disclosures
for investors. This is a somewhat arcane, technical issue,
but the way in which costs are currently assessed and
disclosed is a big disincentive for investors to invest in
Continued
Chair’s Statement
Murray Income Trust PLC 7
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
investment trusts. Previous governments had promised
reform since 2021, but no action has yet been taken. The
new government can quickly and easily correct this
misleading and discriminatory cost disclosure regime.
I also welcome the steps taken by the Government to
encourage more companies to list on the UK stock
exchange, by making the listing requirements more similar
to those on the European and US stock exchanges. The
new Chancellor, Rachel Reeves, wants to encourage more
investment in British industry. Anything she can do to
make it more attractive to invest in UK listed companies
would be welcome. Given that it is unlikely that the
Government will be pursuing the idea of a separate British
ISA, it would still be worthwhile simplifying the existing
range of different ISAs and an increase in the annual
investment limit to £25,000 would also be welcome.
Encouraging pension funds to invest a certain minimum
percentage of their assets in the UK market might also be
worth considering. Finally, and I realise that this is unlikely
to be top of the Chancellor’s agenda, a commitment to
scrapping the 0.5% stamp duty charge on the purchase of
UK shares would go a long way towards levelling the
playing field against other major equity markets which do
not impose such a charge.
A combination of some or all of these measures, together
with the current relative undervaluation of UK equities
could significantly help to make the UK market the natural
home for many UK investors, particularly income investors,
once again.
These are matters to which I may well return in the future
as I think it important to speak out on issues which could be
of great benefit to our shareholders over the medium to
long term.
Online Shareholder Presentation
The Company will hold an online shareholder presentation
for shareholders and other interested parties at 11.00am
on 17 October 2024. This will feature your Chair and
Investment Manager discussing the outlook for the
Company and answering your questions live. Further
information on how to register for the online shareholder
presentation may be found on the Company’s website at
https://www.murray-income.co.uk/en-gb
Annual General Meeting
The Company will hold its AGM at 12.30 pm on Tuesday 5
November 2024 at Wallacespace Spitalfields, 15 Artillery
Lane, London E1 7HA. One of the advantages of investing
via investment trusts is that all shareholders have the
opportunity to meet their Manager and the Directors at
the AGM. This year’s meeting will commence with a
presentation on the Company and market outlook from
Charles Luke. There will then be the formal part of the
AGM where shareholders can ask questions about the
AGM resolutions and thereafter cast their votes via a poll.
I always welcome questions from our shareholders at the
AGM. Alternatively, shareholders may submit questions
prior to the AGM by sending an email to:
murray.income@abrdn.com.
Shareholders will find enclosed with this Annual Report an
Invitation Card and Form of Proxy for use in relation to the
AGM. Whether or not you propose to attend the AGM,
shareholders are encouraged to complete the Form of
Proxy, for which the latest date of receipt by the registrar
is 12.30pm on 1 November 2024. Completion of a Form of
Proxy does not prevent a shareholder from attending and
voting in person at the AGM.
Shareholders who wish to attend and/or vote at the AGM
and hold their shares via a platform will need to make
arrangements with the administrator of their platform.
Further details on how to attend and vote at company
meetings for holders of shares via platforms can be found
at: www.theaic.co.uk/aic/how-to-vote-your-shares.
Shareholders wishing to attend the AGM and who are
unsure how to register, can email
murray.income@abrdn.com.
Peter Tait
Chair
17 September 2024
8 Murray Income Trust PLC
Background
The UK equity market, as measured by the Benchmark
FTSE All-Share Index, rose by 13.0% on a total return basis
over the Year. Investor sentiment around the timing of
central banks beginning interest rate cutting cycles
continued to be a main driver of market performance.
Optimism that interest rates across major economies had
peaked began to build in November, leading to an equity
market rally at the end of 2023. By the start of the new
calendar year, that optimism wavered as central banks
suggested rate cuts may come later than expected. This
concern was especially prevalent in the UK when
December inflation came in higher than expected, which
led to the UK stock market ending January lower. By
March, central banks in the US, Europe and UK opened the
door for cuts in the near term which was a boost to
markets and continued to lead to positive market
performance through May. Global equities continued their
rise in June, boosted by positive corporate results and
falling inflation figures. US stock indices reached fresh
highs with the technology sector particularly strong and
the potential for Artificial Intelligence (“AI”) driving
sentiment. However, equity indices in the UK and Europe
pulled back against a backdrop of elevated political
uncertainty ahead of July’s elections in the UK and France.
The UK economy fell into a technical recession in the
second half of calendar 2023, when a 0.3% decline in GDP
in the fourth quarter was the second sequential quarter of
negative GDP growth. Since then, there have been signs of
economic improvement in the first half of this calendar
year with GDP expansion of 0.7% and 0.6% in the first and
second quarters, respectively, helped by the strength in
the services sector. The UK’s unemployment rate fell to
4.2% in the three months to the end of June down from
4.4% in the previous quarter. Annual earnings growth,
although above inflation, slowed to the lowest rate in
almost two years in the three months to the end of June.
Inflation continued to decline over the Year, with the
Consumer Prices Index (“CPI”) falling from 6.8% in the
twelve months to July 2023 to the Bank of England’s
(“BoE”) target interest rate of 2% in May 2024, the lowest
level in almost three years albeit subsequently the rate
increased marginally to 2.2% in July.
Commentary from the BoE now anticipates inflation
picking up modestly in the second half of 2024 but interest
rates were cut by 0.25% to 5% in August and we still expect
some further reductions later in the year.
These inflation trends have been similar in the US and the
Eurozone. The US Federal Reserve has held rates flat since
last summer while the European Central Bank began to
cut rates in June. Economic data from the US has
generally continued to be robust but with some recent
signs of moderation in activity growth. Oil prices ended the
Year moderately higher, rising strongly on OPEC
production cuts and following the Israel-Hamas conflict,
before falling back on concerns about slowing global
growth and OPEC plans to unwind some production cuts
in the second half of 2024.
Within the UK market, the more domestically focused
FTSE 250 Index slightly outperformed the larger and more
internationally exposed companies in the FTSE 100 Index.
From a factor perspective, broadly-speaking, ‘Value’
stocks outperformed while the ‘Growth’ and ‘Quality’
factors underperformed, on a relative basis.
Most sectors of the UK equity market delivered a positive
total return over the Year. The financials sector performed
particularly strongly benefiting from the prospect of
interest rates remaining higher for longer. Although a
relatively small sector in the UK market, the technology
sector displayed another year of strong performance
mostly for individual stock specific reasons. In a
continuation of the trend seen in the prior year, some of
the more defensive areas of the market such as
consumer staples, utilities and healthcare lagged the
performance of a number of the more cyclical,
economically sensitive areas of the market such as the
industrials, energy and real estate sectors.
Investment Mana
g
er’s Report
Murray Income Trust PLC 9
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Performance Attribution for the
year ended 30 June 2024
%
NAV per share total return (with debt at fair value)
+9.9
FTSE All- Share Index total return
+13.0
Relative return
-3.1
Relative return
Stock selection
Energy
-0.3
Basic Materials
-0.4
Industrials
-2.4
Health Care
+0.1
Consumer Staples
-0.6
Consumer Discretionary
+1.7
Telecommunications
+0.3
Utilities
-0.3
Technology
-0.1
Financials
-0.6
Real Estate
-0.4
Total stock selection (equities)
-3.0
Asset allocation (equities)
Energy
-0.3
Industrials
+0.5
Health Care
-0.1
Consumer Staples
+0.3
Utilities
-0.2
Technology
+0.4
Financials
-0.1
Total asset allocation (equities)
0.5
Management fees
-0.4
Administrative expenses
-0.2
Cash and Options
-0.4
Tax
-0.2
Gearing – finance costs
+0.6
Difference between fair value and par value returns
-0.8
Share buybacks
+0.6
Residual effect
+0.2
Total
-3.1
Notes: Stock Selection - measures the effect of equity selection relative to the
benchmark. Asset allocation – measures the impact of over or underweighting
each industry basket in the equity portfolio, relative to the benchmark weights.
Cash & options effect – measures the impact on relative returns of these
categories. Gearing – measures the impact on relative returns of net
borrowings. Management fees, administrative expenses and tax – these reduce
total assets and therefore reduce performance. Source - abrdn.
Performance
The Company generated a positive Net Asset Value per
share total return of 9.9% for the Year (based on debt at
fair value) underperforming the benchmark FTSE All-
Share Index which returned 13.0%. On a total return basis,
the Company’s share price increased by 7.6%, reflecting a
widening of the discount to Net Asset Value (debt at fair
value) at which the shares traded from 8.2 to 10.5% by
30 June 2024.
Our investment process encompasses a patient buy and
hold approach and longer term returns also remain
positive when comparing the Net Asset Value (based on
debt at fair value) to the Benchmark over five years, with
the Net Asset Value per share (based on debt at fair value,
annualised) outperforming the FTSE All-Share Index by
0.2%. On the other hand, the Share Price has
underperformed the Benchmark over five years by
approximately 0.9% (annualised) on a total return basis as
the discount to NAV has widened. The widening of
discounts has been a relatively common theme within the
investment trust sector.
In absolute terms, taking account of the £60m of senior
secured fixed rate notes 2029, £40m of senior secured
fixed rate notes 2027, as well as approximately £6m
drawn down from an unsecured multi-currency revolving
credit loan facility agreement with The Bank of Nova
Scotia Limited, debt was £114m at the end of the Year. Net
gearing was 9.1% at the end of the Year as compared to
10.3% at the end of the prior year.
Performance benefited from good stock selection in the
consumer discretionary and telecommunications sectors
and the overweight exposure to the industrials and
technology sectors. This was offset by negative stock
selection in the industrials, financials and consumer
staples sectors.
Turning to the individual holdings, the positions in Novo
Nordisk and Intermediate Capital generated the greatest
stock level outperformance, delivering 82% and 58% share
price increases respectively. Not holding Reckitt Benckiser
which is a constituent of the benchmark index also
contributed positively to relative performance. As has
been a theme in the UK market in recent years, corporate
and takeover activity has been elevated. Of the holdings in
the portfolio, during the year, Anglo American and Direct
Line rejected approaches at a premium to the level at
which the shares had been trading prior to the approach.
10 Murray Income Trust PLC
The holding in Close Brothers detracted most from relative
performance as its shares fell heavily when the FCA
launched a review of motor finance practices in the
industry. The company subsequently decided to suspend
its dividend to conserve capital in anticipation of potential
customer redress. Non-held Rolls Royce (which did not
return to the dividend list during the Year) and Shell (where
we prefer BP and TotalEnergies) also had a negative
impact on relative return over the Year.
Portfolio Activity and Structure
Turnover of approximately 18% was the same as the prior
year. The pattern of trades reflected the ongoing desire to
improve, where possible, the quality of the portfolio and
maintaining the focus on attractive capital and dividend
growth. Active share (the proportion of the portfolio that
differs from the benchmark) remained stable and was
67% at the end of the year.
The portfolio added nine new holdings in the Year. Four of
these, HSBC, Haleon, Berkeley Group, and Smurfit Kappa
are UK large-cap company introductions. HSBC, the
international banking and financial services company, has
an attractive dividend yield and we see the bank as a
relatively higher quality company in the sector. Haleon,
was previously the consumer healthcare division of GSK
before being demerged as a standalone company in July
2022. The company has strong brands benefitting from
long-term growth drivers. Berkeley Group is a UK
housebuilder focused on urban regeneration
developments primarily in London and the South East. We
view the company as higher quality than the wider
housebuilding sector, with less cyclical exposure and a
stronger balance sheet. Smurfit Kappa, the provider of
paper-based packaging solutions, was added to the
portfolio following the company’s proposed acquisition of
WestRock which creates synergy opportunities and
positions the company as a global leader in the sector.
There was one UK mid-cap addition to the portfolio in the
Year. Rotork is a leading global actuator business with
strong quality characteristics and under-appreciated
growth opportunities. Drivers of growth include their
electric actuator product which is used to reduce
methane emissions in the Oil & Gas sector, which is
increasingly a priority as the industry looks to meet
emission reduction targets. A new position was also
initiated in Coca-Cola Europacific Partners (“CCEP”), which
trades at an attractive valuation and gives exposure to a
number of high quality consumer brands. CCEP is our
preferred Coca-Cola bottler and the holding in Coca-
Cola HBC was subsequently sold after the Year end.
The Company can invest up to 20% of gross assets in
overseas listed companies. This has three main benefits:
firstly, to provide access to industries not available to UK-
only investors; secondly, to diversify risk in concentrated
sectors in the UK market; and thirdly, to enable investment
in better quality proxies of UK listed companies. During the
year, three overseas holdings were added to the portfolio,
as we focused more acutely on gaining access to
industries not available to UK-only investors. The first
purchase was US-listed Mastercard, which we see as
having attractive quality characteristics, including strong
competitive positioning and high barriers to entry, as well
as having multiple long-term growth opportunities. The
second was a new position in vehicle manufacturer
Mercedes-Benz. The German-listed company has
improving quality characteristics through an increasing
focus on its luxury brands as well as an attractive dividend
yield and valuation. A new position was also started in Air
Liquide, the French-listed industrial gases supplier, which is
a high quality company with long term tailwinds from the
UK energy transition.
We increased exposure to several of our existing holdings
which we believe possess high quality characteristics and
attractive growth prospects at appealing valuations
including Convatec, L’Oréal, London Stock Exchange Group
,
National Grid, Oxford Instruments, Oversea-Chinese
Banking Corp, Rentokil Initial, RS Group, and Safestore.
Nine holdings were sold during the Year, primarily
reflecting either weakening conviction in the investment
case or to reflect changes in relative preferences within a
sector. Four exits fell into the first category: Croda, where
our conviction in the long-term strategy deteriorated,
while the valuation remained high; Marshalls, where we
had concerns around the trading environment and
potential implications for the company’s balance sheet;
Drax, due to increasing uncertainty around the long-term
business model; and Roche was exited due to concerns
about the outlook for the productivity of the company’s
Research & Development function. Five stocks were exited
which were replaced by new additions in the same sector.
For example, in the banking sector the position in Standard
Chartered was exited reflecting the relative preference for
new holding HBSC. In the paper & packaging sector the
position in Mondi was exited and replaced by Smurfit
Kappa while in the consumer staples sector Nestlé was
exited with proceeds re-invested in UK-listed Haleon in
order to optimise the use of the overseas-listed budget.
The holding in Smith & Nephew was sold given the
company’s challenged competitive position in
orthopaedics while we prefer other stocks in the sector,
namely Convatec. In the housebuilding sector, Berkeley
Investment Mana
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Murray Income Trust PLC 11
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Group replaced the holding in Vistry which was exited
following strong share price performance and a view that
dividend payments were less likely, with the company
instead favouring buybacks.
In addition, we reduced the exposure to a number of
holdings where we have higher conviction in other names
in their respective sectors or to manage position sizes in
the portfolio. Positions in stocks including Anglo American,
AstraZeneca, Close Brothers, Coca-Cola HBC, Direct Line,
Hiscox, Howden Joinery, Intermediate Capital, Relx, Total
Energies, Unilever, and VAT Group were trimmed.
Overall, the net effect of the purchases and sales has
been to maintain the number of holdings at 52. However,
given that the Company also bought back 6.3% of the
Company’s shares in issue during the Year, there was net
selling in the portfolio.
We continued our measured option-writing programme
which is based on our fundamental analysis of the
holdings in the portfolio. The option-writing strategy has
been of benefit to the Company by diversifying and
increasing the level of income generated. It also provides
headroom to invest in companies with lower starting yields
but better dividend and capital growth prospects. Income
from writing options of £2.8m represented 6.5% of total
income earned in the Year which compared to 5.6% in the
prior year.
Our aspiration in terms of portfolio construction is simple:
to invest in good quality companies with attractive growth
prospects through a sensibly diversified portfolio with
appealing dividend characteristics. Furthermore, the
ability to invest up to 20% of gross assets overseas is
helpful in achieving these aims with 13 overseas-listed
companies in the portfolio at the period end representing
approximately 20% of gross assets.
Portfolio Engagement
Whilst the Company does not have a sustainability
objective, ESG is integrated into the investment process.
For example, our company research analyses the risk and
opportunities that ESG factors may contribute to the
investment case. We also put significant effort into
engagement with the companies in the portfolio to ensure
that they are run in the Company’s best interests.
Examples of this engagement during the Year included
issues such as board composition, executive
remuneration, capital allocation, mergers and acquisitions
activity, and risk management (including issues such as
climate change, regulatory risk, and managing succession
planning). We pursued these issues through meetings with
the executive management of the companies as well as
with the non-executive directors, particularly the chairs of
the board and remuneration committees. In addition, a
significant aspect of the governance work that we carry
out is manifested in our proxy voting activities where we
employ a proprietary lens rather than simply relying on
proxy voting agencies. MSCI independently rated the
Company’s portfolio as “AA” for its ESG characteristics.
An example of a typical engagement is our dialogue with
RS Group to better understand the company’s exposure to
rising logistics costs due to the need to decarbonise
transport and increasing carbon taxes. We were
encouraged to learn about the company’s programme to
optimise its supply chain, including sourcing, storing and
shipping more products regionally and locally. This
programme is complex but should improve customer
services, reduce costs and ultimately lower emissions, as
seen in the company’s recent reductions in Scope 3
emissions from downstream transport logistics. We also
discussed actions taken by the company to benefit from
growth in low-carbon transition industries and to offer
customers products with lower emissions footprints.
Overall, it appears early days for RS Group in terms of
generating additional revenues from the energy transition
but we take comfort from the company’s measures to
respond to customers’ increasing demands for more
sustainable products with better traceability as well as its
success in establishing relationships with new customer
bases, such as in UK offshore wind. As next steps, we
encouraged the company (where feasible) to expand its
disclosures over time on progress made in pursuing
these initiatives.
Income
For the Year, the Company witnessed a decrease in the
level of earnings per share due to a number of different
factors. Firstly, dividend growth across the UK equity
market as a whole has been limited as companies
increasingly prefer to return capital through share
buybacks rather than pursuing ordinary dividend growth
or special dividends. This is positive in the sense that it
indicates that companies believe that their shares are
attractively valued but unhelpful from an income
perspective. For the first time in many years no special
dividends were included in income from investments.
Secondly, income generation was affected by the
suspension of Close Brothers’ dividend and a reduced
Direct Line dividend. We expect Close Brothers to return to
the dividend list once the FCA’s motor finance review has
concluded. Direct Line is likely to significantly increase its
dividend over the medium term. Finally, dividends from the
mining sector again declined following the elevated levels
of the prior couple of years.
12 Murray Income Trust PLC
The Company’s earnings per share decreased by 3.4%
from 38.7p to 37.4p. Paying a full year dividend of 38.5p per
share will result in £0.6m being drawn from the Company’s
revenue reserves. Revenue reserves carried forward thus
represent 55% of the full year dividend, based on the latest
available number of ordinary shares in issue (excluding
treasury shares). The ability to call on revenue reserves is
a clear benefit of the investment trust structure.
We view the portfolio’s exposure to attractive and
enduring earnings trends as providing the potential for
appealing income growth over the long term.
Outlook
The portfolio is aligned to compelling long-term trends
such as an ageing population, the increasing wealth of the
middle class, the digital transformation and energy
transition. We identify and invest in high quality companies
capable of delivering appealing long term earnings and
dividend growth at a relatively modest aggregate
valuation. These companies demonstrate high returns on
capital, pricing power, attractive margins and strong
balance sheets. We also believe a focus on quality
companies should provide both earnings resilience and
less volatility which are helpful in underpinning the
portfolio’s income generation.
We expect the trajectory of inflation data and the
associated path of monetary policy will continue to
influence markets over the next year. Recent data points,
particularly relating to the labour market, have brought
into question the extent to which the US economy will
achieve a 'soft landing' but our economists still believe this
to be the case. We expect the rate cutting cycles that
have been started by the BoE and ECB to continue with
the Federal Reserve reducing rates imminently. Political
risk remains elevated through 2024 with the US election in
November, while following the election of a Labour
government in the UK in July we do not expect significant
changes to the growth outlook in the near-term but policy
could increase growth potential in the longer-term
.
Many of the valuation characteristics highlighted last year
remain in place. Although perhaps a little less so than 12
months ago, the valuations of UK-listed companies still
remain attractive on a relative and absolute basis.
Investors are benefitting from global income at a
discounted valuation. Moreover, the dividend yield of the
UK market remains at an appealing premium to other
regional equity markets.
Perhaps, unlike last year, the political environment in the
UK feels more settled which may encourage overseas
investors to look at the UK market with greater confidence.
In summary, we feel optimistic that our long-term focus on
investments in high quality companies with robust
competitive positions and strong balance sheets, which
are led by experienced management teams will be
capable of delivering premium earnings and
dividend growth.
Charles Luke
Senior Investment Director
abrdn Investments Limited
17 September 2024
Investment Mana
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Continued
Murray Income Trust PLC 13
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Performance (total return, including reinvested dividends)
1 year return 3 year return 5 year return 10 year return
% % % %
Share price
A
+7.6 +12.1 +25.1 +70.4
Net asset value per Ordinary share (debt at fair value)
A
+9.9 +15.5 +32.1 +79.1
Net asset value per Ordinary share (debt at par value)
A
+10.8 +14.4 +30.5 +77.1
Benchmark
B
+13.0 +23.9 +30.9 +77.8
A
Considered to be an Alternative Performance Measure. Further details can be found on page 102.
B
FTSE All-Share Index.
Source: abrdn & Morningstar
Ten Year Financial Record
Year end 30 June 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Income (£’000) 25,476 24,838 26,667 25,987 25,597 22,804 35,979 51,018 48,879 43,899
Shareholders’ funds (£’000) 515,888 515,036 576,462 570,929 587,150 534,361 1,093,859 1,009,255 999,184 990,282
Per Ordinary share (p)
Net revenue return 33.1 32.0 34.9 33.6 34.9 30.5 33.7 40.5 38.7 37.4
Dividends
A
32.00 32.25 32.75 33.25 34.00 34.25 34.50 36.00 37.50 38.50
Net asset value (capital only) 757.1 766.5 860.1 856.3 888.1 808.3 934.6 864.9 894.4 946.0
A
The figures for dividends per share reflect the years to which their declaration relates and not the years they were paid.
Performance
14 Murray Income Trust PLC
Total Return of NAV and Share Price vs FTSE All-Share Index
Five years ended 30 June 2024 (rebased to 100 at 30 June 2019)
60
70
80
90
100
110
120
130
140
30/06/19 30/06/20 30/06/21 30/06/22 30/06/23 30/06/24
Source: Morningstar & Factset
FTSE All Share Index
Share Price
NAV (debt at fair value)
NAV (debt at par)
Share Price Discount to NAV with debt at fair value
Five years ended 30 June 2024
-12%
-10%
-8%
-6%
-4%
-2%
0%
30/06/2019 30/06/2020 30/06/2021 30/06/2022 30/06/2023 30/06/2024
Source: abrdn & Morningstar
Performance
Continued
Murray Income Trust PLC 15
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Financial Highlights
30 June 2024 30 June 2023 % change
Shareholders’ funds (£’000) 990,282 999,184 –0.9
Net asset value (“NAV”) per Ordinary share – debt at fair value
A
957.9p 911.7p +5.1
Net asset value per Ordinary share – debt at par 946.0p 894.4p +5.8
Market capitalisation (£’000) 897,150 935,096 –4.1
Share price of Ordinary share 857.0p 837.0p +2.4
Discount to net asset value on Ordinary shares – debt at fair value
A
10.5% 8.2%
Discount to net asset value on Ordinary shares – debt at par
A
9.4% 6.4%
Gearing (ratio of borrowing to shareholders’ funds)
Net gearing
A
9.1% 10.3%
Dividends and earnings
Revenue return per share 37.4p 38.7p –3.4
Dividends per share
B
38.50p 37.50p +2.7
Dividend cover
A
0.97 times 1.03 times
Dividend yield
A
4.5% 4.5%
Revenue reserves (£’000)
Prior to payment of fourth interim dividend
C
32,403 36,664
After payment of fourth interim dividend 21,975 22,576
Operating costs
Ongoing charges ratio
A
0.50% 0.50%
A
Considered to be an Alternative Performance Measure. Further details can be found on pages 100 to 102.
B
The figures for dividends per share reflect the years in which they were earned (see note 7).
C
Per the Statement of Financial Position on page 65.
Dividends
Rate XD date Record date Payment date
First interim 9.50p 16 Nov 2023 17 Nov 2023 14 Dec 2023
Second interim 9.50p 15 Feb 2024 16 Feb 2024 14 Mar 2024
Third interim 9.50p 16 May 2024 17 May 2024 13 Jun 2024
Fourth interim 10.00p 15 Aug 2024 16 Aug 2024 12 Sep 2024
Total dividends 38.50p
Financial Hi
g
hli
g
hts and Dividends
16 Murray Income Trust PLC
Business Model
Murray Income Trust PLC (the “Company”) is an
investment trust whose Ordinary shares are listed on the
London Stock Exchange.
The Company is governed by a Board of Directors (the
“Board”), all of whom are non-executive, and has no
employees. The Board is responsible for determining the
Company’s investment objective and investment policy.
Like other investment companies, the day-to-day
investment management and administration of the
Company is outsourced by the Board to an investment
management group, abrdn, and other third party
providers. The Company has appointed abrdn Fund
Managers Limited (the “Manager”) as its alternative
investment fund manager, which has in turn delegated
certain functions, including administration of the
investment policy, to abrdn Investments Limited. The
Manager has delegated the company secretarial function
to abrdn Holdings Limited.
The Company complies with Section 1158 of the
Corporation Tax Act 2010 which permits the Company to
operate as an investment trust.
Investment Objective
The Company aims for a high and growing income
combined with capital growth through investment in a
portfolio principally of UK equities.
Investment Policy
In pursuit of the Company’s investment objective, the
Company’s investment policy is to invest in the shares of
companies that have potential for real earnings and
dividend growth, while at the same time providing an
above-average portfolio yield. The emphasis is on the
management of risk and on the absolute return and yield
from the portfolio as a whole rather than the individual
companies which the Company invests in, which is
achieved by ensuring an appropriate diversification of
stocks and sectors within the portfolio, with a high
proportion of assets in strong, well-researched companies.
The Company makes use of borrowing facilities to enhance
shareholder returns when appropriate.
Delivering the Investment Policy
The Company maintains a diversified portfolio of the
equity securities of UK and overseas companies with an
emphasis on investing in quality companies with good
management, strong cash flow, a sound balance sheet
and which are generating a reliable earnings stream.
The Investment Manager follows a bottom-up investment
process based on a disciplined evaluation of companies,
including through direct visits by its fund managers. Stock
selection is the major source of added value,
concentrating on quality first, then price. Top-down
investment factors are secondary in the Investment
Manager’s portfolio construction with diversification rather
than formal controls guiding stock and sector weights.
Board Investment Limits
The Board sets additional investment guidelines within
which the Investment Manager must operate :
· the portfolio typically comprises between 40 and 70
holdings (but without restricting the Company from
holding a more or less concentrated portfolio from time
to time);
· the Company may invest up to 100% of its gross assets
in UK-listed equities and other securities and is permitted
to invest up to 20% of its gross assets in other overseas-
listed equities and securities;
· the Investment Manager may invest in any market
sector, however, the top five holdings may not exceed
40% of the total value of the portfolio and the top three
sectors represented in the portfolio may not exceed
50%; and
· the Company may invest no more than 15% of its gross
assets in other listed investment companies (including
investment trusts).
The Company may use derivatives for the purpose of
enhancing portfolio returns and for hedging purposes in a
manner consistent with the Company’s broader
investment policy. The Investment Manager is permitted
to invest in options and in structured products, provided
that any structured product issued in the form of a note or
bond has a minimum credit rating of “A”.
Gearing
The Board is responsible for setting the gearing policy of
the Company and for the limits on gearing. The Manager
is responsible for gearing within the limits set by the Board.
The Board has set its gearing limit at a maximum of 25% of
NAV at the time of draw down. Gearing - borrowing
money - is used selectively to leverage the Company’s
portfolio in order to enhance returns where this is
considered appropriate. Particular care is taken to ensure
that any financial covenants permit maximum flexibility of
investment policy. Significant changes to gearing levels
are communicated to shareholders.
Overview of Strate
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Murray Income Trust PLC 17
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Key Performance Indicators
At each Board meeting, the Directors consider a number of Key Performance Indicators (“KPIs”) to assess the Company’s
success in achieving its objectives. These KPIs are described below, with those also categorised as Alternative Performance
Measures marked with an asterisk (see also pages 100 to 102) and noting that NAV is calculated with debt at fair value:
KPI Description
NAV (total return) * relative to
the Company’s benchmark
The Board considers the Company’s NAV (total return), relative to the FTSE All-Share Index, to be the
best indicator of performance over different time periods. A graph showing NAV total return over
the past five years. as compared to the FTSE All-Share Index is shown on page 14.
Share price (total return) * The Board monitors share price performance relative to open-ended and closed-ended competitor
products, taking account of differing investment objectives and policies pursued by those products.
The figures for share price (total return) for the Year and for the past three, five and ten years, as
well as for the NAV (total return) per share, are shown on page 13. A graph showing share price total
return performance against the FTSE All-Share Index over the past five years is shown on page 14.
Discount/premium to NAV * The discount/premium at which the Company’s share price trades relative to the NAV per share is
closely monitored by the Board. A graph showing the discount/premium over the last five years is
shown on page 14.
Earnings and dividends
per share
The Board aims to meet the ‘high and growing’ element of the Company’s investment objective by
developing revenue reserves sufficient to support the payment of a growing dividend; figures may
be found in Financial Highlights and Dividends on page 15 in respect of earnings and dividends per
share, together with the level of revenue reserves, for the Year and previous year.
Ongoing charges* The Board monitors the Company’s operating costs and their composition with a view to limiting
increases wherever possible. Ongoing charges are disclosed on page 15 for the Year and the
previous year and include look through costs.
Principal Risks and Uncertainties
There are a number of risks and uncertainties which, if
realised, could have a material adverse effect on the
Company’s business model, future performance and
solvency. The Board, through the Audit Committee, has
put in place a robust process to identify, assess and
monitor these by means of a risk assessment and internal
controls system. This system was reviewed during the
year, as explained in the Audit Committee Report on
pages 51 and 52. As noted therein, the Audit Committee
has a risk register and uses a post-mitigation heat risk
map to identify principal, and emerging, risks.
Macroeconomic and geopolitical uncertainty continues as
a significant risk. However, factors creating this uncertainty
have changed, both during the Year and subsequently. For
example, the uncertainty created by the increase in global
armed conflict versus the de-risking from lower inflation
and interest rates. Accordingly, the Board considers that the
risk ratings arising from these factors remain at a
heightened level, consistent with the last two years. The
Board does not consider that, overall, the principal risks and
uncertainties identified have changed materially during the
Year. The Audit Committee and the Board both consider
emerging risks as part of their normal review of factors
which could affect the Company, both in the short and
longer term. For example, negative climate change
impacts, the potential escalation of military conflicts and
the unknown outcome of the US presidential election in
later 2024, form part of the Directors’ assessment, with
input from the Manager and broker.
18 Murray Income Trust PLC
The following table sets out the Company’s principal risks and uncertainties and the Company’s mitigating actions and
comments if the post-mitigation risk assessment has changed, together with the reason why.
Principal Risk Mitigating Action
STRATEGIC AND MARKET
The Company’s investment objective and policy are no longer
meeting investors’ requirements (unchanged)
Lack of a robust strategic review, failure to understand the
market/investor demand. Failure to analyse and react to
changes or uncertainty, unclear dividend policy.
The Company's investment objective and policy (“IOP”) are
reviewed regularly by the Board to ensure they remain
appropriate and effective. The Board holds an annual strategy
meeting at which strategy and approach is reviewed; this
includes consideration of distributions; both dividends and
share buybacks.
Discount control risk (increased)
Investment trust shares tend to trade at discounts to their
underlying NAVs, although they can also trade at premium.
Discounts and premiums can fluctuate considerably leading to
more volatile returns for shareholders.
Significant share buybacks could lead to the shrinkage of the
Company, with implications for the liquidity of its shares and
potentially reduced attractiveness for investors.
The Board monitors the discount at which the Company’s
shares trade, including comparison with peer group discounts,
and will buyback or issue shares to try to minimise the impact of
any discount or premium volatility. Whilst these measures seek
to reduce volatility, they are not guaranteed to do this.
The Board has assessed the discount control risk as increased
due to the higher discount at which the Company's shares
traded during the year.
Market risk (unchanged)
Market risk arises from the volatility in prices of the Company’s
investments and the potential loss the Company could suffer
through realising investments following negative market
movements.
Changes in general economic or market conditions (such as
interest rates, exchange rates and rates of inflations) as well as
global political events and trends, could substantially and
adversely affect the prices of securities and, as a consequence,
the value of the Company’s investment portfolio, its prospects
and share price.
Current heightened risks arise from factors such as the increase
in global armed conflict and the possible recession in the US.
Conversely, the recent UK general election result has reduced
uncertainty in the UK to which financial markets have responded
positively. The longer term emergence of the effects on
investee companies of climate change, and the regulatory
environment around this, presents a further risk.
The Company’s investment policy and its approach to risk
diversification may be found on page 16, both of which serve to
mitigate the effect of market risk on the portfolio. The Board
considers the diversification of the portfolio, asset allocation,
stock selection and levels of gearing on a regular basis. The
Board also monitors the Company’s relative performance as
compared to peers and the Company’s benchmark.
The Board assesses climate change as an emerging risk in terms
of how it develops, including how investor sentiment is evolving
towards climate change within investment portfolios, and will
consider how the Company may mitigate this risk, any other
emerging risks, if and when they become material.
The Board engages with the Manager, at each Board meeting,
to understand how climate change and environmental factors
are being assessed . Both are key considerations within the
Manager’s investment process.
During the Year, the Board evaluated market risk as elevated
due to the limit on the Company’s ability to mitigate the effect of
external factors.
Overview of Strate
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Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Gearing risk (unchanged)
The Company uses both long term and short term borrowings
to increase the funds available for investment. These
arrangements increase the funds available for investment.
While this has the potential to enhance investment returns
in rising markets, in falling markets the impact could
be detrimental.
The Company's three year £50m facility matures on 27 October
2024. There is the risk that the Company is not able to find short
term borrowings of an amount required (which can be less than
the full £50 million) to repay the current short term borrowings.
Gearing is monitored and strict restrictions on borrowings are
imposed: gearing continues to operate within pre-agreed limits
so as not to exceed 25% of NAV at the time of draw down.
The Board, via the Manager, is in advanced discussions with
several third parties for the provision of a new short term
borrowing facility and will provide an update to shareholders
following formal agreement of terms. Given the advanced
nature of discussions, the Board has a reasonable expectation
that any new funding will be available of an amount and at a
rate acceptable to both the Board and the Manager.
INVESTMENT MANAGEMENT
Underperformance risk (unchanged)
Consistent underperformance by the Investment Manager over
short, medium and long term.
The Investment Manager’s style may result in the portfolio being
significantly over or under weight positions in stocks and sectors
compared to the benchmark and the Company’s performance
may deviate significantly from that of the benchmark and peers,
possibly for extended periods.
The Board evaluates performance at each board meeting on
both an absolute and relative basis, against the Company’s
benchmark and peers, and across various periods: short,
medium and long term. Performance is also reviewed at the
annual strategy meeting.
The Company has a set of investment limits and Board
guidelines which ensure diversification of the portfolio.
Risk of loss of key staff (unchanged)
Loss of key staff though natural loss, or Manager reorganisation
and/or redundancy. Loss of investor confidence if lead
manager lost.
Charles Luke has been the lead portfolio manager for the
Company since 2006. His co-manager is Iain Pyle who has been
with the Manager since 2015, and Rhona Millar, with seven years’
experience, also works alongside them. All work within the
Manager’s 39-strong Developed Markets Equities team.
MARKETING
General marketing risk (unchanged)
Failure to implement the Board’s marketing policy. Failure to
address shareholder concerns or complaints.
Issues could arise from the lack of process ownership, poor
procedures or the failure to appropriately manage distribution,
concerns or complaints of shareholders. The Board is working
with the Manager to optimise the effectiveness of marketing
undertaken on behalf of the Company.
The Manager’s investor relations team works closely with the
Board on institutional shareholder contact. In addition, quarterly
updates are provided to the Board by the broker. All
correspondence addressed to the Board is circulated to
Directors while any complaints relating to the Company’s
savings plans are reviewed by the Board quarterly.
20 Murray Income Trust PLC
Overview of Strate
g
y
Continued
OPERATIONAL
Service provider risk (unchanged)
In common with most other investment companies, the
Company relies on the services provided by third parties and is
dependent on the control systems of the Manager (who acts as
investment manager, company secretary and maintains the
Company’s assets, dealing procedures and accounting
records); BNP Paribas SA, London Branch (who acts as
Depositary and Custodian); and the registrar. The security of
the Company’s assets, dealing procedures, accounting records
and adherence to regulatory and legal requirements depend
on the effective operation of the systems of these third party
service providers.
Failure by any service provider to carry out its obligations could
have a material adverse effect on the Company’s performance.
Disruption, including that caused by information technology
breakdown or a cyber-related issue, could prevent, for example,
the functioning of the Company; accurate reporting to the
Board or shareholders; or payment of dividends in accordance
with the announced timetable.
Contracts with third party providers are entered into after
appropriate due diligence. Thereafter the performance of each
provider is subject to an annual review by the Audit Committee.
The Depositary reports to the Audit Committee at least
annually, including on the Company’s compliance with AIFMD.
The Manager also regularly reviews the performance of
the Depositary.
Global assurance reports are obtained from the Manager, BNP
Paribas SA, London Branch and the registrar. These are
reviewed by the Audit Committee. The reports include an
independent assessment of the effectiveness of risks and
internal controls at the service providers including their planning
for business continuity and disaster recovery scenarios, together
with their policies and procedures designed to address the risks
posed to the Company’s operations by cyber-crime. The Audit
Committee receives an annual update on the Manager’s
IT resilience.
The Company’s assets are subject to a strict liability regime and,
in the event of a loss of assets, the Depositary must return assets
of an identical type or the corresponding amount, unless able to
demonstrate the loss was a result of an event beyond its
reasonable control.
The Board has assessed the risk posed by cyber-crime as
elevated, despite the available mitigation, reflecting the potential
disruption which might be caused to the Company’s operations
by a cyber-attack.
REGULATORY
Regulatory risk (including change of existing rules and regulation)
(increased)
The Company is required to comply with relevant rules and
regulations. Failure to do so could result in loss of investment
trust status, fines, suspension of the Company’s shares, criminal
proceedings or financial or reputational damage.
New rules introduced during the year included those relating to
Consumer Duty and reporting around sustainability. The Board
has assessed the regulatory risk as marginally increased due to
the number and complexity of these new rules and regulations
which are not necessarily specific to investment companies but
which, due to their application to the Manager, could have a
negative impact on the reputation of the Company were there
to be any lack of compliance by the Manager.
The Manager provides investment, company secretarial,
administration and accounting services through qualified third
party professional providers.
The Board receives regular reports from its Manager and
briefings from its broker, auditor and the industry trade body
(the Association of Investment Companies (“AIC”)) on changes
to regulations which could impact the Company and its industry.
Murray Income Trust PLC 21
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
The following are other risks identified by the Board which could have a major impact on the Company but due to
mitigation are not deemed to be principal risks:
Other Risks Mitigating Action
Dividend risk
There is a risk that the Company fails to generate sufficient
income from its investment portfolio to meet the Company’s
dividend requirements.
A cut in the dividend of the Company would likely cause a
drop in the share price and would end the Company’s
“Dividend Hero” status.
The Board reviews estimates of revenue income and
expenditure prepared by the Manager, which look forward up to
five years.
The Company’s level of revenue reserves is monitored and can
be added to in years of surplus, or used to support the dividend in
years where there is a revenue deficit. Dividends can also be
paid from capital, though use of capital reserves for dividends is
expected to be rare.
Financial risk
The Company’s investment activities expose it to a variety of
financial risks which include market risk (which is identified as a
principal risk and is covered earlier in this section on page 18),
liquidity risk and credit risk (including counterparty risk).
Details of these risks and the policies and procedures for their
monitoring and mitigation are disclosed earlier in this section
and in note 18.
Emerging risk
Failure to have in place procedures that assist in identifying
emerging risks. This may cause reactive actions rather than
being pro-active and, in the worst case, could cause the
Company to become unviable or otherwise fail.
The Board regularly reviews all risks to the Company, including
emerging risks, which are identified by a variety of means,
including advice from AIC, the Company’s professional advisors,
Directors’ knowledge of markets, changes and events.
The principal risks associated with an investment in the Company’s shares can be found in the pre-investment disclosure
document (“PIDD”) published by the Manager, which is available from the Company’s website: murray-income.co.uk.
Promotional Activities
The Board recognises the importance of promoting the
Company to existing and prospective investors both for
improving liquidity and enhancing the rating of the
Company’s shares. The Board believes one effective way
to achieve this is through subscription to, and participation
in, the promotional programme run by the Manager on
behalf of a number of investment trusts under its
management. The Company also supports the Manager’s
investor relations programme which involves regional
roadshows, promotional and public relations campaigns.
The Manager’s promotional and investor relations teams
report to the Board on a quarterly basis giving analysis of
their activities as well as updates on the shareholder
register and any changes in the make-up of that register.
Communicating the long-term attractions of the
Company is key. The promotional programme includes
commissioning independent paid for research on the
Company, most recently from Edison Investment
Research Limited; a copy may be found on the
Company's website.
The UK Stewardship Code and Proxy Voting
The Company supports the UK Stewardship Code 2020,
and seeks to play its role in supporting good stewardship
of the companies in which it invests. Responsibility for
actively monitoring the activities of portfolio companies
has been delegated by the Board to the Manager.
The Manager is a tier 1 signatory of the UK Stewardship
Code 2020 which aims to enhance the quality of
engagement by investors with investee companies in
order to improve their socially responsible performance
and the long term investment return to shareholders. The
Manager’s Annual Stewardship Report for 2023 may be
found at abrdn.com. While delivery of stewardship
activities has been delegated to the Manager, the Board
acknowledges its role in setting the tone for the effective
delivery of stewardship on the Company’s behalf.
22 Murray Income Trust PLC
The Board has also given discretionary powers to the
Manager to exercise voting rights on resolutions proposed
by the investee companies within the Company’s portfolio.
The Manager reports to the Board on a six monthly basis
on stewardship (including voting) issues and additional
information may be found on page 94.
Global Greenhouse Gas Emissions and
Streamlined Energy and Carbon Reporting
(“SECR”)
All of the Company’s activities are outsourced to third
parties. The Company therefore has no greenhouse gas
emissions to report from the operations of its business, nor
does it have responsibility for any other emissions
producing sources under the Companies Act 2006
(Strategic Report and Directors’ Reports) Regulations
2013. For the same reason as set out above, the
Company considers itself to be a low energy user under
the SECR regulations and therefore is not required to
disclose energy and carbon information. Further
information on the Manager’s obligatory disclosures under
the Taskforce on Climate-related Financial Disclosures
(“TCFD”) may be found on the Company’s website.
Viability Statement
The Company does not have a fixed period strategic plan
but the Board does formally consider risks and strategy on
at least an annual basis. The Board regards the Company,
with no fixed life, as a long term investment vehicle but for
the purposes of this viability statement has decided that a
period of five years (the “Review Period”) is an appropriate
timeframe over which to report. The Board considers that
this Review Period reflects a balance between looking out
over a long term horizon and the inherent uncertainties of
looking out further than five years.
In assessing the viability of the Company over the Review
Period the Directors have focused upon the following
factors:
· the Company’s principal risks and uncertainties as set
out in the Strategic Report on pages 17 to 21;
· the relevance of the Company’s investment objective;
· the demand for the Company’s shares as indicated by
the level of premium and/or discount;
· the level of income generated by the Company’s
portfolio as compared to its expenses;
· the overall liquidity of the Company’s investment
portfolio;
· the £40m senior loan notes and £60m senior loan notes,
which are repayable in 2027 and in 2029, respectively,
and any likelihood of them breaching their covenants;
and
· the requirement for the Company to repay its three
year £50 million bank loan facility at its maturity in
October 2024.
In making this assessment, the Board has considered in
particular a large economic shock, such as another global
pandemic, a period of increased stock market volatility
and/or markets at depressed levels, a significant
reduction in the liquidity of the portfolio, or persistent
inflationary pressures, or changes in investor sentiment or
regulation, and how these factors might affect the
Company’s prospects and viability in the future. The Board
undertook scenario analysis, incorporating income
forecasting, in reaching its conclusions, but recognising
that the Company’s expenses are significantly lower than
its total income.
Taking into account the Company’s current position and
the potential impact of its principal risks and uncertainties,
the Directors have a reasonable expectation that the
Company will be able to continue in operation and meet
its liabilities as they fall due for a period of five years from
the date of this Report.
Performance, Financial Position and Outlook
A review of the Company’s activities and performance
during the Year, including future developments, is set out in
the Chair’s Statement and in the Investment Manager’s
Report. These cover market background, investment
activity, portfolio strategy, dividend policy, gearing and
investment outlook. A comprehensive analysis of the
portfolio is provided on pages 27 to 31 while the full
portfolio of investments is published monthly on the
Company’s website. The Company’s Statement of
Financial Position on page 65 shows the assets and
liabilities at the year end. Borrowing facilities at the year
end comprised a mix of fixed and floating debt: a three
year £50 million bank loan, £40 million of senior loan notes
due for repayment in 2027 and £60 million of senior loan
notes due for repayment in 2029. Details of these are
shown in notes 13 and 14 to the financial statements,
respectively.
Overview of Strate
g
y
Continued
Murray Income Trust PLC 23
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
The future strategic direction and development of the
Company is regularly discussed as part of Board meeting
agendas. The Board also considers the Manager’s
promotional strategy for the Company, including effective
communications with shareholders. The Board intends to
maintain, for the year ending 30 June 2025, the strategy
set out in the Strategic Report as it believes that this is in
the best interests of shareholders.
Board Diversity
The Board supports the principle of boardroom diversity,
of which diversity of skills, gender and ethnicity are all
important aspects. Further information on Board diversity
may be found in the Directors’ Report on page 39.
Environmental, Community, Social and
Human Rights Issues
The Company has no employees and, accordingly, there
are no disclosures to be made in respect of employees. In
relation to the investment portfolio, the Board has
delegated assessment of these issues to the Investment
Manager, responsibility and further information may be
found on page 90 to 94.
Modern Slavery Act
Due to the nature of its business, being a company that
does not offer goods and services to customers, the Board
considers that the Company is not within the scope of the
Modern Slavery Act 2015 because it has no turnover. The
Company is therefore not required to make a slavery and
human trafficking statement. The Board considers the
Company’s supply chains, dealing predominantly with
professional advisers and service providers in the financial
services industry, to be low risk in relation to this matter.
The Strategic Report has been approved by the Board and
signed on its behalf by:
Peter Tait
Chair
17 September 2024
24 Murray Income Trust PLC
The Board is required to report how it has discharged its
duties and responsibilities under section 172 of the
Companies Act 2006 during the Year. Under this
requirement, the Directors have a duty to promote the
success of the Company for the benefit of its members
(shareholders) as a whole, taking into account the likely
long term consequences of decisions, the need to foster
relationships with the Company’s stakeholders, and the
impact of the Company’s operations on the environment.
In addition the Directors must act fairly between
shareholders and be cognisant of maintaining the
reputation of the Company.
The Purpose of the Company and Role
of the Board
The Company has been established as an investment
vehicle for the purpose of delivering its investment
objective which is set out on page 1 of this Report.
Investment trusts, such as the Company, are long-term
investment vehicles that are typically externally-
managed, have no employees, and are overseen by an
independent non-executive board of directors.
The Board is responsible for all decisions relating to the
Company’s investment objective and policy, gearing,
corporate governance and strategy, and for monitoring
the performance of the Company’s third party service
providers, including the Manager.
The Board’s philosophy is that the Company should foster
a culture where all parties are treated with respect. The
Directors provide mutual support combined with
constructive challenge. Integrity, openness and diligence
are defining characteristics of the Board’s culture. The
Company has a number of policies and procedures in
place to aid a culture of good governance, such as those
relating to Director’s conflicts of interests and dealings in
the Company’s shares, annual evaluation of Directors,
anti-bribery and anti-tax evasion. At its regular meetings,
the Board engages with the Manager to understand its
culture and receives regular reporting and feedback from
the other key service providers.
The Company’s primary stakeholders have been
identified as its shareholders, the Manager, other key
third party service providers, investee companies and
lenders. The following table sets out details of
the Company’s engagement.
Shareholders The Directors place great importance on communication with shareholders. Further details on the
Company’s relations with Shareholders, including its approach to the Annual General Meeting, and
investor relations can be found in the Directors’ Report on pages 43 to 45.
In addition, the Chair and Investment Manager are holding an online shareholder presentation on 17
October 2024, further details of which may be found in the Chair’s Statement on page 7.
Manager The Investment Manager’s Report on pages 8 to 12 details the key investment decisions taken during
the Year. The Board engages with the Investment Manager at every Board meeting and receives
presentations from the Investment Manager to help it to exercise effective oversight of the Investment
Manager and delivery of the Company’s strategy. The Board also receives regular updates from the
Manager outside of these meetings.
The Management Engagement Committee’s monitoring of the performance of the Manager over the
Year is detailed on pages 40 and 41.
Other Key Third Party
Service Providers
The Board ensures that it promotes the success of the Company by engaging specialist third party
suppliers with the resources, controls and performance records to deliver the service required. The
Board seeks to maintain constructive relationships with its key service providers (the Company’s
registrar, depositary and broker) either directly, or through the Manager, with ongoing dialogue and
formal regular meetings. The Audit Committee conducts an annual assessment of key service providers
as set out in the Committee’s report on page 52. The Board seeks regular assurance that key third party
service providers have in place appropriate business continuity plans and which are expected to allow
them to maintain service levels in the face of disruption.
Promotin
g
the Success of the Company
Murray Income Trust PLC 25
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Investee Companies The Board is committed to investing in a responsible manner and actively monitors the activities of
investee companies through its delegation to the Investment Manager. In order to achieve this, the
Investment Manager has discretionary powers to exercise voting rights on resolutions proposed by the
investee companies and reports quarterly to the Board on stewardship issues, including voting. The
Board monitors investments made and divested and questions the rationale for exposures taken and
voting decisions made.
Information on how the Investment Manager engages with investee companies may be found on
page 94.
Lenders to the Company On behalf of the Board, the Manager maintains a positive working relationship with the provider of the
Company’s multi-currency loan facility and the holders of the Company’s Senior Loan Notes, assuring
compliance with lenders’ covenants and providing regular updates on business activity.
Specific Examples of Stakeholder
Consideration During the Year
While the importance of giving due consideration to the
Company’s stakeholders is not a new requirement, and is
considered as part of every Board decision, the Directors
were particularly mindful of stakeholder considerations
during the following decisions reached during the Year.
Reduction in Management Fee
As reported in the Chair's Statement on page 5, the Board
and the Manager have agreed a reduction in the
management fee, from 1 July 2024, with the initial tier rate
reducing from 0.55% to 0.35% of net assets. Full details are
included in Note 4 to the Financial Statements.
Dividends Paid to Shareholders
The level, frequency and timing of dividends paid are key
considerations for the Board, taking into account net
earnings for the year and the Company’s objective of
providing shareholders with a high and growing income,
combined with the Company’s Dividend Hero status.
The total dividend for the Year of 38.5p is an increase of
2.7% on the previous year. Dividend payments are
quarterly with the first three payments increased from
8.25p to 9.50p to equalise (as far as practical) the four
quarterly payments.
Share Buybacks
During the Year the Company bought back 7,035,000
(2023 – 4,970,471) Ordinary shares, to be held in treasury,
providing a small accretion to the NAV and a degree of
liquidity to the market at times when the discount to the
NAV per share had widened during normal market
conditions. It is the view of the Board that this policy
remains in the best interests of all shareholders.
Board Succession
The Board, via the Nomination Committee, reviewed its
succession plan in light of the retirement of Alan Giles at
the AGM on 5 November 2024 and further recruitment is
under way. Further information may be found in the
Directors’ Report on page 41.
Shareholder Communication
The Chair hosted an online event for shareholders on
3 November 2023, to allow those shareholders who may
have been unable to attend the AGM in person on
7 November 2023 to pose questions to both the Chair and
the Investment Manager. A similar event will be held on
17 October 2024, as described in the Chair's Statement on
page 7.
26 Murray Income Trust PLC
Portfolio
A new stock purchased by the Company in the period,
Berkeley Group’s focus is on large-scale, capital intensive
brownfield regeneration projects. Berkeley unlocks
challenging and complex sites over the long-term, bringing
well-located land back into community use and realising its
potential for added value returns through the housing
market cycles. One example is this development of flats in
Rickmansworth, Hertfordshire, England.
Murray Income Trust PLC 27
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
As at 30 June 2024
AstraZeneca Unilever
AstraZeneca researches, develops,
produces and markets pharmaceutical
products. With a significant focus on
oncology and rare diseases, the
company offers appealing growth
potential over the medium term.
Unilever is a global consumer goods
company supplying food, home and
personal care products. The company
has a portfolio of strong brands
including: Dove, Knorr, Axe and Persil.
Over half of the company’s sales are to
developing and emerging markets.
RELX
London Stock Exchange
RELX is a global provider of information
and analytics for professionals and
businesses across a number of
industries including scientific, technical,
medical and law. The company offers
resilient earnings combined with long
term structural growth opportunities.
London Stock Exchange is a diversified
global financial markets infrastructure
and data business. The company is
highly cash generative and very well
placed to benefit from increased spend
on data services.
Diageo
bp
Diageo produces, distills and markets
alcoholic beverages including vodkas,
whiskies, tequilas, gins and beer. The
company should benefit from
attractive long term drivers such as
population and income growth, and
premiumisation. The company has a
variety of very strong brands and faces
very limited private label competition.
bp is a fully integrated energy company
involved in exploration, production,
refining, transportation and marketing
of oil and natural gas. We believe the
industry is currently in a sweet spot with
rising prices and benign costs. The
company provides an attractive
dividend yield and is well placed for the
energy transition.
TotalEnergies National Grid
TotalEnergies is a broad energy
company that produces and markets
fuels, natural gas and electricity. It is
a leader in the sector’s energy
transition with an attractive pipeline of
renewable assets.
National Grid is an investor-owned utility
company which owns and operates the
electricity and gas transmission network
in Great Britain and the electricity
transmission networks in the
Northeastern United States. The
company offers resilient earnings and
an attractive dividend yield.
Experian
Sage Group
Experian is a market leader in the
provision of credit and marketing
services. It maintains one of the largest
credit bureaus and offers specialist
analytical solutions for credit scoring,
risk management and application
processing across a number of
different markets including financial
services, health, retail and government.
Sage Group is a software publishing
business which develops, publishes and
distributes accounting and payroll
software. It also maintains a registered
user database which provides a market
for their related products and services,
including computer forms, software
support contracts, program upgrades
and training.
Ten Lar
g
est Investments
28 Murray Income Trust PLC
Portfolio
As at 30 June 2024
Valuation Total Valuation
2024 investments 2023
Investment FTSE All-Share Sector Country £’000 % £’000
AstraZeneca Pharmaceuticals and Biotechnology UK 58,253 5.4 60,904
Unilever Personal Care Drug and Grocery Stores UK 57,626 5.4 56,200
RELX Media UK 56,359 5.2 61,856
London Stock Exchange Finance and Credit Services UK 43,837 4.1 33,912
Diageo Beverages UK 41,515 3.9 52,951
bp Oil, Gas and Coal UK 40,630 3.8 32,387
TotalEnergies Oil, Gas and Coal France 38,041 3.5 34,369
National Grid Gas, Water and Multi-utilities UK 35,502 3.3 24,156
Experian Industrial Support Services UK 33,099 3.1 29,324
Sage Group Software and Computer Services UK 32,402 3.0 30,020
Top ten investments 437,264 40.7
Intermediate Capital Investment Banking and Brokerage Services UK 31,190 2.9 20,793
Oversea-Chinese Banking Banks Singapore 27,374 2.5 21,124
BHP Group Industrial Metals and Mining UK 27,321 2.5 33,932
Anglo American Industrial Metals and Mining UK 26,436 2.5 25,065
Rentokil Initial Industrial Support Services UK 25,060 2.3 26,708
Inchcape Industrial Support Services UK 23,243 2.2 25,899
SSE Electricity UK 22,031 2.1 37,940
Convatec Medical Equipment and Services UK 21,336 2.0 15,569
Microsoft Software and Computer Services United States 20,316 1.9 17,865
Howden Joinery Retailers UK 19,553 1.8 20,155
Top twenty investments 681,124 63.4
Oxford Instruments Electronic and Electrical Equipment UK 19,052 1.8 17,179
HSBC Banks UK 18,661 1.8 –
Safestore Real Estate Investment Trusts UK 18,574 1.7 21,600
RS Group Industrial Support Services UK 18,480 1.7 8,771
Nordea Bank Banks Sweden 18,454 1.7 16,694
Games Workshop Leisure Goods UK 16,150 1.5 15,579
M&G Investment Banking and Brokerage Services UK 15,840 1.5 14,862
Haleon Pharmaceuticals and Biotechnology UK 13,662 1.3 –
Smurfit Kappa General Industrials UK 13,096 1.2 –
Kone Industrial Engineering Finland 12,953 1.2 13,653
Top thirty investments 846,046 78.8
Portfolio
Murray Income Trust PLC 29
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
As at 30 June 2024
Valuation Total Valuation
2024 investments 2023
Investment FTSE All-Share Sector Country £’000 % £’000
OSB Finance and Credit Services UK 12,913 1.2 14,469
GSK Pharmaceuticals and Biotechnology UK 12,798 1.2 12,630
Genuit Construction and Materials UK 12,524 1.2 8,519
Genus Pharmaceuticals and Biotechnology UK 12,427 1.2 16,314
Rotork Electronic and Electrical Equipment UK 11,589 1.1 –
Close Brothers Banks UK 11,402 1.1 26,700
L’Oréal Personal Goods France 11,282 1.0 9,181
Hiscox Non-life Insurance UK 11,271 1.0 13,985
Coca-Cola Europacific Beverages UK 11,172 1.0 –
Berkeley Household Goods and Home Construction UK 10,901 1.0 –
Top forty investments 964,325 89.8
Accton Technology Telecommunications Equipment Taiwan 10,827 1.0 7,051
Air Liquide Chemicals France 10,770 1.0 –
Telenor Telecommunications Service Providers Norway 10,535 1.0 9,323
LVMH Personal Goods France 10,068 1.0 12,325
Novo-Nordisk Pharmaceuticals and Biotechnology Denmark 9,923 0.9 22,239
Mercedes-Benz Automobiles and Parts Germany 9,855 0.9 –
Direct Line Insurance Non-life Insurance UK 9,728 0.9 9,445
VAT Group Electronic and Electrical Equipment Switzerland 9,486 0.9 12,447
Mastercard Industrial Support Services United States 8,582 0.8 –
Moonpig Retailers UK 7,538 0.7 5,703
Top fifty investments 1,061,637 98.9
Chesnara Life Insurance UK 6,505 0.6 7,138
Coca-Cola HBC Beverages UK 5,392 0.5 29,787
Total investments 1,073,534 100.0
Ordinary shares unless otherwise stated.
30 Murray Income Trust PLC
Investments held at 30 June 2024 (percentage of portfolio)
0% 5% 10% 15% 20 % 25 %
Basic Materials
Consumer Discretionary
Consumer Staples
En ergy
Financials
Health Care
In dus trials
Real Estate
Tec h no logy
Telecommunications
Utilities
Company
FTSE All-Share
Investments held at 30 June 2023 (percentage of portfolio)
0% 5% 10 % 15 % 20% 25%
Basic Materials
Consumer Discretionary
Con su mer Staple s
En ergy
Financials
Health Care
In dus trials
Real Estate
Technology
Telecomm unications
Utilities
Company
FTSE All-Share
Sector Comparison with the Benchmark
Murray Income Trust PLC 31
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Valuation Valuation
30 June 2023 Transactions Gains / (losses) 30 June 2024
£’000 % £’000 £’000 £’000 %
Equities
UK 898,427 81.8 (67,457) 34,098 865,068 80.6
Denmark 22,239 2.0 (20,713) 8,397 9,923 0.9
Finland 13,653 1.3 – (700) 12,953 1.3
France 55,875 5.1 11,866 2,420 70,161 6.5
Germany – – 11,418 (1,563) 9,855 0.9
Norway 9,323 0.9 – 1,212 10,535 1.0
Singapore 21,124 1.9 2,228 4,022 27,374 2.5
Switzerland 36,060 3.3 (26,510) (64) 9,486 0.9
Sweden 16,694 1.5 – 1,760 18,454 1.7
Taiwan 7,051 0.6 – 3,776 10,827 1.0
United States 17,865 1.6 5,644 5,389 28,898 2.7
Total investments 1,098,311 100.0 (83,524) 58,747 1,073,534 100.0
Summary of Investment Chan
g
es Durin
g
the Year
32 Murray Income Trust PLC
Governance
Rotork, a new mid-cap stock purchased during
the Year, specialises in designing and
manufacturing actuators (or pistons) for
pneumatic and hydraulic machinery. Rotork is a
global leader in relatively concentrated and
attractive growth markets with high barriers to
entry. These markets are benefiting from the
megatrends of automation, electrification and
digitalisation that are transforming industry.
Murray Income Trust PLC 33
34 Murray Income Trust PLC
Peter Tait
Chair of the Board
Appointment
Appointed a Director on 7 November 2017, Senior
Independent Director on 2 November 2021 and Chair of
the Board on 7 November 2023
Experience and other public
company directorships:
Peter Tait retired from the Nestlé Group where he was
initially Head of Investments for the Nestlé UK Pension
Fund and then CEO & CIO of Nestlé Capital Management.
Prior to Nestlé he worked for many years in the investment
management industry managing portfolios for investment
trusts, pension funds and charitable foundations. During
that time he was a managing director at BlackRock
International and, before that, a director of Dunedin Fund
Managers and a portfolio analyst at Scottish Widows Life
Assurance Fund.
Committee Membership:
Management Engagement Committee (Chair),
Nomination Committee (Chair) and Remuneration
Committee.
Contribution:
The Nomination Committee has reviewed the contribution
of Peter Tait in light of his proposed re-election, and has
concluded that he chairs the Company expertly, fostering
a collaborative engagement between the Board and
Manager while ensuring that meetings remain focussed
on the key areas relevant to stake holders.
Alan Giles
Senior Independent Non-Executive Director and Chair of
the Remuneration Committee
Appointment
Appointed a Director on 17 November 2020 and Senior
Independent Director on 7 November 2023
Experience and other public
company directorships:
Alan Giles joined the Board after serving as a director of
Perpetual Income and Growth Investment Trust plc from 6
November 2015. He is Chairman of The Remuneration
Consultants Group. He was formerly an Associate Fellow
at Saïd Business School, University of Oxford, and an
honorary visiting professor at Bayes Business School, City,
University of London. He was formerly Chairman of Fat
Face Group Limited, Chief Executive of HMV Group plc,
Managing Director of Waterstones, and an executive
director of WH Smith plc. He previously held non-executive
directorships at Foxtons Group plc, The Competition &
Markets Authority, Rentokil Initial plc, The Office of Fair
Trading, Somerfield plc and Wilson Bowden Plc.
Committee Membership:
Audit Committee, Management Engagement Committee,
Nomination Committee and Remuneration Committee
(Chair).
Contribution:
The Nomination Committee has reviewed the contribution
of Alan Giles and considers that his extensive boardroom
experience, particularly in the retail and other commercial
sectors, broadens the Board’s overall expertise. Alan Giles
will retire as a Director at the conclusion of the AGM on
5 November 2024.
Board of Directors
Murray Income Trust PLC 35
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Stephanie Eastment
Independent Non-Executive Director and Chair of the
Audit Committee
Appointment
Appointed a Director on 2 August 2018 and Chair of the
Audit Committee on 5 November 2018
Experience and other public
company directorships:
Stephanie Eastment was formerly Head of Specialist Fund
Accounts and Corporate Secretariat at Invesco Perpetual.
Her career spans over 35 years working in financial
services including roles at UBS, Wardley Investment
Services International and KPMG. She qualified while at
KPMG and is a Fellow of the Institute of Chartered
Accountants in England and Wales and a Fellow of the
Chartered Governance Institute UK and Ireland. She is an
independent non-executive director and audit chair of
Herald Investment Trust plc, Impax Environmental Markets
plc and Alternative Income REIT plc. She is an independent
non-executive director of RBS Collective Investment
Funds Limited.
Committee Membership:
Audit Committee (Chair), Management
Engagement Committee, Nomination Committee and
Remuneration Committee.
Contribution:
The Nomination Committee has reviewed the contribution
of Stephanie Eastment in light of her proposed re-election
at the forthcoming AGM, and her appointment as Senior
Independent Director at the conclusion of the next AGM,
and has assessed that she continues to chair the Audit
Committee expertly, as well as bringing to the Board
her extensive knowledge of the governance of
investment companies .
Nandita Sahgal Tully
Independent Non-Executive Director
Appointment
Appointed a Director on 3 November 2021
Experience and other public
company directorships:
Nandita Sahgal Tully was formerly a Managing Director
and member of the Investment Committee at
ThomasLloyd Group Ltd, an impact investor focussing on
sustainable infrastructure. Prior to this, she was Chief
Executive Officer at IL&FS Global Financial Services (UK)
Ltd., the UK subsidiary of the investment banking arm of
IL&FS. She has over 25 years’ financial markets experience
working in asset management, equity capital markets and
M&A at ThomasLloyd Group, Insinger de Beaufort and
Seymour Pierce. Having qualified with Deloitte, she is a
Fellow of the Institute of Chartered Accountants in
England and Wales and a Member of the Chartered
Institute for Securities and Investment. She is also an
independent non-executive director and audit chair of
Pacific Assets Trust plc.
Committee Membership:
Audit Committee, Management Engagement Committee,
Nomination Committee and Remuneration Committee.
Contribution:
The Nomination Committee has reviewed the contribution
of Nandita Sahgal Tully in light of her proposed re-election
at the forthcoming AGM, and her appointment as Chair of
the Audit Committee at the conclusion of the AGM, and
has assessed that she brings to the Board both financial
services and investment management expertise with a
particular focus on sustainability and ESG.
36 Murray Income Trust PLC
Angus Franklin
Independent Non-Executive Director
Appointment
Appointed a Director on 1 January 2024.
Experience and other public
company directorships:
Angus Franklin was a former investment partner of Baillie
Gifford & Co, where he worked for 28 years until April
2022, primarily managing portfolios of international
equities. Latterly, he was head of the international alpha
investment strategy and chaired the firm’s investment
management group. His previous responsibilities at Baillie
Gifford & Co. included membership of the firm’s
management committee and chairing the audit
committee. He is a Member of the Institute of Chartered
Accountants in England and Wales. He is a member of the
investment committee of the National Trust for Scotland.
Committee Membership:
Audit Committee, Management Engagement Committee,
Nomination Committee and Remuneration Committee.
Contribution:
The Nomination Committee has reviewed the contribution
of Angus Franklin in light of his proposed election at the
forthcoming AGM and considers that he brings to the
Board considerable expertise in investment management.
Board of Directors
Continued
Murray Income Trust PLC 37
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
The Directors present their report and the audited
financial statements for the year ended 30 June 2024.
Results and Dividend Policy
The financial statements for the Year indicate a total
return attributable to equity shareholders for the year of
£94,779,000 (2023 – £73,486,000) and an explanation for
the Company’s financial performance may be found in
the Chair’s Statement on pages 4 to 7.
On 9 November 2023, the Company declared first,
second and third interim dividends, each of 9.50p per
share, to be paid on 14 December 2023, 14 March 2024
and 13 June 2024.
The Company further announced, on 30 July 2024, the
payment to shareholders on 12 September 2024 of a
fourth interim dividend for the year of 10.00p per share
(2023 – 12.75p) with an ex-dividend date of 15 August
2024 and a record date of 16 August 2024. This resulted in
total dividends of 38.50p per share for the year ended 30
June 2024, an increase of 2.7% on the 37.50p per share
paid for the prior year, which represented the 51
st
year of
consecutive growth in the Company’s annual dividend.
The Board is proposing to maintain the dividend policy of
paying four quarterly interim dividends each year. In line
with good corporate governance, the Board therefore
proposes to put the Company’s dividend policy to
Shareholders for approval at the forthcoming AGM, as
resolution 3.
Principal Activity and Status
The Company, which was incorporated in 1923, is
registered as a public limited company in Scotland under
company number SC012725 and is an investment
company within the meaning of Section 833 of the
Companies Act 2006.
The Company has been accepted by HM Revenue &
Customs as an investment trust subject to the Company
continuing to meet the relevant eligibility conditions of
Section 1158 of the Corporation Tax Act 2010 and the
ongoing requirements of Part 2 Chapter 3 Statutory
Instrument 2011/2999 for all financial years commencing
on or after 1 July 2012. The Directors are of the opinion
that the Company has conducted its affairs during the
Year so as to enable it to comply with the ongoing
requirements for investment trust status. The Company
has conducted its affairs so as to satisfy the requirements
as a qualifying security for Individual Savings Accounts.
The Directors intend that the Company will continue to
conduct its affairs in this manner.
Capital Structure and Voting Rights
At 30 June 2024, the Company had 104,685,001 (2023 –
111,720,001) fully paid Ordinary shares of 25p each in
issue, with voting rights, and an additional 14,844,531
(2023 – 7,809,531) shares in Treasury. During the Year,
7,035,000 Ordinary shares were bought back into
Treasury (2023 – 4,970,471).
Since the year end, up to the date of this Report, the
Company has bought back a further 1,005,021 Ordinary
shares into treasury. Accordingly, as at the date of this
Report, the Company’s issued share capital consisted of
103,679,980 Ordinary shares of 25 pence each and
15,849,552 Ordinary shares held in treasury.
Ordinary shareholders are entitled to vote on all
resolutions which are proposed at general meetings of the
Company. The Ordinary shares, excluding shares in
Treasury, carry a right to receive dividends. On a winding
up, after meeting the liabilities of the Company, the surplus
assets will be paid to Ordinary shareholders in proportion
to their shareholdings. There are no restrictions on the
transfer of Ordinary shares in the Company other than
certain restrictions which may be applied from time to
time by law (for example, laws prohibiting insider trading).
Manager and Company Secretary
The Manager has been appointed by the Company, under
a management agreement, to provide investment
management, risk management, administration and
company secretarial services as well as promotional
activities. The Company’s portfolio is managed by the
Investment Manager by way of a group delegation in
place with the Manager. In addition, the Manager has
sub-delegated promotional activities to the Investment
Manager and administrative and secretarial services to
abrdn Holdings Limited.
On 30 August 2024, the Company announced revised
terms for the management agreement with effect from 1
July 2024, under which the Manager is entitled to an
annual fee of 0.35% on up to £1.1 billion of net assets and
0.25% on any net assets in excess of £1.1 billion.
Until 30 June 2024, annual fees under the management
agreement were charged on the same basis as above,
other than the applicable rate was: 0.55% on the first £350
million of net assets, 0.45% on net assets between £350
million and £450 million and 0.25% on any net assets in
excess of £450 million.
Directors’ Report
38 Murray Income Trust PLC
The value of any investments in unit trusts, open ended
and closed ended investment companies and investment
trusts of which the Manager, or another company within
abrdn, is the operator, manager or investment adviser, is
deducted from net assets when calculating the fee.
The management agreement is terminable on not less
than three months’ notice. In the event of termination by
the Company on less than the agreed notice period,
compensation is payable to the Manager in lieu of the
unexpired notice period.
An annual secretarial fee of £75,000 (plus applicable VAT)
is payable to abrdn Holdings Limited, which is chargeable
100% to revenue. An annual fee equivalent to up to 0.05%
of gross assets (calculated at 30 September each year,
and capped at £400,000, excluding VAT) is paid to the
Investment Manager to cover promotional activities
undertaken on behalf of the Company.
The finance costs and investment management fees
are charged 70% to capital and 30% to revenue in line
with the Board’s expectation of the split of future
investment returns.
The management, secretarial and promotional activity
fees paid to subsidiaries of abrdn during the Year are
shown in notes 4 and 5 to the financial statements.
External Agencies
The Board has contractually delegated to external
agencies, including the Manager and other service
providers, certain services including: the management of
the investment portfolio, the day-to-day accounting and
company secretarial requirements, the depositary
services (which include cash monitoring, the custody and
safeguarding of the Company’s financial instruments and
monitoring the Company’s compliance with investment
limits and leverage requirements) and the share
registration services. Each of these contracts was entered
into after full and proper consideration by the Board of the
quality and cost of services offered in so far as they relate
to the affairs of the Company. In addition, ad hoc reports
and information are supplied to the Board as requested.
Directors
As at the date of this Report, the Board consisted of a non-
executive Chair and four non-executive Directors.
Peter Tait, Stephanie Eastment, Alan Giles and Nandita
Sahgal Tully were Directors throughout the Year. Neil
Rogan and Merryn Somerset Webb retired from the Board
on 7 November 2023. Angus Franklin was appointed as a
Director on 1 January 2024.
Peter Tait was the Company’s Senior Independent
Director (“SID”) until 7 November 2023, when he became
Chair of the Board and Alan Giles succeeded him as SID.
The Role of the Chair and Senior Independent Director
The Chair is responsible for providing effective leadership
to the Board, by setting the tone of the Company,
demonstrating objective judgement and promoting a
culture of openness and debate. The Chair facilitates the
effective contribution of, and encourages active
engagement by, each Director. In conjunction with the
Company Secretary, the Chair ensures that Directors
receive accurate, timely and clear information to assist
them with effective decision-making. The Chair acts upon
the results of the Board evaluation process by recognising
strengths and addressing any weaknesses and also
ensures that the Board engages with major shareholders
and that all Directors understand shareholder views.
The SID acts as a sounding board for the Chair and acts as
an intermediary for other directors, when necessary. The
SID takes responsibility for an orderly succession process
for the Chair and leads the annual appraisal of the Chair’s
performance. The SID is also available to shareholders to
discuss any concerns they may have.
Management of Conflicts of Interest, Anti-Bribery Policy and
Tax Evasion Policy
The Board has a procedure in place to deal with a
situation where a Director has a conflict of interest. As part
of this process, the Directors prepare a list of other
positions held and all other conflict situations that may
need to be authorised either in relation to the Director
concerned or his/her connected persons. The Board
considers each Director’s situation and decides whether
to approve any conflict, taking into consideration what is in
the best interests of the Company and whether the
Director’s ability to act in accordance with his/her wider
duties is affected. Each Director is required to notify the
Company Secretaries of any potential, or actual, conflict
situations which will need authorising by the Board.
Authorisations given by the Board are reviewed at each
Board meeting.
The Board takes a zero-tolerance approach to bribery
and has adopted appropriate procedures designed to
prevent bribery. abrdn also takes a zero-tolerance
approach and has its own detailed policy and procedures
in place to prevent bribery and corruption. It is the
Company’s policy to conduct all of its business in an
honest and ethical manner. The Company takes a zero-
tolerance approach to facilitation of tax evasion, whether
under UK law or under the law of any foreign country and
its full policy on tax evasion may be found on its website.
Directors’ Report
Continued
Murray Income Trust PLC 39
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Board Diversity
The Board recognises the importance of having a range
of skilled, experienced individuals with the right knowledge
represented on the Board in order to allow it to fulfil its
obligations. The Board also recognises the benefits and is
supportive of, and will give due regard to, the principle of
diversity in its recruitment of new Board members. The
Board will not display any bias for age, gender, race,
sexual orientation, socio-economic background, religion,
ethnic or national origins or disability in considering the
appointment of Directors. The Board will continue to
ensure that all appointments are made on the basis of
merit against the specification prepared for each
appointment. The Board will take account of the targets
set out in the FCA’s Listing Rules, which are set out below.
The Board has resolved that the Company’s year end
date is the most appropriate date for disclosure purposes.
The following information has been provided by each
Director through the completion of questionnaires.
Table for reporting on sex as at 30 June 2024
Number of
board
members
Percentage of
the board
Number of senior
positions
on the board
(CEO, CFO,
Chair and SID)
Number in
executive
management
Percentage of
executive
management
Men 3 60%
n/a
(note 3)
n/a
(note 3)
n/a
(note 3)
Women 2 40% (note 1)
Not specified/prefer not to say - -
Table for reporting on ethnic background as at 30 June 2024
Number of
board
members
Percentage of
the board
Number of senior
positions
on the board
(CEO, CFO,
Chair and SID)
Number in
executive
management
Percentage of
executive
management
White British or other White
(including minority-white groups)
4 80%
n/a
(note 3)
n/a
(note 3)
n/a
(note 3)
Asian/Asian British 1
(note 2)
20%
Not specified/prefer not to say - -
Notes:
1. Meets target that at least 40% of Directors are women as set out in LR 9.8.6R (9)(a)(i).
2. Meets target that at least one Director is from a minority ethnic background as set out in LR 9.8.6R (9)(a)(iii).
3. This column is not applicable as the Company is externally managed and does not have any executive staff,
specifically it does not have either a CEO or CFO. The Company considers that the roles of Chair of the Board, Senior
Independent Director and Chair of the Audit Committee are senior board positions and accordingly that the
Company meets in spirit the requirement that at least one of the senior board positions is held by a woman. The
Company notes that, with effect from the conclusion of the AGM on 5 November 2024, one of the four senior board
positions, as set out in LR 9.8.6R (9)(a)(ii), will be occupied by a woman.
40 Murray Income Trust PLC
Directors’ Insurance and Indemnities
The Company’s Articles of Association indemnify each of
the Directors out of the assets of the Company against
any liabilities incurred by them as a Director of the
Company in defending proceedings, or in connection with
any application to the Court in which relief is granted. In
addition, the Directors have been granted qualifying
indemnity provisions by the Company which are currently
in force. Directors’ and Officers’ liability insurance cover
has been maintained throughout the Year at the expense
of the Company.
Corporate Governance
The Company is committed to high standards of
corporate governance and its Statement of Corporate
Governance is set out on page 46.
Matters Reserved for the Board
The Board sets the Company’s objectives and ensures
that its obligations to its shareholders are met. It has
formally adopted a schedule of matters which are
required to be brought to it for decision, thus ensuring that
it maintains full and effective control over appropriate
strategic, financial, operational and compliance issues.
These matters include:
· the maintenance of clear investment objectives and risk
management policies;
· the monitoring of the business activities of the Company
ranging from analysis of investment performance
through to review of quarterly management accounts;
· monitoring requirements such as approval of the Half-
Yearly Report and Annual Report and financial
statements and approval and recommendation of
any dividends;
· setting the range of gearing in which the Manager
may operate;
· major changes relating to the Company’s structure
including share buybacks and share issuance;
· Board appointments and removals and the
related terms;
· authorisation of Directors’ conflicts or possible
conflicts of interest;
· terms of reference and membership of Board
Committees;
· appointment and removal of the Manager and the
terms and conditions of the Management Agreement
relating thereto; and
· London Stock Exchange/Financial Conduct Authority -
responsibility for approval of all circulars, listing
particulars and other releases concerning matters
decided by the Board.
Full and timely information is provided to the Board to
enable it to function effectively and to allow the Directors
to discharge their responsibilities.
Board Committees
The Board has appointed a number of Committees as set
out below. Copies of their terms of reference, which define
the responsibilities and duties of each Committee, are
available on the Company’s website.
Audit Committee
The Audit Committee Report is on pages 51 to 53.
Management Engagement Committee
The terms and conditions of the Company’s agreement
with the Manager, set out on pages 37 and 38, are
considered by the Management Engagement Committee
which comprises the whole Board and was chaired by Neil
Rogan until 7 November 2023 and by Peter Tait thereafter.
The key responsibilities of the Management Engagement
Committee include:
· monitoring and evaluating the performance of
the Manager;
· assessing the Manager’s discharge of its responsibilities
under Consumer Duty;
· reviewing, at least annually, the continued retention of
the Manager; and
· reviewing, at least annually, the terms of appointment of
the Manager including, but not limited to, the level and
methodology of the management fees as well as the
notice period of the Manager.
In monitoring the performance of the Manager, the
Committee considers the investment record of the
Company over the short and long term, taking into
account its performance against the Benchmark, peer
group investment trusts and open-ended funds, and
against its delivery of the investment objective to
shareholders. The Committee also reviews the
management processes, risk control mechanisms and
promotional activities of the Manager.
At its meeting in May 2024, the Committee reviewed
covering all of the services provided to the Company by
the Manager including investment management, risk
management and internal controls, marketing and
investor relations, company secretarial and administration
services, and also included consideration as to the
Directors’ Report
Continued
Murray Income Trust PLC 41
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
appropriateness of the management fee arrangements.
In light of the outcome of the review, the Directors
consider the continuing appointment of the Manager, on
the current terms, to be in the best interests of
shareholders because they believe that the Manager has
the investment management, promotional and
associated secretarial and administrative skills required
for the effective operation of the Company.
Consumer Duty
The FCA’s Consumer Duty rules, published in July 2022, are
a fundamental component of the FCA’s consumer
protection strategy and aim to improve outcomes for
retail customers across the entire financial services
industry through the assessment of various outcomes, one
of which is an assessment of whether a product provides
value. Under the Consumer Duty, the Manager is the
product ‘manufacturer’ of the Company and therefore
the Manager was required to publish an annual
assessment of value from April 2023. The Manager uses its
proprietary assessment methodology to assess the
Company as 'expected to provide fair value for the
reasonably foreseeable future'. The Committee reviewed
the Manager's basis of assessment and no concerns were
identified with either the assessment method or the
outcome of the assessment.
Nomination Committee
The Board has established a Nomination Committee,
comprising all of the Directors, with Neil Rogan as Chair
until 7 November 2023 and Peter Tait thereafter. The
Committee is responsible for:
· determining the overall size and composition of the
Board (including the skills, knowledge, experience and
diversity);
· undertaking longer term succession planning, including
setting a policy on tenure for Directors;
· undertaking an annual evaluation of the Directors,
including establishing that each Director possesses the
capacity to commit sufficient time to discharge their
responsibilities;
· oversight of appointments to the Board, including open
advertising or engagement of independent search
consultants, with a view to attracting candidates from a
wide range of backgrounds and with different
experience, with due regard to the benefits of diversity
on the Board;
· assessing, annually, the effectiveness and
independence of each Director; and
· making recommendations for the election or re-
election of any Director, having evaluated their individual
performance, capacity and contribution.
The Committee’s overriding priority in appointing new
Directors is to identify the candidate with the optimal
range of skills and experience to complement the existing
Directors. The Board also recognises the benefits, and is
supportive, of the principle of diversity in its recruitment of
new Directors. Nurole Limited, an independent search firm
with no connection with the Company, was engaged in
the search which resulted in the appointment of Angus
Franklin as a Director during the Year.
The Committee has reviewed the Board succession plan
and has commenced the recruitment of a new Director
who is expected to be appointed by early 2025.
During the Year, through the work of the Nomination
Committee, the Directors undertook a review of the
Board, its Committees and the performance of individual
Directors. The process involved the completion of
questionnaires by each Director with the results discussed
by the Board thereafter, with appropriate action points
agreed. Following the evaluation process, the Board
concluded that it operates effectively to promote the
success of the Company and that each Director makes
a significant contribution to the collective Board. The
review of the Chair was undertaken by the Senior
Independent Director.
The biographies of each of the Directors seeking re-
election are shown on pages 34 to 36 and include their
experience, length of service and the contribution that
each Director makes to the Board. Each Director
has the requisite high level and range of business and
financial experience which enables the Board to provide
clear and effective leadership and proper stewardship
of the Company.
Policy on Tenure
The Committee has adopted a policy whereby all
Directors will stand for re-election at each AGM. In
addition Directors, including the Chair, will not stand for re-
election as a Director of the Company later than the AGM
following the ninth anniversary of their appointment to the
Board unless in relation to exceptional circumstances.
42 Murray Income Trust PLC
Re-election of Directors
During the Year, each Director attended all meetings for
which they were eligible, as set out in the table. The Board
meets more frequently when business needs require:
Board
Meetings
(7)
Audit
Committee
Meetings
(3)
Management
Engagement
Committee
Meetings
(1)
Nomination
Committee
Meetings
(3)
Remuneration
Committee
Meetings
(1)
Peter Tait
A
7 1 1 3 1
Alan Giles 7 3 1 3 1
Stephanie
Eastment
7 3 1 3 1
Nandita
Sahgal
Tully
7 3 1 3 1
Angus
Franklin
B
3 2 1 2 1
Neil
Rogan
A, C
3 - - - -
Merryn
Somerset
Webb
C
3 1 - - -
A
The Chair of the Board is not a member of the Audit Committee but attended all
of the meetings at the invitation of the Committee Chair. Peter Tait succeeded Neil
Rogan as Chair of the Board on 7 November 2023.
B
Appointed a Director on 1 January 2024.
C
Resigned as a Director on 7 November 2023.
The Board as a whole believes that Peter Tait, Stephanie
Eastment, Nandita Sahgal Tully and Angus Franklin each
remains independent of the Manager and free of any
relationship which could materially interfere with the
exercise of his or her independent judgement on issues of
strategy, performance, resources and standards of
conduct and confirms that, following formal performance
evaluations, the individuals’ performance continues to be
effective and demonstrates commitment to the role.
Alan Giles is not standing for re-election as a Director and
will retire from the Board at the conclusion of the AGM.
Peter Tait, Stephanie Eastment and Nandita Sahgal Tully,
each being eligible, offer themselves for re-election as
Directors of the Company at the AGM on 5 November
2024. Angus Franklin, being eligible, offers himself for
election as a Director of the Company.
Remuneration Committee
The Board has established a Remuneration Committee,
comprising all of the Directors, whose Chair was Peter Tait
until 7 November 2023, when he was succeeded by Alan
Giles. The Directors’ Remuneration Report on 47 to 50 sets
out the responsibilities of the Committee and work
undertaken by the Committee during the Year.
Accountability and Audit
The responsibilities of the Directors and the auditor in
connection with the financial statements appear on
pages 54, 60, 61 and 62.
The Directors who held office at the date of this Report
each confirm that, so far as they are aware, there is no
relevant audit information of which the Company’s auditor
is unaware and that they have taken all the steps that they
could reasonably be expected to have taken as a Director
in order to make themselves aware of any relevant audit
information and to establish that the Company’s auditor is
aware of that information. Further, there have been no
important, additional events since the year end which
warrant disclosure. The Directors confirm that no non-
audit services were provided by the auditor during the
Year and, after reviewing the auditor’s procedures in
connection with the provision of any such services, remain
satisfied that the auditor’s objectivity and independence is
being safeguarded.
Going Concern
The Directors have undertaken a rigorous review and
consider both that there are no material uncertainties and
that the adoption of the going concern basis of accounting
is appropriate. This conclusion is consistent with the longer
term Viability Statement on page 22.
The Company’s assets consist primarily of a diverse
portfolio of listed equity shares nearly all of which, in most
circumstances, are realisable within a short timescale. The
Board has set limits for borrowing and regularly reviews
the level of any gearing, cash flow projections and
compliance with banking and loan note covenants.
The Directors are mindful of the principal risks and
uncertainties disclosed on pages 17 to 21, and have
reviewed forecasts detailing revenue and liabilities. The
Directors are satisfied that the Company has adequate
resources to continue in operational existence for the
foreseeable future, being at least 12 months from the date
of approval of this Annual Report.
Directors’ Report
Continued
Murray Income Trust PLC 43
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Relations with Shareholders
The Directors place great importance on communication
with shareholders noting that the Company’s shareholder
register is retail-dominated. The Manager, together with
the Company’s broker, regularly meets with current and
prospective shareholders to discuss performance. The
Board receives investor relations updates from the
Manager on at least a quarterly basis. Any changes in the
shareholder register as well as shareholder feedback is
discussed by the Directors at each Board meeting.
Regular updates are provided to shareholders through the
Annual Report, Half Yearly Report, monthly factsheets and
company announcements, including daily net asset
values, all of which are available through the Company’s
website at: murray-income.co.uk. The Annual Report is also
widely distributed to other parties who have an interest in
the Company’s performance. Shareholders and investors
may obtain up-to-date information on the Company
through its website or by contacting the Company via
email to: new.india@abrdn.com.
The Board’s policy is to communicate directly with
shareholders and their representative bodies without the
involvement of the management group (either the
Company Secretary or abrdn) in situations where direct
communication is required and representatives from the
Board offer to meet with major shareholders on an annual
basis in order to gauge their views. The Company
Secretary acts on behalf of the Board, not the Manager,
and there is no filtering of communication. At each Board
meeting the Board receives full details of any
communication from shareholders to which the Chair
responds, as appropriate, on behalf of the Board.
In addition, in relation to institutional shareholders,
members of the Board may be either accompanied by
the Manager or conduct meetings in the absence of
the Manager.
The Company’s Annual General Meeting ordinarily
provides a forum, both formal and informal, for
shareholders to meet and discuss issues with the Directors
and Investment Manager. The Notice of AGM included
within the Annual Report is normally sent out at least 20
working days in advance of the meeting.
The Company will also hold an online presentation for
existing and potential shareholders on 17 October 2024.
Further information on how to register may be found in the
Chair’s Statement on page 7.
Relations with Suppliers, Customers
and Others
The Directors have regard to the need to foster the
Company’s business relationships with suppliers,
customers and others, and the effect of that regard,
including on the principal decisions taken by the Company
during the financial year; further information on the
Company’s responsibilities under Section 172 of
Companies Act 2006 may be found on pages 24 and 25.
Independent Auditor
Shareholders approved the re-appointment of
PricewaterhouseCoopers LLP as the Company’s auditor
at the AGM on 7 November 2023 and resolutions to
approve its re-appointment for the year to 30 June 2025,
and to authorise the Audit Committee to determine its
remuneration, will be proposed at the forthcoming AGM.
Substantial Interests
As at 30 June 2024 and 31 August 2024 the following
interests over 3% in the issued Ordinary share capital of
the Company (excluding treasury shares) had been
disclosed in accordance with the requirements of the
FCA’s Guidance and Transparency Disclosure Rules:
30 June 2024 31 August 2024
Shareholder Number of
shares held
%
held
Number of
shares held
%
held
Interactive Investor
(execution only)
24,953,313 23.8 24,652,971 23.7
Hargreaves Lansdown
(execution only)
15,848,366 15.1 15,782,138 15.2
Rathbones 10,361,162 9.9 10,129,234 9.7
A J Bell
(execution only)
4,214,331 4.0 4,252,875 4.1
Halifax Share Dealing
(execution only)
3,543,971 3.4 3,504,149 3.4
The Company had not been notified of any change to the
above interests, at 31 August 2024, as at the date of
approval of this Report.
Future Developments of the Company
Disclosures relating to the future developments of the
Company may be found in the Chair’s Statement on
pages 6 and 7.
44 Murray Income Trust PLC
Disclosures Required by FCA Listing
Rule 9.8.4
This rule requires listed companies to report certain
information in a single identifiable section of their annual
financial reports. None of the prescribed information is
applicable to the Company in the Year.
Financial Instruments
The financial risk management objectives and policies
arising from financial instruments and the exposure of
the Company to risk are disclosed in note 18 to the
financial statements.
Annual General Meeting (“AGM”)
Among the special business being put at the AGM of the
Company to be held on 5 November 2024, the following
resolutions will be proposed:
Authority to allot shares and disapply pre-emption rights
(Resolutions 10 and 11)
Ordinary resolution 10 will renew the authority to allot the
unissued share capital up to an aggregate nominal
amount of £1.3m (equivalent to approximately 5.2m
Ordinary shares, or, if less, 5% of the Company’s existing
issued share capital (excluding treasury shares) on the
date of passing of this resolution). Such authority will
expire on the date of the AGM in 2025 or on 31 December
2025, whichever is earlier. This means that the authority
will require to be renewed at the next AGM.
When shares are to be allotted for cash, Section 561 of the
Companies Act 2006 (the “Act”) provides that existing
shareholders have pre-emption rights and that the new
shares to be issued, or sold from treasury, must be offered
first to such shareholders in proportion to their existing
holding of shares. However, shareholders can, by special
resolution, authorise the Directors to allot shares or sell
from treasury otherwise than by a pro rata issue to
existing shareholders. Special resolution 11 will, if passed,
give the Directors power to allot for cash or sell from
treasury equity securities up to an aggregate nominal
amount of £2.6m (equivalent to approximately 10.4m
Ordinary shares, or, if less, 10% of the Company’s existing
issued share capital (excluding treasury shares) on the
date of passing of this resolution, as if Section 561 of the
Act does not apply). This authority will also expire on the
date of the AGM in 2025 or on 31 December 2025,
whichever is earlier. This authority will not be used in
connection with a rights issue by the Company.
The Directors intend to use the authorities given by
resolutions 10 and 11 to allot shares or sell shares from
treasury and disapply pre-emption rights only in
circumstances where this will be clearly beneficial to
shareholders as a whole. The issue proceeds would be
available for investment in line with the Company’s
investment policy. No issue of shares will be made which
would effectively alter the control of the Company without
the prior approval of shareholders in general meeting. It is
the intention of the Board that any issue of shares or any
re-sale of treasury shares would only take place at a price
not less than 0.5% above the NAV per share prevailing at
the date of sale. It is also the intention of the Board that
sales from treasury would only take place when the Board
believes that to do so would assist in the provision of
liquidity to the market.
Purchase of the Company’s own Ordinary shares
(Resolution 12)
At the AGM held on 7 November 2023, shareholders
approved the renewal of the authority permitting the
Company to repurchase its Ordinary shares. The Directors
wish to renew the authority given by shareholders at the
previous AGM. A share buyback facility enhances
shareholder value by acquiring shares at a discount to
NAV as and when the Directors consider this to be
appropriate. The purchase of shares, when they are
trading at a discount to NAV per share, should result in an
increase in the NAV per share for the remaining
shareholders. This authority, if conferred, will only be
exercised if to do so would result in an increase in the NAV
per share for the remaining shareholders and if it is in the
best interests of shareholders generally. Any purchase of
shares will be made within guidelines established from
time to time by the Board. It is proposed to seek
shareholder authority to renew this facility for another
year at the AGM.
Directors’ Report
Continued
Murray Income Trust PLC 45
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Under the FCA’s Listing Rules, the maximum price that
may be paid on the exercise of this authority must not
exceed the higher of (i) 105% of the average of the middle
market quotations for the shares over the five business
days immediately preceding the date of purchase and (ii)
the higher of the last independent trade and the highest
current independent bid on the trading venue where the
purchase is carried out. The minimum price which may be
paid is 25p per share. Shares which are purchased under
this authority will either be cancelled or held as treasury
shares. Special resolution 12 will renew the authority to
purchase in the market a maximum of 14.99% of shares in
issue at the date of passing of the resolution (amounting to
approximately 15.5m Ordinary shares). Such authority will
expire on the date of the AGM in 2025, or on 31 December
2025, whichever is earlier. This means in effect that the
authority will have to be renewed at the next AGM, or
earlier, if the authority has been exhausted. No dividends
may be paid on any shares held in treasury and no voting
rights will attach to such shares. The benefit of the ability to
hold treasury shares is that such shares may be sold at
short notice. This should give the Company greater
flexibility in managing its share capital, and improve
liquidity in its shares.
Recommendation
The Directors believe that the resolutions to be proposed
at the AGM are in the best interests of the Company and
its shareholders as a whole, and recommend that
shareholders vote in favour of the resolutions, as the
Directors intend to do in respect of their own beneficial
shareholdings, amounting to 21,404 Ordinary shares,
representing 0.02% of the Company’s issued share capital
(excluding treasury shares) at 30 June 2024.
On behalf of the Board
Peter Tait
Chair
17 September 2024
46 Murray Income Trust PLC
Murray Income Trust PLC (the “Company”) is committed
to high standards of corporate governance. The Board is
accountable to the Company’s shareholders for good
governance and this statement describes how the
Company has applied the principles identified in the UK
Corporate Governance Code as published in July 2018
(the “UK Code”), which is available on the Financial
Reporting Council’s (the “FRC”) website: frc.org.uk, and is
applicable for the Company’s Year.
The Board has also considered the principles and
provisions of the AIC Code of Corporate Governance as
published in February 2019 (the “AIC Code”). The AIC
Code addresses the principles and provisions set out in the
UK Code, as well as setting out additional provisions on
issues that are of specific relevance to the Company. The
AIC Code is available on the AIC’s website: theaic.co.uk.
The Board considers that reporting against the principles
and provisions of the AIC Code, which has been endorsed
by the FRC, provides more relevant information to
shareholders.
The Board confirms that, during the Year, the Company
has complied with the principles and provisions of the AIC
Code and the relevant provisions of the UK Code, except
for those provisions relating to:
· the role and responsibility of the chief executive;
· executive directors’ remuneration; and
· the requirement for an internal audit function.
The Board considers that these provisions are not relevant
to the position of the Company being an externally
managed investment company. In particular, all of the
Company’s day-to-day management and administrative
functions are outsourced to third parties. As a result, the
Company has no executive directors, employees or
internal operations. The Company has therefore not
reported further in respect of these provisions.
Information on how the Company has applied the AIC
Code, the UK Code, the Companies Act 2006 and the
FCA’s DTR 7.2.6 can be found in the Annual Report
as follows:
· the composition and operation of the Board and its
Committees are detailed on pages 38 to 42, and on
page 51 in respect of the Audit Committee;
· the Board’s policy on diversity, and related information, is
on page 39;
· the Company’s approach to internal control and risk
management is detailed on pages 51 and 52;
· the contractual arrangements with the Manager are set
out on pages 37 and 38 while details of the annual
assessment of the Manager may be found on page 40
and 41;
· the Company’s capital structure and voting rights are
summarised on page 37;
· the substantial interests disclosed in the Company’s
shares are listed on page 43;
· the rules concerning the appointment and replacement
of Directors are contained in the Company’s Articles of
Association and are summarised on pages 47 and 48.
There are no agreements between the Company and
its Directors concerning compensation for loss of office;
and
· the powers to issue or buyback the Company’s ordinary
shares, which are sought annually, and any
amendments to the Company’s Articles of Association
require a special resolution (75% majority) to be passed
by shareholders and information on these resolutions
may be found on pages 44 and 45.
By order of the Board
abrdn Holdings Limited, Secretaries
1 George Street
Edinburgh
EH2 2LL
17 September 2024
Statement of Corporate Governance
Murray Income Trust PLC 47
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
The Remuneration Committee, established by the Board,
has prepared this Directors’ Remuneration Report which
consists of three parts:
a) a Remuneration Policy, which is subject to a binding
shareholder vote every three years, was most
recently voted on at the AGM on 7 November 2023
where the result of the poll on the relevant resolution
was: For – 33,554,452 votes (99.2%); Against – 277,825
votes (0.8%); and Withheld – 217,548 votes. The
Remuneration Policy will be put to a shareholder vote
no later than the AGM in 2026;
b) an annual Implementation Report, which is subject to
an advisory vote; and
c) an Annual Statement.
The fact that the Remuneration Policy is subject to a
binding vote at least every three years does not imply any
change on the part of the Company. The principles
remain the same as for previous years. There has been no
change to the Remuneration Policy during the period of
this Report, since the AGM on 7 November 2023.
The law requires the Company’s auditor to audit certain of
the disclosures provided in this report. Where disclosures
have been audited, they are indicated as such. The
independent auditor’s opinion is included on pages
55 to 62.
Remuneration Policy
This part of the Report provides details of the Company’s
Policy for Directors of the Company, which takes into
consideration corporate governance principles, and
which was approved by shareholders at the AGM on 7
November 2023. The Board considers, where raised,
shareholders’ views on Directors’ remuneration.
Fees for Directors are determined by the Board within the
limit stated in the Company's Articles of Association (the
"Articles"). The Articles limit aggregate fees to £250,000
per annum. The limit can be amended by shareholder
resolution and was last increased at the AGM in 2017.
The remuneration of Directors is reviewed annually,
although such review may not necessarily result in any
change. The annual review ensures that remuneration
supports the strategic objectives of the Company, reflects
Directors’ duties and responsibilities, expected time
commitment, the level of skills and experience required,
and the need for Directors to maintain on an ongoing basis
an appropriate level of knowledge of regulatory and
compliance requirements in an industry environment of
increasing complexity. Remuneration should be fair and
comparable to that of similar investment trusts.
The Policy applies to any new Directors who will be paid
the appropriate fee based on the Directors’ fees level in
place at the date of appointment.
· The Company has no employees and consequently has
no policy on the remuneration of employees.
· All the Directors are non-executive and are appointed
under the terms of letters of appointment.
· Directors do not have service contracts.
· No incentive or introductory fees will be paid to
encourage a directorship.
· Directors’ remuneration is not subject to any
performance-related fee.
· Directors are not eligible for bonuses, pension benefits,
share options, long term incentive schemes or other
benefits.
· Directors are not entitled to exit payments or any
compensation for loss of office.
· Directors are entitled to be reimbursed for any
reasonable expenses properly incurred in the
performance of their duties.
· Directors can be paid additional discretionary payments
for services which , in the opinion of the Directors, are
outside of the scope of the ordinary duties of a Director.
· The terms of appointment provide that a Director may
be removed subject to three months’ written notice.
· Directors must retire and be subject to re-election at the
first AGM after their appointment; the Company has
also determined that every Director will stand for re-
election at each AGM.
· No Director will stand for re-election as a Director of the
Company later than the AGM following the ninth
anniversary of their appointment to the Board unless in
relation to exceptional circumstances.
Directors’ Remuneration Report
48 Murray Income Trust PLC
· The Company indemnifies its Directors for all costs,
charges, losses together with certain expenses and
liabilities which may be incurred in the discharge of
duties, as a Director of the Company.
Directors’ & Officers’ liability insurance cover is maintained
by the Company on behalf of the Directors.
Implementation Report
Directors’ Fees
The level of fees for the Year and the preceding year are
set out in the table below. There are no further fees to
disclose as the Company has no employees, Chief
Executive or Executive Directors.
30 June 2024
£
30 June 2023
£
Chair 43,125 41,200
Audit Committee Chair 35,950 34,300
Senior Independent Director 31,625 30,200
Director 28,750 27,500
Directors’ fees were last revised on 1 July 2023. The Board
carried out a review of Directors’ annual fees during the
Year by reference to inflation, measured by the increase in
the Consumer Prices Index since 1 July 2023, and taking
account of peer group comparisons by sector and by
market capitalisation. Following this review, it was decided
that the Directors’ base fee would be increased by
approximately 3.5% (2023 – 4.5%), with similar increases
for other positions. With effect from 1 July 2024, Directors’
fees are £44,625 for the Chair, £37,200 for the Audit
Committee Chair, £32,725 for the Senior Independent
Director and £29,750 for the other Directors.
These increased fees are considered to reflect
increases in inflation and to be commensurate with the
time commitment required of Directors of the Company
to adequately discharge their responsibilities, taking into
account increasingly complex and onerous
regulatory requirements.
Company Performance
The graph shows the share price total return (assuming all
dividends are reinvested) to Ordinary shareholders
compared to the total return from the FTSE All-Share
Index for the ten year period ended 30 June 2024
(rebased to 100 at 30 June 2014). This index was chosen
for comparison purposes, as it is the benchmark used for
investment performance measurement purposes.
80
100
120
140
160
180
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Share Price FTSE All-Share
Statement of Proxy Voting at Annual General Meeting
At the Company’s latest AGM, held on 7 November 2023,
shareholders approved the Directors’ Remuneration
Report (other than the Directors’ Remuneration Policy) in
respect of the year ended 30 June 2023, where the result
of the poll on the relevant resolution was: For - 33,676,593
(99.4%); Against – 192,560 votes (0.6%); and Withheld –
180,672 votes.
Audited Information
Directors’ Remuneration
The Directors received remuneration in the form of fees
and taxable expenses as set out in the tables on the
following page.
The Directors’ remuneration excludes any employers’
national insurance contributions, if applicable. All
remuneration is fixed in nature and there is no variable
remuneration. Fees are pro-rated where a change takes
place during a financial year. No payments were made to
third parties. There are no other fees to disclose as the
Company has no employees, chief executive or executive
directors. Taxable expenses refer to amounts claimed by
Directors for travelling to attend meetings.
Directors’ Remuneration Report
Continued
Murray Income Trust PLC 49
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Directors’ Remuneration Table (audited)
Year ended 30 June 2024 Year ended 30 June 2023
Fees
£
Taxable
Expenses
£
Total
£
Fees
£
Taxable
Expenses
£
Total
£
Peter Tait (appointed Chair on 7 November 2023) 39,068 573 39,641 30,200 907 31,107
Stephanie Eastment 35,950 511 36,461 34,300 188 34,488
Alan Giles
(appointed SID on 7 November 2023) 30,611 371 30,982 27,500 91 27,591
Nandita Sahgal Tully 28,750 476 29,226 27,500 204 27,704
Angus Franklin (appointed a Director on 1 January 2024) 14,375 - 14,375 n/a n/a n/a
Neil Rogan (retired as a Director on 7 November 2023) 15,213 1,446 16,659 41,200 502 41,702
Merryn Somerset Webb (retired as a Director on 7
November 2023)
10,142 - 10,142 27,500 1,312 28,812
Total 174,109 3,377 177,486 188,200 3,204 191,404
Annual Percentage Change in Directors’ Remuneration
The table below sets out, for the Directors who served during the Year, the annual percentage change in Directors’ fees
for the past five years.
Year ended
30 June 2024
Year ended
30 June 2023
Year ended
30 June 2022
Year ended
30 June 2021
Year ended
30 June 2020
Fees
%
Fees
%
Fees
%
Fees
%
Fees
%
Peter Tait (appointed SID on 2 November 2021 and
Chair on 7 November 2023)
29.4
C
5.6 12.1 0.0 0.0
Stephanie Eastment 4.8 2.4 11.7 0.0 14.3
Alan Giles (appointed on 17 November 2020) 11.3
C
2.6 68.9
B
See note
A
n/a
Nandita Sahgal Tully (appointed on 3 November
2021)
4.5 55.2
B
See note
A
n/a n/a
Angus Franklin (appointed on 1 January 2024) See note
A
n/a n/a n/a n/a
Neil Rogan (retired on 7 November 2023) See note
A
2.5 7.2 0.0 0.0
Merryn Somerset Webb (appointed on 7 August 2019
and retired on 7 November 2023)
See note
A
2.6 5.1 11.0
B
See note
A
A
A meaningful percentage change figure cannot be calculated in the year of appointment or for a year when a Director resigns/retires.
B
If the Director had been appointed for the whole of the previous year, the annual change figure would have been nil for Merryn Somerset Webb,
5.1% for Alan Giles and 2.6% for Nandita Sahgal Tully.
C
In a year of change to a more senior role, and in the following year, the percentage change figures will be distorted to show a higher figure than
the ‘real’ change of fee levels in the year.
50 Murray Income Trust PLC
Spend on Pay
As the Company has no employees, the Directors do not
consider it appropriate to present a table comparing
remuneration paid to Directors with distributions to
shareholders. However, for ease of reference, the total
fees paid to Directors are shown in the table on page 49
while dividends paid to shareholders are set out in note 7
and share buybacks are detailed in note 15.
Directors’ Interests in the Company (audited)
The Directors are not required to have a shareholding in
the Company. The Directors (including their persons
closely associated) at 30 June 2024, and 30 June 2023,
had no interest in the share capital of the Company other
than those interests shown below, all of which are
beneficial interests, unless indicated otherwise:
30 June 2024 30 June 2023
Director Ord 25p Ord 25p
Peter Tait 7,000 7,000
Alan Giles 5,000 5,000
Stephanie Eastment 4,500
A
4,500
A
Nandita Sahgal Tully 560 560
Angus Franklin 6,044 n/a
Neil Rogan 44,719
B
44,719
Merryn Somerset Webb 3,449
B
3,449
A
Of which 1,700 shares were held non-beneficially
B
As at date of retirement on 7 November 2023
There have been no changes to the Directors’ interests in
the share capital of the Company since the year end up to
the date of approval of this Report.
Annual Statement
On behalf of the Board and in accordance with Part 2 of
Schedule 8 of the Large and Medium-sized Companies
and Groups (Accounts and Reports) (Amendment)
Regulations 2013, I confirm that the above Report on
Remuneration Policy and Remuneration Implementation
summarises, as applicable, for the Year:
· the major decisions on Directors’ remuneration;
· any substantial changes relating to Directors’
remuneration made during the Year; and
· the context in which the changes occurred and in which
decisions have been taken.
On behalf of the Board
Alan Giles
Chair of the Remuneration Committee
17 September 2024
Directors’ Remuneration Report
Continued
Murray Income Trust PLC 51
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Stephanie Eastment is Chair of the audit committee,
membership of which comprises all of the Directors of the
Company, with the exception of the Chair of the Board. In
compliance with the July 2018 UK Code on Corporate
Governance (the “Code”), the Chair of the Board is not a
member of the committee but attends the committee by
invitation of the committee Chair.
The Directors have satisfied themselves that at least two
of the committee’s members have recent and relevant
financial experience – Stephanie Eastment and Nandita
Sahgal Tully are both Fellows, and Angus Franklin is a
Member, of the Institute of Chartered Accountants in
England & Wales – and that, collectively, the committee
possesses competence relevant to investment trusts.
The committee meets at least twice each year, in line with
the cycle of annual and half-yearly reports, which is
considered by the Directors to be a frequency
appropriate to the size and complexity of the Company.
Role of the Audit Committee
In summary, the committee’s main audit review
functions are:
· to review and monitor the internal control systems and
risk management systems (including review of non-
financial risks) on which the Company is reliant (see
“Internal Controls and Risk Management”, below);
· to consider annually whether there is a need for the
Company to have its own internal audit function;
· to monitor the integrity of the half-yearly and annual
financial statements of the Company by reviewing, and
challenging where necessary, the actions and
judgements of the Manager;
· to review, and report to the Board on, the significant
financial reporting issues and judgements made in
connection with the preparation of the Company’s
financial statements, half-yearly reports,
announcements and related formal statements;
· to review the content of the Annual Report and financial
statements and advise the Board on whether, taken as a
whole, it is fair, balanced and understandable and
provides the information necessary for shareholders to
assess the Company’s position and performance,
business model and strategy;
· to meet with the external auditor to review their
proposed audit programme of work and the findings
as auditor;
· to develop and implement a policy on the engagement
of the auditor to supply non-audit services;
· to review a statement from the Manager detailing the
arrangements in place for the Manager’s staff, in
confidence, to escalate concerns about possible
improprieties in matters of financial reporting or other
matters (“whistleblowing”);
· to oversee and manage audit tenders and selection
processes, to make recommendations to the Board in
relation to the appointment of the auditor and removal
of the auditor and to approve the remuneration and
terms of engagement of the auditor;
· to monitor and review annually the auditor’s
independence, objectivity, effectiveness, resources
and qualification; and
· to investigate the reasons giving rise to any resignation
of the auditor and consider whether any action
is required.
The committee fulfilled all the above required roles and
responsibilities during the Year.
Internal Controls and Risk Management
Through the committee, the Board is ultimately
responsible for the Company’s system of internal control
and risk management and for reviewing its effectiveness.
The committee confirms that there is a robust process for
identifying, evaluating and managing the Company’s
significant business and operational risks, that it has been
in place for the Year and up to the date of approval of the
Annual Report and Financial Statements, and that it is
regularly reviewed by the Board and accords with the risk
management and internal control guidance for directors
in the Code.
The design, implementation and maintenance of controls
and procedures to safeguard the assets of the Company
and to manage its affairs extends to operational and
compliance controls and risk management.
The Directors have delegated the investment
management of the Company’s assets to the Manager
within overall guidelines and this embraces
implementation of the system of internal control, including
financial, operational and compliance controls and risk
management. Internal control systems are monitored and
supported by the Manager’s Internal Audit department
which undertakes periodic examination of business
processes and ensures that recommendations to improve
controls are implemented.
Audit Committee Report
52 Murray Income Trust PLC
Risks are identified and documented through a risk
management framework by each function within the
Manager’s activities. Risk is considered in the context of the
FRC and AIC Code guidance, and includes financial,
regulatory, market, operational and reputational risks. This
helps the internal audit risk assessment model identify
those functions for review. Any weaknesses identified are
reported to the Board, and timetables are agreed for
implementing improvements to systems. The
implementation of any remedial action required is
monitored and feedback provided to the Board.
The principal risks and uncertainties facing the Company
are identified on pages 17 to 21 of this Report.
The key components designed to provide effective
internal control are outlined below:
· the Manager prepares forecasts and management
accounts which allow the Board to assess the
Company’s activities and review its performance; the
emphasis is on obtaining the relevant degree of
assurance and not merely reporting by exception;
· the Board and Manager have agreed clearly-defined
investment criteria, specified levels of authority and
exposure limits. Reports on these, including
performance statistics and investment valuations, are
regularly submitted to the Board and there are
meetings with the Manager as appropriate;
· as a matter of course, the Manager’s compliance
department continually reviews the Manager’s
operations;
· written agreements are in place which specifically
define the roles and responsibilities of the Manager and
other third-party service providers and the committee
reviews, where relevant, ISAE3402 Reports, a global
assurance standard for reporting on internal controls for
service organisations; in particular, the Board receives
equivalent assurance from Link Group, the Company’s
Registrar; and
· at its September 2024 meeting, the committee carried
out its annual assessment of internal controls for the Year
including the internal audit and compliance functions, and
taking account of events since 30 June 2024.
In addition, the Manager ensures that clearly documented
contractual arrangements exist in respect of any activities
that have been delegated to external professional
organisations. A senior member of the Manager’s Internal
Audit department reports six-monthly to the committee
and has direct access to the Directors at any time.
Internal control systems are designed to meet the
Company’s particular needs and the risks to which it is
exposed. Accordingly, the internal control systems are
designed to manage, rather than eliminate, the risk of
failure to achieve business objectives and, by their nature,
can only provide reasonable, and not absolute, assurance
against misstatement and loss.
Significant Risks for the Audit Committee
During its review of the Company’s financial statements
for the Year, the committee considered the following
significant risks including, in particular, those
communicated by the auditor as key areas of audit
emphasis during their planning and reporting of the year
end audit:
Valuation and Existence of Investments
How the risk was addressed
The valuation of investments is undertaken in accordance
with the accounting policies, disclosed in note 2(e) to the
financial statements. All investments are considered liquid
and quoted in active markets and have been categorised
as Level 1 within the FRS 102 fair value hierarchy and can
be verified against daily market prices. The portfolio is
reviewed and verified by the Manager on a regular basis
and management accounts, including a full portfolio
listing, are prepared each month and circulated to the
Board. The Company used the services of an independent
depositary (BNP Paribas Trust Corporation UK Limited until
31 May 2024 and BNP Paribas SA, London Branch
thereafter) through which the assets of the Company
were held. The depositary confirmed that the accounting
records correctly reflected all investee holdings and that
these agreed to custodian records.
Income Recognition
How the risk was addressed
The recognition of investment income is undertaken in
accordance with accounting policy note 2(b) to the
financial statements. Special dividends are allocated to
the capital or revenue accounts according to the nature
of the payment and the intention of the underlying
company. The Directors also review, at each meeting, the
Company’s income, including income received, revenue
forecasts and dividend comparisons.
Audit Committee Report
Continued
Murray Income Trust PLC 53
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Internal Auditor
The Board has considered the need for an internal audit
function but, because the Company is externally-
managed, the Board has decided to place reliance on the
Manager’s risk management/internal controls systems
and internal audit procedures.
External Auditor
Review of the Auditor
The committee has reviewed the effectiveness of the
auditor including:
· independence - the auditor discusses with the
committee, at least annually, the steps it takes to ensure
its independence and objectivity, including the level of
non-audit fees it has received from the Company, and
makes the committee aware of any potential issues,
explaining all relevant safeguards;
· quality of audit work including the ability to resolve issues
in a timely manner - identified issues are satisfactorily
and promptly resolved;
· its communications/presentation of outputs - the
explanation of the audit plan, any deviations from it and
the subsequent audit findings are comprehensive and
comprehensible, and working relationship with
management - the auditor has a constructive working
relationship with the Manager; and
· quality of people and service including continuity and
succession plans - the audit team is made up of
sufficient, suitably experienced staff with provision
made for knowledge of the investment trust sector and
retention of that knowledge on rotation of the partner.
For the Year, the committee was satisfied with the
auditor’s effectiveness, independence and the objectivity
of the audit process.
Re-appointment of the Auditor
This year’s audit of the Company’s Annual Report is the
fifth performed by PricewaterhouseCoopers LLP since
their appointment following an audit tender process held
by the Company in 2019.
Shareholders will have the opportunity to vote on the re-
appointment of PricewaterhouseCoopers LLP as auditor
and to authorise the committee to approve the auditor’s
remuneration, as Ordinary Resolutions 8 and 9, at the AGM
on 5 November 2024.
Provision of Non-Audit Services
The committee has put in place a policy on the supply of
non-audit services provided by the auditor. Such services
are considered on a case-by-case basis and may only be
provided if the service is at a reasonable and competitive
cost and does not constitute a conflict of interest or
potential conflict of interest or prevent the auditor from
remaining objective and independent. All non-audit
services require the pre-approval of the committee. No
non-audit fees were paid to the auditor during the Year
(2023 - nil). The committee confirms that it has complied
with Part 5.1 of the Competitions and Market Authority’s
Order 2014.
Stephanie Eastment,
Chair of the Audit Committee
17 September 2024
54 Murray Income Trust PLC
The Directors are responsible for preparing the Annual
Report and the financial statements in accordance with
applicable law and regulations.
Company law requires the Directors to prepare financial
statements for each financial year. Under that law the
Directors have elected to prepare the financial
statements in accordance with United Kingdom Generally
Accepted Accounting Practice (United Kingdom
Accounting Standards and applicable law) including FRS
102 ‘The Financial Reporting Standard applicable in the UK
and Republic of Ireland’. Under company law the Directors
must not approve the financial statements unless they are
satisfied that they give a true and fair view of the state of
affairs of the Company and of the profit or loss of the
Company for that period.
In preparing these financial statements, the Directors are
required to:
· select suitable accounting policies and then apply
them consistently;
· make judgements and accounting estimates that are
reasonable and prudent;
· state whether applicable UK Accounting Standards
have been followed, subject to any material departures
disclosed and explained in the financial statements; and
· adopt a going concern basis of accounting for the
financial statements unless it is inappropriate to assume
that the Company will continue in business.
The Directors are responsible for keeping adequate
accounting records that are sufficient to show and explain
the Company’s transactions and disclose with reasonable
accuracy at any time the financial position of the
Company and enable them to ensure that the financial
statements comply with the Companies Act 2006. They
are also responsible for safeguarding the assets of the
Company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
Under applicable law and regulations, the Directors are
also responsible for preparing a Directors’ Report,
Directors’ Remuneration Report, Strategic Report and
Statement of Corporate Governance that comply with
that law and those regulations.
The financial statements are published on murray-
income.co.uk which is a website maintained by the
Company’s Manager. The work carried out by the auditor
does not involve consideration of the maintenance and
integrity of the website and, accordingly, the auditor
accepts no responsibility for any changes that have
occurred to the financial statements since being initially
presented on the website. Legislation in the UK governing
the preparation and dissemination of financial statements
may differ from legislation in other jurisdictions.
Each of the Directors confirms to the best of his or her
knowledge that:
· the financial statements, prepared in accordance with
the applicable accounting standards, give a true and fair
view of the assets, liabilities, financial position and profit
of the Company;
· the Annual Report includes a fair review of the
development and performance of the business and
the position of the Company, together with a description
of the principal risks and uncertainties that the
Company faces;
· in the opinion of the Board, the Annual Report and
financial statements taken as a whole, is fair, balanced
and understandable and provides the information
necessary for shareholders to assess the Company’s
position and performance, business model and strategy;
and
· the financial statements are prepared on an ongoing
concern basis.
For and on behalf of the Board of Murray Income Trust PLC
Peter Tait
Chair
17 September 2024
Statement of Directors’ Responsibilities
Murray Income Trust PLC 55
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Report on the audit of the financial statements
Opinion
In our opinion, Murray Income Trust PLC’s financial statements:
· give a true and fair view of the state of the Company’s affairs as at 30 June 2024 and of its net return and cash flows for
the year then ended;
· have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United
Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic
of Ireland”, and applicable law); and
· have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements, included within the Annual Report, which comprise: the Statement of Financial
Position as at 30 June 2024; the Statement of Comprehensive Income, Statement of Changes in Equity and Statement of
Cash Flows for the year then ended; and the Notes to the Financial Statements, which include a description of the
significant accounting policies.
Our opinion is consistent with our reporting to the Audit Committee.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law.
Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial
statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Independence
We remained independent of the Company in accordance with the ethical requirements that are relevant to our audit
of the financial statements in the UK, which includes the FRC’s Ethical Standard, as applicable to listed public interest
entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
To the best of our knowledge and belief, we declare that non-audit services prohibited by the FRC’s Ethical Standard
were not provided.
We have provided no non-audit services to the Company in the period under audit.
Our audit approach
Context
The Company is a standalone Investment Trust Company and engages abrdn Fund Managers Limited (the “AIFM”) to
manage its assets.
Overview
Audit Scope
· We conducted our audit of the financial statements using information from the AIFM to whom the Directors have
delegated the provision of all administrative functions.
· We tailored the scope of our audit taking into account the types of investments within the Company, the involvement
of the AIFM referred to above, the accounting processes and controls, and the industry in which the Company
operates.
· We obtained an understanding of the control environment in place at the AIFM and adopted a fully substantive testing
approach using reports obtained from the AIFM.
Independent Auditors’ Report to the Members
of Murray Income Trust PLC
56 Murray Income Trust PLC
Key audit matters
· Income from investments.
· Valuation and existence of listed investments.
Materiality
· Overall materiality: £9,902,000 (2023: £9,990,000) based on approximately 1% of Net assets.
· Performance materiality: £7,426,500 (2023: £7,492,500).
The scope of our audit
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the
financial statements.
Key audit matters
Key audit matters are those matters that, in the auditors’ professional judgement, were of most significance in the audit
of the financial statements of the current period and include the most significant assessed risks of material misstatement
(whether or not due to fraud) identified by the auditors, including those which had the greatest effect on: the overall
audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team. These matters,
and any comments we make on the results of our procedures thereon, were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
This is not a complete list of all risks identified by our audit.
The key audit matters below are consistent with last year.
Key audit matter How our audit addressed the key audit matter
Income from investments
Refer to the Audit Committee’s Report, Accounting Policies and
Notes to the Financial Statements.
We focused on the accuracy, completeness and occurrence
of dividend income recognition as incomplete or inaccurate
income could have a material impact on the Company’s net
asset value and dividend cover.
We also focused on the accounting policy for investment
income recognition and its presentation in the Statement of
Comprehensive Income for compliance with the requirements
of The Association of Investment Companies Statement of
Recommended Practice (the “AIC SORP”) as incorrect
application could indicate a misstatement in income
recognition.
We assessed the accounting policy for income recognition for
compliance with accounting standards and the AIC SORP and
performed testing to confirm that income had been accounted for
in accordance with this stated accounting policy. We found that the
accounting policies implemented were in accordance with
accounting standards and the AIC SORP, and that income has been
accounted for in accordance with the stated accounting policy.
We understood and assessed the design and implementation of
key controls surrounding income recognition.
We tested the accuracy of all dividend receipts by agreeing the
dividend rates from investments to independent market data.
We tested occurrence by testing that all dividends recorded in the
year had been declared in the market by investment holdings, and
we traced a sample of dividends received to bank statements.
To test for completeness, we tested, for all investment holdings in
the portfolio, that all dividends declared in the market for
investment holdings had been recorded.
Independent Auditors’ Report to the Members
of Murray Income Trust PLC
Continued
Murray Income Trust PLC 57
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Key audit matter How our audit addressed the key audit matter
We tested the allocation and presentation of dividend income
between the revenue and capital return columns of the Statement
of Comprehensive Income in line with the requirements set out in
the AIC SORP by determining the reasons behind dividend
distributions.
Based on the audit procedures performed and evidence obtained,
we concluded that income from investments was not materially
misstated.
Valuation and existence of investments
Refer to the Audit Committee’s Report, Accounting Policies and
Notes to the Financial Statements.
The investment portfolio at 30 June 2024 comprised listed
equity investments of £1,074 million. We focused on the
valuation and existence of investments because investments
represent the principal element of the net asset value as
disclosed in the Statement of Financial Position in the
financial statements.
We tested the valuation of all the listed investments by agreeing
the prices used in the valuation to independent third party sources.
We tested the existence of listed investments by agreeing the
holdings to an independent confirmation from the Depositary, BNP
Paribas SA, London Branch, as at 30 June 2024.
No material misstatements were identified from this testing.
How we tailored the audit scope
We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the
financial statements as a whole, taking into account the structure of the Company, the accounting processes and
controls, and the industry in which it operates.
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the
financial statements.
The impact of climate risk on our audit
In planning our audit, we made enquiries of the Directors to understand the extent of the potential impact of climate
change risk on the Company’s financial statements. The Directors concluded that the impact on the measurement and
disclosures within the financial statements is not material because the Company's investment portfolio is made up of level 1
quoted securities which are valued at fair value based on market prices. We found this to be consistent with our
understanding of the Company's investment activities. We also considered the consistency of the climate change
disclosures included in the Principal Risks and Uncertainties with the financial statements and our knowledge from our audit.
Materiality
The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for
materiality. These, together with qualitative considerations, helped us to determine the scope of our audit and the
nature, timing and extent of our audit procedures on the individual financial statement line items and disclosures and in
evaluating the effect of misstatements, both individually and in aggregate on the financial statements as a whole.
58 Murray Income Trust PLC
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Overall Company materiality £9,902,000 (2023: £9,990,000).
How we determined it Approximately 1% of Net assets.
Rationale for benchmark applied We believe that net assets is the primary measure used by the
shareholders in assessing the performance of the entity, and is a
generally accepted auditing benchmark. This benchmark provides an
appropriate and consistent year on year basis for our audit.
We use performance materiality to reduce to an appropriately low level the probability that the aggregate of
uncorrected and undetected misstatements exceeds overall materiality. Specifically, we use performance materiality in
determining the scope of our audit and the nature and extent of our testing of account balances, classes of transactions
and disclosures, for example in determining sample sizes. Our performance materiality was 75% (2023: 75%) of overall
materiality, amounting to £7,426,500 (2023: £7,492,500) for the Company’s financial statements.
In determining the performance materiality, we considered a number of factors - the history of misstatements, risk
assessment and aggregation risk and the effectiveness of controls - and concluded that an amount at the upper end of
our normal range was appropriate.
We agreed with the Audit Committee that we would report to them misstatements identified during our audit above
£495,100 (2023: £499,500) as well as misstatements below that amount that, in our view, warranted reporting for
qualitative reasons.
Conclusions relating to going concern
Our evaluation of the Directors’ assessment of the Company’s ability to continue to adopt the going concern basis of
accounting included:
· evaluating the Directors' updated risk assessment and considering whether it addressed relevant threats, including the
wider macroeconomic uncertainty;
· evaluating the Directors' assessment of potential operational impacts, considering their consistency with other
available information and our understanding of the business and assessed the potential impact on the financial
statements;
· reviewing the Directors' assessment of the Company's financial position in the context of its ability to meet future
expected operating expenses and debt repayments, their assessment of liquidity as well as their review of the
operational resilience of the Company and oversight of key third-party service providers; and
· assessing the implication of significant reductions in Net Asset Value (“NAV”) as a result of market performance on the
ongoing ability of the Company to operate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions
that, individually or collectively, may cast significant doubt on the Company’s ability to continue as a going concern for a
period of at least twelve months from when the financial statements are authorised for issue.
In auditing the financial statements, we have concluded that the Directors’ use of the going concern basis of accounting
in the preparation of the financial statements is appropriate.
However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the
Company's ability to continue as a going concern.
Independent Auditors’ Report to the Members
of Murray Income Trust PLC
Continued
Murray Income Trust PLC 59
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
In relation to the Directors’ reporting on how they have applied the UK Corporate Governance Code, we have nothing
material to add or draw attention to in relation to the Directors’ statement in the financial statements about whether the
Directors considered it appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant
sections of this report.
Reporting on other information
The other information comprises all of the information in the Annual Report other than the financial statements and our
auditors’ report thereon. The Directors are responsible for the other information. Our opinion on the financial statements
does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent
otherwise explicitly stated in this report, any form of assurance thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial statements or our knowledge
obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency
or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement
of the financial statements or a material misstatement of the other information. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we are required to report that
fact. We have nothing to report based on these responsibilities.
With respect to the Strategic Report and Directors’ Report, we also considered whether the disclosures required by the
UK Companies Act 2006 have been included.
Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain
opinions and matters as described below.
Strategic Report and Directors’ Report
In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic Report and
Directors’ Report for the year ended 30 June 2023 is consistent with the financial statements and has been prepared in
accordance with applicable legal requirements.
In light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we
did not identify any material misstatements in the Strategic Report and Directors’ Report.
Directors’ Remuneration
In our opinion, the part of the Directors' Remuneration Report to be audited has been properly prepared in accordance
with the Companies Act 2006.
Corporate governance statement
The Listing Rules require us to review the Directors’ statements in relation to going concern, longer-term viability and that
part of the corporate governance statement relating to the Company’s compliance with the provisions of the UK
Corporate Governance Code specified for our review. Our additional responsibilities with respect to the corporate
governance statement as other information are described in the Reporting on other information section of this report.
60 Murray Income Trust PLC
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the
corporate governance statement is materially consistent with the financial statements and our knowledge obtained
during the audit, and we have nothing material to add or draw attention to in relation to:
· The Directors’ confirmation that they have carried out a robust assessment of the emerging and principal risks;
· The disclosures in the Annual Report that describe those principal risks, what procedures are in place to identify
emerging risks and an explanation of how these are being managed or mitigated;
· The Directors’ statement in the financial statements about whether they considered it appropriate to adopt the
going concern basis of accounting in preparing them, and their identification of any material uncertainties to the
Company’s ability to continue to do so over a period of at least twelve months from the date of approval of the
financial statements;
· The Directors’ explanation as to their assessment of the Company’s prospects, the period this assessment covers and
why the period is appropriate; and
· The Directors’ statement as to whether they have a reasonable expectation that the Company will be able to continue
in operation and meet its liabilities as they fall due over the period of its assessment, including any related disclosures
drawing attention to any necessary qualifications or assumptions.
Our review of the Directors’ statement regarding the longer-term viability of the Company was substantially less in
scope than an audit and only consisted of making inquiries and considering the Directors’ process supporting their
statement; checking that the statement is in alignment with the relevant provisions of the UK Corporate Governance
Code; and considering whether the statement is consistent with the financial statements and our knowledge and
understanding of the Company and its environment obtained in the course of the audit.
In addition, based on the work undertaken as part of our audit, we have concluded that each of the following elements of
the corporate governance statement is materially consistent with the financial statements and our knowledge obtained
during the audit:
· The Directors’ statement that they consider the Annual Report, taken as a whole, is fair, balanced and understandable,
and provides the information necessary for the members to assess the Company's position, performance, business
model and strategy;
· The section of the Annual Report that describes the review of effectiveness of risk management and internal control
systems; and
· The section of the Annual Report describing the work of the Audit Committee.
We have nothing to report in respect of our responsibility to report when the Directors’ statement relating to the
Company’s compliance with the Code does not properly disclose a departure from a relevant provision of the Code
specified under the Listing Rules for review by the auditors.
Responsibilities for the financial statements and the audit
Responsibilities of the Directors for the financial statements
As explained more fully in the Statement of Directors' Responsibilities, the Directors are responsible for the preparation of
the financial statements in accordance with the applicable framework and for being satisfied that they give a true and
fair view. The Directors are also responsible for such internal control as they determine is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Company’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic
alternative but to do so.
Independent Auditors’ Report to the Members
of Murray Income Trust PLC
Continued
Murray Income Trust PLC 61
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line
with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The
extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with
laws and regulations related to breaches of section 1158 of the Corporation Tax Act 2010, and we considered the extent
to which non-compliance might have a material effect on the financial statements. We also considered those laws and
regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated
management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of
override of controls), and determined that the principal risks were related to the posting of inappropriate journal entries
to increase revenue (investment income and capital gains) or to increase net asset value. Audit procedures performed
by the engagement team included:
· discussions with the AIFM and the Audit Committee, including specific enquiry of known or suspected instances of non-
compliance with laws and regulation and fraud where applicable;
· reviewing relevant meeting minutes, including those of the Audit Committee;
· assessment of the Company’s compliance with the requirements of section 1158 of the Corporation Tax Act 2010,
including recalculation of numerical aspects of the eligibility conditions;
· identifying and testing journal entries, in particular any material or revenue-impacting manual journal entries posted as
part of the Annual Report preparation process; and
· designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances
of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the
financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not
detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional
misrepresentations, or through collusion.
Our audit testing might include testing complete populations of certain transactions and balances, possibly using data
auditing techniques. However, it typically involves selecting a limited number of items for testing, rather than testing
complete populations. We will often seek to target particular items for testing based on their size or risk characteristics.
In other cases, we will use audit sampling to enable us to draw a conclusion about the population from which the sample
is selected.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.
Use of this report
This report, including the opinions, has been prepared for and only for the Company’s members as a body in
accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these
opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or
into whose hands it may come save where expressly agreed by our prior consent in writing.
62 Murray Income Trust PLC
Other required reporting
Companies Act 2006 exception reporting
Under the Companies Act 2006 we are required to report to you if, in our opinion:
· we have not obtained all the information and explanations we require for our audit; or
· adequate accounting records have not been kept by the company, or returns adequate for our audit have not been
received from branches not visited by us; or
· certain disclosures of directors’ remuneration specified by law are not made; or
· the financial statements and the part of the Directors’ Remuneration Report to be audited are not in agreement with
the accounting records and returns.
We have no exceptions to report arising from this responsibility.
Appointment
Following the recommendation of the Audit Committee, we were appointed by the members on 5 November 2019 to
audit the financial statements for the year ended 30 June 2020 and subsequent financial periods. The period of total
uninterrupted engagement is five years, covering the years ended 30 June 2020 to 30 June 2024.
Gillian Alexander (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
Edinburgh
17 September 2024
Independent Auditors’ Report to the Members
of Murray Income Trust PLC
Continued
Murray Income Trust PLC 63
Financial
Statements
x
Mercedes, a new holding purchased
in the Year, has established a
corporate goal of building the world’s
most desirable cars, reflecting
evolving consumer aspirations. The
Company forms part of the up to
20% of the portfolio which may be
invested in non-UK listed equities.
64 Murray Income Trust PLC
Year ended 30 June 2024 Year ended 30 June 2023
Revenue Capital Total Revenue Capital Total
Notes £’000 £’000 £’000 £’000 £’000 £’000
Gains on investments 10 – 58,747 58,747 – 32,602 32,602
Currency gains – – – – 733 733
Income 3 43,899 – 43,899 48,879 – 48,879
Investment management fees 4 (1,108) (2,584) (3,692) (1,141) (2,663) (3,804)
Administrative expenses 5 (1,334) – (1,334) (1,390) – (1,390)
Net return before finance costs and tax 41,457 56,163 97,620 46,348 30,672 77,020
Finance costs 6 (770) (1,797) (2,567) (735) (1,714) (2,449)
Net return before tax 40,687 54,366 95,053 45,613 28,958 74,571
Taxation 8 (274) – (274) (1,085) – (1,085)
Net return after tax 40,413 54,366 94,779 44,528 28,958 73,486
Return per Ordinary share 9 37.4p 50.2p 87.6p 38.7p 25.2p 63.9p
The total column of this statement represents the profit and loss account of the Company prepared in accordance with FRS 102. The
‘Revenue’ and ‘Capital’ columns represent supplementary information prepared under guidance issued by the Association of
Investment Companies.
All revenue and capital items in the above statement derive from continuing operations.
No operations were acquired or discontinued in the year.
The accompanying notes are an integral part of the financial statements.
Statement of Comprehensive Income
Murray Income Trust PLC 65
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
As at As at
30 June 2024 30 June 2023
Notes £’000 £’000
Non-current assets
Investments at fair value through profit or loss 10 1,073,534 1,098,311
Current assets
Other debtors and receivables 11 12,512 7,274
Cash and cash equivalents 12 25,148 15,115
37,660 22,389
Creditors: amounts falling due within one year
Other payables (7,056) (5,997)
Bank loans (6,282) (6,378)
13 (13,338) (12,375)
Net current assets 24,322 10,014
Total assets less current liabilities 1,097,856 1,108,325
Non-current liabilities
Creditors: amounts falling due after more than one year
2.51% Senior Loan Notes (39,955) (39,941)
4.37% Senior Loan Notes (67,619) (69,200)
14 (107,574) (109,141)
Net assets 990,282 999,184
Capital and reserves
Share capital 15 29,882 29,882
Share premium account 438,213 438,213
Capital redemption reserve 4,997 4,997
Capital reserve 484,787 489,428
Revenue reserve 32,403 36,664
Total Shareholders’ funds 990,282 999,184
Net asset value per Ordinary share 16
Debt at fair value 957.9p 911.7p
Debt at par value 946.0p 894.4p
The financial statements were approved by the Board of Directors and authorised for issue on 17 September 2024 and were signed
on its behalf by:
Peter Tait
Chair
The accompanying notes are an integral part of the financial statements.
Statement of Financial Position
66 Murray Income Trust PLC
For the year ended 30 June 2024
Share Capital
Share premium redemption Capital Revenue
capital account reserve reserve reserve Total
Notes £’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 July 2023 29,882 438,213 4,997 489,428 36,664 999,184
Net return after tax - - - 54,366 40,413 94,779
Buyback of Ordinary shares for treasury 15 - - - (59,007) - (59,007)
Dividends paid 7 - - - - (44,674) (44,674)
Balance at 30 June 2024 29,882 438,213 4,997 484,787 32,403 990,282
For the year ended 30 June 2023
Share Capital
Share premium redemption Capital Revenue
capital account reserve reserve reserve Total
Notes £’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 July 2022 29,882 438,213 4,997 502,672 33,491 1,009,255
Net return after tax - - - 28,958 44,528 73,486
Buyback of Ordinary shares for treasury 15 - - - (42,202) - (42,202)
Dividends paid 7 - - - - (41,355) (41,355)
Balance at 30 June 2023 29,882 438,213 4,997 489,428 36,664 999,184
The accompanying notes are an integral part of the financial statements.
Statement of Chan
g
es in Equity
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Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Year ended Year ended
30 June 2024 30 June 2023
Notes £’000 £’000
Operating activities
Net return before finance costs and taxation 97,620 77,020
(Decrease)/increase in accrued expenses (703) 783
Overseas withholding tax (1,332) (1,458)
Increase in dividend income receivable (422) (324)
Decrease/(increase) in interest income receivable 32 (54)
Interest paid (2,858) (2,196)
Gains on investments 10 (58,747) (32,602)
Amortisation of loan note expenses 6 14 12
Accretion of loan note book cost 6 (1,581) (1,581)
Foreign exchange gains – (733)
(Increase)/decrease in other debtors (2) 47
Stock dividends included in investment income 3 – (1,006)
Net cash inflow from operating activities 32,021 37,908
Investing activities
Purchases of investments (177,080) (180,130)
Sales of investments 259,782 218,912
Net cash inflow from investing activities 82,702 38,782
Financing activities
Dividends paid 7 (44,674) (41,355)
Buyback of Ordinary shares for treasury (59,920) (40,955)
Repayment of bank loans (6,327) (6,755)
Draw down of bank loans 6,270 6,664
Net cash outflow from financing activities (104,651) (82,401)
Increase/(decrease) in cash 10,072 (5,711)
Analysis of changes in cash during the year
Opening balance 15,115 20,131
Effect of exchange rate fluctuations on cash held 17 (39) 695
Increase/(decrease) in cash as above 17 10,072 (5,711)
Closing balance 25,148 15,115
Represented by:
Cash at bank and in hand 12 1,045 1,227
Money market funds 12 24,103 13,888
25,148 15,115
The accompanying notes are an integral part of these financial statements.
Statement of Cash Flows
68 Murray Income Trust PLC
1. Principal activity
The Company is a closed-end investment company, registered in Scotland No SC012725, with its Ordinary shares being listed
on the London Stock Exchange.
2. Accounting policies
(a) Basis of preparation. The financial statements have been prepared in accordance with Financial Reporting Standard 102,
the Companies Act 2006 and with the Statement of Recommended Practice ‘Financial Statements of Investment Trust
Companies and Venture Capital Trusts’ issued in July 2022. The financial statements are prepared in Sterling which is the
functional currency of the Company and rounded to the nearest £’000. They have also been prepared on the
assumption that approval as an investment trust will continue to be granted. The accounting policies applied are
unchanged from the prior year and have been applied consistently.
The Directors have undertaken a rigorous review and consider both that there are no material uncertainties and that the
adoption of the going concern basis of accounting is appropriate. This conclusion is consistent with the longer term
Viability Statement on page 22.
The Company’s assets consist primarily of a diverse portfolio of listed equity shares nearly all of which, in most
circumstances, are realisable within a very short timescale. The Board has set limits for borrowing and regularly reviews
the level of any gearing, cash flow projections and compliance with banking and loan note covenants. The Directors are
mindful of the principal risks and uncertainties disclosed on pages 17 to 21, and have reviewed forecasts detailing
revenue and liabilities. The Directors are satisfied that the Company has adequate resources to continue in operational
existence for the foreseeable future being at least 12 months from the date of approval of this Annual Report.
(b) Income. Dividends receivable on equity shares are treated as revenue for the year on an ex-dividend basis. Where no ex-
dividend date is available dividends receivable on or before the year end are treated as revenue for the year. Where the
Company has elected to receive dividends in the form of additional shares rather than cash, the amount of the cash
dividend foregone is recognised as revenue and any residual amount is recognised as capital. Provision is made for any
dividends not expected to be received. Special dividends are credited to capital or revenue, according to the
circumstances. Dividend revenue is presented gross of any non-recoverable withholding taxes, which are disclosed
separately within the Statement of Comprehensive Income.
Interest receivable from cash and short-term deposits and stock lending income is recognised on an accruals basis.
(c) Expenses. All expenses are accounted for on an accruals basis. All expenses are charged through the revenue column of
the Statement of Comprehensive Income except as follows:
– transaction costs on the acquisition or disposal of investments are recognised as a capital item in the Statement of
Comprehensive Income.
– expenses are charged as a capital item in the Statement of Comprehensive Income where a connection with the
maintenance or enhancement of the value of the investments can be demonstrated. In this respect the investment
management fee has been allocated 30% to revenue and 70% to capital to reflect the Company’s investment policy and
prospective income and capital growth.
(d) Taxation. Taxation represents the sum of tax currently payable and deferred tax. Any tax payable is based on the
taxable profit for the year. Taxable profit differs from net profit as reported in the Statement of Comprehensive Income
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes
items that are never taxable or deductible. The Company’s liability for current tax is calculated using tax rates that were
applicable at the Statement of Financial Position date.
Notes to the Financial Statements
For the year ended 30 June 2024
Murray Income Trust PLC 69
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the
Statement of Financial Position date, where transactions or events that result in an obligation to pay more tax in the
future or right to pay less tax in the future have occurred at the Statement of Financial Position date. This is subject to
deferred tax assets only being recognised if it is considered more likely than not that there will be suitable profits from
which the future reversal of the underlying timing differences can be deducted. Timing differences are differences
arising between the Company’s taxable profits and its results as stated in the financial statements which are capable of
reversal in one or more subsequent periods. Deferred tax is measured on a non-discounted basis at the tax rates that
are expected to apply in the periods in which timing differences are expected to reverse, based on tax rates and laws
enacted or substantively enacted at the Statement of Financial Position date.
Due to the Company’s status as an investment trust company and the intention to continue meeting the conditions
required to obtain approval in the foreseeable future, the Company has not provided deferred tax on any capital gains
and losses arising on the revaluation or disposal of investments.
The tax effect of different items of income/gain and expenditure/loss is allocated between capital and revenue within
the Statement of Comprehensive Income on the same basis as the particular item to which it relates using the
Company’s effective rate of tax for the year, based on the marginal basis.
(e) Valuation of investments. The Company has chosen to apply the recognition and measurement provisions of IAS 39
Financial Instruments: Recognition and Measurement. All investments have been designated upon initial recognition at
fair value through profit or loss. This is done because all investments are considered to form part of a group of financial
assets which is evaluated on a fair value basis, in accordance with the Company’s documented investment strategy,
and information about the grouping is provided internally on that basis. Investments are recognised and de-recognised
at trade date where a purchase or sale is under a contract whose terms require delivery within the timeframe
established by the market concerned, and are measured initially at fair value. Subsequent to initial recognition,
investments are valued at fair value through profit or loss. For listed investments, this is deemed to be bid market prices or
closing prices for stocks traded on recognised stock exchanges. Gains and losses arising from changes in fair value are
included in the net return for the period as a capital item in the Statement of Comprehensive Income and are ultimately
recognised in the capital reserve.
(f) Cash and cash equivalents. Cash comprises cash in hand and demand deposits. Cash equivalents are short-term, highly
liquid investments that are readily convertible to known amounts of cash and that are subject to insignificant risk of
change in value.
(g) Borrowings and finance costs. Borrowings of interest bearing bank loans and 2.51% Senior Loan Notes are recognised
initially at the fair value of the consideration received, net of any issue expenses, and subsequently at amortised cost
using the effective interest method. Borrowings of 4.37% Senior Loan Notes, which were novated to the Company on the
merger with Perpetual Income and Growth Investment Trust plc, were recorded initially at their fair value of £73,344,000
and are amortised over the remaining life of the loan towards their redemption value of £60,000,000. The amortisation
adjustment is presented as a finance cost. Finance costs accrue using the effective interest rate over the life of the
borrowings and are allocated 30% to revenue and 70% to capital.
(h) Traded options. The Company may enter into certain derivative contracts (eg options) to gain exposure to the market.
The option contracts are classified as fair value through profit or loss, held for trading, and accounted for as separate
derivative contracts and are therefore shown in other assets or other liabilities at their fair value ie market value. The
premium on the option (as with written options generally) is treated as the option’s initial fair value and is recognised over
the life of the option in the revenue column of the Statement of Comprehensive Income along with fair value changes in
the open position which occur due to the movement in underlying securities. Losses realised on the exercise of the
contracts are recorded in the capital column of the Statement of Comprehensive Income as they arise. Where the
Company enters into derivative contracts to manage market risk, gains or losses arising on such contracts are recorded
in the capital column of the Statement of Comprehensive Income.
70 Murray Income Trust PLC
(i) Segmental reporting. The Directors are of the opinion that the Company is engaged in a single segment of business
activity, being investment business. Consequently, no business segmental analysis is provided.
(j) Nature and purpose of reserves
Share capital. The Ordinary share capital on the Statement of Financial Position relates to the number of shares in issue
and in treasury. Only when the shares are cancelled, either from treasury or directly, is a transfer made to the capital
redemption reserve. This is a non-distributable reserve.
Share premium account. The balance classified as share premium includes the premium above nominal value from the
proceeds on issue of any equity share capital comprising Ordinary shares of 25p and includes the premium arising
following the issue of shares on the combination with Perpetual Income and Growth Investment Trust plc on 17
November 2020. This is a non-distributable reserve.
Capital redemption reserve. The capital redemption reserve reflects the cancellation of Ordinary shares, when an
amount equal to the par value of the Ordinary share capital is transferred from the share capital reserve to the capital
redemption reserve. This is a non-distributable reserve.
Capital reserve. This reserve reflects any gains or losses on investments realised in the period along with any movements
in the fair value of investments held that have been recognised in the Statement of Comprehensive Income. These
include gains and losses from foreign currency exchange differences. Additionally, expenses, including finance costs, are
charged to this reserve in accordance with (b) and (f) above. When making a distribution to shareholders, the Directors
determine profits available for distribution by reference to ‘Guidance on realised and distributable profits under the
Companies Act 2006’ issued by the Institute of Chartered Accountants in England and Wales and the Institute of
Chartered Accountants of Scotland in April 2017. The availability of distributable reserves in the Company is dependent
on those distributions meeting the definition of qualifying consideration within the guidance and on available cash
resources of the Company and other accessible sources of funds. The distributable reserves are therefore subject to
any future restrictions or limitations at the time such distribution is made.
The capital reserve, to the extent it constitutes realised profits, is distributable. This may include unrealised (losses)/gains
on investments where these are readily convertible to cash. The amount of the capital reserve that is distributable is
complex to determine and is not necessarily the full amount of the reserve as disclosed within these financial statements
of £484,787,000 as at 30 June 2024 as this is subject to fair value movements and may not be readily realisable at
short notice.
Revenue reserve. This reserve reflects all income and costs which are recognised in the revenue column of the
Statement of Comprehensive Income. The revenue reserve is distributable by way of dividend.
(k) Treasury shares. When the Company buys back the Company’s equity share capital as treasury shares, the amount of
the consideration paid, including directly attributable costs and any tax effects, is recognised as a deduction from equity.
When these shares are sold or reissued subsequently, the net amount received is recognised as an increase in equity,
and the resulting surplus or deficit on the transaction is transferred to or from the capital reserve.
(l) Dividends payable. Final dividends are recognised from the date on which they are approved by Shareholders. Interim
dividends are recognised when paid. Dividends are shown in the Statement of Changes in Equity.
(m) Foreign currency. Transactions in foreign currencies are converted to Sterling at the exchange rate ruling at the date of
the transaction. Monetary assets and liabilities and non-monetary assets held at fair value denominated in foreign
currencies are translated into Sterling at rates of exchange ruling at the Statement of Financial Position date. Exchange
gains and losses are taken to the Statement of Comprehensive Income as a capital or revenue item depending on the
nature of the underlying item.
Notes to the Financial Statements
Continued
Murray Income Trust PLC 71
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(n) Significant estimates and judgements. The Directors do not believe that any accounting estimates or judgements have
been applied to these financial statements that have a significant risk of causing material adjustment to the carrying
amount of assets and liabilities.
3. Income
2024 2023
£’000 £’000
Income from investments
UK dividends (all listed):
– ordinary 27,115 32,132
– special – 353
Property income dividends 681 814
Overseas dividends (all listed)
– ordinary 12,277 10,343
– special – 756
Stock dividends – 1,006
40,073 45,404
Other income
Deposit interest 64 34
Money Market interest 926 682
Traded option premiums 2,836 2,759
3,826 3,475
Total income 43,899 48,879
There were no special dividends in the year (2023 – £1,109,000) which were recognised as being revenue in nature.
During the year, the Company received premiums totalling £2,836,000 (2023 – £2,759,000) in exchange for entering into
derivative transactions. At the year end there were no open positions (2023 – none).
72 Murray Income Trust PLC
4. Investment management fees
2024 2023
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Management fee 1,108 2,584 3,692 1,141 2,663 3,804
The management fee is based on 0.55% per annum for net assets up to £350 million, 0.45% per annum on the next £100 million
of net assets and 0.25% per annum for net assets over £450 million, calculated and payable monthly. The fee has been
allocated 30% to revenue and 70% to capital. The management agreement is terminable on three months’ notice. The fee
payable to the Manager at the year end was £622,000 (2023 – £1,273,000).
Under the terms of the management agreement, the value of the Company’s investments in other funds managed by abrdn is
excluded from the calculation of the management fee. The Company held no such other funds managed by abrdn at the
year end (2023 – none).
Subsequent to the year end, the Company and the Manager agreed to a change in the management fee arrangements. With
effect from 1 July 2024, the management fee is to be based on 0.35% per annum for net assets up to £1.1 billion and 0.25% per
annum for net assets over £1.1 billion, calculated and payable monthly.
5. Administrative expenses
2024 2023
£’000 £’000
Shareholders’ services
A
406 418
Directors’ remuneration
B
174 188
Secretarial fees
C
75 75
Registrars fees 68 76
Depositary fees 78 90
Custody fees 72 68
Printing and postage 41 61
Auditors’ remuneration:
– fees payable to the Company’s auditors for the audit of the Company’s
annual financial statements
54 42
Legal and professional fees 50 38
Irrecoverable VAT 137 164
Other expenses 179 170
1,334 1,390
A
Includes savings scheme and other wrapper administration and promotion expenses, paid to the Manager under a delegation agreement with the Manager to cover
promotional activities during the year. There was £98,000 (2023 – £106,000) due to the Manager in respect of these promotional activities at the year end.
B
Refer to the Directors’ Remuneration section of the Directors’ Remuneration Report on page 49 for further details.
C
Payable to the Manager, balance outstanding of £38,000 (2023 – £19,000) at the year end.
Notes to the Financial Statements
Continued
Murray Income Trust PLC 73
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6. Finance costs
2024 2023
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Bank loans and overdraft interest 152 356 508 118 274 392
2.51% Senior Loan Note 301 703 1,004 301 703 1,004
4.37% Senior Loan Note 787 1,835 2,622 787 1,835 2,622
Amortisation of 2.51% Senior Loan Note issue
expenses
4 10 14 3 9 12
Amortisation of 4.37% Senior Loan Note (474) (1,107) (1,581) (474) (1,107) (1,581)
770 1,797 2,567 735 1,714 2,449
Details of the Loan Notes and their amortisation are set out in note 14. Finance costs are allocated 30% to revenue and
70% to capital.
7. Ordinary dividends on equity shares
2024 2023
Rate £’000 Rate £’000
Fourth interim dividend previous year 12.75p 14,100 11.25p 13,128
First interim dividend current year 9.50p 10,334 8.25p 9,556
Second interim dividend current year 9.50p 10,208 8.25p 9,431
Third interim dividend current year 9.50p 10,032 8.25p 9,337
Return of unclaimed dividends – (97)
44,674 41,355
The fourth interim dividend for 2024 of 10.00p per Ordinary share has not been included as a liability in these financial
statements as it was not paid until after the reporting date (12 September 2024).
The following table sets out the total dividends paid and proposed in respect of the financial year, which is the basis on which
the requirements of Section 1158–1159 of the Corporation Tax Act 2010 are considered. The revenue available for
distribution by way of dividend for the year is £40,413,000 (2023 – £44,528,000).
74 Murray Income Trust PLC
2024 2023
Rate £’000 Rate £’000
Three interim dividends of 9.50p each (2023: three interim dividends of 8.25p
each)
28.50p 30,574 24.75p 28,324
Fourth interim dividend 10.00p 10,428 12.75p 14,088
38.50p 41,002 37.50p 42,412
8. Taxation
2024 2023
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
(a) Analysis of charge for the year
Overseas tax incurred 1,104 – 1,104 2,244 – 2,244
Overseas tax reclaimable (830) – (830) (1,159) – (1,159)
Total tax charge for the year 274 – 274 1,085 – 1,085
(b) Factors affecting the tax charge for the year. The UK corporation tax rate is 25% (2023 – 25%). The tax charge for the
year is lower than the corporation tax rate (2023 – lower). The differences are explained below:
2024 2023
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Net return before taxation 40,687 54,366 95,053 45,613 28,958 74,571
Net return multiplied by the effective rate of
corporation tax of 25% (2023 – 20.5%)
10,172 13,592 23,764 9,351 5,936 15,287
Effects of:
Non-taxable UK dividends (6,853) (6,853) (6,057) (6,057)
Non-taxable overseas dividends (3,069) (3,069) (3,008) (3,008)
Expenses not deductible for tax purposes 11 11 2 2
Movement in unutilised management
expenses
(261) 1,095 834 (288) 897 609
Realised and unrealised gains on investments
held
– (14,687) (14,687) – (6,683) (6,683)
Currency movements not taxable – – – – (150) (150)
Overseas tax payable 274 – 274 1,085 – 1,085
Total tax charge 274 – 274 1,085 – 1,085
Notes to the Financial Statements
Continued
Murray Income Trust PLC 75
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(c) Factors that may affect future tax charges. No provision for deferred tax has been made in the current or prior
accounting period.
The Company has not provided for deferred tax on capital gains or losses arising on the revaluation or disposal of
investments as it is exempt from tax on these items because of its status as an investment trust company.
At the year end, the Company has, for taxation purposes only, accumulated unrelieved management expenses and
loan relationship deficits of £77,761,000 (2023 – £74,422,000). A deferred tax asset at the standard rate of corporation
of 25% (2023 – 25%) of £19,440,000 (2023 – £18,606,000) has not been recognised and these expenses will only be
utilised if the Company has profits chargeable to corporation tax in the future. It is considered too uncertain that the
Company will generate such profits and therefore no deferred tax asset has been recognised.
9. Return per Ordinary share
2024 2023
£’000 p £’000 p
Returns are based on the following figures:
Revenue return 40,413 37.4 44,528 38.7
Capital return 54,366 50.2 28,958 25.2
Total return 94,779 87.6 73,486 63.9
Weighted average number of Ordinary shares in issue 108,144,845 114,958,339
10. Investments at fair value through profit or loss
2024 2023
£’000 £’000
Opening book cost 989,936 1,017,087
Opening investment holdings gains 108,375 81,706
Opening fair value 1,098,311 1,098,793
Analysis of transactions made during the year
Purchases at cost 180,045 183,338
Sales proceeds received (263,569) (216,422)
Gains on investments 58,747 32,602
Closing fair value 1,073,534 1,098,311
76 Murray Income Trust PLC
2024 2023
£’000 £’000
Closing book cost 922,927 989,936
Closing investment gains 150,607 108,375
Closing fair value 1,073,534 1,098,311
2024 2023
Gains on investments £’000 £’000
Realised gains on sale of investments at fair value 16,515 5,988
Realised loss on exercise of put options – (55)
Net movement in investment holdings gains 42,232 26,669
58,747 32,602
The Company received £263,569,000 (2023 – £216,422,000) from investments sold in the year. The book cost of these
investments when they were purchased was £247,054,000 (2023 – £210,434,000). These investments have been revalued
over time and until they were sold any unrealised gains/(losses) were included in the fair value of the investments.
The Company may write and purchase both exchange traded and over the counter derivative contracts as part of its
investment policy. The Company pledges collateral greater than the market value of the traded options in accordance with
standard commercial practice. At 30 June 2024 there were no shares pledged as part of the option underwriting programme
(30 June 2023 – none). The liability of collateral held at the year end was £nil as no open positions existed (30 June 2023 – £nil).
Transaction costs. During the year expenses were incurred in acquiring or disposing of investments classified at fair value
through profit or loss. These have been expensed through capital and are included within gains on investments in the
Statement of Comprehensive Income. The total costs were as follows:
2024 2023
£’000 £’000
Purchases 842 797
Sales 114 144
956 941
The above transaction costs are calculated in line with the AIC SORP. The transaction costs in the Company’s Key Information
Document are calculated on a different basis and in line with the PRIIPs regulations.
Notes to the Financial Statements
Continued
Murray Income Trust PLC 77
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11. Other debtors and receivables
2024 2023
£’000 £’000
Amounts due from brokers 3,787 -
Accrued income 3,471 3,080
Taxation recoverable 5,228 4,170
Prepayments 26 24
12,512 7,274
12. Cash and cash equivalents
2024 2023
£’000 £’000
Cash at bank and in hand 1,045 1,227
Money market funds 24,103 13,888
25,148 15,115
The Company holds £24,103,000 (2023 - £13,888,000) in Aberdeen Standard Liquidity Fund (Lux) - Sterling Fund which is
managed and administered by abrdn.
13. Creditors: amounts falling due within one year
2024 2023
£’000 £’000
Other creditors 1,563 2,548
Amounts due to brokers for purchase of investments 5,167 2,202
Amounts due to brokers for Ordinary shares bought back 326 1,247
7,056 5,997
Bank loans 6,282 6,378
13,338 12,375
The Company has a three year £50 million multi-currency unsecured revolving bank credit facility with Bank of Nova Scotia
Limited, committed until 27 October 2024. Under the terms of the agreement, advances from the facility may be made for
periods of up to six months or for such longer periods agreed by the lender.
78 Murray Income Trust PLC
As at 30 June 2024, the Company had drawn down the following amounts from the facility, all with a maturity date of 29 July
2024 (2023 – 26 July 2023):
2024 2023
Currency £’000 Currency £’000
Swiss Franc at an all-in rate of 2.55% (2023: 2.798%) 363,000 319 1,200,000 1,055
Euro at an all-in rate of 4.79% (2023: 4.563%) 4,050,000 3,434 3,300,000 2,832
Norwegian Krone at an all-in rate of 5.78% (2023: 5.11%) 4,275,000 318 6,360,000 467
Danish Krona at an all-in rate of 4.75% (2023: 4.56%) 2,750,000 313 6,850,000 789
US Dollar at an all-in rate of 6.57% (2023: 6.314%) 2,400,000 1,898 1,570,000 1,235
6,282 6,378
At the date this Report was approved, the Company had drawn down the following amounts from the facility, all with a
maturity date of 30 September 2024:
– Swiss Franc 363,000 at an all-in rate of 2.55716%, equivalent to £328,000.
– Euro 4,050,000 at an all-in rate of 4.734%, equivalent to £3,418,000.
– Norwegian Krone 4,275,000 at an all-in rate of 5.79%, equivalent to £302,000.
– Danish Krona 2,750,000 at an all-in rate of 4.6367%, equivalent to £311,000.
– US Dollar 2,400,000 at an all-in rate of 6.5745%, equivalent to £1,838,000.
Financial covenants contained within the facility agreement provide, inter alia, that the ratio of net assets to borrowings must
be greater than 3.5:1 and that net assets must exceed £550 million. All financial covenants were met during the year and also
during the period from the year end to the date of this report.
14. Creditors: amounts falling due after more than one year
2024 2023
£’000 £’000
2.51% Senior Loan Note 40,000 40,000
Unamortised 2.51% Senior Loan Note issue expenses (45) (59)
39,955 39,941
4.37% Senior Loan Note at fair value 73,344 73,344
Amortisation of 4.37% Senior Loan Note (5,725) (4,144)
67,619 69,200
107,574 109,141
Notes to the Financial Statements
Continued
Murray Income Trust PLC 79
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On 8 November 2017 the Company issued £40,000,000 of 10 year Senior Loan Notes at a fixed rate of 2.51%. Interest is payable
in half yearly instalments in May and November and the Loan Notes are due to be redeemed at par on 8 November 2027.
As a result of the transaction with Perpetual Income and Growth Investment Trust plc on 17 November 2020, £60,000,000 of 15
year Senior Loan Notes at a fixed rate of 4.37% issued on 8 May 2014 were novated to the Company. Under FRS 102 the loan
notes are required to be recorded initially at their fair value of £73,344,000 in the Company’s Financial Statements and are then
amortised over the remaining life of the loan towards their redemption value of £60,000,000. The amortisation adjustment is
presented as a finance cost, split 70% to capital and 30% to revenue. Interest is payable in half yearly instalments in May and
November and the Loan Notes are due to be redeemed at par on 8 May 2029.
Both the Loan Notes are secured by a floating charge over the whole of the assets of the Company and rank pari passu.
The Company has complied with the Senior Loan Note Purchase Agreements covenants throughout the year that the ratio of
net assets to gross borrowings must be greater than 3.5:1, and that net assets will not be less than £550,000,000 throughout
the year.
15. Share capital
2024 2023
Shares £’000 Shares £’000
Allotted, called-up and fully-paid:
Ordinary shares of 25p each: publicly held 104,685,001 26,171 111,720,001 27,930
Ordinary shares of 25p each: held in treasury 14,844,531 3,711 7,809,531 1,952
119,529,532 29,882 119,529,532 29,882
During the year 7,035,000 Ordinary shares were bought back (2023 – 4,970,471) to be held in treasury by the Company at a
total cost of £59,007,000 (2023– £42,202,000) representing 6.3% (2023 – 4.3%) of called-up share capital excluding Ordinary
shares held in treasury at the start of the year.
80 Murray Income Trust PLC
16. Net asset value per Ordinary share
The net asset value per Ordinary share and the net asset value attributable to the Ordinary shares at the year end follow.
These were calculated using 104,685,001 (2023 – 111,720,001) Ordinary shares in issue at the year end (excluding
treasury shares).
2024 2023
Net Asset Value Attributable Net Asset Value Attributable
£’000 pence £’000 pence
Net asset value – debt at par 990,282 946.0 999,184 894.4
Add: amortised cost of 2.51% Senior Loan Notes 39,955 38.2 39,941 35.8
Less: fair value of 2.51% Senior Loan Notes (36,530) (34.9) (34,928) (31.3)
Add: amortised cost of 4.37% Senior Loan Notes 67,619 64.5 69,200 61.9
Less: fair value of 4.37% Senior Loan Notes (58,535) (55.9) (54,900) (49.1)
Net asset value – debt at fair value 1,002,791 957.9 1,018,497 911.7
17. Analysis of changes in net debt
At Currency Non-cash At
1 July 2023 differences Cash flows movements 30 June 2024
£’000 £’000 £’000 £’000 £’000
Cash and cash equivalents* 15,115 (39) 10,072 – 25,148
Debt due within one year (6,378) 39 57 – (6,282)
Debt due after more than one year (109,141) – – 1,567 (107,574)
(100,404) – 10,129 1,567 (88,708)
At Currency Non-cash At
1 July 2022 differences Cash flows movements 30 June 2023
£’000 £’000 £’000 £’000 £’000
Cash and cash equivalents* 20,131 695 (5,711) – 15,115
Debt due within one year (6,507) 38 91 – (6,378)
Debt due after more than one year (110,710) – – 1,569 (109,141)
(97,086) 733 (5,620) 1,569 (100,404)
* An analysis of cash and cash equivalents between cash at bank and in hand and money market funds is provided in note 12 on page 77.
A statement reconciling the movement in net funds to the net cash flow has not been presented as there are no differences
from the above analysis.
Notes to the Financial Statements
Continued
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18. Financial instruments
This note summarises the risks deriving from the financial instruments that comprise the Company’s assets and liabilities.
The Company’s investment activities expose it to various types of financial risk associated with the financial instruments and
markets in which it invests. The Company’s financial instruments, other than derivatives, comprise securities and other
investments, cash balances, liquid resources, loans and debtors and creditors that arise directly from its operations; for
example, in respect of sales and purchases awaiting settlement, and debtors for accrued income. The Company also has the
ability to enter into derivative transactions in the form of forward foreign currency contracts, futures and options, subject to
Board approval, for the purpose of enhancing portfolio returns and for hedging purposes in a manner consistent with the
Company’s broader investment policy. As at 30 June 2024 there were no open positions in derivatives transactions
(2023 – same).
Risk management framework. The directors of abrdn Fund Managers Limited collectively assume responsibility for the
Manager’s obligations under the AIFMD including reviewing investment performance and monitoring the Company’s risk
profile during the year.
The Manager is a wholly owned subsidiary of the abrdn Group (“the Group”), which provides a variety of services and support
to the Manager in the conduct of its business activities, including in the oversight of the risk management framework for the
Company. The Manager has delegated the day to day administration of the investment policy to abrdn Limited, which is
responsible for ensuring that the Company is managed within the terms of its investment guidelines and the limits set out in its
pre-investment disclosures to investors (details of which can be found on the Company’s website). The Manager has retained
responsibility for monitoring and oversight of investment performance, product risk and regulatory and operational risk for
the Company.
The Manager conducts its risk oversight function through the operation of the Group’s risk management processes and
systems which are embedded within the Group’s operations. The Group’s Risk Division (“the Division”) supports management in
the identification and mitigation of risks and provides independent monitoring of the business. The Division includes
Compliance, Business Risk, Market Risk, Risk Management and Legal. The team is headed up by the Group’s Chief Risk Officer,
who reports to the Chief Executive Officer (“CEO”) of the Group. The Risk Division achieves its objective through embedding the
Risk Management Framework throughout the organisation using the Group’s operational risk management system (“SHIELD”).
The Group’s Internal Audit Department is independent of the Risk Division and reports directly to the Group CEO and to the
Audit Committee of the Group’s Board of Directors. The Internal Audit Department is responsible for providing an independent
assessment of the Group’s control environment.
The Group’s corporate governance structure is supported by several committees to assist the board of directors, its
subsidiaries and the Company to fulfil their roles and responsibilities. The Group’s Risk Division is represented on all committees,
with the exception of those committees that deal with investment recommendations. The specific goals and guidelines on the
functioning of those committees are described in the committees’ terms of reference.
Risk management of the financial instruments. The main risks the Company faces from these financial instruments are (a)
market risk (comprising (i) interest rate, (ii) foreign currency and (iii) other price risk), (b) liquidity risk and (c) credit risk.
In order to mitigate risk, the investment strategy is to select investments for their fundamental value. Stock selection is therefore
based on disciplined accounting, market and sector analysis. It is the Board’s policy to hold an appropriate spread of
investments in the portfolio in order to reduce the risk arising from factors specific to a particular sector. The Attribution
Analysis, detailing the allocation of assets and the stock selection, is shown in the Performance Attribution table on page 9. The
Investment Manager actively monitors market prices throughout the year and reports to the Board, which meets regularly in
order to consider investment strategy. The Company’s strategy is detailed in the Chair’s Statement on pages 6 and 7, in the
Investment Manager’s Report on page 12 and in Overview of Strategy on pages 17 to 23.
82 Murray Income Trust PLC
The Board has agreed the parameters for net gearing, which was 9.1% of net assets as at 30 June 2024 (2023 – 10.4%). The
Manager’s policies for managing these risks are summarised below and have been applied throughout the current and
previous year. The numerical disclosures in the tables listed below exclude short-term debtors and creditors.
18 (a) Market risk. The Company’s investment portfolio is exposed to market price fluctuations, which are monitored by the
Manager in pursuance of the investment objective as set out on page 1. Adherence to investment guidelines and to investment
and borrowing powers set out in the management agreement mitigates the risk of exposure to any particular security or
issuer. Further information on the investment portfolio is set out in the Investment Manager’s Report on pages 8 to 12.
Market price risk arises mainly from uncertainty about future prices of financial instruments used in the Company’s operations.
It represents the potential loss the Company might suffer through holding market positions as a consequence of price
movements. It is the Board’s policy to hold equity investments in the portfolio in a broad spread of sectors in order to reduce the
risk arising from factors specific to a particular sector. A summary of investment changes during the year under review is on
page 31 and an analysis of the equity portfolio by sector is on page 30.
18 (a)(i) Interest rate risk. Interest rate movements may affect:
– the level of income receivable on cash deposits;
– interest payable on the Company’s variable rate borrowings; and
– the fair value of any investments in fixed interest rate securities.
Management of the risk. The possible effects on fair value and cash flows that could arise as a result of changes in interest rates
are taken into account when making investment and borrowing decisions. Details of the bank loan and interest rates
applicable can be found in note 13.
The Board imposes borrowing limits to ensure gearing levels are appropriate to market conditions and reviews these on a
regular basis. Interest rate risk is the risk of movements in the value of financial instruments as a result of fluctuations in
interest rates.
Financial assets. The interest rate risk of the portfolio of financial assets at the reporting date was as follows:
Floating rate Non-interest bearing
2024 2023 2024 2023
£’000 £’000 £’000 £’000
Danish Krona – – 9,923 22,239
Euro – – 104,139 69,528
Norwegian Krone – – 10,535 9,323
Singapore Dollars – – 27,374 21,124
Sterling 25,148 15,115 853,898 898,427
Swedish Krone – – 18,454 16,694
Swiss Francs – – 9,486 36,060
Taiwan Dollars – – 10,827 7,051
US Dollars – – 28,898 17,865
Total 25,148 15,115 1,073,534 1,098,311
Notes to the Financial Statements
Continued
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The floating rate assets consist of cash at bank and cash held in money market funds earning interest at prevailing
market rates.
The non-interest bearing assets represent the equity element of the portfolio.
Financial liabilities. The Company has floating rate borrowings by way of its loan facility and fixed rate senior loan note issues,
details of which are in notes 13 and 14.
Interest rate sensitivity. The sensitivity analysis below has been determined based on the exposure to interest rates for both
derivative and non-derivative instruments at the reporting date and the stipulated change taking place at the beginning of the
financial year and held constant in the case of instruments that have floating rates.
Interest rate sensitivity. The sensitivity analysis below has been determined based on the exposure to interest rates for both
derivative and non-derivative instruments at the reporting date and the stipulated change taking place at the beginning of the
financial year and held constant in the case of instruments that have floating rates.
If interest rates had been 1% higher or lower and all other variables were held constant, the Company’s profit before tax for the
year ended 30 June 2024 and net assets would increase/decrease by £175,000 (2023 – £53,000) respectively. This is mainly
attributable to the Company’s exposure to interest rates on its floating rate cash balances and borrowings.
18 (a)(ii) Foreign currency risk. A proportion of the Company’s investment portfolio is invested in overseas securities whose
values are subject to fluctuation due to changes in foreign exchange rates. In addition, the impact of changes in foreign
exchange rates upon the profits of investee companies can result, indirectly, in changes in their valuations. Consequently, the
Statement of Financial Position can be affected by movements in exchange rates.
Management of the risk. The revenue account is subject to currency fluctuations arising on dividends receivable in foreign
currencies and, indirectly, due to the impact of foreign exchange rates upon the profits of investee companies. It is not the
Company’s policy to hedge this currency risk but the Board keeps under review the currency returns in both capital
and income.
Foreign currency risk exposure by currency of denomination falling due within one year is set out in the table below. Net
monetary assets/(liabilities) comprise cash and loan balances and exclude other debtors and receivables and other payables
(including amounts due to or from brokers).
84 Murray Income Trust PLC
30 June 2024 30 June 2023
Net Net
monetary Total monetary Total
assets/ currency assets/ currency
Investments (liabilities) exposure Investments (liabilities) exposure
£’000 £’000 £’000 £’000 £’000 £’000
Danish Krona 9,923 (313) 9,610 22,239 (789) 21,450
Euro 104,139 (3,434) 100,705 69,528 (2,832) 66,696
Norwegian Krone 10,535 (318) 10,217 9,323 (467) 8,856
Singapore Dollars 27,374 – 27,374 21,124 – 21,124
Swedish Krone 18,454 – 18,454 16,694 – 16,694
Swiss Francs 9,486 (319) 9,167 36,060 (1,055) 35,005
Taiwan Dollars 10,827 – 10,827 7,051 – 7,051
US Dollars 28,898 (1,898) 27,000 17,865 (1,235) 16,630
Total 219,636 (6,282) 213,354 199,884 (6,378) 193,506
Foreign currency sensitivity. The following table details the impact on the Company’s net assets to a 10% decrease (in the
context of a 10% increase the figures below should all be read as negative) in Sterling against the foreign currencies in which
the Company has exposure. The sensitivity analysis includes foreign currency denominated monetary and non-monetary
items and adjusts their translation at the period end for a 10% change in foreign currency rates.
2024 2023
£’000 £’000
Danish Krona 961 2,145
Euro 10,071 6,670
Norwegian Krone 1,022 886
Singapore Dollars 2,737 2,112
Swedish Krone 1,845 1,669
Swiss Francs 917 3,501
Taiwan Dollars 1,083 705
US Dollars 2,700 1,663
Total 21,336 19,351
18(a)(iii) Other price risk. Other price risks (ie changes in market prices other than those arising from interest rate or currency
risk) may affect the value of the quoted investments.
Notes to the Financial Statements
Continued
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Management of the risk. It is the Board’s policy to hold an appropriate spread of investments in the portfolio in order to reduce
the risk arising from factors specific to a particular sector. The allocation of assets to international markets and the stock
selection process, as detailed in the section “Delivering the Investment Policy” on page 16, both act to reduce market risk. The
Manager actively monitors market prices throughout the year and reports to the Board, which meets regularly in order to
review investment strategy.
Other price risk sensitivity. If market prices at the reporting date had been 10% higher or lower while all other variables
remained constant, the return attributable to Ordinary shareholders and equity for the year ended 30 June 2024 would have
increased/decreased by £107,353,000 (2023 – £109,831,000).
18 (b) Liquidity risk. This is the risk that the Company will encounter difficulty in meeting obligations associated with financial
liabilities as they fall due in line with the maturity profile analysed as follows:
Within Within Within More than
1 year 1-3 years 3-5 years 5 years Total
At 30 June 2024 £000 £000 £000 £000 £000
Bank loans 6,282 – – – 6,282
2.51% Senior Loan Note 8/11/27 – – 40,000 – 40,000
4.37% Senior Loan Note 8/5/29 – – 60,000 – 60,000
Interest cash flows on bank loans 10 – – – 10
Interest cash flows on 2.51% Senior Loan Note 1,004 2,008 502 – 3,514
Interest cash flows 4.37% Senior Loan Note 2,622 5,244 5,244 – 13,110
Cash flows on other creditors 7,056 – – – 7,056
16,974 7,252 105,746 – 129,972
Within Within Within More than
1 year 1-3 years 3-5 years 5 years Total
At 30 June 2023 £000 £000 £000 £000 £000
Bank loans 6,378 – – – 6,378
2.51% Senior Loan Note 8/11/27 – – 40,000 – 40,000
4.37% Senior Loan Note 8/5/29 – – – 60,000 60,000
Interest cash flows on bank loans 3 – – – 3
Interest cash flows on 2.51% Senior Loan Note 1,004 2,008 1,506 – 4,518
Interest cash flows 4.37% Senior Loan Note 2,622 5,244 5,244 2,622 15,732
Cash flows on other creditors 5,997 – – – 5,997
16,004 7,252 46,750 62,622 132,628
86 Murray Income Trust PLC
Management of the risk. The Company’s assets comprise readily realisable securities which can be sold to meet funding
commitments if necessary. Short-term flexibility is achieved through the use of committed loan and overdraft facilities.
As at 30 June 2024 the Company utilised £6,282,000 (2023 – £6,378,000) of a £50,000,000 multi–currency revolving bank credit
facility, which is committed until 27 October 2024. Details of maturity dates and interest charges can be found in note 13. The
aggregate of all future interest payments at the rate ruling at 30 June 2024 and the redemption of the loan amounted to
£6,292,000 (2023 – £6,381,000).
18 (c) Credit risk. This is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other
party to incur a financial loss.
Management of the risk. The risk is mitigated by the Investment Manager reviewing the credit ratings of counterparties. The risk
attached to dividend flows is mitigated by the Investment Manager’s research of potential investee companies. The
Company’s custodian bank is responsible for the collection of income on behalf of the Company and its performance is
reviewed by the Depositary (on an ongoing basis) and by the Board on a regular basis. It is the Manager’s policy to trade only
with A– and above (Long Term rated) and A–1/P–1 (Short Term rated) counterparties. The maximum credit risk at 30 June
2024 is £32,365,000 (2023 – £18,123,000) consisting of £3,430,000 (2023 – £3,080,000) of dividends receivable from equity
shares, £3,787,000 (2023 – £nil) receivable from brokers and £25,148,000 (2023 – £15,115,000) in cash and cash equivalents.
None of the Company’s financial assets are past due or impaired (2023 – none).
19. Fair value hierarchy
FRS 102 requires an entity to classify fair value measurements using a fair value hierarchy that reflects the significance of the
inputs used in making the measurements. Categorisation within the hierarchy is determined on the basis of the lowest level
input that is significant to the fair value measurement of each relevant asset or liability. The fair value hierarchy has the
following levels:
Level 1: unadjusted quoted prices in an active market for identical assets or liabilities that the entity can access at the
measurement date;
Level 2: inputs other than quoted prices included within Level 1 that are observable (ie developed using market data) for the
asset or liability, either directly or indirectly; and
Level 3: inputs are unobservable (ie for which market data is unavailable) for the asset or liability.
The valuation techniques used by the Company are explained in the accounting policies note 2(e). The Company’s portfolio
consists wholly of quoted equities, all of which are Level 1.
The fair value of both the 2.51% Senior Loan Notes and 4.37% Senior Loan Note have been calculated by aggregating the
expected future cash flows for that loans discounted at a rate based on UK gilts issued with comparable coupon rates and
maturity dates plus a margin representing the credit risk for Investment Grade A bonds. The fair value and amortised cost
amounts can be found in note 16.
All other financial assets and liabilities of the Company are included in the Statement of Financial Position at their book value
which in the opinion of the Directors is not materially different from their fair value.
Notes to the Financial Statements
Continued
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20. Related party transactions and transactions with the Manager
Fees payable during the year to the Directors and their interests in shares of the Company are considered to be related party
transactions and are disclosed within the Directors’ Remuneration section of the Directors’ Remuneration Report on page 49.
The Company has agreements with the Manager for the provision of management, secretarial, accounting and administration
services and promotional activities. Details of transactions during the year and balances outstanding at the year end are
disclosed in notes 4 and 5.
21. Capital management policies and procedures
The investment objective of the Company is to achieve a high and growing income combined with capital growth through
investment in a portfolio principally of UK equities.
The capital of the Company consists of debt (comprising loan notes and bank loans) and equity (comprising issued capital,
reserves and retained earnings). The Company manages its capital to ensure that it will be able to continue as a going concern
while maximising the return to shareholders through the optimisation of the debt and equity balance.
The Board monitors and reviews the broad structure of the Company’s capital on an ongoing basis. This review includes:
– the level of equity shares in issue;
– the planned level of gearing which takes into account the Investment Manager’s views on the market (net gearing figures
can be found on page 15); and
– the extent to which revenue in excess of that which is required to be distributed should be retained.
The Company’s objectives, policies and processes for managing capital are unchanged from the preceding
accounting period.
Notes 13 and 14 give details of the Company’s bank facility agreement and loan notes respectively.
22. Subse
q
uent events
On 30 August 2024, the Company announced that it had agreed to a change in the management fee arrangements with
the Manager. With effect from 1 July 2024, the management fee is to be based on 0.35% per annum for net assets up to £1.1
billion and 0.25% per annum for net assets over £1.1 billion, calculated and payable monthly.
88 Murray Income Trust PLC
Corporate Information
Incorporated in the USA, Mastercard has ambitions to be integral
to the digital payment economy globally. It enjoys strong
competitive positioning and high barriers to entry. A new purchase
during the Year, Mastercard forms part of the up to 20%
of the portfolio which may be invested in non-UK listed equities.
Murray Income Trust PLC 89
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
abrdn Fund Managers Limited
The Company’s Manager is abrdn Fund Managers
Limited, a subsidiary of abrdn, whose assets under
management and administration were £506 billion as at
30 June 2024. The Manager delegates portfolio
management to abrdn Investments Limited.
The Investment Team
Charles Luke
Senior Investment Director
Charles is a Senior Investment Director in the Developed
Markets Equities team having joined abrdn in 2000. Prior to
this, previously worked at Framlington Investment
Management. Charles has a BA in Economics and
Japanese Studies from Leeds University and a MSc in
Economic History from the London School of Economics.
Rhona Millar
Investment Manager
Rhona is an Investment Manager in the Developed
Markets Equities team. She joined abrdn in 2016 after
working at EY. Rhona has a BSc in Mathematics from
the University of St Andrews and is a CFA Charterholder
and a Member of the Institute of Chartered Accountants
of Scotland.
Iain Pyle
Senior Investment Director
Iain is a Senior Investment Director in the Developed
Markets Equities team, having joined abrdn in 2015. Prior to
this, he was an analyst in the top-ranked Oil & Gas
research team at Sanford Bernstein. Iain has a MEng
degree in Chemical Engineering from Imperial College
and an MSc (Hons) in Operational Research from
Warwick Business School. He is a CFA Charterholder and a
Member of the Institute of Chartered Accountants in
England & Wales.
Information about the Manager including
Investment Process
90 Murray Income Trust PLC
The Investment Process
Investment Approach and Style
The Investment Manager believes that company
fundamentals ultimately drive stock prices but are often
priced inefficiently. It believes that in-depth company
research delivers insights that can be used to exploit these
market inefficiencies. It focuses on investing in high quality
companies, with the market often underestimating the
sustainability of their returns. Quality companies tend to
produce more resilient earnings streams with fewer tail
risks, allowing them to better navigate challenging market
conditions whilst also capitalising on opportunities to
create value. This makes the approach well suited to
identifying companies with sustainable and growing
income generation. Investment insights are generated by
the extensive equity research platform at abrdn. Ideas are
generated through frequent direct company contact,
deep fundamental analysis with rigorous team debate
strengthening analytical conclusions. Although the
Company does not have a sustainable objective and its
investment policy does not have sustainable
characteristics, environmental, social and governance
considerations (or “ESG”) are integrated into the research
analysis. The Investment Manager has a long-term
approach, aiming to buy and hold companies for a multi-
year time horizon although it has the ability to react
quickly if necessary. It is willing to take sizeable deviations
to the benchmark based on the companies where it finds
the highest quality and most attractive valuations.
Investment Process
The investment process has five stages:
Information about the Manager including
Investment Process
Continued
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Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
1.
Idea Generation
. Comprehensive coverage of the UK
equity market with a team of analysts generating
investment ideas from company meetings, combined
with corroborating evidence from competitors,
suppliers and customers. External secondary research
is also sourced to gain insight on the consensus view
and supplement proprietary research.
2.
Research
. The market implicitly embeds a lot of
information in a stock price, and the Investment
Manager takes time to understand and interpret this as
it builds a view about the outlook of companies and the
way the market is likely to value them in the future.
abrdn’s in-depth analysis of a company’s financials
and business prospects helps it to formulate a
forward-looking view of earnings and cash flow
trajectories, and it applies a variety of forward-looking
multiples in comparing valuations with competitors
and across industries and markets. To fully leverage
the benefits of our considerable research resource, the
Investment Manager’s equity teams use a common
investment language and research framework that
structures how the Investment Manager expresses its
thinking on companies. This facilitates the effective
and unambiguous articulation of research insights.
External research is also utilised to gain insight on the
consensus view and supplement proprietary research.
ESG considerations are integrated into the research
process with each stock receiving an ESG score
alongside an overall quality score.
3.
Stock and Sector Review
. Buy ideas are peer reviewed
by the Developed Markets equity team, evaluating the
level of conviction and the materiality, corroboration
and correlation of those investment opportunities.
4.
Portfolio Construction.
Portfolio construction is bottom-
up driven, focused on investing in companies that pass
the Investment Manager’s rigorous quality assessment,
are attractively valued, and have appealing income
characteristics. The largest component of the
portfolio’s active risk will be stock-specific with
appropriate diversification across a broad range of
countries and sectors. abrdn sells a stock if it has come
to reflect all the upside it expects and now prices in
abrdn’s view of the fundamentals. The Investment
Manager will also sell if our investment thesis has
played out or is proved wrong, or if the Investment
Manager finds more interesting opportunities
elsewhere. Continuous monitoring of company
fundamentals and valuation is critical and abrdn uses a
variety of proprietary and external quantitative tools to
support portfolio construction. The Investment
Manager aims to select high quality stocks with
attractive income characteristics. Quality is defined by
reference to factors including management, business
model, balance sheet and ESG considerations.
The Investment Manager believes that good
investment decision making requires clarity of
responsibility for those decisions. Every stock in the
portfolio has a named analyst responsible for its
coverage while every portfolio has a named fund
manager responsible for its management. The
individual fund manager makes investment decisions,
supported and challenged by the wider team, but
involving clear accountability.
5.
Engagement.
As part of the investment process, the
Investment Manager undertakes a significant number
of company meetings each year, during which trading
performance, strategy and broader corporate
developments are discussed. This engagement also
provides an opportunity to address broader ESG issues
including board composition, remuneration, audit,
climate change, and labour relations.
92 Murray Income Trust PLC
ESG considerations
Although the Company does not have sustainability
characteristics as part of its investment objective or policy,
ESG analysis is integrated into the Investment Manager’s
investment process, as outlined above, and is a
considered part of each investment decision.
At the investment stage, ESG factors and analysis can help
to frame where best to invest by considering material risks
and opportunities alongside other financial metrics. Due
diligence can ascertain whether such risks are being
adequately managed, and whether the market has
understood and priced them accordingly.
abrdn Investments has a well-established central
sustainability team who support investment teams across
different asset classes with its thematic work on areas
such as shareholder engagement, remuneration issues,
and climate change, as well as taking responsibility for
voting policies. abrdn Investments believes in active
engagement with its investments and potential
investments: from providing initial guidance on suitable
metrics through to holding the investee company to
account for delivering on its promises. In practice, it is
through applying this sustainability filter that the
Investment Manager is comfortable investing on the
Company’s behalf in, for example, sectors such as mining
and oil and gas, subject to the belief, based on such
engagement and investee companies delivering on their
commitments, that a company is taking the necessary
action to address the energy transition. The Investment
Manager follows these developments closely given that
many commodities are necessary for the transition to a
low carbon future.
The latest TCFD product report published by the
Investment Manager in relation to the Company can be
found on the Company’s website under ‘Key Documents’.
The portfolio is AA rated by MSCI for its ESG
characteristics: the MSCI Fund Ratings measures the ESG
characteristics of a fund portfolio, ranking funds from
CCC to AAA (being the highest score). Further details can
be found at https://upl.inc/msci.com-our-solutions-mut
Breadth of experience
The investment process also leverages a wealth of
knowledge, insight and expertise across asset classes and
regions within abrdn. This allows the Investment Manager
to take advantage of equity colleagues across the globe
who are meeting companies and conducting research
and sharing their insights using one common global
research platform. This is invaluable when investing in the
UK equity market, which is one of the most global markets
in the world given that more than 70% of revenues
generated by companies in the FTSE 100 come from
overseas. Corporate level insights are shared with the
credit team which enriches the equity view through an
understanding of the full capital structure of the
businesses invested in. Members of the Investment
Manager’s multi-asset and economics teams regularly
share macro level insights with the Developed Markets
equity team.
Risk Management
The Investment Manager utilises a number of quantitative
risk tools to ensure it is fully aware of and understand all
the risks prevalent in portfolios it manages. These risk
management systems monitor and analyse active risk, the
composition of portfolio positions, as well as contribution
to risk and marginal contribution to risk of the portfolio’s
holdings. The systems break down the risk within the
portfolio by industry and country factors, and highlight the
stocks with the highest marginal contribution to risk and
the largest diversification benefit. Sector, thematic and
geographical positions are a residual of stock selection
decisions, but are monitored to ensure excessive risk is not
taken in any one area. The Investment Manager also
makes use of pre-trade analytics to assess the impact of
any trades on the portfolio risk metrics.
Information about the Manager including
Investment Process
Continued
Information about the Manager including
Investment Process
Continued
Murray Income Trust PLC 93
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Snapshot data for the Company
79.7%
Lower carbon intensity
relative to the Benchmark
c. 173
Dedicated meetings
with companies in the
Company’s portfolio
51
Number of meetings where
the Company voted
33.3%
Number of meetings with
at least one vote against
management
1
st
Quartile
Peer Group MSCI Rating
AA
Fund MSCI ESG Rating
Carbon intensity is measured annually, as at 31 December 2023. Full details are included in the TCFD report on the Company’s website.
Engagement: time period referenced is the year ended 30 June 2024.
Voting: time period referenced is the year ended 30 June 2024.
abrdn’s latest PRI Assessment Report, published in December 2023, and which contains its scores across all modules, is available at:
www.abrdn.com/en-gb/institutional/sustainable-investing/document-library
94 Murray Income Trust PLC
Company’s Engagement Activity
The following chart shows the nature of the 173
engagements undertaken by the Company with portfolio
companies during the year ended 30 June 2024. This does
not include positions sold by the Investment Manager, or
potential stocks under consideration. Themes engaged on
include:
Climate
Environment
Labour Management,
Diversity & Inclusion
Human Rights &
Stakeholders
Corporate Behaviour
Corporate
Governance
Voting Activity
The following is a summary of the Investment Manager’s
voting activity, on behalf of the Company, for the year
ended 30 June 2024 (Source - abrdn):
Voting Summary Total
Number of meetings the Company was eligible
to vote at
53
Number of meetings which the Company voted at 51
Number of resolutions the Company was eligible
to vote on
1,050
Proportion of resolutions voted on for which
the Company was eligible to vote
88.5%
Proportion of resolutions voted on where the
Company voted with management
94.9%
Proportion of resolutions voted on where the
Company voted against management
5.1%
Proportion of resolutions voted on where the
Company abstained from voting
0.4%
Proportion of meetings voted at where the
Company voted against management at
least once
33.3%
While the Manager will typically vote in line with an investee board’s voting recommendation, it will vote against
resolutions that are not consistent with the Company’s best interests. For example, abrdn may vote against resolutions
which are not aligned with its policies or which conflict with local governance guidelines, such as the Investment
Association in the UK. Although the Investment Manager seeks to vote either ‘in favour’ or ‘against’ a resolution, it does
make use of an abstain vote where this is considered appropriate. The Investment Manager aims to vote at all eligible
meetings unless share blocking (which can be a feature of voting in non-UK jurisdictions) makes this unviable.
Information about the Manager including
Investment Process
Continued
Murray Income Trust PLC 95
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Alternative Investment Fund Managers
Directive (“AIFMD”) and Pre-Investment
Disclosure Document (“PIDD”)
The Company has appointed the Manager as its
alternative investment fund manager and BNP Paribas SA,
London Branch as its depositary under the AIFMD.
The AIFMD requires the Manager, as the Company’s
alternative investment fund manager, to make available
to investors certain information prior to such investors’
investment in the Company. Details of the leverage and
risk policies which the Company is required to have in
place under AIFMD are published in the Company’s PIDD
which can be found on its website: murray-income.co.uk
The periodic disclosures required to be made by the
Manager under the AIFMD are set out on page 98.
Benchmark
The Company’s benchmark is the FTSE All-Share Index.
Shareholder Enquiries
For queries regarding shareholdings, lost certificates,
dividend payments, registered details and related
matters, shareholders holding their shares directly in the
Company are advised to contact the Registrar, Link Group
(see Additional Shareholder Information for details).
Any questions about the Company should be addressed
to Murray Income Trust PLC, 1 George Street, Edinburgh
EH2 2LL or sent by email to: murray.income@abrdn.com.
Investor Warning: Be alert to share fraud
and boiler room scams
The Company has been made aware by abrdn that some
investors have received telephone calls from people
purporting to work for abrdn, or third parties, who have
offered to buy their investment trust shares. These may be
scams which attempt to gain personal information with
which to commit identity fraud or could be ‘boiler room’
scams where a payment from an investor is required to
release the supposed payment for their shares. These
callers do not work for abrdn and any third party making
such offers has no link with abrdn. abrdn never makes
these types of offers and does not ‘cold-call’ investors in
this way. If investors have any doubt over the veracity of a
caller, they should not offer any personal information, end
the call and contact abrdn’s investor services centre using
the details provided below.
The Financial Conduct Authority provides advice with
respect to share fraud and boiler room scams at:
fca.org.uk/consumers/scams
Keeping You Informed
Detailed information on the Company (including price,
performance, a monthly factsheet and current and
historic Annual and Half-Yearly Reports) is available from
the Company’s website (murray-income.co.uk). You can
also register for regular email updates by visiting the
Company’s website.
a
brdn Investment Trusts Social Media Accounts
Twitter: @abrdnTrusts
LinkedIn: abrdn Investment Trusts
Suitable for Retail/NMPI Status
The Company’s shares are intended for investors,
primarily in the UK, including retail investors, professionally-
advised private clients and institutional investors who are
seeking a high and growing income combined with capital
growth through investment in a portfolio principally of UK
equities, and who understand and are willing to accept the
risks of exposure to equities.
Investors should consider consulting a financial adviser
who specialises in advising on the acquisition of shares
and other securities before acquiring shares. Investors
should be capable of evaluating the risks and merits of
such an investment and should have sufficient resources
to bear any loss that may result.
The Company currently conducts its affairs so that the
securities issued by the Company can be recommended
by a financial adviser to ordinary retail investors in
accordance with the Financial Conduct Authority’s rules in
relation to non-mainstream pooled investments (“NMPIs”)
and intends to continue to do so for the foreseeable future.
The Company’s securities are excluded from the Financial
Conduct Authority’s restrictions which apply to NMPIs
because they are securities issued by an investment trust.
Key Information Document (“KID”)
The KID relating to the Company can be found under ‘Key
Documents’ in the ‘Literature’ section of the Company’s
website at murray-income.co.uk.
Investor Information
96 Murray Income Trust PLC
How to Invest in Murray Income Trust PLC
and other abrdn-managed investment trusts
A range of leading investment platforms and share
dealing services let you buy and sell abrdn-managed
investment trusts including Murray Income Trust PLC.
Many of these platforms operate on an ‘execution-only’
basis. This means they can carry out your instruction to
buy or sell a particular investment trust. But they may not
be able to advise on suitable investments for you. If you
require advice, please speak to a qualified financial
adviser (see below).
Flexibility
Many investment platform providers will allow you to buy
and hold abrdn Investment Trust shares within an
Individual Savings Account (ISA), Junior ISA or Self Invested
Personal Pension (SIPP), all of which have potential tax
advantages. Most will also allow you to invest on both a
lump sum and regular savings basis.
Costs and service
It is important to choose the right platform for your needs,
so take time to research what each platform offers before
you make your decision, as well as considering charges.
When it comes to charges, some platforms have flat fee
structures while others levy percentage-based charges.
Typically, you will also pay a fee every time you buy and
sell shares, so you need to bear in mind these transaction
costs if you are trading frequently. There may also be
additional charges for ISA and SIPP investments.
How to Attend and Vote at
Company Meetings
The Chair’s Statement, on page 7, includes information
on how shareholders may exercise their voting rights
in relation to the Annual General Meeting on
5 November 2024.
Can I exercise my voting rights if I hold my
shares through an investment platform?
Yes, you should be able to exercise your right to vote by
contacting your platform. Procedures differ, but some
platforms will automatically alert you when new statutory
documents are available and then allow you to vote
online. Others will require you to contact them to vote.
Your chosen platform will provide further guidance.
Getting advice
abrdn recommends that you seek financial advice prior to
making an investment decision. If you do not currently
have a financial adviser, details of authorised financial
advisers in your area can be found at pimfa.co.uk or
unbiased.co.uk (see below). You will pay a fee for
advisory services.
Platform providers
Platforms featuring Murray Income Trust PLC, as well as
other abrdn-managed investment trusts, include:
· AJ Bell:
www.ajbell.co.uk/markets/investment-trusts
· Barclays Smart Investor:
www.barclays.co.uk/smart-investor
· Charles Stanley Direct:
www.charles-stanley-direct.co.uk
· Fidelity: www.fidelity.co.uk
· Halifax: www.halifax.co.uk/investing
· Hargreaves Lansdown:
www.hl.co.uk/shares/investment-trusts
· interactive investor (owned by abrdn):
www.ii.co.uk/investment-trusts
The companies above are shown for illustrative purposes
only. Other platform providers are available. The links
above direct you to external websites operated by each
platform provider. abrdn is not responsible for the content
and information on these third-party sites, apart from
interactive investor, which is owned by abrdn.
Discretionary Private Client Stockbrokers
If you have a large sum to invest, you may wish to contact
a discretionary private client stockbroker. They can
manage your entire portfolio of shares and will advise you
on your investments. To find a private client stockbroker
visit The Personal Investment Management & Financial
Advice Association at: pimfa.co.uk.
Financial Advisers
To find an adviser who recommends on investment trusts,
visit: unbiased.co.uk
Investor Information
Continued
Murray Income Trust PLC 97
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Regulation of Stockbrokers
Before approaching a stockbroker, always check that
they are regulated by the Financial Conduct Authority:
Tel: 0800 111 6768 or at
at https://register.fca.org.uk
Email: consumerqueries@fca.org.uk
Note
Please remember that past performance is not a guide to
the future. Stock market and currency movements may
cause the value of shares and the income from them to
fall as well as rise and investors may not get back the
amount they originally invested. As with all equity
investments, the value of investment trusts purchased will
immediately be reduced by the difference between the
buying and selling prices of the shares, the market maker’s
spread. Investors should further bear in mind that the
value of any tax relief will depend on the individual
circumstances of the investor and that tax rates and
reliefs, as well as the tax treatment of ISAs, may be
changed by future legislation.
The information on pages 95 to 97 has been approved for
the purposes of Section 21 of the Financial Services and
Markets Act 2000 (as amended by the Financial Services
Act 2012) by abrdn Investments Limited, 280 Bishopsgate,
London EC2M 4AG which is authorised and regulated by
the Financial Conduct Authority in the United Kingdom.
Financial Calendar
Payment months of quarterly dividends March, June, September, December
Financial year end 30 June
Expected announcement of annual results September
Annual General Meeting November
98 Murray Income Trust PLC
The Manager and the Company are required to make certain disclosures available to investors in accordance
with the AIFMD. Those disclosures that are required to be made pre-investment are included within a pre-investment
disclosure document (“PIDD”) which may be found on the Company’s website (murray-income.co.uk), maintained
by the Manager.
AIFMD or the Directive
The Alternative Investment Fund Managers Directive -
There have been no material changes to the disclosures contained within the PIDD since its latest publication
in September 2024.
The periodic disclosures as required under the AIFMD to investors are made below:
· information on the investment strategy, geographic and sector investment focus and principal stock exposures is
included in the Strategic Report;
· none of the Company’s assets are subject to special arrangements arising from their illiquid nature;
· the Strategic Report, Note 18 to the financial statements and the PIDD, together set out the risk profile and risk
management systems in place. There have been no changes to the risk management systems in place in the period
under review and no breaches of any of the risk limits set, with no breach expected;
· there are no new arrangements for managing the liquidity of the Company or any material changes to the liquidity
management systems and procedures employed by the Manager;
· all authorised Alternative Investment Fund Managers are required to comply with the AIFMD Remuneration Code. In
accordance with the AIFMD Remuneration Code, the AIFM’s remuneration policy in respect of its reporting period
ended 31 December 2023 is available on the website of abrdn plc at www.abrdn.com/en-gb/corporate/about-us/our-
leadership-team/remuneration-disclosure, or on request from the Company Secretaries, abrdn Holdings Limited (see
Additional Shareholder Information on page 109 for contact details).
Leverage
For the purposes of the Alternative Investment Fund Managers Directive, leverage is any method which increases the
Company’s exposure, including the borrowing of cash and the use of derivatives. It is expressed as a ratio between the
Company’s exposure and its net asset value and can be calculated on a gross and a commitment method. Under the
gross method, exposure represents the sum of the Company’s positions after the deduction of Sterling cash balances,
without taking into account any hedging and netting arrangements. Under the commitment method, exposure is
calculated without the deduction of Sterling cash balances and after certain hedging and netting positions are offset
against each other.
The table below sets out the current maximum permitted limit and actual level of leverage for the Company:
Gross Method Commitment Method
Maximum level of leverage 2.50:1 2.00:1
Actual level at 30 June 2024 1.20:1 1.22:1
There have been no breaches of the maximum level during the period and no changes to the maximum level of
leverage employed by the Company. There is no right of re-use of collateral or any guarantees granted under the
leveraging arrangement. Changes to the information contained either within this Annual Report or the PIDD in relation to
any special arrangements in place, the maximum level of leverage which the AIFM may employ on behalf of the
Company; the right of use of collateral or any guarantee granted under any leveraging arrangement; or any change to
the position in relation to any discharge of liability by the Depositary will be notified via a regulatory news service without
undue delay in accordance with the AIFMD.
The information on this page has been approved for the purposes of Section 21 of the Financial Services and Markets Act
2000 (as amended by the Financial Services Act 2012) by the Manager which is authorised and regulated by the
Financial Conduct Authority in the United Kingdom.
AIFMD Disclosures
(
Unaudited
)
Murray Income Trust PLC 99
General
Air Liquide, a new holding purchased during
the Year, is a world leader in gases,
technologies and services for industry and
health, and is an example of the Company’s
ability, under its flexible Investment Policy,
to provide exposure to non-UK listed
companies.
100 Murray Income Trust PLC
Alternative performance measures are numerical measures of the Company’s current, historical or future performance, financial
position or cash flows, other than financial measures defined or specified in the applicable financial framework. The Company’s
applicable financial framework includes FRS 102 and the AIC SORP. The Directors assess the Company’s performance against a
range of criteria which are reviewed as particularly relevant for closed-end investment companies.
Discount to net asset value per Ordinary share with debt at fair value
The discount is the amount by which the share price is lower than the net asset value per share with debt at fair value, expressed as a
percentage of the net asset value.
30 June 2024 30 June 2023
NAV per Ordinary share a 957.9p 911.7p
Share price b 857.0p 837.0p
Discount (b-a)/a (10.5)% (8.2)%
Discount to net asset value per Ordinary share with debt at par value
The discount is the amount by which the share price is lower than the net asset value per share with debt at par value, expressed as a
percentage of the net asset value.
30 June 2024 30 June 2023
NAV per Ordinary share a 946.0p 894.4p
Share price b 857.0p 837.0p
Discount (b-a)/a (9.4)% (6.4)%
Dividend cover
Dividend cover is the revenue return per Ordinary share divided by dividends per Ordinary share expressed as a ratio.
30 June 2024 30 June 2023
Revenue return per share a 37.40p 38.73p
Dividends per share b 38.50p 37.50p
Dividend cover a/b 0.97 1.03
Alternative Performance Measures
Murray Income Trust PLC 101
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Dividend yield
The annual dividend per Ordinary share divided by the share price, expressed as a percentage.
30 June 2024 30 June 2023
Dividends per share (p) a 38.50p 37.50p
Share price (p) b 857.00p 837.00p
Dividend yield a/b 4.5% 4.5%
Net asset value per Ordinary share with debt at fair value
The calculation of the Company’s net asset value per Ordinary share with debt at fair value is set out in Note 16.
Net gearing
Net gearing measures the total borrowings less cash and cash equivalents dividend by shareholders’ funds, expressed as a
percentage. Under AIC reporting guidance cash and cash equivalents includes amounts due to and from brokers at the year end as
well as cash and cash equivalents.
30 June 2024 30 June 2023
Bank loans (£’000) a (6,282) (6,378)
Senior Loan Notes (£’000) b (107,574) (109,141)
Total borrowings (£’000) c=a+b (113,856) (115,519)
Cash (£’000) d 25,148 15,115
Amounts due to brokers (£’000) e (5,167) (2,202)
Amounts due from brokers (£’000) f 3,787 –
Shareholders’ funds (£’000) g 990,282 999,184
Net gearing –(c+d+e+f)/g 9.1% 10.3%
102 Murray Income Trust PLC
Ongoing charges
The ongoing charges ratio has been calculated based on the total of investment management fees and administrative expenses less
non-recurring charges and expressed as a percentage of the average daily net asset values with debt at fair value published
throughout the year.
30 June 2024 30 June 2023
Investment management fees (£’000) a 3,692 3,804
Administrative expenses (£’000) b 1,334 1,390
Less: non-recurring charges
A
(£’000) c (25) (8)
Ongoing charges (£’000) a+b+c 5,001 5,186
Average net assets (£’000) d 991,404 1,036,020
Ongoing charges ratio (a+b+c)/d 0.50% 0.50%
A
30 June 2024 comprises £20,000 Directors recruitment fee and £5,000 relating to other professional services unlikely to recur. 30 June 2023 comprises £7,000 professional fees
relating to discussions with the registrar and £1,000 quick turnaround fee on ESEF filing.
The ongoing charges ratio provided in the Company’s Key Information Document is calculated in line with the PRIIPs regulations, which
includes financing and transaction costs.
Total return
Share price and NAV total returns show how the NAV and share price has performed over a period of time in percentage terms, taking
into account both capital returns and dividends paid to shareholders. Share price and NAV total returns are monitored against open-
ended and closed-ended competitors, and the FTSE All-Share Index, respectively.
Share NAV NAV
Year ended 30 June 2024 price (debt at fair value) (debt at par)
Opening at 1 July 2023 a 837.0p 911.7p 894.4p
Closing at 30 June 2024 b 857.0p 957.9p 946.0p
Price movements c=(b/a)-1 2.4% 5.1% 5.8%
Dividend reinvestment
A
d 5.2% 4.8% 5.0%
Total return c+d 7.6% 9.9% 10.8%
Share NAV NAV
Year ended 30 June 2023 price (debt at fair value) (debt at par)
Opening at 1 July 2022 a 832.0p 871.0p 864.9p
Closing at 30 June 2023 b 837.0p 911.7p 894.4p
Price movements c=(b/a)-1 0.6% 4.7% 3.4%
Dividend reinvestment
A
d 4.3% 4.1% 4.1%
Total return c+d 4.9% 8.8% 7.5%
A
Share price total return involves reinvesting the net dividend in the share price of the Company on the date on which that dividend goes ex-dividend. NAV total return involves
investing the net dividend in the NAV of the Company with debt at fair value on the date on which that dividend goes ex-dividend.
Alternative Performance Measures
Continued
Murray Income Trust PLC 103
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Active Share
A measure of the difference between a portfolio and a
benchmark, calculated as a percentage.
abrdn or the Group
The abrdn plc group of companies.
AIFMD
Alternative Investment Fund Managers Directive
AIC
The Association of Investment Companies (theaic.co.uk).
Benchmark
FTSE All-Share Index.
Depositary
A depositary is responsible for cash monitoring, the
custody and safeguarding of the Company’s financial
instruments and monitoring the Company’s compliance
with investment limits and leverage requirements.
On 31 May 2024, the depositary agreement moved from
one subsidiary of BNP Paribas SA to another (exchanging
BNP Paribas Trust Corporation UK Limited for BNP Paribas
SA, London branch).
FCA
The Financial Conduct Authority.
Investment Manager
abrdn Investments Limited.
Investment Trust
A type of Closed-End Fund which invests in other
securities, allowing shareholders to share the risks, and
returns, of collective investment.
Key Information Document or KID
The Packaged Retail and Insurance-based Investment
Products (“PRIIPS”) Regulation requires the Manager, as
the Company’s PRIIP ‘manufacturer’, to prepare a Key
Information Document (“KID”) in respect of the Company.
This KID must be made available by the Manager to retail
investors prior to them making any investment decision
and is available via the Company’s website. The Company
is not responsible for the information contained in the KID
and investors should note that the procedures for
calculating the risks, costs and potential returns are
prescribed by law. The figures in the KID may not reflect
the expected returns for the Company and performance
returns cannot be guaranteed.
Manager (the “Manager”)
abrdn Fund Managers Limited is a wholly owned
subsidiary of abrdn and acts as the alternative investment
fund manager for the Company. abrdn Fund Managers
Limited is authorised and regulated by the Financial
Conduct Authority.
Net Asset Value or NAV
The net asset value or NAV is the Company’s total assets
less liabilities. Liabilities for this purpose include current and
long-term liabilities such as the Company’s £40m senior
loan notes expiring in 2027 and £60m senior loan notes
expiring in 2029.
NAV per Ordinary Share
The calculation of the NAV per Ordinary share is shown in
note 16 on the basis of debt at par value (amortised cost)
and debt at fair value (discounted cashflow basis, as set
out in note 19).
Price/Earnings Ratio
The ratio is calculated by dividing the middle-market price
per share by the earnings per share. The calculation
assumes no change in earnings but in practice the
multiple reflects the stock market’s view of a company’s
prospects and profit growth potential.
PRIIPs
Packaged retail and insurance-based investment
products marketed to retail investors which are subject to
investment risk.
Scrip Dividend
An issue of shares to a shareholder in proportion to their
existing holding, in lieu of paying a dividend.
Glossary of Terms
104 Murray Income Trust PLC
NOTICE IS HEREBY GIVEN that the Annual General Meeting of Murray Income Trust PLC will be held at 12.30pm on
Tuesday 5 November 2024 at Wallacespace Spitalfields, 15 Artillery Lane, London E1 7HA for the purpose of considering
and if thought fit passing the following resolutions, of which Resolutions 1 to 10 inclusive will be proposed as Ordinary
Resolutions and Resolutions 11 and 12 inclusive will be proposed as Special Resolutions:–
Ordinary Business
1. To receive and adopt the Directors’ Report, Auditor’s Report and the audited financial statements for the year ended
30 June 2024.
2. To receive and adopt the Directors’ Remuneration Report for the year ended 30 June 2024 other than the Directors’
Remuneration Policy.
3. To approve the Company’s dividend policy to pay four quarterly interim dividends per year.
4. To elect Angus Franklin* as a Director of the Company.
5. To re-elect Stephanie Eastment* as a Director of the Company.
6. To re-elect Nandita Sahgal Tully* as a Director of the Company.
7. To re-elect Peter Tait* as a Director of the Company.
8. To re-appoint PricewaterhouseCoopers LLP as independent auditor of the Company.
9. To authorise the Audit Committee to fix the remuneration of PricewaterhouseCoopers LLP as independent auditor
of the Company for the year ended 30 June 2025.
Special Business
Authority to Allot
10. THAT, in substitution of all existing powers, the Directors be and are hereby generally and unconditionally authorised
in accordance with Section 551 of the Companies Act 2006 (the “Act”) to exercise all the powers of the Company to
allot Ordinary shares of 25p each in the capital of the Company (“shares”) up to an aggregate nominal amount of
£1,295,999 (or, if less, the number representing 5 per cent. of the total Ordinary shares in issue (excluding treasury
shares) as at the date of passing of this resolution), during the period expiring on the conclusion of the next Annual
General Meeting of the Company after the passing of this resolution or on 31 December 2025, whichever is the
earlier, but so that this authority shall allow the Company to make offers or agreements before the expiry of this
authority which would or might require shares to be allotted after such expiry and the Directors shall be entitled to
allot shares in pursuance of such an offer or agreement as if such authority had not expired.
Disapplication of Pre-emption Rights
11. THAT, subject to the passing of Resolution 10 proposed at the Annual General Meeting of the Company convened
for 5 November 2024, and in substitution for all existing powers, the Directors be and are hereby empowered,
pursuant to Section 570 of the Companies Act 2006 (the “Act”), to allot equity securities (as defined in Section 560(1)
of the Act) for cash pursuant to the authority given in accordance with Section 551 of the Act by Resolution 11 or
otherwise as if Section 561 of the Act did not apply to any such allotment and to sell or transfer equity securities if,
immediately before the sale or transfer, such equity securities are held by the Company as treasury shares (as
defined in Section 724(5) of the Act) as if Section 561 of the Act did not apply to any such sale or transfer, provided
that this power:-
Notice of Annual General Meetin
g
Murray Income Trust PLC 105
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
i. expires at the conclusion of the next Annual General Meeting of the Company after the passing of this resolution
or on 31 December 2025, whichever is the earlier, but so that this power shall enable the Company to make
offers or agreements which would or might require equity securities to be allotted or treasury shares to be sold
or transferred after the expiry of this power and the Directors may allot equity securities or sell or transfer
treasury shares in pursuance of any such offers or agreements as if this power had not expired;
ii. shall be limited to the allotment of equity securities up to an aggregate nominal amount of £2,591,999 (or, if less,
the number representing 10 per cent. of the total Ordinary shares in issue (excluding treasury shares) as at the
date of passing of this resolution); and
iii. shall be limited in respect of the issue of shares or the sale of equity securities from treasury in the
circumstances as detailed in the section headed “Authority to allot shares and disapply pre-emption rights” in
the Directors’ Report on page 44 of the Annual Report of the Company for the year ended 30 June 2024 and at a
price not less than 0.5% above the net asset value per share (as determined by the Directors).
Authority to Make Market Purchases of Shares
12. THAT the Company be and is hereby generally and, subject as hereinafter appears, unconditionally authorised in
accordance with Section 701 of the Companies Act 2006 (the “Act”) to make market purchases (within the meaning
of Section 693(4) of the Act) of Ordinary shares of 25p each in the capital of the Company (“shares”) and to cancel
or hold in treasury such shares, provided always that:
i. the maximum number of shares hereby authorised to be purchased shall be an aggregate of 15,541,629
Ordinary shares or, if less, the number representing 14.99% of the total Ordinary shares in issue (excluding
treasury shares) as at the date of passing this resolution;
ii. the minimum price which may be paid for each share shall be 25p;
iii. the maximum price (exclusive of expenses) which may be paid for a share is the higher of (i) 5% above the
average of the middle market quotations for a share taken from, and calculated by reference to, the London
Stock Exchange Daily Official List for the five business days immediately preceding the day on which the share is
purchased; and (ii) the higher of the price of the last independent trade and the highest current independent bid
on the London Stock Exchange at the time the purchase is carried out;
iv. the authority hereby conferred shall expire on 31 December 2025 or, if earlier, at the conclusion of the next
Annual General Meeting of the Company unless such authority is previously varied, revoked or renewed prior to
such time; and
v. the Company may enter into a contract to purchase shares under the authority hereby conferred prior to the
expiry of such authority and may purchase shares pursuant to any such contract notwithstanding such
expiry above.
*The biographies of the Directors offering themselves for election or re-election may be found on pages 34 to 36.
By order of the Board
abrdn Holdings Limited
Secretaries
17 September 2024
Registered Office
1 George Street
Edinburgh
EH2 2LL
106 Murray Income Trust PLC
Notes
i. To be entitled to attend and vote at the Meeting (and for the purpose of the determination by the Company of the
number of votes they may cast), shareholders must be registered in the Register of Members of the Company at
close of trading on 1 November 2024. Changes to the Register of Members after the relevant deadline shall be
disregarded in determining the rights of any person to attend and vote at the Meeting.
ii. Shareholders, or their proxies, intending to attend the Meeting in person are requested, if possible, to arrive at the
Meeting venue at least 20 minutes prior to the commencement of the Meeting at 12.30pm (UK time) on 5
November 2024 so that their shareholding may be checked against the Company’s Register of Members and
attendances recorded.
iii. Shareholders are entitled to appoint another person as a proxy to exercise all or part of their rights to attend and to
speak and vote on their behalf at the Meeting. A shareholder may appoint more than one proxy in relation to the
Meeting provided that each proxy is appointed to exercise the rights attached to a different ordinary share or
ordinary shares held by that shareholder. A proxy need not be a shareholder of the Company.
iv. In the case of joint holders, where more than one of the joint holders purports to appoint a proxy, only the
appointment submitted by the most senior holder will be accepted. Seniority is determined by the order in which
the names of the joint holders appear in the Company’s Register of Members in respect of the joint holding (the first
named being the most senior).
v. A vote withheld is not a vote in law, which means that the vote will not be counted in the calculation of votes for or
against the resolution. If no voting indication is given, your proxy will vote or abstain from voting at his or her
discretion. Your proxy will vote (or abstain from voting) as he or she thinks fit in relation to any other matter which is
put before the Meeting.
vi. You can vote:
· by logging on to signalshares.com and following the instructions; or
· you may request a hard copy form of proxy directly from the registrars, Link Group, by sending an email to
shareholderenquiries@linkgroup.co.uk or by calling Tel: 0371 664 0300. Calls are charged at the standard
geographic rate and will vary by provider. Calls from outside the UK will be charged at the applicable
international rate. Lines are open between 08:30 – 17:30, Monday to Friday excluding public holidays in England
and Wales. In order for a proxy appointment to be valid a form of proxy must be completed and received by Link
Group at PXS 1, Central Square, 29 Wellington Street, Leeds, LS1 4DL by 12.30pm on 1 November 2024; or
· in the case of CREST members, by utilising the CREST electronic proxy appointment service in accordance with
the procedures set out below; or
· if you are an institutional investor, you may also be able to appoint a proxy electronically via the Proxymity
platform, a process which has been agreed by the Company and approved by the Registrar. For further
information regarding Proxymity, please go to www.proxymity.io. Your proxy must be lodged by 12:30pm on
1 November 2024 in order to be considered valid or, if the meeting is adjourned, by the time which is 48 hours
before the time of the adjourned meeting. Before you can appoint a proxy via this process you will need to have
agreed to Proxymity’s associated terms and conditions. It is important that you read these carefully as you will be
bound by them and they will govern the electronic appointment of your proxy. An electronic proxy appointment
via the Proxymity platform may be revoked completely by sending an authenticated message via the platform
instructing the removal of your proxy vote.
vii. If you return more than one proxy appointment, either by paper or electronic communication, the appointment
received last by the Registrar before the latest time for the receipt of proxies will take precedence. You are advised
to read the terms and conditions of use carefully. Electronic communication facilities are open to all shareholders
and those who use them will not be disadvantaged.
viii. The return of a completed form of proxy, electronic filing or any CREST Proxy Instruction (as described below) will
not prevent a shareholder from attending the Meeting and voting in person if he/she wishes to do so.
Notice of Annual General Meetin
g
Continued
Murray Income Trust PLC 107
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
ix. CREST members who wish to appoint a proxy or proxies through the CREST electronic proxy appointment service
may do so for the Meeting (and any adjournment of the Meeting) by using the procedures described in the CREST
Manual (available from www.euroclear.com). CREST Personal Members or other CREST sponsored members, and
those CREST members who have appointed a service provider(s), should refer to their CREST sponsor or voting
service provider(s), who will be able to take the appropriate action on their behalf.
x. In order for a proxy appointment or instruction made by means of CREST to be valid, the appropriate CREST
message (a ‘CREST Proxy Instruction’) must be properly authenticated in accordance with Euroclear UK &
International Limited’s specifications and must contain the information required for such instructions, as described
in the CREST Manual. The message must be transmitted so as to be received by the issuer’s agent (ID RA10) by
12.30pm on 1 November 2024. For this purpose, the time of receipt will be taken to mean the time (as determined
by the timestamp applied to the message by the CREST application host) from which the issuer’s agent is able to
retrieve the message by enquiry to CREST in the manner prescribed by CREST. After this time, any change of
instructions to proxies appointed through CREST should be communicated to the appointee through other means.
xi. CREST members and, where applicable, their CREST sponsors or voting service providers should note that
Euroclear UK & International Limited does not make available special procedures in CREST for any particular
message. Normal system timings and limitations will, therefore, apply in relation to the input of CREST Proxy
Instructions. It is the responsibility of the CREST member concerned to take (or, if the CREST member is a CREST
personal member, or sponsored member, or has appointed a voting service provider(s), to procure that his CREST
sponsor or voting service provider(s) take(s)) such action as shall be necessary to ensure that a message is
transmitted by means of the CREST system by any particular time. In this connection, CREST members and, where
applicable, their CREST sponsors or voting system providers are referred, in particular, to those sections of the
CREST Manual concerning practical limitations of the CREST system and timings. The Company may treat as invalid
a CREST Proxy Instruction in the circumstances set out in Regulation 35(5)(a) of the Uncertificated Securities
Regulations 2001.
xii. Any corporation which is a shareholder can appoint one or more corporate representatives who may exercise on
its behalf all of its powers as a shareholder provided that no more than one corporate representative exercises
powers in relation to the same shares.
xiii. As at 17 September 2024 (being the latest practicable business day prior to the publication of this Notice), the
Company’s ordinary issued share capital consists of 103,679,980 ordinary shares, carrying one vote each and
15,849,552 shares held in treasury. Therefore, the total voting rights in the Company as at 17 September 2024 are
103,679,980.
xiv. Under Section 527 of the Companies Act 2006, shareholders meeting the threshold requirements set out in that
section have the right to require the Company to publish on a website a statement setting out any matter relating
to: (i) the audit of the Company’s financial statements (including the Auditor’s Report and the conduct of the audit)
that are to be laid before the Meeting; or (ii) any circumstances connected with an auditor of the Company ceasing
to hold office since the previous meeting at which annual financial statements and reports were laid in accordance
with Section 437 of the Companies Act 2006 (in each case) that the shareholders propose to raise at the relevant
meeting. The Company may not require the shareholders requesting any such website publication to pay its
expenses in complying with Sections 527 or 528 of the Companies Act 2006. Where the Company is required to
place a statement on a website under Section 527 of the Companies Act 2006, it must forward the statement to the
Company’s auditor not later than the time when it makes the statement available on the website. The business
which may be dealt with at the Meeting for the relevant financial year includes any statement that the Company
has been required under Section 527 of the Companies Act 2006 to publish on a website.
xv. Any shareholder attending the Meeting has the right to ask questions. The Company must cause to be answered
any such question relating to the business being dealt with at the Meeting but no such answer need be given if: (a)
to do so would interfere unduly with the preparation for the Meeting or involve the disclosure of confidential
information; (b) the answer has already been given on a website in the form of an answer to a question; or (c) it is
undesirable in the interests of the Company or the good order of the Meeting that the question be answered.
108 Murray Income Trust PLC
xvi. Copies of the Directors’ letters of appointment will be available for inspection during normal business hours at the
registered office of the Company on any business day from the date of this Notice until the time of the Meeting and
may also be inspected at the Meeting venue, as specified in this Notice, for 15 minutes before and during the
Annual General Meeting until the conclusion of the Meeting.
xvii. Any electronic address (within the meaning of Section 333(4) of the Companies Act 2006) provided either in this
Notice or in any related documents (including the Form of Proxy) may not be used to communicate with the
Company for any purposes other than those expressly stated. Submission of a Proxy vote shall not preclude a
member from attending and voting in person at the meeting in respect of which the proxy is appointed or at any
adjournment thereof.
xviii. Unless otherwise indicated on the Form of Proxy, CREST, Proxymity or any other electronic voting instruction, the
proxy will vote as they think fit or, at their discretion or withhold from voting.
xix. A copy of this Notice, and other information required by Section 311A of the Companies Act 2006, can be found on
the Company’s website at murray-income.co.uk
xx. If the law or Government guidance so requires at the time of the Meeting, physical attendance at the Meeting may
not be possible. In these circumstances, the Chair will limit, in their sole discretion, the number of individuals in
physical attendance at the meeting to two persons. Should there be no restrictions imposed by law or Government
at the time of the Meeting, the Company may still impose entry restrictions on certain persons wishing to attend the
Meeting in order to ensure the safety of those attending the Meeting. As set out in the Chair’s Statement,
shareholders are encouraged to submit questions in advance of the Meeting by email to:
murray.income@abrdn.com
THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. If you are in any doubt about the action you should take, you are
recommended to seek your own independent financial advice from your stockbroker, bank manager, solicitor, accountant or other independent financial
adviser authorised under the Financial Services and Markets Act 2000 (as amended by the Financial Services Act 2012) if you are in the United Kingdom or,
if not, from another appropriately authorised financial adviser.
If you have sold or otherwise transferred all your Ordinary shares in Murray Income Trust PLC, please forward this document together with the
accompanying documents immediately to the purchaser or transferee, or to the stockbroker, bank or agent through whom the sale or transfer was
effected for transmission to the purchaser or transferee.
Notice of Annual General Meetin
g
Continued
Front cover image: Looking East along the River Clyde in Glasgow,
to the Clyde Arc and the Finnieston Crane
Founded in 1865, HSBC is one of the largest banking and financial
services organisations in the world, with 41 million personal, wealth
and corporate customers, operating from a strong capital base and
through a diversified business model. HSBC was one of several new
stocks purchased by the Company during the Year.
Murray Income Trust PLC 109
Directors
Peter Tait (Chair)
Alan Giles (Senior Independent Director)
Stephanie Eastment (Chair of the Audit Committee)
Angus Franklin
Nandita Sahgal Tully
Company Secretaries and Registered Office
abrdn Holdings Limited
1 George Street
Edinburgh EH2 2LL
Registered in Scotland under company number SC012725
Website
murray-income.co.uk
Points of Contact
The Chair or Company Secretaries at the Registered
Office of the Company
Email: murray.income@abrdn.com
Legal Entity Identifier
549300IRNFGVQIQHUI13
United States Internal Revenue Service
FATCA Registration Number (“GIIN”)
8Q8ZFE.99999.SL.826
abrdn Social Media Accounts
Twitter: @abrdnTrusts
LinkedIn: Murray Income Trust PLC; abrdn Investment Trusts
Alternative Investment Fund Manager
abrdn Fund Managers Limited
Authorised and regulated by the Financial
Conduct Authority
Investment Manager
abrdn Investments Limited
Authorised and regulated by the Financial
Conduct Authority
Registrar (for direct shareholders)
The Share Portal, operated by Link Group, is a secure
online website where shareholdings can be managed
quickly and easily, including changing address or
arranging to pay dividends directly into a bank account, or
to receive electronic communications. To register,
shareholders will need their Investor Code which may be
found on their share certificate or by contacting the
Registrar by email at shareholderenquiries@linkgroup.co.uk
Alternatively, please contact Link Group –
By phone:
0371 664 0300 and +44 (0) 371 664 0300 (international).
Calls are charged at the standard geographic rate and
will vary by provider. Calls from outside the United
Kingdom will be charged at the applicable international
rate. Lines are open between 09:00 - 17:30, Monday to
Friday excluding public holidays in England and Wales
By post:
Link Group
Central Square
29 Wellington Street
Leeds LS1 4DL
Independent Auditor
PricewaterhouseCoopers LLP
144 Morrison Street
Edinburgh EH3 8EB
Depositary
BNP Paribas SA, London branch (formerly BNP Paribas
Trust Corporation UK Limited, until 31 May 2024)
10 Harewood Avenue
London NW1 6AA
Solicitors
Dickson Minto W.S.
16 Charlotte Square
Edinburgh EH2 4DF
Stockbroker
Investec Bank plc
30 Gresham Street
London EC2V 7QP
Additional Shareholder Information
abrdn.com
Murray Income Trust PLC
Annual Report 30 June 2024
An investment trust founded in 1923 aiming
for high and growing income with capital growth
For more information visit murray-income.co.uk
abrdn.com