murray-intl.co.uk
Murray International Trust PLC
A high conviction global portfolio designed to deliver
a strong and rising income and to grow capital
Annual Report
31 December 2024
Glasgow’s Finnieston Crane, a symbol of the city’s
industrial heritage. The Company’s roots can be
traced back to Glasgow’s thriving industrial and
shipbuilding-based economy
Murray International Trust PLC 1
“Our global portfolio, diversified by geography and
sector remains focused on companies exhibiting
robust earnings, strong balance sheets, and positive,
growing cash flows which are expected to deliver
an attractive combination of long-term growth in
revenue to support our dividend as well as capital
growth ahead of inflation”
Virginia Holmes,
Chair
“Over the full financial year, the Company’s NAV
total return was 8.1%, delivering real growth ahead
of the UK Retail Price Index (“RPI”) rate of 3.5%,
which continued to moderate”
Martin Connaghan
and Samantha Fitzpatrick,
abrdn Investments Limited
2 Murray International Trust PLC
Net asset value total return
AB
– 2024 Share price total return
AB
– 2024
+8.1% +4.5%
2023 +8.6% 2023 +1.1%
Retail Price Index
B
– 2024 Reference Index total return
BC
– 2024
3.5% +19.8%
2023 5.2% 2023 +15.7%
Dividends per share
BE
– 2024 Revenue return per share
B
– 2024
11.8
p
11.6
p
2023 11.5p 2023 12.1p
Dividend yield
AD
– 2024 Net gearing
AD
– 2024
4.6% 6.1%
2023 4.5% 2023 8.0%
Ongoing charges ratio
AD
– 2024
Discount to net asset value
AD
– 2024
0.52%
–7.5%
2023 0.53% 2023 –4.0%
A
Alternative Performance Measure (see pages 118 to 120).
B
For the year to 31 December.
C
Reference Index is FTSE All World TR Index.
D
As at 31 December.
E
Dividends declared for the year to which they relate and assuming shareholder approval of final dividend.
Performance Hi
g
hli
g
hts
Murray International Trust PLC 3
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 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
International 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.
Overview
Financial Calendar 4
Financial Highlights 5
Strategic Report
Chair’s Statement 8
Investment Manager's Review 11
The Manager’s Investment Process 19
Investment Case Studies 22
Key Performance Indicators (KPIs) 29
Performance Track Record 30
Investment Objective and Investment Policy 33
Promoting Your Company’s Success 34
Risk Management and Viability 40
Portfolio
Ten Largest Investments 46
List of Investments 47
Summary of Net Assets 49
Sector/Geographical Analysis 50
Governance
Board of Directors 56
Directors’ Report 59
Directors’ Remuneration Report 67
Report of Audit and Risk Committee 71
Statement of Directors’ Responsibilities 74
Independent Auditor’s Report to the Members of Murray
International Trust PLC 75
Financial Statements
Statement of Comprehensive Income 86
Statement of Financial Position 87
Statement of Changes in Equity 88
Statement of Cash Flows 89
Notes to the Financial Statements 90
Securities Financing Transactions Disclosure 115
Alternative Performance Measures 118
Corporate Information
ESG and Climate Related Factors 122
Investor Information 124
Glossary of Terms 127
General
Notice of Annual General Meeting 131
Shareholder Information 136
Contact Addresses 137
Contents
4 Murray International Trust PLC
Payment dates of future quarterly dividends
19 May 2025
15 August 2025
18 November 2025
17 February 2026
Financial year end
31 December
Online Shareholder Presentation
Monday 31 March at 11.00 a.m.
Annual General Meeting (London)
Thursday 24 April 2025 at 12:30 p.m.
Dividends
Rate Ex-dividend date Record date Payment date
1st interim 2.5p 4 July 2024 5 July 2024 16 August 2024
2nd interim 2.5p 3 October 2024 4 October 2024 18 November 2024
3rd interim 2.5p 2 January 2025 3 January 2025 17 February 2025
Proposed final 4.3p 3 April 2025 4 April 2025 19 May 2025
Total dividends 11.8p
Financial Calendar
Murray International Trust PLC 5
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
31 December 2024 31 December 2023 % change
Total assets
A
£1,788.8m £1,808.8m –1.1
Net assets £1,678.8m £1,668.9m +0.6
Market capitalisation £1,553.1m £1,601.8m –3.0
Net Asset Value per Ordinary share
B
278.4p 268.8p +3.6
Share price per Ordinary share (mid market)
B
257.5p 258.0p –0.2
Discount to Net Asset Value per Ordinary share
C
–7.5% –4.0%
Net gearing
C
6.1% 8.0%
Revenue return per share 11.6p 12.1p –4.1
Dividends per share
D
11.8p 11.5p +2.6
Dividend cover (including proposed final dividend)
C
0.98x 1.05x
Dividend yield
C
4.6% 4.5%
Revenue reserves
E
£74.2m £75.1m
Ongoing charges ratio
C
0.52% 0.53%
A
See definition on page 129.
B
Capital values.
C
Considered to be an Alternative Performance Measure as defined on pages 118 and 119.
D
The figure for dividends per share reflects the years to which their declaration relates (see note 8 on page 96) and assuming approval of the final dividend of 4.3p (2023 – final
dividend of 4.3p).
E
The revenue reserve figure does not take account of the third interim and final dividends amounting to £15,078,000 and £25,590,000 respectively (2023 – third interim dividend of
£14,890,000 and final dividend of £26,592,000).
Net asset value per share Dividends per share Mid-Market price per share
At 31 December – pence Year ended 31 December – pence At 31 December – pence
228
248
259
269
278
20 21 22 23 24
10.9
11.0
11.2
11
.5
11.8
20 21 22 23 24
226
231
267
258
258
20 21 22 23 24
Financial Hi
g
hli
g
hts
6 Murray International Trust PLC
Strategic
Report
Murray International Trust PLC 7
Murray International Trust PLC is an
investment company listed on the
main market of the London Stock
Exchange. The Company is an
approved investment trust and aims
to achieve an above average
dividend yield, with long-term growth
in dividends and capital ahead of
inflation, by investing principally in
global equities
8 Murray International Trust PLC
I am pleased to present this Annual Report for the year
ended 31 December 2024.
Background
Capital markets continued to highlight the complex
relationship between economic fundamentals, politics
and financial market performance in 2024. As the year
began, consensus expectations were for easing inflation
and numerous rate cuts in the coming 12 months. As the
year progressed, whilst cautiously optimistic about the
easing inflationary pressures, central banks remained
vigilant and announced fewer rate cuts than
commentators had been predicting. It was also one of the
most significant global election years in history, with
around half of the world's population heading to the polls
and key elections taking place in countries including the
United States, the UK, across Europe and India.
Financial markets once again demonstrated their ability to
defy conventional market theory. Despite the challenging
economic backdrop and political noise, overall equity
markets experienced a notable rally during 2024. This
surge was driven mainly by continued excitement around
the potential for Artificial Intelligence (“AI”) and a
momentum-driven desire to own the "Magnificent Seven"
US technology stocks. A short-lived market correction in
early August was the result of the combination of an
interest rate hike in Japan and a concerning jobs report in
the United States. This triggered widespread declines
across major indices yet ultimately did little to dampen
investors' spirits. Equity markets quickly dusted themselves
down, and by the time of the election in the United States
and the resulting re-election of President Trump to a
second term, investors, buoyed by the prospect of lower
taxes and potential fiscal stimulus measures, propelled the
markets to new highs. Ultimately, 2024 was another strong
year for global equity market returns.
Performance
Against this background, the Company's net asset value
per share ("NAV") posted a total return for the year (i.e.
with dividends reinvested) of +8.1% and a share price total
return of +4.5%. In comparison over the same period the
UK Retail Price Index rose by 3.5% and the total return of
the Reference Index, the FTSE All World Index, was 19.8%.
More details on this and the significant contributors and
detractors from performance during the year are given in
the Investment Manager’s Review on pages 13 and 14.
Dividends
The revenue return per share for the year (after tax and
expenses) amounted to 11.6p per share, which compares
to 12.1p for the previous financial year. This was largely
due to the revenue generated by the portfolio being down
5.2% to £84.2m, (2023: £88.8m).
Three interim dividends of 2.5p per share (2023: three
interims of 2.4p) have been declared during the year. The
Board is recommending a final dividend of 4.3p, per
Ordinary share (2023: 4.3p). This proposed final dividend
together with the interim dividends already paid makes a
total dividend for the year of 11.8p per share (2023:11.5p),
an increase of 2.6% over the previous financial year. If
approved at the Annual General Meeting on 24 April 2025,
this final dividend will be paid on 19 May 2025 to
Shareholders on the register on 4 April 2025
(ex-dividend 3 April 2025).
Assuming the final dividend is approved, this will represent
the 20th consecutive year in which the Company has
grown its dividend and as a result, the Board expects the
Company will be included in the Association of Investment
Company’s (AIC) list of ‘Dividend Heroes’.
The dividend will be funded from revenue received during
the year together with a small movement of £0.7m (0.2p
per share) from the Company’s revenue reserves. This
represents a dividend cover of 0.98x (2023: 1.05x). The
Company has the benefit of over £74m, or 12.3p per
share, of revenue reserves on its balance sheet at year
end which have been accumulated over many years from
retained earnings. These reserves are available to support
dividend distributions where the Board considers this to be
appropriate. In some years revenues are added to
reserves, while in others as is the case this year, an amount
may be taken from reserves to supplement revenue
earned during that year. Over time, the Company will aim
to pay out what the underlying portfolio earns in sterling
terms. The Board intends to maintain the Company’s
progressive dividend policy.
Chair’s Statement
Murray International Trust PLC 9
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Management of Discount and Share Capital
In line with its peer group, and most of the investment trust
sector, the Company’s shares have traded during the year
at a discount to the NAV that has been wider than the
historic average. Consequently, in order to reduce any
volatility as well as enhance the NAV for ongoing
shareholders, the Company has been more active in
buying back its shares in 2024 with 17.74m (2023: 5.25m)
Ordinary shares, purchased for Treasury, during the year
at a total cost of £54.1m (2023: £12.4m). These shares
were acquired at a weighted average discount of 9.6%
and represented 2.8% of the Company’s issued share
capital at the start of the year (2023: 0.8%). The buybacks
increased the NAV per share by 0.26%. Since the year end,
the Company has regularly bought back Ordinary shares
and a further 8.0m shares have been acquired.
At the latest practicable date, the cum income NAV with
debt at par was 288.23p per share and the share price
was 267.0p, equating to a discount of 7.4% per Ordinary
share compared to a discount of 7.5% per Ordinary share
at the year end.
As in previous years, the Board will be seeking approval
from shareholders at the Annual General Meeting (“AGM”)
on 24 April 2025 to renew the buyback authority together
with the authority to allot new shares or sell shares from
Treasury. New or Treasury shares will only be issued or
sold at a premium to NAV and shares will only be bought
back at a discount to NAV. Resolutions to this effect will be
proposed at the AGM and the Directors strongly
encourage shareholders to support these proposals.
Gearing
At the year end, total borrowings amounted to £110m
(2023: £140m), representing net gearing (calculated by
dividing the total borrowings less cash by shareholders’
funds) of 6.1% (2023: 8.0%), all of which is drawn in sterling.
In May 2024, the Company repaid its maturing £30m five-
year fixed-rate loan with The Royal Bank of Scotland
International. Following the repayment of this loan, the
Company’s borrowings consist of £110m in unsecured
loan notes which are fully drawn and will not be repayable
until 2031 at the earliest. The weighted cost of borrowing
of these fixed-rate loan notes is 2.56%. The Board
considered options to replace the £30m loan that
matured in May 2024 but concluded that the proposed
terms were not commercially attractive at present. The
Board will continue to keep the position under review.
Ongoing Charges Ratio (“OCR”)
The Board remains focused on controlling costs and on
delivering value to shareholders. The OCR for 2024 was
0.52% (2023: 0.53%). This is the second lowest in the AIC
global equity income sector.
Board of Directors
As part of ongoing succession planning, Mrs Alexandra
Mackesy will be retiring from the Board at the conclusion
of the AGM in April, having joined the Board in 2016. On
behalf of the Board, I would like to take this opportunity to
thank Mrs Mackesy for her insight, expertise and wise
counsel over the last nine years, as a Director, as Chair of
the Remuneration Committee and, latterly, as Senior
Independent Director. The Board is in the process of
concluding a search for a new Non-Executive Director
using the services of an independent recruitment firm and
will update shareholders in due course.
Online Investor Presentation, AGM and
Shareholder Voting
Following the success of similar events over the last few
years, the Board has decided to hold another online
investor presentation this year, at 11.00 a.m. on 31 March
2025. This is in addition to the in-person AGM. During the
online presentation, shareholders and investors will
receive updates from me, as Chair, and the investment
management team on our portfolio positioning, outlook
and recent progress and there will be an interactive
question and answer session. We see this as an
opportunity for shareholders, many of whom may be
unable to attend the AGM, to hear directly from the Board
and the investment team and to pose any questions that
they may have. Full details on how to join the online
shareholder presentation can be found on the Company’s
website at murray-intl.co.uk.
Following the online presentation, shareholders will still
have plenty of time to submit their proxy votes prior to the
AGM. I would encourage all shareholders (whether or not
they intend to attend the AGM in person) to lodge their
votes in advance in this manner. Shareholders on the main
register can do this by completing and returning the proxy
form which has been sent to them. If you hold your shares
on a platform via a nominee, please note that the AIC has
provided helpful information on how to vote investment
company shares held on some of the major platforms.
This information can be found at:
theaic.co.uk/how-to-vote-your-shares.
10 Murray International Trust PLC
The AGM has been convened for 12:30 p.m. on 24 April
2025, at Wallacespace Spitalfields, 15 Artillery Lane,
London E1 7HA. This will be followed by a buffet lunch and
an opportunity to meet the Board and the investment
management team.
Ahead of the online presentation and AGM, I would
encourage shareholders to send in any questions that
they may have for either forum to: murray-intl@abrdn.com.
Your Board greatly values shareholder comments and I
encourage you to email me with your views at:
VirginiaHolmes.Chair@abrdn.com
Outlook
Negotiating financial market remains as challenging as
ever. As we look forward, the geopolitical environment
remains polarised and uncertain, bringing opportunities
and risks. Notwithstanding the recent interest rate cut in
the UK, we still expect that rates may be higher for longer
than many market participants had expected, leaving
governments counting the costs of existing debt levels and
expanding fiscal deficits. These macro economic and
geopolitical uncertainties will continue to dominate the
headlines and impact investor sentiment and, at times, the
direction of capital markets. This year reminds us that
shifting technological trends and corporate fundamentals
will also play a central role in shaping future equity
market returns.
The Board believes that the current market conditions
favour the “bottom-up” investment approach employed
by your Investment Managers to identify the companies
that can successfully navigate the challenges they will
face. Their experience, acquired over a number of market
cycles, will continue to be deployed to maintain a truly
global portfolio, diversified by region and sector, in
companies exhibiting robust earnings, strong balance
sheets, and positive, growing cash flows which are
expected to deliver a combination of long-term growth in
revenue and capital ahead of inflation.
Virginia Holmes
Chair
5 March 2025
Chair’s Statement
Continued
Murray International Trust PLC 11
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Background
Global equity markets performed strongly in 2024. The
FTSE All World Index returned an impressive 19.8% in
Sterling terms over the year, particularly as this followed
the 15.7% it delivered the year before. 2024 was supposed
to be a year of easing inflation and swiftly falling interest
rates, which would justify and support the already lofty
equity market levels that were apparent as the year
began. A more robust than expected economy in the US
and stickier than anticipated inflation in many quarters put
paid to those expectations as the year progressed. Ever
keen to seek the positives and disregard or replace what
was previously believed to be "in the price", many
developed equity markets continued to hit fresh highs
throughout the year. The expected technological shifts
with the dawn of AI and its potential growth were evident
in strong corporate earnings within the few major
technology players in this field. Financial companies also
performed well in the higher for longer interest rate
environment. Beyond those industries, however, earnings
growth and share price performance were generally
less buoyant.
It was also a year of significant national elections, with
eight of the ten most populous nations holding elections.
Almost half of the world's population was eligible to vote in
one of the most significant election years in history.
Sadly, there was little change in the world's geopolitical
issues. Conflicts in the Middle East and Ukraine continued
and the future state of relations between East and West
remained unclear. Other risks, such as the world's
gargantuan debt pile and the potential perils in the
combination of highly concentrated markets, potentially
expensive valuations and the scale and likely future
growth in passive investing, were mentioned in places on
occasion. However, nothing would deter global equity
markets from edging higher.
Global Review
The US experienced significant political and economic
developments throughout the period. The year was
marked by a highly contentious presidential election
campaign, culminating in President Donald Trump's
victory. This win made President Trump the second
president in US history to serve two non-consecutive
terms. The Republican Party's taking control of both the
House and the Senate gives it significant control over the
policy agenda in the US. The election underscored deep
ideological divides within both major parties, mirrored in
the increasingly polarised population.
The US economy demonstrated resilience, with robust
GDP growth, inflation appearing sticky in places and
ticking upwards as the year ended, and unemployment
remaining low. While these economic indicators are
generally positive, they raise serious doubts, previously
anticipated, about the scale and cadence of interest rate
cuts. The expected interest rate easing cycle was a
considerable contributor to strong equity market returns
in the early part of the year, however the eventual
cadence and scale of rate cuts that came through was far
less than initially expected. Other concerns remain: the
budget deficit and national debt continue to increase at
significant rates, and both presidential candidates
proposed substantial spending plans on the campaign
trail, showing that there is minimal, if any, political will even
to have a debate on such matters. When political debates
instead focus more on the size of campaign rally
attendance, one cannot help but have serious concerns
about long-term fiscal resilience. Equity markets in the US
focused solely on the positives and were driven by strong
corporate earnings, albeit from a quite narrow yet
sizeable market area; subsequently indices finished the
year towards all-time highs.
Investment Mana
g
er’s Review
12 Murray International Trust PLC
In the UK, the Labour Party, led by Prime Minister Sir Keir
Starmer, secured a decisive victory in the July general
election, ending over a decade of Conservative
government. Economic performance was tepid, with GDP
growing by only 0.1% in November, missing forecasts and
indicating stagnation. The Bank of England responded to
the sluggish growth by cutting interest rates, with
policymakers suggesting the need for more aggressive
reductions to counteract economic weakness. The UK's
capital markets faced their own additional challenges,
notably the decline of the Alternative Investment Market
(“AIM”), which saw an accelerated exit of companies due
to falling valuations and tax policy changes. Despite
government efforts to revitalise these markets through
listing reforms and the establishment of pension "mega
funds" to boost investment in UK equities, the anticipated
resurgence in equity and mergers and acquisitions
(“M&A”) activity remained subdued. Despite this, the equity
market still posted reasonable returns primarily driven
by financials.
The European Parliament elections in June 2024 marked a
rightward shift across the continent. Parties on the political
right gained ground in countries such as France, Portugal,
Belgium and Austria, influencing the composition and
policy direction of the European Parliament. Economically,
the European Union faced a period of sluggish growth. The
Autumn 2024 Economic Forecast projected downward
revisions from earlier forecasts. Germany, Europe's largest
economy, experienced its second consecutive annual
GDP contraction. This downturn has led analysts to refer
to Germany as the "sick man of Europe“ again. Meanwhile,
European equity markets posted positive returns but were
admittedly more subdued than other regions. Strong
equity market performance in countries including
Germany, Italy and Spain was offset, but not undone, by
weakness in Switzerland, France and The Netherlands.
In Asia, the Chinese government unveiled a
comprehensive economic stimulus package to
counteract the nation's economic slowdown. These
measures reflect Beijing's strategic efforts to stabilise the
property market and stimulate domestic demand. The
equity market rallied strongly off this news before giving
back some of those gains as market participants waited
for further measures. In India, sentiment and growth
remained positive. The incumbent Bharatiya Janata Party
(BJP), led by Prime Minister Narendra Modi, secured a
victory but lost its outright majority in the Lok Sabha.
However, the BJP-led National Democratic Alliance (NDA)
enabled Modi to secure a third consecutive term as Prime
Minister. Not wishing to be left out, Japan experienced
notable political and economic developments. In March,
the Bank of Japan (“BoJ”) raised its benchmark interest
rate for the first time in seventeen years, ending its
negative rate policy. The BoJ raised rates for a second
time in early August; this, coupled with a weak jobs report
in the US, sent markets into a brief tailspin with the Yen
strengthening and the Nikkei having its worst day since the
"Black Monday" of 1987. As if that were not enough, in
October, the ruling Liberal Democratic Party (LDP), led by
Prime Minister Shigeru Ishiba, lost its parliamentary
majority in a snap election, resulting in a hung parliament
and political uncertainty. Despite all this, Japan’s equity
market recovered relatively quickly and finished the year
in positive territory.
In Latin America, Mexico also held a general election, and
Claudia Sheinbaum of the Morena party was elected the
first female President, securing a landslide victory. The
scale of the majority and the prospect of constitutional
changes raised concerns over fiscal management and
policy direction. This, followed by the election in the US,
resulted in the weakening of Mexico’s equity market and
the weakening of the currency during the year's
second half.
Investment Mana
g
er’s Review
Continued
Murray International Trust PLC 13
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Attribution Analysis
The attribution analysis below details the various influences on portfolio performance. In summary, of the 930 basis
points (before expenses) of performance below the Reference Index, asset allocation detracted 840 basis points and
stock selection detracted 100 basis points. Structural effects, relating to the fixed income portfolio, cash and foreign
exchange and gearing net of borrowing costs, had no net impact on relative performance.
Company
Reference Index
A
Contribution from:
Asset Stock
Weight Return Weight Return Allocation Selection Total
% % % % % % %
Africa & Middle East
– – 1.3 11.0 0.1 – 0.1
Asia Pacific ex Japan
24.9 13.7 11.3 12.2 –0.9 0.4 –0.5
Europe ex UK
25.5 –1.4 10.8 3.0 –2.1 –1.3 –3.3
Japan
– – 5.7 10.1 0.5 – 0.5
Latin America
8.6 –26.3 0.8 –21.3 –4.0 –0.8 –4.7
North America
34.2 28.1 67.1 26.9 –2.0 0.5 –1.5
UK
6.7 17.1 3.1 11.9 –0.3 0.2 –0.1
Gross equity portfolio return
100.0 8.7 100.0 19.8 –8.4 –1.0 –9.3
Fixed Interest
–0.2
Gearing, cash and foreign
exchange
0.2
Gross portfolio return
8.7
Management fees and administrative
expenses
–0.6
Tax charge
–0.2
Technical differences
0.2
Total return 8.1 19.8
A
Reference Index – FTSE All World TR Index
Notes to Performance Analysis
Asset Allocation effect – measures the impact of over or underweighting each asset category, relative to the benchmark weights.
Stock Selection effect – measures the effect of security selection within each category.
Technical differences – the impact of different return calculation methods used for NAV and portfolio performance
Source: aberdeen Group. Figures may appear not to add up due to rounding.
Performance
Over the full financial year, the Company’s NAV total
return was 8.1%, delivering real growth ahead of the UK
Retail Price Index (“RPI”) rate of 3.5%, which continued to
moderate. It is important to note that this is one of the
Company's investment objectives and key performance
indicators. The Reference Index (FTSE All World) total
return was 19.8%.
In 2024, global equity index performance was significantly
driven by the US and technology stocks, and this was also
reflected in the portfolio's positive absolute performance
in total return terms. North America delivered the
strongest regional index returns, mirrored in the portfolio
returns with a 28% contribution to overall total return.
Broadcom was the portfolio's best performing investment
over the year, rising by 114%, on top of the 93% return the
14 Murray International Trust PLC
stock generated in the previous year. Broadcom's growth
this year was driven by its products focused on AI
infrastructure and connectivity, which are designed to
support scalable AI infrastructure and the growing
demands of AI applications. Cisco Systems also enjoyed a
strong year within the technology sector. It wasn't simply
technology that performed well in North America; Philip
Morris International and Canadian based Enbridge, the
midstream pipeline business, also had a strong year. The
UK was the next best-performing country in terms of
absolute portfolio performance, delivering a 17% total
return thanks to strong share price performance from
consumer staples exposures in British American Tobacco
and Unilever.
Asia was another region that witnessed strong equity
market returns, driven by solid returns from Taiwan,
Singapore, Thailand and Hong Kong. The area achieved a
14% total return for the portfolio during the year. Ping An
Insurance, the Hong Kong listed financial services group,
performed well, with the Chinese market more positive
after a challenging couple of years on expectations that
recent stimulus measures would continue and revive the
country's economy. Thai-based bank SCB X generated
strong total returns over the period. In Singapore, the
banking group Oversea-Chinese Banking Corporation and
Singtel, one of Asia's leading communication providers,
appeared among the portfolio’s best performing
investments. The fortunes of Taiwan Semiconductor
largely dictate the fortunes of Taiwan's equity market.
Fortunately, the world's leading semiconductor foundry
operator had a very strong year driven by strong demand
for high-end chips. This also benefitted the portfolio, as did
the position in the contract manufacturing specialist, Hon
Hai Precision Industries. The portfolio’s Asian exposure was
not all positive. Global Wafers, again in Taiwan, had a
challenging 2024 due to the sluggish demand in the silicon
wafer market. South Korean technology giant Samsung
Electronics was disappointing as it struggled to keep pace
with competitors supplying semiconductor chips for AI
applications.
European equity market returns were also more subdued,
which was reflected in frustrating stock performance in
the portfolio. Weak refining margins and lower oil prices
dented the earnings of French energy company
TotalEnergies, which weighed on performance. BE
Semiconductor in the Netherlands had a more challenging
year after being the portfolio's strongest performer
in 2023.
Latin America delivered the poorest absolute returns
during the year. Mining exposures to iron ore and lithium,
with Vale in Brazil and SQM in Chile, were disappointing as
those commodity prices fell. In Mexico, Walmart de Mexico,
Grupo ASUR and the currency came under pressure as the
outcome of the general election in June raised uncertainty
over future economic policies and changes to the fiscal
and regulatory environment.
Finally, the residual Emerging Market Bond exposures
witnessed the full brunt of Sterling's strength but still
managed a positive +6% return for the year. With a current
running yield of 8.6% and many holdings still priced below
par, current exposures are expected to be maintained
and it is unlikely that they will be added to.
The top five and bottom five stock contributors are
detailed below:
Top Five Stock Contributors %* Bottom Five Stock Contributors %*
Broadcom Inc. 2.75 Globalwafers Co. -1.10
Taiwan Semiconductor Manufacturing Co. 1.55 Wal-Mart De Mexico -1.09
Hon Hai Precision Industry Inc. 0.99 Samsung Electronics -1.09
Philip Morris International Inc. 0.45 Grupo Aeroportuario Del Sureste -0.96
Overseas China Banking Corporation 0.37 Vale -0.95
* % relates to the percentage contribution to return relative to the Reference Index (FTSE All World TR Index)
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Revenue Generation
Turning to income generated during the year, dividend
increases generally matched conservative estimates, with
over 70% of portfolio holdings increasing their dividends.
Stocks including Taiwan Semiconductor, Singtel and Atlas
Copco delivered dividend growth of over 20%. Cuts were
expected in the more cyclical areas of the portfolio, where
yields and payouts had been high, but where easing
commodity prices would have impacted available free
cash flow. The 11% cut at Vale, 14% cut at BHP and 42%
cut at Woodside Energy were in line with forecasts, and
these stocks remain high-yielding opportunities. Unilever’s
inexplicable dividend cut and Walmart de Mexico's
election not to pay a special dividend again this year were
unexpected but were not material for the portfolio. More
meaningful disappointments came from the scale of the
cuts at SQM and Telefonica Brasil, which exceeded
expectations.
A major swing factor for the portfolio’s revenue generation
is currency fluctuations. The Company has over ninety
percent of its assets invested in overseas assets, which are
denominated in, and pay dividend income in, various
currencies other than Sterling. Emerging market currency
and commodity currency weakness relative to Sterling
during the year resulted in a headwind to the income
generated from companies domiciled in these markets.
Although the dividend for 2024 will not therefore be
covered, this must be seen in the context of the significant
long-term positive dividend trend and the Company’s
significant revenue reserves, both of which are referred to
in the Chair’s Statement on page 8.
Portfolio Activity
Portfolio turnover of 13% of gross assets over the period
was an increase from the prior year. However, it remained
broadly consistent with the strategy of keeping turnover
reasonably low unless the market environment presents
opportunities. In a year when extended price distortions
seldom prevailed, the general lack of volatility in global
markets limited new investments to a handful of
opportunities. A significant driver of portfolio activity was
the strength of portfolio positions in Taiwan Semiconductor
and Broadcom. These businesses enjoyed exceptionally
strong share price performance and kept pushing up
against the Company’s 5% maximum investment
guideline for any one position. Choosing to repay the
£30m fixed rate loan that matured on 16 May 2024 also
accounted for some portfolio turnover and reduced the
overall level of outstanding loans to £110m.
In the first half of the year, the Swedish industrial Epiroc AB,
which manufactures construction and mining machinery,
was sold. The stock performed well since Atlas Copco,
another Swedish industrial in the portfolio, spun off the
business in 2018. Roche AG, the Swiss-listed developer and
manufacturer of pharmaceuticals and diagnostic
products, was also divested. Roche AG remains a solid
business; there was simply higher conviction in the other
healthcare names in the portfolio. Chinese property
developer China Vanke proved to be a disappointment,
with the investment thesis not playing out as intended;
therefore, it was another low-conviction holding and an
easy candidate to exit in order to reduce gearing. The
portfolio exposure to North American midstream
companies was consolidated into one position. TC Energy
was sold, and the capital was recycled into Enbridge. The
belief is that Enbridge carries less balance sheet and
execution risk than its Canadian peer.
The only new addition to the portfolio in the first half of the
year was the German luxury car brand Mercedes Benz
Group. The company is looking to structurally improve its
profitability by increasing the proportion of higher priced
vehicles it sells, thereby improving margins and
shareholder returns via dividends and share buybacks.
In the second half of the year, a reasonable portion of
portfolio activity was reflected in the marginal reduction of
existing positions in both Broadcom and Taiwan
Semiconductor due to share price strength. Profits were
also taken in Mexican airport operator Grupo Asur and Hon
Hai Precision Industries in Taiwan. The capital raised from
these trades was spread across existing portfolio
positions, including Walmart de Mexico, Diageo, and Hong
Kong Exchange & Clearing, which had been relatively
weaker regarding share price performance but where the
longer-term thesis is still perceived to be valid.
In September a position was initiated in Taylor Wimpey,
one of the largest residential developers in the UK. The
structural undersupply of UK housing should support the
business's long-term growth in what is expected to be a
more encouraging planning environment. The company is
in a strong position given its healthy land bank and robust
balance sheet, while its well supported and attractive
dividend yield is amongst the highest in th
e sector.
16 Murray International Trust PLC
Capital was rebalanced around the portfolio's consumer
staples exposure in the fourth quarter. The catalyst for this
was Unilever's strong share price performance in the UK,
and the same was true of France's Danone. Both
companies still offer an attractive opportunity; however,
the question was about sizing. The decision was made to
reduce both at the margin and to increase the exposure
to French wine and spirits giant Pernod Ricard and to
initiate a new holding in Coca-Cola, both of which had
been relatively weak. Coca-Cola enjoys an exceptional
brand and distribution network and a strong and diverse
product portfolio with a strategic focus on healthier
beverage options. This should position it well for continued
long-term growth.
As the year drew to a close, continued strength in
Broadcom meant that this position temporarily exceeded
the 5% maximum investment guideline for any one
position. When this position was reduced, the capital was
put towards a new position in Medtronic, a US-based
developer of therapeutic and diagnostic medical
products. An ageing global population and increasing
prevalence of chronic diseases, along with the company's
innovative product pipeline in diabetes management and
cardiac care, should support its growth potential.
From an overall investment perspective, the emphasis
continues to favour diversified asset exposures in
companies deemed beneficiaries of the evolving
backdrop, maintaining a "barbell" strategy of owning
growth, value and cyclical stocks. Selective growth
companies, where yields tend to be lower, should continue
to benefit from accelerating trends in artificial intelligence
and industrial automation. With the stated objective of
covering the dividend from the underlying dividends of the
portfolio holdings, this exposure must be balanced
alongside opportunities that offer higher yields.
Summary of Investment Changes During the Year
Valuation Appreciation/ Valuation
31 December 2023 (depreciation) Transactions 31 December 2024
£’000 % £’000 £’000 £’000 %
Equities
UK 56,605 3.2 3,827 34,019 94,451 5.3
Europe ex UK 496,419 27.8 (21,443) (35,845) 439,131 24.9
North America 470,606 26.3 107,006 (11,685) 565,927 32.1
Asia Pacific ex Japan 426,426 23.8 38,363 (52,011) 412,778 23.4
Latin America 224,091 12.5 (62,602) (19,006) 142,483 8.1
1,674,147 93.6 65,151 (84,528) 1,654,770 93.8
Preference shares
UK 6,417 0.4 490 - 6,907 0.4
6,417 0.4 490 - 6,907 0.4
Bonds
Europe ex UK 3,292 0.2 174 (1,763) 1,703 0.1
Asia Pacific ex Japan 44,799 2.5 (1,780) 218 43,237 2.4
Latin America 44,839 2.5 (1,515) 18 43,342 2.5
Africa & Middle East 14,369 0.8 533 133 15,035 0.8
107,299 6.0 (2,588) (1,394) 103,317 5.8
Total Investments 1,787,863 100.0 63,053 (85,922) 1,764,994 100.0
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Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Outlook
As we enter 2025, the global economic landscape
remains fraught with potential challenges and
uncertainties. While some economies are showing real
signs of resilience, structural vulnerabilities and
geopolitical tensions suggest that, as always, alongside
measured optimism, caution should also be warranted.
Geopolitical tensions, including ongoing conflicts and
trade disputes, remain headwinds. The conflict in Ukraine
continues to impact energy markets, while political
instability in the Middle East and a potential escalation of
tensions in the Indo-Pacific region further complicates the
trade outlook. Colossal debt levels, exacerbated by
pandemic-related spending and years of abnormally low
interest rates, should remain a critical concern, as should
the fact that nobody seems willing to acknowledge,
debate, let alone attempt to address the issue.
While the long-awaited outcome of the US presidential
election is now known, the full implications are still unclear.
Capital markets have thus far focused on the reflationary
aspects of President Trump's agenda; whether these
moves are sustainable will depend on the new
administration's economic priorities. The unified
Republican government will almost certainly extend the
expiring and expired provisions from the Tax Cuts and
Jobs Act and pursue further tax cuts. However, the scale
and composition of these measures are uncertain. The
Federal Reserve is likely to cut rates more slowly than it
otherwise would have done, which, combined with higher
debt issuance and inflation, risks putting further upward
pressure on US and global bond yields.
President Trump has clearly stated that he considers
tariffs an effective means of rectifying perceived trade
imbalances and unfair trading practices. However, there
remains uncertainty over how tariffs play into President
Trump's broader trade strategy. His first term saw tariffs
threatened and used to seek concessions from trade
partners. If he pursues this approach in his second term,
tariff threats would likely be used more frequently than
their actual application.
On balance, President Trump's policy agenda is likely to
result in higher nominal GDP growth, with the bulk of the
increase coming through higher inflation due to potentially
looser fiscal policy, higher tariffs and lower immigration.
This policy means interest rates are likely to fall more
slowly than they otherwise would have done. Over the
medium term, the Fed could face rhetorical pressure from
President Trump if rates and the US Dollar do not evolve as
the administration would like. At the same time, the new
President is likely to change some of the personnel at the
Fed when he gets the chance in 2026. There is a risk that
heavy-handed interference in the Fed prompts disquiet in
markets around the central bank's independence.
The UK economy has slowed sharply, with activity surveys
consistent with only modest expansion at best. The
package of measures contained in the budget should
support near-term growth. However, increasing evidence
shows that firms are responding to the upcoming cost
shock from a higher minimum wage and the increase in
national insurance by slashing hiring plans. The
combination of higher gilt yields and lower growth means
that the headroom against the government's fiscal rules
has been wiped out, and the Office for Budget
Responsibility is likely to confirm this in March. Tighter
spending plans and tax increases are indeed likely,
therefore. In Europe, weak activity data, including a
disappointing retail sales outturn over November,
confirmed that the Eurozone recovery is fragile.
Uncertainty arising from President Trump's trade
measures will pose a further headwind to growth. With the
restrictiveness of European Central Bank policy being
reduced, the Eurozone's economy is likely to avoid a
recession, though risks remain. The portfolio's broad
exposure to a balance of global and more domestically
focused businesses in the UK and Europe remains as
dividend yields and relative valuations remain attractive.
In China, economic indicators in December added to the
picture of a strong end to 2024. While there may have
been a moderation within manufacturing, services
finished the year on a high note. Amid the "lowflationary"
gloom there are at least a couple of tentative signs that
the policy pivot in September may be gaining traction on
the inflation side. We may have to wait until the "Two
Sessions" in March to get details on the anticipated fiscal
support package for households and businesses.
18 Murray International Trust PLC
Elsewhere in Asia, growth in India is expected to continue
at a robust pace. There was a downside surprise to
growth in the third quarter, which raised questions over
the economy's trajectory, but recent data points to
resilience in key areas. Inflation is likely to continue to ease,
driven by food inflation, bringing the level closer to the
Reserve Bank of India's midpoint target. This would give
the central bank the room to cut rates. The portfolio
remains reasonably exposed to companies and
economies across Asia. Growth levels still seem more
attractive, debt levels are less concerning, and
fundamentally sound businesses across various sectors
remain attractive investment opportunities.
Emerging markets in Latin America could continue to face
headwinds. Brazil's economy slowed in the second half of
2024 due to a contraction in exports, while domestic
demand remained strong with support from fiscal policy.
Concerns regarding fiscal sustainability and the economy
overheating have weighed on Brazilian assets. In Mexico,
economic growth accelerated in the second half of last
year. However, there are question marks over the
sustainability of this going forward. Muted momentum for
domestic demand alongside policy uncertainty on both
sides of the US and Mexico border had contributed to
worsening private sector growth expectations in the short
term. The portfolio maintains a significant exposure to
companies listed in this part of the world, albeit it is
concentrated in just six holdings. While it is an exposure
that has delivered attractive returns over the long term for
shareholders, it does, as always, require considerable and
constant monitoring to ensure allocations are justified.
Given the many uncertainties and challenges ahead, our
outlook remains cautious. As always, our focus is on the
longer term and on finding individual stocks, which
together, should deliver the specific investment mandate
of the Company. We aim to make full use of the flexible
remit, ensuring the portfolio is well diversified across
regions and sectors and resilient enough to generate
income and capital growth whilst endeavouring to
preserve capital during periods of market weakness.
Martin Connaghan,
Senior Investment Director
Joined aberdeen in 1998
and has been involved in
the management of global
equity portfolios for over 20
years and directly involved
with managing the
Company since 201
7
Samantha Fitzpatrick,
Senior Investment Director
Joined aberdeen in 1998
and has been involved in
the management of global
equity portfolios for over 20
years
and directly involved
with managing the
Company since 201
9
abrdn Investments Limited
5 March 2025
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Core Investment Beliefs
As an active equity investor, the Investment Manager’s
approach to equity investing is underpinned by three core
investment beliefs:
· Fundamental research is the key to delivering insights
that can be used to exploit situations where the
Investment Manager believes the market is not correctly
valuing a company and so identify the best investment
opportunities. Such market inefficiencies can arise from
mispricing, information asymmetry or behavioural
biases amongst investors who often have very different
investment time horizons.
· By including constructive engagement and
environmental, social and governance (ESG)
considerations at the heart of its company research, the
Investment Manager believes that risks can be
mitigated, and returns for clients enhanced, as
companies with robust ESG practices tend to enjoy
long-term financial benefits.
· That disciplined, active investment with the aim of
using stock specific insights to build high conviction
portfolios and provide access to the Investment
Manager’s best investment ideas can deliver superior
outcomes for clients.
Idea Generation
The Company’s portfolio managers are Martin
Connaghan and Samantha Fitzpatrick, who form part of
aberdeen’s equity division. When searching for
investments for the Company's portfolio, the portfolio
managers benefit from insights and ideas from the
Investment Manager's c.110-strong active equity division,
which is spread over 12 cities across the globe. Cross-
asset class and macro economic insights are also gained
from conversations held between the portfolio managers
and other teams such as Credit, Real Estate and the
aberdeen Research Institute. Analyst recommendations
on every stock under coverage are quantitively measured,
recognising that company insights are a critical
component of alpha generation in portfolios over time.
The Investment Manager's reputation as a responsible
long-term investor means the investment management
team has first-rate access to the companies under
research. Through structured meetings and regular
conversations, the Investment Manager gathers insights
from both executive management teams and non-
executive directors.
Research
The Investment Manager has developed a proprietary
research platform used by all its equity, credit and ESG
teams, giving instant access to research globally. The
research is focused on four key areas:
Foundations – the Investment Manager analyses how a
company makes money, the attractiveness and
characteristics of its industry, and the strength and
sustainability of the economic competitive advantage or
'moat'. This includes a thorough evaluation of the
company's ESG risks and opportunities. Face-to-face
meetings help confirm the Investment Manager’s
understanding and challenge the key elements of a
company's fundamentals including:
· The evolution and growth of the business.
· The sustainable competitive advantage.
· Management's track record of execution and
managing risk.
· The balance sheet and financials.
· ESG risks and opportunities.
Dynamics – shorter and longer-term business dynamics
are one of the critical determinants of a company’s
corporate value over time. In addition, the Investment
Manager looks for changes in the factors driving the
market price of a stock, identifying the drivers that the
broader market may not be pricing in. Understanding the
dynamics behind these drivers allows the Investment
Manager to focus on the factors that will drive shareholder
returns from a particular stock.
Financials and Valuation - the Investment Manager
examines the strengths and weaknesses of a company's
financials, including a detailed analysis of the balance
sheet, cash flow and accounting practices, the market's
perception of the company's future prospects and value,
and its own forecasts of future financials and how the
stock should be priced. This includes significant focus on
the dividend paying capability of each business and the
potential for dividend growth.
Investment Insight and Risk - the Investment Manager
articulates its investment thesis, explaining how it views a
stock differently from the market consensus and how it
expects to crystallise value from the holding over time,
while also flagging any key risks.
The Mana
g
er’s Investment Process
20 Murray International Trust PLC
Peer Review
Having a common investment language internally
facilitates effective communication and comparison of
investment ideas through peer review which is a critical
part of the investment process. All investment ideas are
subject to rigorous peer review, both at regular meetings
and on an ad-hoc basis.
Martin Connaghan and Samantha Fitzpatrick form part of
a dedicated equity income group consisting of senior
team members with clear accountability for various
income strategies. This group debates stock holdings,
portfolio structure and risk profiles.
Portfolio Construction/Risk Controls
The Company’s portfolio is built from the bottom up by
Martin Connaghan and Samantha Fitzpatrick, who
prioritise high conviction stock ideas, once they have been
debated, in a risk aware framework. The portfolio risk
tolerance is derived from the Company’s investment
objective and required outcomes.
As an active equity investor, the Investment Manager has
adopted a disciplined portfolio construction process which
takes appropriate and intentional risk to drive returns. Risk
systems monitor and analyse risk exposures across
multiple perspectives breaking down the risk within the
portfolio by industry and country factors, by currency and
macro factors, and by other fundamental factors (quality,
momentum, etc). Consideration of risk starts at the stock
level with rigorous company research helping the
management team to avoid stock specific errors. Martin
Connaghan and Samantha Fitzpatrick ensure that any
sector or country risk is appropriately sized and managed
relative to the overall objectives of Company. Portfolios
built by the Investment Manager’s management teams
are formally reviewed on a regular basis with the
Investment Manager’s Global Head of Equities and its
Investment Governance and Risk teams. This oversight
monitors portfolio risk and oversees operational risk to
ensure client objectives are met.
The Mana
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Integrated ESG and Climate Change
Analysis
Whilst ESG factors are not the over-riding criteria in
relation to the investment decisions taken by the
management team for the Company, significant attention
is given to ESG and climate related factors throughout the
investment process. By embedding ESG analysis into the
active equity investment process, the Investment
Manager aims to enhance potential value for
shareholders, reducing risk and investing in companies
that can contribute positively to the world. In the
Investment Manager’s view, companies that successfully
manage climate change risks will perform better in the
long term. It is important that the Investment Manager
assesses the financial implications of material climate
change risks across all asset classes, including real assets,
to make portfolios more resilient to climate risk. Further
details of the Manager’s embedded ESG process are
contained on page 21.
abrdn Investments Limited
5 March 2025
22 Murray International Trust PLC
The Manager takes into consideration many factors when deciding whether to invest in or divest from a company.
These factors have been described in the previous sections covering The Manager’s Investment Process and are further
illustrated by the case studies below:
In which year did the Company first invest? 2023
% Holding: 1.5%
Where is its head office? Mexico city, Mexico
What is its web address? walmartmexico.com
Business Fundamentals
Walmex's operations consist of over 3,700 stores in over
700 cities in Mexico and Central America, as well as 30
distribution centres. Mexico accounts for over 80% of the
company's total revenues, with the remainder split across
Guatemala, Honduras, Nicaragua, Costa Rica and El
Salvador. The store portfolio consists of four formats:
Bodegas Aurrera, offering basic general merchandise,
food and household items; Walmart hypermarkets;
Supermarkets offering fresh produce; and Sam's Club
membership warehouses focused on businesses and
households. The company also has an e-commerce
offering across several websites and apps. Walmex has
expanded its offering beyond retail to include low-cost
mobile telephony services (Bait), digital financial solutions
(Cashi) and advertising solutions both in-store and online
(Walmart Connect). The company is primarily owned by
Walmart Inc, the US based multination retail corporation,
which owns 70% of the shares.
What’s Changing?
Walmex has faced challenges during the last couple of
years. Mexico's antitrust watchdog, Cofece, announced
that the company would face an antitrust panel on
allegations of imposing terms on its suppliers or
distributors. The company has always denied any
wrongdoing, highlighting that, in their view, it simply
negotiates better discounts, which is a market practice
and that its presence in the Mexican market has led to
reduced consumer prices, primarily benefitting low-
income families and those in remote areas of Mexico. The
investigation, after four years eventually found that
Walmex had used its market power to impose unfair
terms on some suppliers, which harmed competition and
fined the company approximately £3.6m. For a business
which generates annual profits after tax of over £2bn this
is not a material amount and in spite of the amount,
Walmex believes the decision to be incorrect and intends
to appeal.
The outcome of the Mexican general election in June and
Claudia Sheinbaum's landslide victory in the presidential
election have undoubtedly shifted the political landscape,
and the country's perceived risk premium has increased
as a result. A second Trump presidency could have several
impacts on Mexico and companies such as Walmex;
affecting trade or immigration policies, triggering
renegotiation of the US Mexico-Canada Agreement and
leading to closer monitoring of Mexico’s economic
relations with China. All of this remains to be seen and will
require monitoring, however Walmex’s strong market
position should help it navigate these potential impacts.
The company's strategy remains consistent:
· 'Win in Discount' by maintaining price leadership and
unique positioning around self-service stores and
emphasising Bodega Aurrera store expansion.
· ‘Omnichannel Leadership', leveraging the store network
that 85% of the Mexican population can reach within ten
minutes and to grow the e-commerce opportunity.
· ‘Grow the ecosystem' by introducing value-added
services, including Bait on the mobile communications
side and Cashi on the fintech side, which could tap into
the sizeable unbanked population.
Investment Case Studies
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Valuation & Investment Insight
As the price leader and largest operator in the formal
market, Walmex enjoys the benefits of scale compared
with other staples retailers in the country. Demand in food
retail is highly elastic at the company level; consumers
consistently make their choices based on price and
location, which enables lasting advantages for operators
that can use scale to benefit consumers through lower
prices.
Walmex is trading on 17.4x 2025’s forecast earnings, a
25% discount to the 20-year average and only marginally
above the historical lows of 2008. The business has
consistently generated a return on invested capital of over
30% during the last two decades, and the Manager
believes that the right strategy remains in place to deliver
attractive returns in the future.
A more cautious Mexican consumer, particularly after the
presidential elections, and increasing competition are risks
that will require monitoring. Scale and demographics
matter in retail and Mexico remains attractive on both
fronts. It has a large population, is close to the US and has a
high rate of informality in the economy (activities that are
neither taxed nor monitored by the government).
Inequality is high also, with c60% of the population earning
less than twice the minimum wage.
ESG
Recent engagement with the company has focused on
the Cofece investigation, where, as mentioned, the
company stresses its innocence. The Manager has also
engaged with local antitrust lawyers to gain insights into
the case. Its parent, Wal-Mart Inc has significant influence
over the company. This can have positives, including
leveraging know-how, innovation and better purchasing
terms with global suppliers. One clear risk is the conflict of
interest in paying Wal-Mart Inc. royalties. On the
environmental side the company has credible
commitments around waste and carbon emissions, as
much of this will be done in collaboration with the parent.
These matters are discussed with the company on an
ongoing basis. Walmex has a number of positive social
initiatives including Tierra Fertil, or Fertile Land through
which it supports local sourcing and supporting small and
medium sized farmers by ensuring their access to the
formal market through secure payment, direct purchases
and training. They also engage in community support
programmes focused on food security and disaster
recovery via volunteer activities and product donations.
24 Murray International Trust PLC
In which year did the Company first invest? 2020
% Holding: 4.0%
Where is its head office? Palo Alto, USA
What is its web address? broadcom.com
Business Fundamentals
Broadcom Inc. is a global technology company that
designs, develops, and supplies semiconductor and
infrastructure software solutions. Its products serve
various sectors, including data centres, networking,
broadband, wireless communications, and industrial
applications. Key offerings include chips for broadband,
Wi-Fi, Bluetooth connectivity, and hardware for storage
and networking infrastructure. Broadcom also provides
enterprise software focused on cybersecurity, mainframe
and server systems, and automation tools. Broadcom
acquires companies that sell market-leading products
with sticky customers, recurring revenue, and high
margins but have excessive operating expenses and
generate below potential profits and cash flows. This
started within semiconductors and has since broadened
into enterprise software, focusing on buying mission-
critical franchises.
What’s Changing?
The critical moving parts are the AI-related businesses,
which generated US$4bn of revenues in 2023 but which
reported a 220% increase in sales in 2024 reaching
US$12.2bn. This has been offset by moderating growth
within its more significant, for now, legacy semiconductor
business, which generates around US$23bn in revenues.
The semiconductor market is largely cyclical, impacted by
the demand for networking, data centre, and mobile
hardware, which ebbs and flows. Broadcom is emerging
from a down-cycle in its non-AI related business, which is
expected to have troughed this year.
Meanwhile, Broadcom has seen tremendous growth in its
AI semiconductor business over the last year, thanks to
large AI cluster buildouts by ‘hyperscalers’ (large scale
data centres that offer scaleable compute, storage and
network resources such as Amazon’s AWS, Google Cloud
or Microsoft Azure) driving demand for its ethernet
networking business and massive growth in its custom
chip business. Over the previous year, Broadcom’s
switching chips, network interface cards, interconnects,
Serialiser/Deserialiser circuits, and optical solutions have
all seen an uptick in demand as Original Equipment
Manufacturers and Communication Service Providers
get their hardware systems ready for the expected
AI revolution.
The M&A strategy has shifted with the last three significant
deals of CA Tech, Symantec and VMware focusing on
software. The shift toward software makes strategic
sense; it reduces earnings volatility as the business
transitions to more Software as a Service (SaaS) based
revenues, negating the cyclical nature of semiconductor
revenues to an extent. There is execution risk as the
entrance into software is relatively recent. However,
results over the last few years show that its integration
model of aggressive cost cutting has continued to lead to
value creation.
Investment Case Studies
Continued
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Valuation & Investment Insight
The Company first acquired a position in Broadcom amid
the volatility due to the COVID-19 outbreak in 2020. The
stock was trading below US$20 and yielding around 7%,
but this is not the case today. The stock is currently trading
on 37x earnings for 2025 and while the dividend growth
remains attractive at 14% annualised over the last five
years, the yield has contracted to 1%. The rerating of the
stock over the last few years is justified. Broadcom's mix of
software revenue has nearly doubled with the addition of
VMware, as software typically garners a higher multiple
because of its more predictable and repeatable
characteristics and the structurally higher gross margins
of the software business. In addition, across its
semiconductor markets, the company is seeing strong
growth in its custom chip business and tailwinds to its core
networking and mobile businesses from AI. These growth
catalysts layer on top of Broadcom's strong history of
execution on synergies and deleveraging post
acquisitions. Free cash flow generation continues to be
strong, and it continues to be redeployed into shareholder
returns and M&A. The company has also maintained its
discipline on the cost front, supporting solid earnings
expansion. All of these factors lead to the view that there is
still the opportunity for attractive upside in the stock.
ESG
Many of Broadcom's products focus on energy efficiency
as a key selling point, with many chips finding their way into
products driving the energy transition. A second Trump
presidency may well raise uncertainty around clean energy
initiatives and regulations aimed at promoting cleaner
energy, however, longer term the belief remains that the
shift towards renewable energy is ultimately unstoppable.
President Trump famously blocked the proposed
acquisition of Qualcomm by Broadcom in 2018 on national
security concerns and the politicisation of the
semiconductor and AI industries is expected to continue.
Broadcom came under review for anti-competitive
practices focused primarily on its set-top box business in
2020. Outstanding issues have now been settled, and
engagement with the company has been encouraging,
suggesting a more vigorous effort around compliance
training and ethics. The company has, in a US context,
above average Board independence and diversity and is
generally regarded as having best-in-class talent
management practices, evidenced by its solid M&A
execution over the years. Human capital development will
remain a significant risk from an ESG perspective as M&A
and associated cost-cutting are an established pillar of the
company's strategy. However, the company is making solid
efforts to integrate 'acquired' employees and has been
proactive with engagement surveys to flag any issues.
26 Murray International Trust PLC
In which year did the Company first invest? 2009
% Holding: 1.0%
Where is its head office? Rio de Janeiro, Brazil
What is its web address? vale.com
This case study on Vale seeks to update shareholders on a
stock that has been held on their behalf for a number of
years which has faced considerable issues. In it we detail
the significant engagement that the management team
has had with the company in over fifty meetings.
Business Fundamentals
Vale is one of the world's largest metals and mining
companies and one of the world's largest producers of
iron ore, nickel and copper. With greenfield mineral
exploration operations in six countries, the company
operates an extensive logistics system integrating its
mines with railroads, ports, and ships. Additionally, it has
hydroelectric plants in Brazil, Canada, and Indonesia and
pursues investments in energy business directly and
through associates and joint ventures.
ESG
Vale has, unfortunately, had a chequered history
concerning its health and safety record and
environmental impact, having had two tragic accidents at
two separate tailings dams.
Dam Incidents
On 5 November 2015, the Fundão tailings dam collapsed
at the Germano iron ore mine, operated by Samarco, a
joint venture between Vale and BHP Billiton. This disaster
released approximately 43.7m cubic meters of toxic mud,
devastating the villages of Bento Rodrigues and Paracatu
de Baixo, killing 19 people, and contaminating the Doce
River. The environmental impact was immense, affecting
water supplies and ecosystems along a 668-kilometre
stretch to the Atlantic Ocean.
On January 25, 2019, a tailings dam failed at the Córrego
do Feijão iron ore mine, owned by Vale. This disaster
released a massive mudflow that engulfed the mine's
headquarters, nearby houses, and farms, resulting in 270
deaths. The dam had been classified as low risk, but
monitoring and structural integrity issues were
later revealed.
Why remain invested?
As investors, we can take differing courses of action when
something of such a tragic nature happens with any
investment. The first would be to disinvest the holding and
possibly exclude the company from being investable.
Another is to continue and hold the investment and to try
and ensure, as much as is possible, that the company
make good on their responsibilities to compensate the
individuals involved, to try and repair the damage done
to the local environment and to work with and lobby
for improvements to health and safety and
environmental practices.
Tailings Dam Operations
Vale quickly announced a commitment to eliminate all
upstream tailings dams in Brazil, ensuring they no longer
store mining waste and removing their potential hazard to
nearby communities and the environment. As of 2024,
Vale has completed 16 out of 30 planned dam de-
characterisations and aims to remove all dams from the
"high risk" label by 2025 and complete all works by 2035.
This has taken some considerable time and cost over
US$1bn to date, as the process involves draining and
safely removing tailings, often using remote-controlled
equipment to reduce risks. Vale also constructs backup
containment structures to mitigate the impact of potential
failures during the process.
The International Council on Mining and Metals (ICMM),
the United Nations Environment Programme (UNEP) and
the Principles for Responsible Investment (PRI) co-
convened the Global Tailings Review in light of these
accidents to establish an international standard for the
safer management of tailings storage facilities. The Global
Industry Standard on Tailings Management (GISTM) was
the outcome, and Vale aims to implement this in all tailing
storage facilities by 2025.
Investment Case Studies
Continued
Murray International Trust PLC 27
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Corporate Governance Changes
Since the catastrophic tailings dam failures, following
discussions with and pressure from investors, Vale has
implemented significant changes to its corporate
governance to enhance safety, accountability, and
transparency. Vale's Board of Directors now includes a
minimum of seven independent members, ensuring a
majority of the board is independent. The election of
board members is now conducted by individual vote, and
the chairman and vice-chairman are elected by all
shareholders, not just the board. This promotes greater
shareholder involvement and transparency. Vale
introduced the role of a Lead Independent Director to
provide additional oversight and leadership among the
independent directors. The company also established a
new Safety Committee responsible for overseeing and
advising on all safety-related matters, including
developing and implementing safety policies, monitoring
compliance with safety regulations, and ensuring that
safety practices are integrated into the company's overall
strategy. The committee comprises independent
members of the Board of Directors, which helps ensure
unbiased oversight and accountability
28 Murray International Trust PLC
What’s Changing?
The initial thesis for Vale centred around the China
economic expansion story of the late 1990s and early
2000s. This theme involved rapid urbanisation,
industrialisation, rising incomes, and government policies
encouraging home ownership and property investment.
The Chinese government invested heavily in building
roads, railways, airports, and other infrastructure projects
to support economic development and improve
connectivity. This demand for steel led to a very supportive
environment, and Vale, one of the lowest-cost producers
of high-quality iron ore, benefitted as a result. Despite
more recent uncertainties related to the Chinese macro-
outlook and iron ore demand, recent signals from Chinese
policymakers suggest there is room for policy adjustments
to mitigate potential risks. While the company itself
expects demand contraction in China, steel demand is
expected to grow by around 9% out to 2030, supported by
emerging markets such as India, Africa and South East
Asia, driven by urbanisation, onshoring of global value
chains and energy transition trends.
As the business has faced operational and regulatory
constraints due to the accidents and its required response,
the production bottlenecks and licensing challenges have
forced the company to focus on quality. The company has
made clear its intention to be one of the leading suppliers
of high-grade iron ore and to focus on a value over
volume strategy. Higher grade iron ore contains a greater
percentage of iron and fewer impurities such as silica and
phosphorus. This means it requires less processing, less
energy, and fewer raw materials to make the same
amount of steel, aiding steelmakers in becoming more
efficient and reducing their emissions. The
decarbonisation of the steel industry will increase
demand for and premium paid for this higher grade
iron ore product.
In addition to its ferrous metal operations, the supply of
minerals used in clean energy technologies such as solar
and wind farms and electric and hybrid vehicles should
continue to support the demand for nickel and copper.
In October 2024, Vale, along with Samarco and BHP
Billiton, reached a definitive settlement with Brazilian
authorities for the full reparation of the Fundão dam
collapse. The settlement is valued at approximately
R$170bn, or around US$30bn. The settlement includes
R$100bn in instalment payments over twenty years to
fund compensatory programs, R$32bn for individual
indemnification, resettlement and environmental
recovery, and R$38bn already invested in remediation and
compensation measures
Valuation & Investment Insight
Vale has a strong market position and one of the lowest
production costs in the industry. The stock generates
robust and significant cashflows supporting its 12%
dividend yield. It trades below its peers on around 3.2x of
forecast 2025 EV/EBITDA and is in line with its historical
average. It should offer attractive upside in the future,
assuming production growth in line with guidance and a
slight recovery in base metal prices.
Investment Case Studies
Continued
Murray International Trust PLC 29
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
The Board uses a number of financial and operating performance measures to assess the Company’s success in
achieving its investment objective and to determine the progress of the Company in pursuing its investment policy. The
Board has identified the Company’s main KPIs (refer to Glossary on pages 127 to 129 for definitions) which it considers at
each Board meeting. These KPIs are as follows:
KPI
Description
Dividend
Absolute Growth: The Board’s aim is to seek to increase the Company’s revenues over time in order to
maintain an above average dividend yield. The Board measures average yield against the rate of RPI and
against other investment options including the average of the Peer Group (the AIC Global Equity Income
sector excluding market capitalisations below £100m). Dividends paid over the past 10 years are set out
on page 32 together with a chart showing the Peer Group and Reference Index long-term yields. There is
also a graph showing dividend growth compared to inflation on page 31.
Relative Yield: The Board also monitors the yield level against the Reference Index, the rate of RPI and other
investment trusts’ yields within the Company’s Peer Group over a range of time periods, taking into
consideration the differing investment policies and objectives employed by those companies.
NAV Performance
Absolute Performance: The Board considers the Company’s NAV total return figures to be the best
indicators of performance over time and these are the main indicators of performance used by the Board.
Relative Performance: The Board also measures NAV total return performance against the Reference
Index.
A graph showing the NAV and Reference Index total returns is shown on page 31.
Share Price
Performance
Absolute Performance: The Board monitors the share price absolute return over time.
Relative Performance: The Board also monitors the price at which the Company’s shares trade relative to
the Reference Index on a total return basis over time and a graph showing absolute and relative share
price performance is shown on page 31. In addition, there is further commentary on the performance in
the Chair’s Statement and Investment Manager’s Review.
Share Price
Discount/Premium
to NAV
The discount/premium relative to the NAV per share represented by the share price is closely monitored
by the Board. The objective is to avoid large fluctuations in the discount/premium by the use of share
buybacks and the issuance of new shares or the sale of Treasury shares, subject to market conditions. A
graph showing the share price premium/(discount) relative to the NAV and investment trust sector
(excluding VCTs) is shown on page 31.
Gearing The Board’s aim is to ensure that gearing as a percentage of NAV is kept within the Board’s guidelines
issued to the Manager as disclosed on page 33.
Ongoing Charges
Ratio
Absolute Performance: The Board monitors the level and longer-term trend of the Company’s OCR in
absolute terms.
Relative Performance: The Board also monitors the level and relative trend of the OCR versus the
Company’s Peer Group, taking into consideration the differing investment policies and objectives
employed by those companies.
A key element of the OCR is the management fee which is reviewed regularly to ensure that it remains
competitive against the peer group. Details of the annual OCR trend are disclosed on page 30 and there is
a chart showing published OCR data for the Peer Group on page 32.
Key Performance Indicators
(
KPIs
)
30 Murray International Trust PLC
Total Return
% Return 1 year 3 year 5 year 10 year
Share price
AB
+4.5 +27.5 +29.5 +99.1
Net asset value per Ordinary share
A
+8.1 +27.7 +47.0 +126.7
UK RPI +3.5 +23.4 +34.3 +52.3
Reference Index
C
+19.8 +28.5 +65.0 +175.5
A
Considered to be an Alternative Performance Measure (see page 120 for more details).
B
Mid to mid.
C
Reference Index comprising 60% FTSE World ex UK Index/40% FTSE World UK Index up to April 2020 and 100% FTSE All World TR Index from May 2020.
Source: aberdeen Group, Morningstar & Lipper
Ten Year Financial Record
Year end
A
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Total revenue (£’000) 67,020 77,333 79,471 77,105 82,417 68,918 78,737 88,745 88,833 84,216
Per Ordinary share (p):
Net asset value 169.8 227.1 250.3 221.6 238.0 227.6 248.1 258.7 268.8 278.4
Share price 165.9 237.6 253.6 226.4 252.0 226.0 231.2 266.8 258.0 257.5
Net revenue return
B
9.1 10.2 10.4 9.9 10.8 9.3 10.3 12.0 12.1 11.6
Dividends
C
9.3 9.5 10.0 10.3 10.7 10.9 11.0 11.2 11.5 11.8
Dividend cover 0.99x 1.08x 1.04x 0.96x 1.01x 0.86x 0.94x 1.07x 1.05x 0.98x
Revenue reserves (£’000) 64,767 70,963 75,252 73,563 75,747 66,764 62,967 69,239 75,132 74,182
Shareholders’ funds (£’bn) 1.091 1.448 1.599 1.420 1.539 1.462 1.561 1.617 1.669 1.679
Ongoing charges ratio(%)
D
0.75 0.68 0.64 0.69 0.65 0.68 0.59 0.52 0.53 0.52
A
Figures for 2015-2022 have been restated to reflect the 5:1 sub-division on 24 April 2023.
B
Net revenue return per Ordinary share has been based on the average Ordinary share capital during each year (see note 9 on page 97).
C
The figure for dividends per share reflects the years to which their declaration relates and not the years they were paid.
D
Considered to be an Alternative Performance Measure as defined on page 119.
Performance Track Record
Murray International Trust PLC 31
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Share Price (Discount)/Premium to NAV (%)
Ten years to 31 December 2024
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
10
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
MINT Discount Inv Trust ex VCTs Sector Average Discount
Net Asset Value and Share Price Total Return
(with net dividends reinvested) rebased to 100
Ten years to 31 December 2024
50
100
150
200
250
300
31/12/2014 31/12/2016 31/12/2018 31/12/2020 31/12/2022 31/12/2024
NAV
Share Price
UK RPI
Reference Index
Comparison of Net Asset Value Total Return and Dividend Growth
to Inflation rebased to 100
Ten years to 31 December 2024
80
100
120
140
160
180
200
220
240
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
MINT NAV total return
(CAGR 8.5%)
MINT dividend growth
(CAGR 3.0%)
UK RPI (CAGR 4.3%)
32 Murray International Trust PLC
Ten Year Dividend Yield Comparison at 31 December
0
1
2
3
4
5
6
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Dividend yield (%)
Murray Intl. - Dividend Yield Peer Group (ex MYI) Average Yield FTSE All-World Dividend Yield
Dividend per Share
0
2
4
6
8
10
12
14
1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015 2018 2021 2024
Dividend per share (restated for share
split in April 2023)
Dividend funded from revenue earnings Dividend partially funded from reserves
Peer Group Ongoing Charges Ratios (OCR)
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
- 500 1,000 1,500 2,000 2,500 3,000 3,500
Reported Ongoing Charges Ratio
Market Capitalisation (£m)
MYI
Source: LSEG Datastream & Annual Reports February 2025
Performance Track Record
Continued
Long Term
Dividend Growth
3.0% p.a.
Long Term
NAV Return
+8.5% p.a.
Long Term
UK RPI
+4.3% p.a.
Murray International Trust PLC 33
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Investment trusts, such as the Company, are long-term
investment vehicles. Typically, investment trusts are
externally managed, have no employees, and are
overseen by an independent non-executive board of
directors. Your Company’s Board of Directors sets the
investment mandate, monitors the performance of all
service providers (including the Manager) and is
responsible for reviewing strategy on a regular basis. All of
this is done with the aim of preserving and enhancing
shareholder value over the longer term.
Reference Index
The Company does not have a Benchmark. However,
performance is considered against a number of measures
including a Reference Index, the FTSE All World TR Index,
which was adopted in April 2020. Given the composition
of the portfolio and the Manager’s investment process, it is
likely that the Company’s investment performance may
diverge, possibly significantly, from this Reference Index.
Longer term performance is measured against a blend of
the old composite Benchmark (40% of the FTSE World UK
Index and 60% of the FTSE World ex-UK Index) up to 27
April 2020 and the FTSE All World TR Index thereafter.
Investment Objective
The aim of the Company is to achieve an above average
dividend yield, with long-term growth in dividends and
capital ahead of inflation, by investing principally in global
equities.
Investment Policy
There are a number of elements set out in the investment
policy delegated to the Manager which are set out below:
Asset Allocation
The Company’s assets are currently invested in a
diversified portfolio of international equities and fixed
income securities spread across a range of industries and
economies. The Company’s investment policy is flexible
and it may, from time to time, hold other securities
including (but not limited to) index-linked securities,
convertible securities, preference shares, unlisted
securities, depositary receipts and other equity-related
securities. The Company may invest in derivatives for the
purposes of efficient portfolio management in the
furtherance of its investment objective.
The Company’s investment policy does not impose any
geographical, sectoral or industrial constraints upon the
Manager. The Board has set guidelines which the
Manager is required to work within. It is the investment
policy of the Company to invest no more than 15% of its
gross assets in other listed investment companies
(including listed investment trusts), at the time of
purchase. The Company currently does not have any
investments in other investment companies. The
Manager is authorised to enter into stocklending contracts
and the Company undertakes limited stocklending
activity.
Risk Diversification
The Manager actively monitors the Company’s portfolio
and attempts to mitigate risk primarily through
diversification. The Company is permitted to invest up to
15% of its investments by value in any single holding (at the
time of purchase) although, typically, individual
investments do not exceed 5% of the total portfolio.
Gearing
The Board considers that returns to shareholders can be
enhanced by the judicious use of borrowing. The Board is
responsible for the level of gearing in the Company and
reviews the position on a regular basis. Any borrowing,
except for short-term liquidity purposes, is used for
investment purposes or to fund the purchase of the
Company’s own shares.
Total gearing will not in normal circumstances exceed
30% of net assets with cash deposits netted against the
level of borrowings. At the year end, there was net gearing
of 6.1% (calculated in accordance with Association of
Investment Companies guidance). Particular care is
taken to ensure that any bank covenants permit
maximum flexibility in investment policy.
Changes to Investment Policy
Any material change to the investment policy will require
the approval of the shareholders by way of an ordinary
resolution at a general meeting.
Investment Objective and Investment Policy
34 Murray International Trust PLC
Introduction
The purpose of the Company, which is in its 119
th
year, is to
act as a vehicle to provide, over time, financial returns
(both income and capital) to its shareholders. The
Company’s investment objective is disclosed on page 33.
The activities of the Company are overseen by the Board
of Directors of the Company.
The Board is required to describe to the Company’s
shareholders how the Directors have discharged their
duties and responsibilities over the course of the financial
year under section 172 (1) of the Companies Act 2006
(the “s172 Statement”). This s172 Statement, from
‘Introduction’ on page 34 up to and including ‘The Work of
the Board and its Principal Decisions for the Year’ on page
38, provides an explanation of how the Directors have
promoted the success of the Company for the benefit of
its members as a whole, taking into account the likely
long-term consequences of decisions, the need to foster
relationships with all stakeholders and the impact of the
Company’s operations on the environment.
Our Culture
The Board seeks to ensure that the Company and the
Board operate with a transparent culture where all parties
are treated with respect and are provided with the
opportunity to offer practical challenge and participate in
constructive debate which is focused on achieving the
expectations of shareholders and other stakeholders. The
Board reviews the culture and manner in which the
Manager operates at its regular meetings and receives
regular reporting and feedback from the other key
service providers.
Our Business Model
The mechanics of how the Company operates are set out below. These mechanics, which have evolved over time, are
designed to protect stakeholders’ interests:
Promotin
g
Your Company’s Success
Murray International Trust PLC 35
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Company Policies
Environmental, Community, Social and Human Rights Issues
The Company has no employees as the Board has
delegated day-to-day management and administrative
functions to abrdn Fund Managers Limited. There are,
therefore, no disclosures to be made in respect of
employees. The Company’s socially responsible
investment policy is outlined below.
Due to the nature of the Company’s business, being a
Company that does not offer goods and services to
customers, the Board considers that it is not within the
scope of the Modern Slavery Act 2015 because it has no
turnover. 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 Company,
therefore, is not required to make a slavery and human
trafficking statement.
Marketing and Promotional Policy
The Board recognises the importance of communicating
the long-term attractions of your Company to current and
prospective investors both for improving liquidity and for
enhancing the value and rating of the Company’s shares.
The Board believes an 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 companies under its
management. The Company also supports the Manager’s
investor relations programme which involves regional
roadshows, promotional and public relations campaigns.
The Company’s financial contribution to these
programmes is matched by the Manager. The Manager
reports at least quarterly to the Board providing an
analysis of the promotional activities as well as updates on
the shareholder register and any changes in the make-up
of that register.
Global Greenhouse Gas Emissions and Streamlined Energy
and Carbon Reporting (“SECR”)
All of the Company’s principal 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 (<40MWH/year) and exempt from
Streamlined Energy and Carbon Reporting obligations.
Socially Responsible Investment Policy
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
which has sub-delegated that authority to the
Investment Manager.
aberdeen 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. 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.
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 at each meeting on
stewardship (including voting) issues.
Board Diversity Policy
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 the Board to
fulfil its obligations. The Board also recognises the benefits
and is supportive of, the principle of diversity in its
recruitment of new Board members. The Board will not
display any bias for age, gender, race, sexual orientation,
religion, ethnic or national origins, or disability in
considering the appointment of its Directors. However, the
Board will continue to ensure that all appointments are
made on the basis of merit against the specification
prepared for each appointment and, therefore, the
Company does not consider it appropriate to set diversity
targets. At 31 December 2024, there were four female
Directors and two male Directors on the Board. Further
information on Board diversity may be found in the
Directors’ Report on page 60.
36 Murray International Trust PLC
Our Engagement with Stakeholders
The diagram below illustrates the relationship with the Company and its key stakeholders.
Shareholders
Shareholders are key stakeholders in the Company – they look to the Manager to achieve the investment objective over
time and to deliver a regular growing income together with capital growth. Therefore the Directors place a great deal of
importance on communication with shareholders and the table overleaf provides further details on the various methods
of interaction. The Board’s policy is to communicate directly with shareholders and their representative bodies without
the involvement of the aberdeen Group (either the Company Secretary or the Manager) in situations where direct
communication is required and the Directors are available to meet major shareholders on an annual basis.
Promotin
g
Your Company’s Success
Continued
Murray International Trust PLC 37
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
The following table describes some of the ways we engage with our shareholders:
AGM The AGM provides an opportunity for the Directors to engage with shareholders,
answer their questions and meet them informally. The next AGM is scheduled for 24
April 2025 in London. The Board looks forward to seeing shareholders in-person at
the AGM which will be followed by refreshments and an opportunity for
shareholders to meet the Directors and the investment management team.
Online Shareholder Presentation Following the success of previous online shareholder presentations, the Board has
decided to hold another Online Shareholder Presentation at 11.00 a.m. on 31 March
2025 and shareholders are encouraged to register and attend, whether they are
planning to attend the AGM or not. Further details are provided in the Chair’s
Statement on pages 9 and 10.
Annual and Half Yearly Reports We publish a full Annual Report in March/April each year that contains a strategic
report, governance section, financial statements and additional information; we also
publish a Half Yearly Report each August/September. The reports are available on
the Company’s website and in paper format and are widely distributed to parties
who have an interest in the Company’s performance.
Company Announcements We release a full set of financial results at the half year and full year stage. We also
issue announcements for all substantive news relating to the Company.
Shareholders can find these announcements on the Company’s website. Updated
net asset value figures are announced on a daily basis.
Monthly Factsheets The Manager publishes monthly factsheets on the Company’s website including
commentary on portfolio and market performance.
Website Our website contains a range of information on the Company and includes up to
date performance information as well as a full monthly portfolio listing of our
investments. Details of financial results and the investment process together with
Company announcements and contact details can be found here:
murray-intl.co.uk.
Social Media Shareholders can access up to date news on the Company and management team
by following the dedicated Murray International page on LinkedIn.
Other Shareholder Engagement We seek regular engagement with the Company’s major shareholders and also
prospective shareholders through annual and interim roadshow meetings
undertaken in conjunction with the Manager and Broker. Such regular meetings may
take the form of joint presentations with the Investment Manager or meetings
directly with a Director where any matters of concern may be raised directly in
order to understand their views on governance and performance. In addition, the
management team present at brokers’ conferences and regularly conduct
webcasts and webinars, some of which are available on the Company’s website.
Shareholders who wish to be kept updated on the Company can also register for
email updates on the website. The Board supports the Manager’s proactive
marketing which also seeks to keep existing shareholders up to date and also to
attract new shareholders over time.
Correspondence The Board welcomes queries from shareholders and responds to letters and emails
from shareholders on a range of issues. Refer to page 124 for contact details.
38 Murray International Trust PLC
The Manager
The key service provider for the Company is the Manager.
The performance of the Manager is reviewed in detail at
each Board meeting. The Manager’s investment process
is outlined on pages 19 to 21; further information on the
Board’s oversight of, and engagement with, the Manager
is provided below and on page 62.
Other Service Providers
The other key stakeholder group is that of the Company’s
other third party service providers. The Board is
responsible for selecting the most appropriate outsourced
service providers and monitoring the relationships with
these suppliers regularly in order to review their
performance and ensure a constructive working
relationship. Our service providers look to the Company to
provide them with a clear understanding of the
Company’s needs in order that those requirements can
be delivered efficiently and fairly. The Board, in
conjunction with the Management Engagement
Committee, ensures that the arrangements with service
providers are reviewed at least annually in detail including
consideration of complaints. The aim is to ensure that
contractual arrangements are good value for money,
remain in line with best practice, services being offered
meet the requirements and needs of the Company and
performance is in line with the expectations of the Board,
Manager and other relevant stakeholders. Reviews
include those of the Company’s depositary and custodian,
share registrar and broker. The Audit and Risk Committee
reviews the terms of engagement of the auditor.
The Work of the Board and its Principal Decisions for the Year
Pursuant to the Board’s aim of promoting the long-term success of the Company, the Directors have undertaken the
following work and taken the following principal decisions during the year:
Background to Decision Action
Continuing Appointment of the Manager - It is the
Board’s duty to shareholders to ensure that the
Manager delivers on the investment objective
The Board, through the Management Engagement
Committee (MEC), annually carries out a formal review of,
amongst other things, the Manager’s investment
performance and process, and the appropriateness of the
management fee. The continuing appointment of the
Manager was confirmed by the MEC as described further on
page 62.
Portfolio Manager Succession - The Board had
been working with the Manager for some time to
ensure appropriate succession plans for the
named portfolio manager
The Board has supported the orderly transition of
management responsibilities to Martin Connaghan and
Samantha Fitzpatrick as Co-Managers following the
retirement of Bruce Stout in June 2024.
Premium and Discount Management - The Board
has continued to review the trading in the
Company’s shares with the aim of reducing share
price volatility in normal market conditions so that
the discount or premium to NAV does not
become excessive
During the year, 17.7m shares were purchased into Treasury
at a weighted average discount of 9.6% as the Company’s
share price continued to trade at a discount to NAV. Further
details are provided in the Chair’s Statement on page 9.
Promotin
g
Your Company’s Success
Continued
Murray International Trust PLC 39
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Increased and Fully Covered Dividends - The Board
is conscious of the importance to shareholders of
the dividend and of the need to marry this with a
prudent approach to the management of the
Company’s distributable reserves
The Company’s aim is to continue to pay a progressive and
rising dividend, supported in so far as possible by sufficient
income being received each year from portfolio companies.
The Board is recommending a final dividend of 4.3p per
share (2023: 4.3p). If this is approved, the total dividend for
the year, including the three increased interim dividends of
2.4p per share, would therefore be 11.8p, an increase of 2.6%
over the prior year. This year’s dividend is not fully covered
from earnings, however the Board decided that it was
appropriate to recommend an increased dividend funded
by a small transfer from revenue reserves. The chart on
page 32 shows that over the long term the trend is for the
dividend to be covered. Further information is included on
page 8 of the Chair’s Statement.
Board Composition and Responsibilities -
Shareholders’ interests are best served by
ensuring a smooth and orderly refreshment of the
Board over time and the Board has a long-term
succession programme in place
Mrs Mackesy will retire from the Board at the AGM in April
2025, having completed nine-years as a Director. The Board
has prepared a detailed specification and initiated a
comprehensive search using the services of an independent
recruitment consultant. The result of the search will be
confirmed to shareholders in due course. In addition the
Board has considered the role of Senior Independent
Director (“SID”) and Ms Colquhoun will become SID from the
conclusion of the AGM in April 2025. Ms Colquhoun has also
been appointed Chair of the Management Engagement
Committee from 1 January 2025.
Gearing - The use of gearing is a distinguishing
feature of investment trusts and allows the
Company to use borrowings to enhance
shareholder returns over the longer term
The Board monitors the effectiveness of gearing in
conjunction with advice from the Manager. In May 2024, the
Company repaid a £30m revolving credit facility which
matured with RBSI as interest rates at that time were not
competitive. The Manager continues to review the
commercial terms available and the Board will consider
increasing the level of gearing in the future if it is in
shareholders’ interests to do so.
Third Party Supplier Oversight – As an investment
trust with a non-executive Board the Company
relies heavily on services provided by external
parties and the Board conducts an annual review
of all third party service providers
As part of its annual review, the Board has reviewed in detail
the Manager’s planning and delivery of sales, investor
relations and marketing plans. For 2025 the Board has
negotiated a revised, lower more focused promotional
budget with amended key targets. In addition the Board has
appointed a PR advisor, Burson Buchanan, to assist in
promoting the Company. Furthermore, following a
comprehensive tender process the Board decided to
appoint JPMorgan Cazenove as the Company’s corporate
broker with effect from July 2024.
40 Murray International Trust PLC
The Board is responsible for setting and monitoring
policies designed to manage risk and to ensure the
long-term viability of the Company.
Risk Management
There are a number of risks which, if realised, could have a
material adverse effect on the Company and its financial
condition, performance and prospects. A summary of the
principal risks is set out below, together with a description
of the mitigating actions taken by the Board. The principal
risks associated with an investment in the Company’s
shares are published monthly on the Company’s fact
sheet and can also be found in the pre-investment
disclosure document (“PIDD”) published by the Manager,
both of which are available on the Company’s website.
The Board regularly undertakes a robust review of the
principal risks and material uncertainties facing the
Company, including those that would threaten its business
model, future performance, solvency or liquidity. The
Board has prepared its own risk register which identifies
potential risks relating to (i) Investment Strategy and
Objectives; (ii) Investment Portfolio and Performance; (iii)
Operations and Governance; (iv) Financial; and (v) Macro
Economic and Geo-Political. The Board considers the
potential cause and possible impact of these risks as well
as reviewing the controls in place to mitigate these
potential risks. A risk is rated by having a likelihood and an
impact rating and the residual risk is plotted on a “heat
map” and is reviewed at least twice a year.
The Board discusses with the Manager areas where there
may be risks emerging and maintains a register of these.
In the event that an emerging risk has gained significant
weight or importance, that risk is categorised and added
to the Company’s risk register and is monitored
accordingly as has happened with AI during the year,
previously considered to be an emerging risk, it is now
incorporated within the macro economic risks.
The Board notes the Manager’s robust and disciplined
investment process, which continues to focus on long-
term company fundamentals including balance sheet
strength and deliverability of sustainable earnings growth,
as further described in the Investment Manager’s Review
on pages 11 to 18 and on pages 19 to 21.
The design, implementation and maintenance of controls
and procedures to safeguard the assets of the Company
and to manage its affairs properly extends to operational
and compliance controls and risk management. Further
information about the Company’s internal controls is
included in the Directors’ Report on pages 64 and 65.
Significant matters relating to the work of the Audit and
Risk Committee are discussed in the Report of the Audit
and Risk Committee on page 72 and further detail on
financial risks and risk management is disclosed in note 18
to the financial statements. In all other respects, the
Company’s principal risks and uncertainties have not
changed materially since 31 December 2024.
Risk Mana
g
ement and Viability
Murray International Trust PLC 41
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Principal Risks Trend Mitigating Action
Investment strategy and objectives – if the
Company’s investment objective becomes
unattractive and the Company fails to
adapt to changes in investor demand
(including in relation to ESG and climate
change) the Company may become
unattractive to investors, leading to
decreased demand for its shares and a
widening discount.
The Board keeps the level of discount and/or premium at
which the Company’s shares trade as well as the investment
objective and policy under review. The Board holds an annual
strategy meeting where it reviews updates from the Manager
and investor relations reports, and the Broker reports on the
market. In addition, the Board is updated at each Board
meeting on the makeup of and any movements in the
shareholder register. The Directors attend meetings with, and
respond to correspondence from, shareholders to keep
abreast of investor opinion. In addition, the Board has
carefully reviewed the Company’s promotional and
marketing plans.
Investment Portfolio Performance Risk – if
the longer-term performance of the
investment portfolio does not deliver
income and/or capital returns in line with
the investment objective and/or
consistently underperforms market
expectations, the Company may become
unattractive to investors leading to
decreased demand for its shares and a
widening discount.
The Board reviews the investment portfolio performance at
each Board meeting and, amongst other things, seeks
explanations from the Manager where performance deviates
from expectations on either an absolute or relative basis. In
addition, the Directors attend meetings with, and respond to
correspondence from, shareholders to keep abreast of
investor opinion. The Board considers the Manager’s
appointment annually at the Management Engagement
Committee meeting where performance is comprehensively
reviewed alongside other metrics relevant to reappointment.
Operational and Governance Risks – the
Company is dependent on third parties
(and the aberdeen Group in particular) for
the provision of all services and systems.
Any fraud, control failures, cyber threats,
business continuity issues at, or poor service
from, these third parties could result in
financial loss or reputational damage to
the Company.
The Board receives reports from the Manager on internal
controls and risk management at each Board meeting. It
receives assurances from all its significant service providers,
including the depositary, as well as back to back assurance
from the Manager at least annually. Further details of the
internal controls which are in place are set out on pages 64
and 65.
42 Murray International Trust PLC
Principal Risks Trend Mitigating Action
Financial Risks – the level of the Company’s
gearing, if inappropriate, and the financial
risks associated with the portfolio, including
the impact of movements in foreign
currency exchange rates, could result in
capital losses and/or reduced income for
the Company.
The Board sets a gearing limit and receives regular updates
on the actual gearing levels the Company has reached from
the Manager together with the assets and liabilities of the
Company and reviews these at each Board meeting. In
addition, aFML, as Alternative Investment Fund Manager, in
conjunction with the Board, has set an overall leverage limit of
2.0x on a commitment basis (2.5x on a gross notional basis)
and provides regular updates to the Board (see page 124).
The financial risks associated with the Company include
market risk, liquidity risk and credit risk, all of which are
mitigated in conjunction with the Manager. Further details of
the steps taken to mitigate the financial risks associated with
the portfolio are set out in note 18 to the financial statements.
The Board is cognisant of the risks associated with the impact
of currency on revenue streams and, given the cost and
imperfect nature of attempting to hedge foreign dividend
income, has resolved not to implement any hedging.
Macro Economic and Geo-Political Risks – the
macro economic and geo-political
environment including the risk of regional
conflicts, supply chain interruptions,
deglobalisation and future pandemics,
within which the Company operates is
inherently uncertain and therefore could
affect the Company’s performance or
operations in unforeseen ways
The Board discusses macro economic and geo-political issues
with the Manager at each Board meeting and the steps being
taken to limit their impact on the Company, its operations and
portfolio.
The global geo-political environment is increasingly
destabilised by conflicts, tensions and other uncertainties
which include, amongst other things, the ramifications on the
accepted global alliances following the election of President
Trump in the US. The global macro-economic outlook remains
cautious and is further influenced by the evolution and
adoption of AI amongst other things.
Risk Mana
g
ement and Viability
Continued
Murray International Trust PLC 43
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Viability Statement
The Company does not have a fixed period strategic plan
but the Board formally considers risks and strategy at
least annually. The Board considers the Company, with no
fixed life, to be a long-term investment vehicle but, for the
purposes of this viability statement, has decided that a
period of five years is an appropriate period over which to
report. The Board considers that this 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 considered the operational
resilience of the Company including the regular updates
and reporting received from the Manager and have
focused upon the following factors:
· The principal and emerging risks detailed in the
Strategic Report on pages 40 to 42;
· The ongoing relevance of the Company’s investment
objective in the current environment;
· The demand for the Company’s shares evidenced by
the historical level of premium and/or discount;
· The level of income generated by the Company and
level of revenue reserves;
· The need to ensure that the Manager and the
Company’s other third party service providers have
suitable processes and controls in place to enable them
to continue to provide their services to the Company;
· The liquidity of the Company’s portfolio - over 93.8% of
the investments are categorised as level 1, held within
active markets and realisable within seven days; and
· The profile of the Company’s £110m gearing provided
by the Loan Notes which do not mature until May 2031
and May 2037.
Accordingly, taking into account the Company’s current
position, the liquidity of the Company’s investments 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 to
meet its liabilities as they fall due for a period of five years
from the date of this Report. In making this assessment,
the Board has considered scenario modelling prepared by
the Manager which analysed the impact of matters such
as significant economic and stock market volatility which
could result in a substantial reduction in the liquidity of the
portfolio, changes in investor sentiment or a significant
reduction in earnings which could all have an impact on
the assessment of the Company’s prospects and viability
in the future.
Virginia Holmes
Chair
5 March 2024
44 Murray International Trust PLC
Portfolio
Murray International Trust PLC 45
The Company maintains a diversified
portfolio of investments. At the year end,
the Company’s portfolio consisted of 49
equity and 13 bond holdings. The Manager
is authorised by the Board to hold between
45 and 150 investments in the portfolio.
46 Murray International Trust PLC
As at 31 December 2024
Taiwan Semiconductor Manufacturing
Broadcom Corporation
Holding: 4.1% Holding: 4.0%
Taiwan Semiconductor Manufacturing is one
of the largest integrated circuit manufacturers
in the world. The company is involved in
component design, manufacturing,
assembly, testing and mass production of
integrated circuits.
Broadcom designs, develops and markets
digital and analogue semiconductors
worldwide. The company offers wireless
components, storage adaptors, networking
processors, switches, fibre optic modules and
optical sensors.
Philip Morris International
Oversea-Chinese Bank
Holding: 3.8% Holding: 3.3%
Philip Morris International is one of the world’s
leading global tobacco companies. It
manufactures and sells leading recognisable
brands such as Marlboro, Parliament and
Virginia Slims. Smoke-free products now
account for c40% of sales and include heat-
not-burn, vapour and oral nicotine products.
Oversea-Chinese Banking Corporation offers
a comprehensive range of financial services
spread across four main business segments.
These include Global Consumer/Private
Banking; Global Wholesale Banking; Global
Treasury & Markets; plus Insurance.
CME Group
Aeroporto del Sureste
Holding: 3.1% Holding: 3.0%
Based in Chicago, USA CME Group operates a
derivatives exchange that trades futures
contracts and options, interest rates, stock
indexes, foreign exchange and commodities.
Grupo Aeroporto del Sureste operates
airports in Mexico. The company holds long-
term concessions to manage airports in
leading tourist resorts and major cities.
AbbVie
Enbridge
Holding: 2.9% Holding: 2.8%
AbbVie Inc is a global pharmaceutical
company, producing a broad range of drugs
for use in speciality therapeutic areas such as
immunology, chronic kidney disease,
oncology and neuroscience.
Enbridge is an energy infrastructure company
that owns and operates extensive pipeline
networks throughout Canada and the US,
transporting crude oil, natural gas, and natural
gas liquids. The company is also involved in
renewable energy projects, including wind
and solar power.
BE Semiconductor
Zurich Insurance
Holding: 2.7% Holding: 2.7%
BE Semiconductor Industries N.V
produces integrated semiconductor
assembly equipment. The business designs,
develops, builds, markets and services
machines that manufacture semiconductor
packages. BE also produces automated
moulding and plating machines and
manufactures leadframes.
Zurich Insurance Group offers a wide range of
insurance products and services, including
general insurance, life insurance, and asset
management services. It serves individuals, as
well as large and small businesses, in over 200
countries worldwide.
© owned by each of the corporate entities in the respective logos
Ten Lar
g
est Investments
Murray International Trust PLC 47
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Valuation Total Valuation
2024 assets
A
2023
B
Company Country £’000 % £’000
Taiwan Semiconductor Manufacturing Taiwan 73,309 4.1 68,091
Broadcom Corporation USA 72,177 4.0 87,573
Philip Morris International USA 67,244 3.8 51,665
Oversea-Chinese Bank Singapore 58,576 3.3 46,314
CME Group USA 55,628 3.1 49,563
Aeroporto del Sureste Mexico 53,274 3.0 83,062
AbbVie USA 51,389 2.9 54,711
Enbridge Canada 50,758 2.8 21,283
BE Semiconductor Netherlands 49,223 2.7 73,070
Zurich Insurance Switzerland 47,454 2.7 40,962
Top ten investments 579,032 32.4
Cisco Systems USA 44,647 2.5 31,704
TotalEnergies France 44,109 2.4 53,377
Telus Canada 41,076 2.3 28,008
Verizon Communications USA 40,902 2.3 29,565
Siemens Germany 39,020 2.2 40,703
Unilever
C
UK & Netherlands 36,302 2.0 43,698
Singapore Telecommunications Singapore 36,054 2.0 26,333
Merck USA 35,748 2.0 38,484
Hong Kong Exchanges Hong Kong 34,242 1.9 24,194
Johnson & Johnson USA 33,836 1.9 30,369
Top twenty investments 964,968 53.9
Shell Netherlands 33,674 1.9 34,945
Enel Italy 33,187 1.9 33,978
Tryg Denmark 32,776 1.8 33,264
Hon Hai Precision Industry Taiwan 32,714 1.8 31,898
British American Tobacco UK 31,669 1.8 25,240
Samsung Electronics Korea 29,696 1.7 44,818
Bristol-Myers Squibb USA 29,370 1.7 26,152
Pernod-Ricard France 28,799 1.6 16,606
BHP Group Australia 27,328 1.5 37,653
Sanofi France 27,016 1.5 27,207
Top thirty investments 1,271,197 71.1
List of Investments
48 Murray International Trust PLC
List of Investments
Continued
Valuation Total Valuation
2024 assets
A
2023
B
Company Country £’000 % £’000
Danone France 26,763 1.5 33,743
Mercedes-Benz Germany 26,585 1.5 –
Walmart de Mexico Mexico 26,132 1.5 36,376
Coca-Cola USA 25,610 1.4 –
Diageo UK 25,370 1.4 8,568
SCB X Thailand 24,660 1.4 21,822
Ping An Insurance China 23,667 1.3 12,766
GlobalWafers Taiwan 23,198 1.3 37,509
Vale do Rio Doce Brazil 18,857 1.0 33,103
Taylor Wimpey UK 18,315 1.0 –
Top forty investments 1,510,354 84.4
Medtronic USA 17,542 1.0 –
Sociedad Quimica Y Minera de Chile Chile 17,410 1.0 28,334
Telenor Norway 17,174 1.0 13,504
Woodside Energy Australia 17,012 1.0 23,268
China Resources Land China 16,189 0.9 19,655
Atlas Copco Sweden 16,146 0.9 26,675
Telkom Indonesia Indonesia 16,133 0.9 24,149
Republic of South Africa 7% 28/02/31
D
South Africa 15,035 0.8 14,369
United Mexican States 5.75% 05/03/26
D
Mexico 14,653 0.8 17,084
Republic of Indonesia 6.125% 15/05/28
D
Indonesia 14,485 0.8 15,078
Top fifty investments 1,672,133 93.5
Telefonica Brasil Brazil 13,685 0.8 19,463
Banco Bradesco Brazil 13,125 0.7 23,753
Republic of Dominica 6.85% 27/01/45
D
Dominican Republic 11,755 0.7 11,702
Petroleos Mexicanos 6.75% 21/09/47
D
Mexico 10,979 0.6 10,264
Republic of Indonesia 8.375% 15/03/34
D
Indonesia 10,770 0.6 11,374
HDFC Bank 7.95% 21/09/26
D
India 6,983 0.4 7,053
Power Finance Corp 7.63% 14/08/26
D
India 6,973 0.4 7,020
Petroleos Mexicanos 5.5% 27/06/44
D
Mexico 5,955 0.3 5,789
Republic of Indonesia 10% 15/02/28
D
Indonesia 4,026 0.2 4,274
Santander 10.375% Non Cum Pref
D
UK 3,547 0.2 3,197
Top sixty investments 1,759,931 98.4
Murray International Trust PLC 49
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Valuation Total Valuation
2024 assets
A
2023
B
Company Country £’000 % £’000
General Accident 7.875% Cum Irred Pref
D
UK 3,360 0.2 3,220
Republic of Turkey 8% 12/03/25
D
Turkey 1,703 0.1 1,577
Total investments 1,764,994 98.7
Net current assets
A
23,771 1.3
Total assets
E
1,788,765 100.0
A
Excluding bank loan.
B
The 2023 column denotes the Company’s holding at 31 December 2023.
C
The 2024 holding comprises UK and Netherlands securities, split £19,097,000 (2023 – £22,797,000) and £17,205,000 (2023 – £20,901,000) respectively.
D
Quoted preference share or bond.
E
See definition on page 129.
Summary of Net Assets
Valuation Valuation
31 December 2024 31 December 2023
£’000 % £’000 %
Equities 1,654,770 98.6 1,674,147 100.3
Preference shares 6,907 0.4 6,417 0.4
Bonds 103,317 6.1 107,299 6.4
Total investments 1,764,994 105.1 1,787,863 107.1
Net current assets
A
23,771 1.4 20,900 1.3
Total assets
B
1,788,765 106.5 1,808,763 108.4
Borrowings
C
(109,916) (6.5) (139,901) (8.4)
Net assets 1,678,849 100.0 1,668,862 100.0
A
Excluding bank loan.
B
See definition on page 129.
C
See note 13 on page 100.
50 Murray International Trust PLC
Asia Africa
United North Europe Pacific Latin & Middle 2024 2023
Kingdom America ex UK ex Japan America East Total Total
Sector/Geographical Analysis % % % % % % % %
Energy – 2.8 4.4 0.9 – – 8.1 8.5
Oil, Gas and Coal – 2.8 4.4 0.9 – – 8.1 8.5
Basic Materials – – – 1.5 2.0 – 3.5 5.5
Chemicals – – – – 1.0 – 1.0 1.6
Industrial Metals and Mining – – – 1.5 1.0 – 2.5 3.9
Industrials – – 3.1 – 3.0 – 6.1 9.8
General Industrials – – 2.2 – – – 2.2 2.3
Industrial Engineering – – 0.9 – – – 0.9 2.9
Industrial Transportation – – – – 3.0 – 3.0 4.6
Consumer Staples 4.3 5.2 4.0 – – – 13.5 10.0
Beverages 1.4 1.4 1.6 – – – 4.4 1.4
Food Producers – – 1.5 – – – 1.5 1.9
Personal Care, Drug and Grocery Stores 1.1 – 0.9 – – – 2.0 2.4
Tobacco 1.8 3.8 – – – – 5.6 4.3
Consumer Discretionary 1.0 – 1.5 – 1.5 – 4.0 2.0
Automobiles and Parts – – 1.5 – – – 1.5 –
Household Goods and Home
Construction
1.0 – – – – – 1.0 –
Retailers – – – – 1.5 – 1.5 2.0
Health Care – 9.4 1.5 – – – 10.9 11.0
Health Care Equipment & Services – 1.0 – – – – 1.0 –
Pharmaceuticals & Biotechnology – 8.4 1.5 – – – 9.9 11.0
Telecommunications – 7.1 1.0 4.6 0.8 – 13.5 11.9
Telecommunications Service Providers – 4.6 1.0 2.9 0.8 – 9.3 7.7
Telecommunications Equipment – 2.5 – 1.7 – – 4.2 4.2
Utilities – – 1.9 – – – 1.9 1.9
Electricity – – 1.9 – – – 1.9 1.9
Sector/Geo
g
raphical Analysis
Murray International Trust PLC 51
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Asia Africa
United North Europe Pacific Latin & Middle 2024 2023
Kingdom America ex UK ex Japan America East Total Total
Sector/Geographical Analysis % % % % % % % %
Financials – 3.1 4.5 7.9 0.7 – 16.2 13.9
Banks – – – 4.7 0.7 – 5.4 5.1
Investment Banking and Brokerage
Services
– 3.1 – 1.9 – – 5.0 4.0
Life Insurance – – – 1.3 – – 1.3 0.7
Nonlife Insurance – – 4.5 – – – 4.5 4.1
Real Estate – – – 0.9 – – 0.9 1.6
Real Estate Investment and Services – – – 0.9 – – 0.9 1.6
Technology – 4.0 2.7 7.2 – – 13.9 16.5
Technology Hardware & Equipment – 4.0 2.7 7.2 – – 13.9 16.5
Total equities 5.3 31.6 24.6 23.0 8.0 – 92.5 92.6
Preference shares and bonds 0.4 – 0.1 2.4 2.4 0.9 6.2 6.2
Total investments 5.7 31.6 24.7 25.4 10.4 0.9 98.7 98.8
Net current assets 1.3 1.2
Total assets
A
100.0 100.0
A
See definition on page 129.
52 Murray International Trust PLC
Total Equities Distribution by Sector
0% 5% 10% 15% 20%
Technology
Financials
Utilities
Telecommunications
Health Care
Consumer Staples
Consumer Discretionary
Industrials
Basic Materials
Real Estate
Energy
2024
2023
Total Equities Distribution by Geographic Region
0% 5% 10% 15% 20% 25% 30%
United Kingdom
Europe ex UK
Latin America
North America
Asia Pacific ex Japan
2024
2023
Sector/Geo
g
raphical Analysis
Continued
Equities
Represent
92.5% of Net
Assets
49 Equity
Holdings
Portfolio
Turnover 13%
(2023: 7%)
Murray International Trust PLC 53
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Equities by Country
28.6%
7.8%
2.8%
4.8%
5.7%
1.0%
5.7%
2.9%
5.5%
1.0%
10.5%
7.7%
6.0%
9.0%
1.0%
USA
Taiwan
Brazil
Mexico
UK
Indonesia
Singapore
Switzerland
Canada
Sweden
Other Asia Pacific ex Japan
France
Netherlands
Other Europe ex UK
Chile
2024
Preference Shares and Bonds by Country
10.7%
12.7%
26.6%
28.6%
13.6%
1.5%
6.3%
Dominican Republic
Ecuador
India
Indonesia
Mexico
South Africa
Turkey
UK
2024
23.9%
8.2%
4.6%
7.1%
3.4%
1.5%
4.3%
3.8%
4.2%
3.1%
11.5%
7.8%
7.7%
7.2%
1.7%
2023
10.3%
0.0%
12.4%
27.0%
29.1%
12.6%
2.9%
5.7%
2023
54 Murray International Trust PLC
Governance
The Company is committed to high
standards of corporate governance
and applies the principles identified in
the UK Corporate Governance Code
and the AIC Code of Corporate
Governance
Murray International Trust PLC 55
56 Murray International Trust PLC
Virginia Holmes
Chair and Independent Non-Executive Director
Experience:
Virginia is the former CEO of AXA Investment Managers
Limited and brings significant senior asset management
expertise and experience to the Board. She is currently
Senior Independent Director at Syncona Limited and Chair
of the Remuneration Committee at Intermediate Capital
Group plc. She is a current and past Chair and Trustee of
a number of pension funds and was previously a founder
director of the Investment Forum.
Length of Service:
Appointed a Director on 22 June 2022 and Chair from
31 December 2023
Last re-elected to the Board:
19 April 2024
Contribution:
The Nomination Committee has reviewed the contribution
of Ms Holmes in light of her forthcoming re-election at the
AGM to be held in April 2025 and has concluded that she is
continuing to bring significant expertise and wider
investment insight and challenge to the Board whilst
expertly chairing meetings in an efficient and focused
manner.
Committee membership:
Management Engagement Committee (Chair to 31
December 2024) and Nomination Committee (Chair)
Connections with Trust, Manager or other Directors:
None
Shareholding in Company:
10,000 Ordinary shares at 5 March 2025
Claire Binyon
Independent Non-Executive Director
Experience:
Claire is a chartered accountant who, following an early
career in the City, held senior corporate development and
strategic planning roles with global multinational
businesses including inBev, Cadbury, DS Smith and Fenner
(a Michelin group company). She is a non-executive
director of JPMorgan American Investment Trust PLC.
Length of service:
Appointed a Director on 26 April 2018
Last re-elected to the board:
19 April 2024
Contribution:
The Nomination Committee has reviewed the contribution
of Ms Binyon in light of her forthcoming re-election at the
AGM to be held in April 2025 and has concluded that Ms
Binyon continues to provide significant financial insight to
the Board as well as expertly chairing the Audit and Risk
Committee with due focus on the important areas of
accounting financial risk.
Committee membership:
Audit and Risk Committee (Chair), Management
Engagement Committee, Nomination Committee and
Remuneration Committee.
Connections with Trust, Manager or other Directors:
None
Shareholding in Company:
6,713 Ordinary shares at 5 March 2025
Board of Directors
Murray International Trust PLC 57
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Alexandra Mackesy
Senior Independent Non-Executive Director
Experience:
Alexandra is a former equity analyst, having spent the
majority of her executive career in Asia with SBC Warburg,
JP Morgan and Credit Suisse. She has some 20 years of
experience as a director of UK listed investment trusts and
is currently chair of JPMorgan China Growth & Income
Trust plc and a non-executive director of The Henderson
Smaller Companies Trust plc. She is also a director of
Board Level Partners Ltd, which provides board advisory
services.
Length of Service:
Appointed a Director on 1 May 2016
Last re-elected to the Board:
19 April 2024
Contribution:
The Nomination Committee has reviewed Mrs Mackesy’s
contribution to the Board, notwithstanding her intention to
retire from the Board at the AGM to be held in April 2025,
and has concluded that she has provided wise counsel to
the Chair in her role as Senior Independent Director as well
as providing significant insight and investment trust
expertise to the Board during the year.
Committee membership:
Audit and Risk Committee, Management Engagement
Committee, Nomination Committee and Remuneration
Committee
Connections with Trust, Manager or other Directors:
None
Shareholding in Company:
16,575 Ordinary shares at 5 March 2025
Nicholas Melhuish
Independent Non-Executive Director
Experience:
Nicholas is a former Fellow and Bursar of Corpus Christi
College, Oxford having retired from this role in December
2024 and following a portfolio management career
culminating as Head of Global Equities at Amundi SA. He is
a non-executive director of JPMorgan Claverhouse
Investment Trust PLC, a trustee of the Trusthouse
Charitable Foundation and a director and trustee of The
London Clinic. He has also lectured at the Saïd Business
School at Oxford University on Asset Management.
Length of Service:
Appointed a Director on 1 May 2021
Last re-elected to the Board:
19 April 2024
Contribution:
The Nomination Committee has reviewed the contribution
of Mr Melhuish in light of his forthcoming re-election at the
AGM to be held in April 2025 and has concluded that he
has delivered important global investment insight and
challenge and provided strong leadership as Chair of the
Remuneration Committee.
Committee membership:
Audit and Risk Committee, Management Engagement
Committee, Nomination Committee and Remuneration
Committee (Chair)
Connections with Trust, Manager or other Directors:
None
Shareholding in Company:
17,510 Ordinary shares at 5 March 2025
58 Murray International Trust PLC
Gregory Eckersley
Independent Non-Executive Director
Experience:
Gregory is an experienced equity investor with a
professional executive career in a mix of leadership and
asset management roles. Having begun his investment
career at Cigna International Investment Limited, he
gained international experience at Draycott Partners,
Alliance Capital and Alliance Bernstein, managing and
overseeing teams investing in emerging market and
global portfolios and, until 2019, was the global head of
internal equities at the Abu Dhabi Investment Authority. He
is a non-executive director of Edinburgh Worldwide
Investment Trust plc.
Length of Service:
Appointed a Director on 1 May 2023
Last re-elected to the Board:
Elected on 19 April 2024
Contribution:
The Nomination Committee has reviewed the contribution
of Mr Eckersley in light of his forthcoming re-election at the
AGM to be held in April 2025 and has concluded that he
has continued to bring excellent global investment
expertise and challenge to Board discussions.
Committee membership:
Audit and Risk Committee, Management Engagement
Committee, Nomination Committee and Remuneration
Committee
Connections with Trust, Manager or other Directors:
None
Shareholding in Company:
15,000 Ordinary shares at 5 March 2025
Wendy Colquhoun
Independent Non-Executive Director
Experience:
Wendy is a qualified solicitor and was, until May 2020, a
partner at international law firm CMS Cameron McKenna
Nabarro Olswang LLP. She has advised investment trust
boards for over 25 years on advisory and transactional
matters and has a thorough understanding of investment
trusts and the regulatory and other challenges they face.
She is a non-executive director of Capital Gearing Trust
p.l.c, senior independent director of Schroder UK Mid Cap
Fund plc and chair of Henderson Opportunities Trust plc.
Length of Service:
Appointed a Director on 1 September 2023
Last re-elected to the Board:
Elected on 19 April 2024
Contribution:
The Nomination Committee has reviewed the contribution
of Ms Colquhoun in light of her forthcoming re-election at
the AGM to be held in April 2025 and has concluded that
she has continued to bring significant legal and investment
trust expertise and insight to the Board.
Committee membership:
Audit and Risk Committee, Management Engagement
Committee (Chair from 1 January 2025), Nomination
Committee and Remuneration Committee
Connections with Trust, Manager or other Directors:
None
Shareholding in Company:
6,039 Ordinary shares at 5 March 2025
Board of Directors
Continued
Murray International Trust PLC 59
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
The Directors present their report and the audited
financial statements for the year ended
31 December 2024.
Results and Dividends
Details of the Company’s proposed dividend and results
are shown on pages 4 and 5 of this Report.
Investment Trust Status
The Company is registered as a public limited company
(registered in Scotland No. SC006705) and 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 January 2012.
The Directors are of the opinion that the Company has
conducted its affairs for the year ended 31 December
2024 so as to enable it to comply with the ongoing
requirements for investment trust status.
Individual Savings Accounts
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.
Share Capital
The Company’s capital structure is summarised in note 14
to the financial statements.
At 31 December 2024, there were 603,129,219 fully paid
Ordinary shares of 5p each (2023 – 620,866,332 Ordinary
shares) in issue. At the year end there were 43,930,796
(2023 – 26,193,683) Ordinary shares held in Treasury.
During the year 17,737,113 Ordinary shares were bought
back for Treasury representing 2.8% of the Company’s
total issued share capital (2023 – 5,248,133 Ordinary
shares). Further details on buybacks are provided in note
14 to the financial statements. No Ordinary shares were
sold from Treasury (2023 – 1,050,000) or issued during
the year.
Share Rights
Ordinary shareholders are entitled to vote on all
resolutions which are proposed at general meetings of the
Company. The Ordinary shares carry a right to receive
dividends and, 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.
Management and Secretarial Arrangements
The Company has appointed abrdn Fund Managers
Limited (“aFML”), a wholly owned subsidiary of aberdeen
Group plc, as its alternative investment fund manager
under the terms of an investment management
agreement dated 14 July 2014 (as amended). Under the
terms of the agreement, the Company’s portfolio is
managed by abrdn Investments Limited (“aIL”) by way of
a group delegation agreement in place between aFML
and aIL. Investment management services are provided to
the Company by aFML. Company secretarial, accounting
and administrative services have been delegated by aFML
to abrdn Holdings Limited.
The management fee is charged at the rate of 0.5% per
annum of Net Assets up to £500m and 0.4% per annum of
Net Assets above £500m. In addition, a fee of 1.5% per
annum remains chargeable on the value of any unlisted
investments. The investment management fee is
chargeable 30% against revenue and 70% against
realised capital reserves in line with the Board’s long-term
expectation of returns from revenue and capital. No fees
are charged in the case of investments managed or
advised by the aberdeen Group.
The management agreement may be terminated by
either party on the expiry of six months’ written notice. On
termination, the Manager would be entitled to receive fees
which would otherwise have been due up to that date.
The Board considers the continued appointment of the
Manager on the terms agreed to be in the interests of the
shareholders as a whole because the aberdeen Group
has the investment management, secretarial, promotional
and administrative skills and expertise required for the
effective operation of the Company.
The Board
The Board currently consists of six non-executive
Directors.
The names and biographies of the current Directors are
disclosed on pages 56 to 58 indicating their range of
experience as well as length of service.
All Directors will retire at the AGM in April 2025 and, with
the exception of Mrs Mackesy who has served nine years,
each Director will stand for re-election.
Directors’ Report
60 Murray International Trust PLC
The Board considers that there is a balance of skills and
experience within the Board relevant to the leadership
and direction of the Company and that all the Directors
contribute effectively. The reasons for the re-election of
the individual Directors are set out on pages 56 to 58.
Board Diversity
As indicated in the Strategic Report, 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
takes account of the targets set out in the FCA’s Listing
Rules, which are set out below.
As an externally managed investment company, the
Board employs no executive staff, and therefore does not
have a chief executive officer (CEO) or a chief financial
officer (CFO)- both of which are deemed senior board
positions by the FCA. Senior board positions recognised
by the FCA are chair of the board and senior independent
director (SID). However, the Board considers the Chair of
the Audit and Risk Committee also to be a senior board
position and the following disclosure is made on this basis.
In addition, the Board has resolved that the Company’s
year end date be the most appropriate date for
disclosure purposes.
The following information has been voluntarily disclosed
by each Director and is correct as at 31 December 2024.
The Board confirms that the Company is in compliance
with the recommendations of the Parker Review on
diversity in the UK boardroom.
1. Meets target that at least 40% of Directors are women as set out in LR 6.6.6R (9)(a)(i).
2. Meets target that at least one Director is from a minority ethnic background as set out in LR 6.6.6R (9)(a)(iii).
3. This column is deemed not to be applicable as the Company is externally managed and does not have executive staff or a CEO/CFO.
The Company considers that the roles of Chair, Senior Independent Director and Chair of the Audit & Risk Committee are senior Board
positions and accordingly the Company meets the target that at least one senior role is held by a woman set out in LR6.6.6(9)(a)(i).
Directors’ Report
Continued
Board as at 31 December 2024
Number of Board
Members
Percentage of
the Board
Number of Senior Positions
on the Board
(
Note 3
)
Men
2 33% 0
Women (
Not
e
1
)
4 67% 3
White British or other White (including minority-white
groups)
5 83% 3
Minority Ethnic (
Note
2
)
1 17% 0
Murray International Trust PLC 61
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
The Role of the Chair and Senior Independent Director
The Chair of the Company 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, 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 leads the
evaluation of the Board and individual Directors, and acts
upon the results of the evaluation process by recognising
strengths and addressing any weaknesses. The Chair also
engages with major shareholders and ensures that all
Directors understand shareholder views.
The Senior Independent Director acts as a sounding board
for the Chair and acts as an intermediary for other Directors,
when necessary. Working closely with the Nomination
Committee, the Senior Independent Director takes
responsibility for an orderly succession process for the Chair,
and leads the annual appraisal of the Chair’s performance.
The Senior Independent Director is also available to
shareholders to discuss any concerns they may have. Mrs
Mackesy, the current Senior Independent Director, will be
retiring from the Board in April 2025 and with effect from the
close of business of the AGM on 24 April 2025, Ms Colquhoun
will become Senior Independent Director.
Management of Conflicts of Interest
No Director has a service contract with the Company
although Directors are issued with letters of appointment.
The Directors’ interests in contractual arrangements with the
Company are as shown in note 21 to the financial
statements and the Directors’ Remuneration Report. No
Directors had any other interest in contracts with the
Company during the period or subsequently.
The Board has a procedure in place to deal with a
situation where a Director has a conflict of interest, as
required by the Companies Act 2006. As part of this
process, the Directors are required to disclose other
positions held and all other conflict situations that may
need to be authorised either in relation to the Director
concerned or his or 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 their wider
duties is affected. Each Director is required to notify the
Company Secretary of any potential or actual conflict
situations that will need authorising by the Board.
Authorisations given by the Board are reviewed at each
Board meeting. All proposed significant external
appointments are also required to be approved, in
advance, by the Chair and then communicated to other
Directors for information.
The Company has a policy of conducting its business in an
honest and ethical manner. The Company takes a zero
tolerance approach to bribery and corruption and has
procedures in place that are proportionate to the
Company’s circumstances to prevent them. The Manager
also adopts a group-wide zero tolerance approach and
has its own detailed policy and procedures in place to
prevent bribery and corruption. Copies of the Manager’s
anti-bribery and corruption policies are available on
its website.
In relation to the corporate offence of failing to prevent
tax evasion, it is the Company’s policy to conduct all
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 is committed to acting professionally,
fairly and with integrity in all its business dealings
and relationships.
Corporate Governance
The Corporate Governance Statement forms part of the
Directors’ Report. 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.
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
complied with the principles and provisions of the AIC
Code and the relevant provisions of the UK Code, except
as set out overleaf.
62 Murray International Trust PLC
The UK Code includes provisions relating to:
· interaction with the workforce (provisions 2, 5 and 6);
· the role and responsibility of the chief executive
(provisions 9 and 14);
· previous experience of the chair of a remuneration
committee (provision 32); and
· executive directors’ remuneration (provisions 33
and 36 to 40).
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.
The full text of the Company’s Corporate Governance
Statement can be found on the Company’s website,
murray-intl.co.uk. The Board is cognisant of the FRC’s
revised Corporate Governance Code 2024, effective for
financial years commencing on or after 1 January 2025
and expects to be in compliance with this 2024 Code for
the year ending 31 December 2025.
The table below details Directors’ attendance at
scheduled Board and Committee meetings held during
the year ended 31 December 2024 (with eligibility to
attend the relevant meeting in brackets). In addition there
were a number of other ad hoc Board meetings held
during the year.
Scheduled
Board
Audit
& Risk
Com
Nom.
Com
MEC Rem.
Com
V. Holmes
A
6 (6) 3 (3) 4 (4) 1 (1) 1 (1)
C. Binyon
6 (6) 3 (3) 4 (4) 1 (1) 1 (1)
W. Colquhoun
6 (6) 3 (3) 4 (4) 1 (1) 1 (1)
G. Eckersley
6 (6) 3 (3) 4 (4) 1 (1) 1 (1)
A. Mackesy
6 (6) 3 (3) 4 (4) 1 (1) 1 (1)
N. Melhuish
6 (6) 3 (3) 4 (4) 1 (1) 1 (1)
A
Ms Holmes was appointed Chair on 31 December 2023 and attends Audit & Risk
Committee meetings by invitation
Board Committees
Terms of Reference
The terms of reference of all the Board Committees may
be found on the Company’s website
murray-intl.co.uk and
copies are available from the Company Secretary upon
request. The terms of reference are reviewed and re-
assessed by the Board for their adequacy on an
annual basis.
Audit and Risk Committee
The Report of the Audit and Risk Committee is on pages 71
to 73 of this Annual Report.
Management Engagement Committee (“MEC”)
The MEC comprises all of the Directors and was chaired
by Ms Holmes up to 31 December 2024 and by Ms
Colquhoun from 1 January 2025. The Committee reviews
the performance of the Manager and its compliance with
the terms of the management and secretarial agreement.
The terms and conditions of the Manager’s appointment,
including an evaluation of fees, are reviewed by the
Committee on an annual basis. The Committee believes
that the continuing appointment of the Manager on the
terms that have been agreed is in the interests of
shareholders as a whole. The Committee is also
responsible for the oversight and annual review of all other
key service provider relationships.
Nomination Committee
All appointments to the Board of Directors are considered
by the Nomination Committee which comprises the entire
Board and is chaired by Ms Holmes. The Board’s overriding
priority in appointing new Directors to the Board is to
identify the candidate with the best range of skills and
experience to complement existing Directors. The Board
also recognises the benefits of diversity and its policy on
diversity is referred to in the Strategic Report on page 35.
When Board positions become available as a result of
retirement or resignation, the Company ensures that a
diverse group of candidates is considered.
Continued
Directors’ Report
Murray International Trust PLC 63
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
The Board’s policy on tenure is that continuity and
experience are considered to add significantly to the
strength of the Board. The Board also takes the view that
independence is not necessarily compromised by length
of tenure on the Board. However, in compliance with the
provisions of the AIC Code, it is expected that Directors will
serve in accordance with the time limits laid down by the
AIC Code. It is the policy of the Board that the Chair of the
Company should retire once he or she has served as a
Director for nine years in line with current best practice of
the Financial Reporting Council. However there could be
circumstances where it might be appropriate to ask a
Chair or another Director to stay on for a limited period
and in this case the reasons for the extension would be
fully explained to shareholders and a timetable for the
departure of the relevant individual clearly set out.
As part of the succession planning in advance of Mrs
Mackesy’s scheduled retirement as a Director in April
2025, during the year the Board initiated a search for a
new independent non-executive Director using the
services of Odgers Berndtson, an independent external
recruitment consultant that has no other connections or
conflicts with the Company.
The Committee has put in place the necessary
procedures to conduct, on an annual basis, an appraisal of
the Chair of the Board, Directors’ individual self-evaluation
and a performance evaluation of the Board as a whole.
External evaluations are undertaken on a triennial basis
and the last one was completed in 2023 using the services
of Lintstock. In 2024 the Board undertook an internal,
questionnaire-based evaluation of the Board, the
Directors, the Chair, the Audit & Risk Committee and the
Audit & Risk Chair. The detailed findings were then
considered by the Board and the Chair discussed the
responses individually with each Director and the Senior
Independent Director provided appraisal feedback to
the Chair.
In accordance with Principle 23 of the AIC’s Code of
Corporate Governance which recommends that all
directors of investment companies should be subject to
annual re-election by shareholders, all the members of
the Board will retire at the forthcoming Annual General
Meeting and, with the exception of Mrs Mackesy, will offer
themselves for re-election. The Committee has reviewed
each of the proposed reappointments and concluded
that each of the Directors has the requisite high level and
range of business and financial experience and
recommends their re-election at the forthcoming AGM.
Details of the contributions provided by each Director
during the year are disclosed on pages 56 to 58.
Remuneration Committee
The level of fees payable to Directors is considered by the
Remuneration Committee which comprises the entire
Board excluding the Chair who attends by invitation and
which is chaired by Mr Melhuish.
The Company’s remuneration policy is to set
remuneration at a level to attract individuals of a calibre
appropriate to the Company’s future development.
Further information on remuneration is disclosed in the
Directors’ Remuneration Report on pages 67 to 70.
Going Concern
The Directors have undertaken a robust review of the
Company’s viability including scenario and sensitivity
analysis (refer to statement on page 43) and ability to
continue as a going concern and consider that there are
no material uncertainties. The Company’s assets consist
of a diverse portfolio of listed equity shares and bonds. The
equities and a majority of the bond portfolio are, in most
circumstances, realisable within a very short timescale
and the Company itself has a strong balance sheet with
considerable levels of distributable reserves.
The Directors are mindful of the principal risks and
uncertainties disclosed on pages 40 to 42 and have
reviewed forecasts detailing revenue and liabilities.
Notwithstanding the continuing uncertain economic
environment, the Directors believe that the Company has
adequate financial resources to continue its operational
existence for 12 months from the date of this Annual
Report. Accordingly, the Directors continue to adopt
the going concern basis in preparing these
financial statements.
Accountability and Audit
Each Director confirms that, so far as he or she is aware,
there is no relevant audit information of which the
Company’s auditor is unaware, and he or she has taken all
the steps that they ought 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.
Independent Auditor
BDO LLP was appointed independent auditor to the
Company with effect from the AGM on 27 April 2020. BDO
LLP has expressed its willingness to continue to be the
Company’s independent auditor and a Resolution to re-
appoint BDO LLP as the Company’s auditor will be put to
the forthcoming AGM, along with a separate Resolution to
authorise the Directors to fix the auditor’s remuneration.
64 Murray International Trust PLC
Internal Controls and Risk Management
Details of the financial risk management policies and
objectives relative to the use of financial instruments by
the Company including information on exposure to price
risk, credit risk, liquidity risk and cash flow risk are set out in
note 18 to the financial statements. The Board of Directors
is ultimately responsible for the Company’s system of
internal control and for reviewing its effectiveness.
Following the Financial Reporting Council’s publication of
“Guidance on Risk Management, Internal Controls and
Related Financial and Business Reporting” (the “FRC
Guidance”), the Directors confirm that there is an ongoing
process for identifying, evaluating and managing the
significant risks faced by the Company. This process has
been in place for the full year under review and up to the
date of approval of the financial statements, and this
process is regularly reviewed by the Board and accords
with the relevant sections of the FRC Guidance.
The Board has reviewed the effectiveness of the system of
internal control and, in particular, it has reviewed the
process for identifying and evaluating the significant risks
faced by the Company and the policies and procedures
by which these risks are managed.
The Directors have delegated the investment
management of the Company’s assets to aFML 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 aFML’s internal audit function which
undertakes periodic examination of business processes,
including compliance with the terms of the management
agreement, and ensures that recommendations to
improve controls are implemented.
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 Guidance and includes financial, regulatory, market,
operational and reputational risk. This helps the Manager’s
internal audit risk assessment model to identify those
functions for review. Any relevant weaknesses identified
through internal audit’s review are reported to the Board
and timetables are agreed for implementing
improvements to systems, processes and controls. The
implementation of any remedial action required is
monitored and feedback provided to the Board.
The key components designed to provide effective
internal control for the year under review and up to the
date of this Report are outlined below:
· the Manager prepares forecasts and management
accounts which allow the Board to assess the Company’s
activities and review its investment performance;
· the Board and Manager have agreed clearly defined
investment criteria;
· there are specified levels of authority and exposure
limits. Reports on these issues, including performance
statistics and investment valuations, are regularly
submitted to the Board. The Manager’s investment
process and financial analysis of the companies
concerned include detailed appraisal and due diligence;
· as a matter of course the internal audit and compliance
departments of aFML continually review 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 monitoring reports are
received from these providers when required;
· the Board has considered the need for an internal audit
function but, because of the compliance and internal
control systems in place at the Manager, has decided to
place reliance on the Manager’s systems and internal
audit procedures; and
· twice a year, at its Board meetings, the Board carries out
an assessment of the effectiveness of internal controls
and risk management by considering documentation
from the Manager, including its internal audit and
compliance functions and taking account of events
since the relevant period end.
In addition the Manager operates a ‘three lines of defence’
model over its activities with the aberdeen business units
responsible for adhering to applicable rules and
regulations; the compliance team is then responsible for
checking that the rules are being followed and then
internal audit is responsible for independently reviewing
these arrangements.
The Manager ensures that clearly documented contractual
arrangements exist in respect of any activities that have
been delegated to external professional organisations. The
Board meets annually with representatives from BNY Mellon
and reviews a control report covering the activities of the
depositary and custodian.
Representatives from the Internal Audit Department of the
Manager report six monthly to the Audit and Risk
Committee of the Company and have direct access to
the Directors at any time.
Directors’ Report
Continued
Murray International Trust PLC 65
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
The Board has reviewed the effectiveness of the
Manager’s system of internal control including its annual
internal controls report prepared in accordance with the
International Auditing and Assurance Standards Board’s
International Standard on Assurances Engagements
(“ISAE”) 3402, “Assurance Reports on Controls at a Service
Organisation” for the period to 30 September 2024
together with bridging letter support to 31 December
2024. The Board has also reviewed the Manager’s process
for identifying and evaluating the significant risks faced by
the Company and the policies and procedures by which
these risks are managed. The 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 provide reasonable but not
absolute assurance against material misstatement or loss.
The Board is cognisant of the new provisions on assessing
the effectiveness of internal controls under the FRC’s 2024
Corporate Governance code which will be applicable for
financial periods commencing on or after 1 January 2026
and expects to be able to be in compliance from
the outset.
Future Developments
A detailed outlook for the Company including any likely
future developments is provided in the Chair’s Statement
on page 10.
There have been no post balance sheet events to report.
Substantial Interests
The Board is aware of the following shareholders that
owned 3% or more of the issued Ordinary share capital of
the Company at 31 December 2024:
Shareholder
No. of Ordinary
shares held % held
Interactive Investor
A
97,748,737 16.2
Hargreaves Lansdown
A
74,716,462 12.4
Rathbones
51,355,500 8.5
Charles Stanley
33,723,205 5.6
Evelyn Partners
32,836,008 5.4
AJ Bell
25,178,145 4.2
A
Non-beneficial interests
There have been no significant changes notified in respect
of the above holdings between 31 December 2024 and
5 March 2025.
The UK Stewardship Code and Proxy Voting
Responsibility for actively monitoring the activities of
portfolio companies has been delegated by the Board to
the AIFM which has sub-delegated that authority to
the Manager.
The Manager is a tier 1 signatory of the UK Stewardship
Code 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.
Business of the Annual General Meeting
Issue of Shares
In terms of the Companies Act 2006 (the “Act”), the
Directors may not allot shares unless so authorised by the
shareholders. Resolution 11 in the Notice of Annual
General Meeting which will be proposed as an Ordinary
Resolution will, if passed, give the Directors the necessary
authority to allot shares up to an aggregate nominal
amount of £2,975,607 (equivalent to 59,512,147 Ordinary
shares of 5p or 10% of the Company’s existing issued
share capital at 5 March 2025, the latest practicable date
prior to the publication of this Annual Report). Such
authority will expire on the date of the 2026 Annual
General Meeting or on 30 June 2026, whichever is earlier.
This means that the authority will have to be renewed at
the next Annual General Meeting.
When shares are to be allotted for cash, Section 561 of the
Act provides that existing shareholders have pre-emption
rights and that the new shares 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 otherwise than by a
pro rata issue to existing shareholders. Special Resolution
12 will, if passed, also give the Directors power to allot for
cash equity securities up to an aggregate nominal amount
of £2,975,607 (equivalent to 59,512,147 Ordinary shares of
5p or 10% of the Company’s existing issued share capital
at 5 March 2025, the latest practicable date prior to the
publication of this Annual Report), as if Section 561 of the
Act does not apply. This is the same nominal amount of
share capital which the Directors are seeking the authority
to allot pursuant to Resolution 11. This authority will also
expire on the date of the 2026 Annual General Meeting or
on 30 June 2026, whichever is earlier. This authority will not
be used in connection with a rights issue by the Company.
66 Murray International Trust PLC
The Directors intend to use the authority given by
Resolutions 11 and 12 to allot shares and disapply pre-
emption rights only in circumstances where this will be
clearly beneficial to shareholders as a whole. Accordingly,
issues will only be made where shares can be issued at a
premium of 0.5% or more to NAV and there will never be
any dilution for existing shareholders. The issue proceeds
will 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.
Resolution 12 will also disapply pre-emption rights on the
sale of Treasury shares as envisaged above. Once again,
the pre-emption rights would only be disapplied where the
Treasury shares are sold at a premium to NAV of not less
than 0.5%.
Share Buybacks
At the Annual General Meeting held on 19 April 2024,
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 last Annual General Meeting. The
principal aim of a share buyback facility is to enhance
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 Annual General Meeting.
Under the Listing Rules, the maximum price that may be
paid on the exercise of this authority must not be more
than the higher of (i) an amount equal to 105% of the
average of the middle market quotations for a share
taken from 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
last independent trade and the current highest
independent bid on the trading venue where the purchase
is carried out. The minimum price which may be paid is the
nominal value of the share. It is currently proposed that
any purchase of shares by the Company will be made
from the capital reserve of the Company. The purchase
price will normally be paid out of the cash balances held
by the Company from time to time.
Special Resolution 13 will permit the Company to buy back
shares and any shares bought back by the Company may
be cancelled or held as Treasury shares. The benefit of the
ability to hold Treasury shares is that such shares may be
resold. This should give the Company greater flexibility in
managing its share capital and improve liquidity in its
shares. The Company would only sell on Treasury shares
at a premium to NAV. When shares are held in Treasury,
all voting rights are suspended and no distribution (either
by way of dividend or by way of a winding up) is permitted
in respect of Treasury shares. If the Directors believe that
there is no likelihood of re-selling shares bought back, such
shares would be cancelled. During the year to
31 December 2024 the Directors have successfully used
the share buyback authority to acquire 17,737,113 shares
for Treasury.
Special Resolution 13 in the Notice of Annual General
Meeting will renew the authority to purchase in the market
a maximum of 14.99% of shares in issue at the date of the
Annual General Meeting (amounting to 89,208,708
Ordinary shares of 5p as at 5 March 2025). Such authority
will expire on the date of the 2026 Annual General Meeting
or on 30 June 2026, whichever is earlier. This means in
effect that the authority will have to be renewed at the
next Annual General Meeting or earlier if the authority has
been exhausted.
Recommendation
The Directors consider that the authorities requested
above are in the best interests of the shareholders taken
as a whole and recommend that all shareholders vote in
favour of the resolutions, as the Directors intend to in
respect of their own beneficial holdings of Ordinary shares
amounting in aggregate to 71,837 shares, representing
approximately 0.01% of the Company’s issued share
capital as at 5 March 2025.
By order of the Board of Murray International Trust PLC
abrdn Holdings Limited
Secretary
1 George Street, Edinburgh EH2 2LL
5 March 2025
Directors’ Report
Continued
Murray International Trust PLC 67
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
The Board has prepared this report in accordance with
the regulations governing the disclosure and approval of
Directors’ remuneration.
Remuneration Committee
As recommended by the AIC Code, a Remuneration
Committee has been established with written terms of
reference, copies of which are available upon request
from the Company Secretary and on the Company’s
website. The Remuneration Committee comprises the
whole Board, excluding Ms Holmes, and I, Nicholas
Melhuish, am the Chair.
This Remuneration Report comprises three parts:
· Remuneration Policy, which is subject to a binding
shareholder vote every three years (or sooner if varied
during this interval) – most recently approved at the 21
April 2023 AGM and next due for approval at the AGM in
2026;
· Implementation Report, which provides information on
how the Remuneration Policy has been applied during
the year and which is subject to an advisory vote on the
level of remuneration paid during the year; and
· Annual Statement confirming compliance with
regulations.
The law requires the Company’s auditor to audit certain of
the disclosures provided. Where disclosures have been
audited, they are indicated as such. The auditor’s opinion is
included in the report on page 75.
Remuneration Policy
This part of the Remuneration Report provides details of
the Company’s Remuneration Policy for Directors of the
Company. This policy takes into consideration the
principles of UK Corporate Governance and the AIC’s
recommendations regarding the application of those
principles to investment companies. The Company
currently has six independent non-executive Directors.
There have been no changes to the policy during the
period of this Report nor are there any proposals for
change in the foreseeable future. No shareholder views
were sought in setting the remuneration policy although
any comments received from shareholders are
considered.
The Directors are non-executive and their fees are set
within the limits of the Company’s Articles of Association.
The Board’s policy on Directors’ fees is that the
remuneration of non-executive Directors should reflect
the nature of their duties, responsibilities and the value of
their time spent and be fair and comparable to that of
other investment trusts that are similar in size, have a
similar capital structure and have a similar investment
objective. Fees are reviewed annually and, if considered
appropriate, increased accordingly.
Articles Limit on Directors’ Fees
The Company’s Articles of Association limit the aggregate
fees payable to the Board of Directors per annum to
£300,000. The level of cap may be increased by
shareholder resolution from time to time and was last
increased in 2021.
Terms of Appointment
· The Company intends only to appoint non-executive
Directors;
· All the Directors are non-executive and appointed under
the terms of Letters of Appointment;
· Directors must retire and be subject to election at the
first AGM after their appointment and annual re-
election thereafter in line with the Articles of Association;
· It is the policy of the Board that the Chair of the
Company will normally retire once he or she has served
as a Director for nine years (further details on page 63);
· New appointments to the Board will be placed on the
fee applicable to all Directors at the time of appointment
(£33,000 for the year ending 31 December 2025);
· No incentive or introductory fees will be paid to
encourage a Directorship;
· The Directors are not eligible for bonuses, pension
benefits, share options, long-term incentive schemes or
other benefits; and
· Directors are entitled to re-imbursement of out-of-
pocket expenses incurred in connection with the
performance of their duties, including travel expenses.
Performance, Service Contracts, Compensation and
Loss of Office
· The Directors’ remuneration is not subject to any
performance related fee;
· No Director has a service contract;
· No Director was interested in contracts with the
Company during the period or subsequently;
· The terms of appointment provide that a Director may
be removed without notice;
· Compensation will not be due upon leaving office; and
· No Director is entitled to any other monetary payment
or any assets of the Company.
Directors’ Remuneration Report
68 Murray International Trust PLC
Directors’ & Officers’ liability insurance cover is maintained
by the Company on behalf of the Directors. The
Company’s Articles of Association provide an indemnity to
the Directors out of the assets of the Company against
any liability incurred in defending proceedings or in
connection with any application to the Court in which
relief is granted.
The Remuneration Policy is reviewed by the Remuneration
Committee on an annual basis and the Remuneration
Policy applies for the three year period ending 31
December 2025.
Implementation Report
Directors’ Fees
The Directors’ fee rates applicable for the year ended 31
December 2024 were as follows:
Shareholder
31 December
2024
£
31 December
2023
£
Chair
53,500 50,000
Chair of Audit and Risk Committee
38,500 36,000
Senior Independent Director
33,500 32,000
Director
31,500 30,000
The Remuneration Committee carried out a review of the
level of Directors’ fees during the year encompassing a
review of fees payable to directors of peer group
companies as well as the wider sector. The Committee
concluded that, in light of the size of the Company, the
impact of inflation and the continuing demands placed
upon directors of listed companies and investment trusts,
it would be appropriate to increase the level of fees
payable in 2025. In 2023 the Committee introduced a
basic fee level for Directors coupled with a multiplier
whereby, in the absence of unforeseen circumstances,
the Chair is paid 1.7x the basic Director fee and the Audit
and Risk Chair will be paid 1.3x the basic Director fee. The
Committee therefore focuses on setting the Directors’
basic remuneration taking account of available
comparative data for Investment Trust Companies of a
similar size and complexity and then applies the
appropriate multipliers. With effect from 1 January 2025,
the annual fees payable will be: Chair £56,000, Audit and
Risk Committee Chair £41,500, Directors £33,000 with an
extra £2,000 payable to the Senior Independent Director.
There are no further fees to disclose as the Company has
no employees, Chief Executive or Executive Directors and,
other than for the Audit and Risk Committee, no extra fees
are payable to Committee Chairs. The Directors’ fees
were last increased in December 2023, with effect from
1 January 2024.
Company Performance
During the year, the Board also carried out a review of
investment performance. The following graph compares
the share price total return (assuming all dividends are
reinvested) to Ordinary shareholders, assuming a notional
investment of £100 into the Company on 31 December
2014, compared with the total shareholder total return on
the Company’s Reference Index (the FTSE All World TR
Index). Please note that past performance is not a guide
to future performance.
£80
£100
£120
£140
£160
£180
£200
£220
£240
£260
£280
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Share Price Reference Index
Statement of Voting at Annual General Meeting
At the Company’s last AGM held on 19 April 2024,
shareholders approved the Directors’ Remuneration
Report (other than the Directors’ Remuneration Policy) in
respect of the year ended 31 December 2024. On 21 April
2023 the Directors’ Remuneration policy covering the
three years ending 31 December 2025 was approved. The
following proxy votes (2023 voting restated to reflect the
share subdivision) were received on the resolutions:
Resolution
For*
%
Against
%
Withheld
%
(2) Receive and Adopt
Directors’ Remuneration
Report (19 April 2024)
199.8m
(99.6%)
0.89m
(0.4%)
0.64m
(3) Approve Directors’
Remuneration Policy (21 April
2023)
233.0m
(99.4%)
1.4m
(0.6%)
0.9m
* Including discretionary votes
Directors’ Remuneration Report
Continued
Murray International Trust PLC 69
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Spend on Pay
As the Company has no employees, the Directors do not
consider that it is relevant to present a table comparing
remuneration paid to employees with distributions to
shareholders. However, for ease of reference, the total
fees paid to Directors is shown in the table below, the
dividends paid to shareholders are set out in note 8 and
the shares bought back for Treasury are disclosed in
note 14.
Fees Payable (Audited)
The Directors who served in the year received the
following fees which exclude employers’ National
Insurance:
Director
2024
£
2023
£
V. Holmes
A
53,500 30,000
C. Binyon
38,500 36,000
W. Colquhoun
B
31,500 10,000
G. Eckersley
C
31,500 20,000
A. Mackesy
33,500 32,000
N. Melhuish
31,500 30,000
D. Hardie
D
n/a 50,000
Total
220,000 208,000
A
Ms Holmes was appointed Chair on 31 December 2023
B
Ms Colquhoun joined the Board on 1 September 2023
C
Mr Eckersley joined the Board on 1 May 2023
D
Mr Hardie retired from the Board on 31 December 2023
Annual Percentage Change in Directors’ Remuneration
The table below sets out the annual percentage change in
Directors’ fees over the last five years ending 31
December.
Director
2024
%
2023
%
2022
%
2021
%
2020 %
V. Holmes
A
78.3 104.1 n/a n/a n/a
C. Binyon
B
6.9 5.9 5.9 14.7 7.7
W. Colquhoun
C
215.0 n/a n/a n/a n/a
G. Eckersley
D
57.5 n/a n/a n/a n/a
A. Mackesy
4.7 0 8.2 5.6 7.7
N. Melhuish
E
5.0 7.1 50.0 n/a n/a
A
Ms Holmes joined the Board on 22 June 2022 and was appointed Chair on 31
December 2023
B
Ms Binyon was appointed Audit and Risk Committee Chair in April 2021
C
Ms Colquhoun joined the Board on 1 September 2023
D
Mr Eckersley joined the Board on 1 May 2023
E
Mr Melhuish joined the Board on 1 May 2021
Fees are pro-rated where a change takes place during a
financial year. There were no payments to third parties
from the fees referred to in the table above.
Directors’ Interests in the Company (Audited)
The Directors are not required to have a shareholding in
the Company. The Directors (including connected
persons) at 31 December 2024 and 31 December 2023
had no interest in the share capital of the Company other
than those interests, all of which are beneficial interests,
shown in the following table.
70 Murray International Trust PLC
31 December
2024
Ordinary 5p
31 December
2023
Ordinary 5p
V Holmes
10,000 10,000
C Binyon
6,713 6,541
W Colquhoun
6,039 6,039
G Eckersley
15,000 10,000
A Mackesy
16,575 16,575
N Melhuish
17,510 17,510
D Hardie
A
n/a 80,865
A
Mr Hardie retired from the Board on 31 December 2023
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, Nicholas Melhuish, Chair of the
Remuneration Committee, confirm that the report on
Remuneration Policy and the Remuneration
Implementation Report summarises, as applicable, for the
year to 31 December 2024:
· 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
decisions have been taken.
The Directors’ Remuneration Report was approved by the
Board of Directors on 5 March 2025 and signed on its
behalf by:
Nicholas Melhuish
Remuneration Committee Chair
5 March 2025
Directors’ Remuneration Report
Continued
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Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
The Audit and Risk Committee has prepared this report in
compliance with the September 2014 Competition and
Markets Authority Order.
Audit and Risk Committee
As recommended by the AIC Code, an Audit and Risk
Committee has been established with written terms of
reference, copies of which are available upon request
from the Company Secretary and on the Company’s
website. The Audit and Risk Committee comprises the
whole Board (excluding Ms Holmes) and I, Claire Binyon,
am the Chair. Ms Holmes is not a member of the
Committee, but, as Chair of the Company, she has a
standing invitation to attend meetings and typically
attends each Audit and Risk Committee as an observer.
The members of the Audit and Risk Committee are each
independent and free from any relationship that would
interfere with our impartial judgement in carrying out our
responsibilities. We have satisfied ourselves that at least
one of the Committee’s members has recent and relevant
financial experience. We met three times during the year.
The terms of reference of the Audit and Risk Committee
are reviewed and re-assessed for their adequacy on an
annual basis. In accordance with those terms of
reference:
· we review and monitor the internal control systems and
risk management systems including review of non
financial risks and the Manager’s policy on information
security (cyber risk) on which the Company is reliant.
The Directors’ statement on the Company’s internal
controls and risk management is set out in the Directors’
Report;
· we consider whether there is a need for the Company
to have its own internal audit function (refer to Directors’
Report);
· we 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;
· we 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, interim reports, announcements
and related formal statements;
· we review the content of the Annual Report and
financial statements and make recommendations to
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;
· we meet with the auditor to review the proposed audit
programme of work and the findings of the auditor. The
Directors also use this as an opportunity to assess the
effectiveness of the audit process;
· we also have the opportunity to meet in private with the
auditor, without any representatives of the Manager
being present, and the opportunity to meet in private
with a representative from the Manager’s internal audit
department;
· we develop and implement the policy on the
engagement of the auditor to supply non-audit services.
There were no non-audit fees (2023: £4,000) paid to the
auditor during the year under review. In 2023 the auditor
was retained to carry out assurance work on the Half
Yearly Report which was not considered necessary in
2024;
· we review a statement from the Manager detailing the
arrangements in place within the aberdeen Group
whereby staff may, in confidence, escalate concerns
about possible improprieties in matters of financial
reporting or other matters;
· we make recommendations in relation to the
appointment of the auditor and to approve the
remuneration and terms of engagement of the auditor;
and
· we monitor and review the auditor’s independence,
objectivity, effectiveness, resources and qualification.
Details of attendance at the Audit and Risk Committee
meetings are shown in the Directors’ Report.
The Board has received a report from BDO, its auditor,
which notes that BDO has policies and procedures in
place that instil professional values as part of its firm’s
culture and ensure that the highest standards of
objectivity and independence and integrity are
maintained.
The Company’s policy on non-audit services is to ensure
that best value for the Company is achieved whilst
ensuring compliance with regulations that are in place to
maintain the independence of the auditor.
Report of Audit and Risk Committee
72 Murray International Trust PLC
The extent of non-audit services that can be provided by
BDO is very limited and as noted above, no non-audit
services were performed by the auditor in 2024. The Audit
and Risk Committee confirms its belief that BDO is
independent in accordance with applicable ethical
standards. Since its appointment, BDO has not provided
any significant non-audit services to the Company. PwC
and Deloitte provide ongoing local tax compliance
services to the Company.
Significant Matters
During our review of the Company’s financial statements
for the year ended 31 December 2024, we considered the
following significant matters:
Valuation and Ownership of Investments
Mitigation – The Board reviews monthly management
accounts that include a full breakdown of the portfolio
valuation. The valuation of investments is undertaken in
accordance with the accounting policies, disclosed in
notes 2 (e) and 10 to the financial statements on pages 91
and 97. All investments are quoted and can be verified
against daily market prices. 93.8% (2023: 93.6%) of
investments are considered to be liquid and are therefore
categorised as Level 1 in accordance with the FRS 102 fair
value hierarchy. 6.2% (2023: 6.4%) of investments are
considered to be subject to some risk of illiquidity and are
therefore categorised as Level 2 within the FRS 102 fair
value hierarchy. 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. BNY Mellon has
been appointed as custodian and depositary to safeguard
the assets of the Company. The depositary checks the
consistency and accuracy of its records on a monthly
basis and reports its findings to aFML. Separately, the
investment portfolio is reconciled regularly by
the Manager.
Revenue Recognition
Mitigation - The recognition of investment income is
undertaken in accordance with accounting policy 2(b)
and note 3 to the financial statements on pages 90 and 93.
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 Manager
provides monthly internal control reports to the Board
which are reviewed together with monthly revenue
forecasts and dividend schedules.
FRC Review of 2023 Annual Report
The Company’s Annual Report and Financial Statements
for the year ended 31 December 2023 was selected for
review by the Conduct Committee of the Financial
Reporting Council (FRC) as part of a routine sample of
published Annual Reports. The review work of the FRC was
based solely upon the content of the published Annual
Report and did not benefit from any detailed knowledge
of the Company’s business. I am pleased to report that,
based upon the review undertaken by the FRC, there were
no questions or queries that the FRC wished to raise in
relation to the 2023 Annual Report.
The FRC’s review provides no assurance that the 2023
Annual Report and Financial Statements are correct in all
material respects. The FRC’s role is not to verify the
information provided but to consider compliance with
reporting requirements. The FRC letters are written on the
basis that the FRC (which includes the FRC’s officers,
employees and agents) accepts no liability for reliance on
them by the Company or any third party, including but not
limited to investors and shareholders.
Report of Audit and Risk Committee
Continued
Murray International Trust PLC 73
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Review of Auditor
We have reviewed the work undertaken by BDO, which is
in its fifth year following original appointment at the AGM
on 27 April 2020, and are satisfied with the effectiveness of
the auditor. The areas of focus included:
· independence - the auditor discusses with the Audit and
Risk Committee, at least annually, the steps it takes to
ensure its independence and objectivity 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 and
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 Board, the
Committee and 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 company sector
and retention or rotation of the partner.
In addition, the Committee considered and discussed with
BDO the results of the FRC Audit Quality Review ("AQR")
team's inspection of BDO's audit work. The Committee
shares BDO’s disappointment at its AQR results for 2024.
BDO has presented to the Committee plans for
improvement and the Committee will continue to monitor
the work of the auditor closely.
In accordance with present professional guidelines, Peter
Smith, the Senior Statutory Auditor, will be rotated after no
more than five years and the year ended 31 December
2024 is the fifth and final year for which he will serve as the
Senior Statutory Auditor. The Committee considers BDO,
the Company’s auditor, to be independent of the
Company.
For and on behalf of the Audit and Risk Committee
Claire Binyon
Audit and Risk Committee Chair
5 March 2025
74 Murray International Trust PLC
Directors’ Responsibilities
The Directors are responsible for preparing the Annual
Report and the financial statements in accordance with
United Kingdom Generally Accepted Accounting Practice,
the requirements of the Companies Act 2006 and
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 for 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;
· prepare the financial statements on the going concern
basis unless it is inappropriate to presume that the
company will continue in business; and
· prepare a director’s report, a strategic report and
director’s remuneration report which comply with the
requirements of the Companies Act 2006.
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. In accordance with their responsibilities, the
Directors confirm that, to the best of their knowledge, 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
position, performance, business model and strategy.
Website Publication
The Directors are responsible for ensuring the Annual
Report and the financial statements are made available
on a website. Financial statements are published on
murray-intl.co.uk, the Company’s website, in accordance
with legislation in the United Kingdom governing the
preparation and dissemination of financial statements,
which may vary from legislation in other jurisdictions. The
maintenance and integrity of the Company's website is
the responsibility of the Directors. The Directors'
responsibility also extends to the ongoing integrity of the
financial statements contained therein.
Directors’ Responsibilities Pursuant to DTR4
The Directors confirm to the best of their knowledge:
· The financial statements have been prepared in
accordance with the applicable accounting standards
and give a true and fair view of the assets, liabilities,
financial position and profit of the Company; and
· The Annual Report includes a fair review of the
development and performance of the business and the
financial position of the company, together with a
description of the principal risks and uncertainties that
they face.
For Murray International Trust PLC
Virginia Holmes
Chair
5 March 2025
Statement of Directors’ Responsibilities
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Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Opinion on the financial statements
In our opinion the financial statements:
· give a true and fair view of the state of the Company’s affairs as at 31 December 2024 and of its profit for the year then
ended;
· have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
· have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements of Murray International Trust PLC (the ‘Company’) for the year ended 31
December 2024 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the
Statement of Changes in Equity, the Statement of Cash Flows and notes to the financial statements, including a
summary of significant accounting policies. The financial reporting framework that has been applied in their preparation
is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial
Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting
Practice).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.
Our responsibilities under those standards are further described in the Auditor’s 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. Our audit opinion is consistent with the additional report to the Audit and
Risk Committee.
Independence
Following the recommendation of the Audit and Risk Committee, we were appointed by the Board of Directors on 27
April 2020 to audit the financial statements for the year ended 31 December 2020 and subsequent financial periods. The
period of total uninterrupted engagement including retenders and reappointments is five years, covering the years
ended 31 December 2020 to 31 December 2024. We remain independent of the Company in accordance with the
ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical
Standard as applied to listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance
with these requirements. The non-audit services prohibited by that standard were not provided to the Company.
Conclusions relating to going concern
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. Our evaluation of the Directors’ assessment of the
Company’s ability to continue to adopt the going concern basis of accounting included:
· Evaluating the appropriateness of the Directors’ method of assessing the Company’s ability to continue as a going
concern in light of economic and market conditions by reviewing the information used by the Directors in completing
their assessment;
· Assessing the appropriateness of the Directors’ assumptions and judgements made by comparing the prior year
forecasted costs to the actual costs incurred to check the accuracy of historical forecasting;
· Assessing the projected management fees to check if they were in line with the assets under management levels and
the projected market growth forecasts for the following year;
· Assessing the appropriateness of the Directors’ assumptions and judgements made in both their base case and stress
tested forecasts, including consideration of the available cash resources relative to forecast expenditure,
commitments and loan covenants;
· Challenging the Directors’ assumptions and judgements made in their forecasts including performing an independent
analysis of the liquidity of the investment portfolio; and
· Reviewing the Directors’ stress and reverse stress testing on the investment portfolio for reasonability.
Independent Auditor’s Report to the Members of
Murray International Trust PLC
76 Murray International Trust PLC
Independent Auditor’s Report to the Members of
Murray International Trust PLC
Continued
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 relation to the Company’s reporting on how it has 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.
Overview
Key audit matters
2024 2023
Revenue recognition – Dividend income from investments
Valuation and ownership of investments
Materiality Company financial statements as a whole:
£16.7m (2023:£16.6m) based on 1% (2023: 1%) of net assets
An overview of the scope of our audit
Our audit was scoped by obtaining an understanding of the Company and its environment, including the Company’s
system of internal control, and assessing the risks of material misstatement in the financial statements. We also
addressed the risk of management override of internal controls, including assessing whether there was evidence of bias
by the Directors that may have represented a risk of material misstatement.
Key audit matters
Key Audit Matters are those matters that, in our professional judgement, were of most significance in our 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) that we identified, 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 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.
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Key audit matter
How the scope of our audit addressed
the key audit matter
Revenue
recognition –
Dividend income
from investments
(Note 2(b) and 3 to
the financial
statements)
Revenue is a key indicator of
performance of the Company. A
significant portion of the Company’s
revenue relates to dividend income from
investments.
Judgement may be required by
management in determining the
allocation of dividend income to revenue
or capital for certain corporate actions or
special dividends.
Taking the above into account, there may
be an incentive to recognise dividend
income as revenue where it is more
appropriately of a capital nature.
For this reason, we considered revenue
recognition – dividend income from
investments to be a Key Audit Matter.
We responded to this matter by considering
corporate actions and special dividends identified
and challenged whether these had been
appropriately accounted for as income or capital
by discussing with management and reviewing the
underlying supporting documentation for the issue
of the dividend and whether it could be driven by a
capital event.
We analysed the population of dividend receipts to
identify any unusual items that could indicate a
capital distribution, for example where a dividend
represents a particularly high yield. In these
instances, we performed a combination of enquiry
of management and our own independent
research, including inspection of financial
statements of investee companies, to ascertain
whether the underlying event may be of a capital
nature.
Key observations:
Based on our procedures performed we found the
judgements made by management in
determining the allocation of income to revenue or
capital to be appropriate.
Valuation and
ownership of
investments
(Note 2(e) and 10
to the financial
statements)
The investment portfolio at the year-end
comprised listed equity and fixed income
investments held at fair value through
profit or loss.
We considered the valuation and
ownership of investments to be a
significant audit area as investments
represent the most significant balance in
the financial statements and underpins
the principal activity of the entity.
There is a risk that the bid price used as a
proxy for fair value of investments held at
the reporting date is inappropriate.
There is an element of judgement
regarding whether there is an active
market for securities and therefore the
appropriate classification in the fair value
hierarchy.
Given the significance of investments on
the Statement of Financial Position, it is
We responded to this matter by testing the
valuation and ownership of the whole portfolio of
investments. We performed the following
procedures:
· Confirmed that the year-end bid price was used
by agreeing to externally quoted prices.
· Recalculated the valuation of investments held
at the reporting date by multiplying the units held
per the statement obtained from the custodian
by the valuation per unit;
· Assessed the appropriateness of the
classification in the fair value hierarchy with
reference to trading volume on relevant
exchanges; and
· Assessed whether there were contra indicators,
such as liquidity considerations, to suggest bid
price is not the most appropriate indication of
fair value by considering the realisation period
for individual holdings.
To test for ownership of investments, we obtained
78 Murray International Trust PLC
Independent Auditor’s Report to the Members of
Murray International Trust PLC
Continued
necessary to ensure that the Company
has appropriate title over investments.
For these reasons and given the
materiality of the balance in relation to
the financial statements, we considered
this to be a Key Audit Matter.
direct confirmation of the units held per
investment from the custodian.
Key observations:
Based on our procedures performed, we did not
identify any matters to suggest that the valuation
and ownership of the equity and fixed income
investments were inappropriate.
Our application of materiality
We apply the concept of materiality both in planning and performing our audit, and in evaluating the effect of
misstatements. We consider materiality to be the magnitude by which misstatements, including omissions, could
influence the economic decisions of reasonable users that are taken on the basis of the financial statements.
In order to reduce to an appropriately low level the probability that any misstatements exceed materiality, we use a
lower materiality level, performance materiality, to determine the extent of testing needed. Importantly, misstatements
below these levels will not necessarily be evaluated as immaterial as we also take account of the nature of identified
misstatements, and the particular circumstances of their occurrence, when evaluating their effect on the financial
statements as a whole.
Based on our professional judgement, we determined materiality for the financial statements as a whole and
performance materiality as follows:
Company financial statements
2024
£m
2023
£m
Materiality 16.7 16.7
Basis for determining materiality 1% of Net Assets 1% of Net Assets
Rationale for the benchmark applied As an investment trust, the net asset value is the key measure of
performance for users of the financial statements.
Performance materiality 12.6 12.5
Basis for determining performance
materiality
75% of materiality
Rationale for the percentage applied for
performance materiality
The level of performance materiality applied was set after having
considered a number of factors including the expected total value of known
and likely misstatements and the level of transactions in the year.
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Specific materiality
We also determined that for Revenue return before taxation, a misstatement of less than materiality for the financial
statements as a whole, specific materiality, could influence the economic decisions of users as it is a measure of the
Company’s performance of income generated from its investments after expenses. As a result, we determined
materiality for these items to be £4.0m (2023: £4.2m), based on 5% of Revenue return before taxation (2023: 5% of
Revenue return before taxation). We further applied a performance materiality level of 75% (2023: 75%) of specific
materiality to ensure that the risk of errors exceeding specific materiality was appropriately mitigated.
Reporting threshold
We agreed with the Audit and Risk Committee that we would report to them all individual audit differences in excess of
£200,000 (2023: £210,000). We also agreed to report differences below this threshold that, in our view, warranted
reporting on qualitative grounds.
Other information
The Directors are responsible for the other information. The other information comprises the information included in the
Annual Report other than the financial statements and our auditor’s report thereon. Our opinion on the financial
statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we
do not express any form of assurance conclusion thereon. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material
inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material
misstatement in the financial statements themselves. 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 in this regard.
Corporate governance statement
The Listing Rules require us to review the Directors’ statement 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.
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, or our knowledge obtained
during the audit.
Going concern and
longer-term viability
· The Directors' statement with regards to the appropriateness of adopting the going
concern basis of accounting and any material uncertainties identified set out on page
63; and
· The Directors’ explanation as to their assessment of the Company’s prospects, the
period this assessment covers and why the period is appropriate set out on page 43.
Other Code provisions · Directors' statement on fair, balanced and understandable set out on page 74;
· Board’s confirmation that it has carried out a robust assessment of the emerging and
principal risks set out on page 40;
· The section of the annual report that describes the review of effectiveness of risk
management and internal control systems set out on page 64 and 65; and
· The section describing the work of the Audit and Risk Committee set out on page 71.
80 Murray International Trust PLC
Independent Auditor’s Report to the Members of
Murray International Trust PLC
Continued
Other Companies Act 2006 reporting
Based on the responsibilities described below and our work performed during the course of the audit, we are required by
the Companies Act 2006 and ISAs (UK) to report on 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 the Directors’ report for the financial
year for which the financial statements are prepared is consistent with the financial
statements; and
· the Strategic report and the Directors’ report have been prepared in accordance with
applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment
obtained in the course of the audit, we have not identified material misstatements in the
strategic report or the 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.
Matters on which we are
required to report by
exception
We have nothing to report in respect of the following matters in relation to which the
Companies Act 2006 requires us to report to you if, in our opinion:
· adequate accounting records have not been kept, or returns adequate for our audit
have not been received from branches not visited by us; 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; or
· certain disclosures of Directors’ remuneration specified by law are not made; or
· we have not received all the information and explanations we require for our audit.
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Responsibilities of Directors
As explained more fully in the Statement of Directors’ Responsibilities, the Directors are responsible for the preparation of
the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the
Directors 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.
Auditor’s 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 auditor’s 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.
Extent to which the audit was capable of detecting irregularities, including fraud
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:
Non-compliance with laws and regulations
Based on:
· Our understanding of the Company and the industry in which it operates;
· Discussion with the Investment Manager, Administrator and Those Charged With Governance; and
· Obtaining and understanding of the Company’s policies and procedures regarding compliance with laws and
regulations
we considered the significant laws and regulations to be Companies Act 2006, the FCA listing and DTR rules, the
principles of the AIC Code of Corporate Governance, industry practice represented by the AIC SORP, Financial
Reporting Standard 102, and the Company’s qualification as an Investment Trust under UK tax legislation as any non-
compliance of this would lead to the Company losing various deductions and exemptions from corporation tax.
Our procedures in respect of the above included:
· Agreement of the financial statement disclosures to underlying supporting documentation;
· Enquiries of the Investment Manager and Those Charged With Governance relating to the existence of any non-
compliance with laws and regulations;
· Review of a selection of legal invoices to look for potential non-compliance with laws and regulations or undisclosed
contingencies and commitments;
· Reviewing minutes of meetings of Those Charged With Governance throughout the period for instances of non-
compliance with laws and regulations; and
· Reviewing the calculation in relation to Investment Trust compliance to check that the Company was meeting its
requirements to retain their Investment Trust Status.
Fraud
We assessed the susceptibility of the financial statements to material misstatement including fraud.
82 Murray International Trust PLC
Independent Auditor’s Report to the Members of
Murray International Trust PLC
Continued
Our risk assessment procedures included:
· Enquiry with the Investment Manager, Administrator and Those Charged With Governance regarding any known or
suspected instances of fraud;
· Review of minutes of meetings of those Charged With Governance for any known or suspected instances of fraud;
· Discussion amongst the engagement team as to how and where fraud might occur in the financial statements; and
· Obtaining an understanding of the control environment in monitoring compliance with laws and regulations.
Based on our risk assessment, we considered the areas most susceptible to be revenue recognition – dividend income
from investments and management override of controls.
Our procedures in respect of the above included:
· In addressing the risk of revenue recognition, the procedures set out in the Key Audit Matter section in our report were
performed;
· In addressing the risk of management override of controls, we:
· Performed a review of estimates and judgements applied by the Investment Manager in the financial
statements to assess their appropriateness and the existence of any systematic bias;
· Considered the opportunity and incentive to manipulate accounting entries and assessed the
reasonableness of relevant adjustments made in the period end financial reporting process;
· Reviewed for significant transactions outside the normal course of business;
· Incorporated an element of unpredictability in the nature, timing, and extent of audit procedures; and
· Performed a review of unadjusted audit differences, if any, for indications of bias or deliberate.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team
members, who were all deemed to have the appropriate competence and capabilities and remained alert to any
indications of fraud or non-compliance with laws and regulations throughout the audit.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team
members, who were deemed to have the appropriate competence and capabilities and remained alert to any
indications of fraud or non-compliance with laws and regulations throughout the audit.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements,
recognising that 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, misrepresentations or
through collusion. There are inherent limitations in the audit procedures performed and the further removed non-
compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less
likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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Use of our report
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s members those
matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted
by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members as
a body, for our audit work, for this report, or for the opinions we have formed.
Peter Smith (Senior Statutory Auditor)
For and on behalf of BDO LLP, Statutory Auditor
London, UK
5 March 2025
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
84 Murray International Trust PLC
Financial
Statements
Murray International Trust PLC 85
For the year to 31 December 2024
the Company’s Revenue Return per
Ordinary share was 11.6p (2023:
12.1p) and the Company proposes to
pay a total dividend amounting to
11.8p (2023: 11.5p)
86 Murray International Trust PLC
Year ended 31 December 2024 Year ended 31 December 2023
Revenue Capital Total Revenue Capital Total
Notes £’000 £’000 £’000 £’000 £’000 £’000
Gains on investments 10 - 63,053 63,053 - 62,838 62,838
Income 3 84,216 301 84,517 88,833 145 88,978
Investment management fees 4 (2,137) (4,985) (7,122) (2,079) (4,850) (6,929)
Currency losses - (1,273) (1,273) - (336) (336)
Administrative expenses 5 (1,738) (59) (1,797) (1,790) - (1,790)
Net return before finance costs and taxation 80,341 57,037 137,378 84,964 57,797 142,761
Finance costs 6 (928) (2,165) (3,093) (1,240) (2,892) (4,132)
Return before taxation 79,413 54,872 134,285 83,724 54,905 138,629
Taxation 7 (8,438) 860 (7,578) (7,829) 1,047 (6,782)
Return attributable to equity shareholders 70,975 55,732 126,707 75,895 55,952 131,847
Return per Ordinary share (pence) 9 11.6 9.1 20.7 12.1 9.0 21.1
The “Total” column of this statement represents the profit and loss account of the Company. There is no other comprehensive income
and therefore the return after taxation is also the total comprehensive income for the year. 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.
The accompanying notes are an integral part of these financial statements.
Statement of Comprehensive Income
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As at As at
31 December 2024 31 December 2023
Notes £’000 £’000
Fixed assets
Investments at fair value through profit or loss 10 1,764,994 1,787,863
Current assets
Prepayments and accrued income 11 7,591 8,069
Other debtors 11 10,577 10,151
Cash at bank and in hand 8,732 5,878
26,900 24,098
Creditors: amounts falling due within one year
Bank loans 12,13 – (29,996)
Other creditors 12 (3,129) (3,198)
(3,129) (33,194)
Net current assets/(liabilities) 23,771 (9,096)
Total assets less current liabilities 1,788,765 1,778,767
Creditors: amounts falling due after more than one year
Loan Notes 12,13 (109,916) (109,905)
Net assets 1,678,849 1,668,862
Capital and reserves
Called-up share capital 14 32,353 32,353
Share premium account 363,461 363,461
Capital redemption reserve 8,230 8,230
Capital reserve 15 1,200,623 1,189,686
Revenue reserve 74,182 75,132
Equity shareholders’ funds 1,678,849 1,668,862
Net asset value per Ordinary share (pence) 16 278.4p 268.8p
The financial statements were approved and authorised for issue by the Board of Directors on 5 March 2025 and were signed on its
behalf by:
Virginia Holmes
Director
Company Number: SC006705
The accompanying notes are an integral part of these financial statements.
Statement of Financial Position
88 Murray International Trust PLC
For the year ended 31 December 2024
Share Capital
Share premium redemption Capital Revenue
capital account reserve reserve reserve Total
Notes £’000 £’000 £’000 £’000 £’000 £’000
Balance at 31 December 2023 32,353 363,461 8,230 1,189,686 75,132 1,668,862
Return after taxation – – – 55,732 70,975 126,707
Dividends paid 8 – – – – (71,925) (71,925)
Buy back of shares to Treasury 14 – – – (44,795) – (44,795)
Balance at 31 December 2024 32,353 363,461 8,230 1,200,623 74,182 1,678,849
For the year ended 31 December 2023
Share Capital
Share premium redemption Capital Revenue
capital account reserve reserve reserve Total
£’000 £’000 £’000 £’000 £’000 £’000
Balance at 31 December 2022 32,353 362,967 8,230 1,143,961 69,239 1,616,750
Return after taxation – – – 55,952 75,895 131,847
Dividends paid 8 – – – – (70,002) (70,002)
Issue of shares from Treasury 14 – 494 – 2,295 – 2,789
Buy back of shares to Treasury 14 – – – (12,522) – (12,522)
Balance at 31 December 2023 32,353 363,461 8,230 1,189,686 75,132 1,668,862
The capital reserve at 31 December 2024 is split between realised gains of £841,238,000 and unrealised gains of £359,385,000 (31
December 2023 – realised gains of £733,148,000 and unrealised gains of £456,538,000).
The Company’s reserves available to be distributed by way of dividends or buybacks which includes the revenue reserve and the
realised element of the capital reserve amount to £915,420,000 (31 December 2023 – £808,280,000).
The accompanying notes are an integral part of these 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
31 December 2024 31 December 2023
Notes £’000 £’000
Net return before finance costs and taxation 137,378 142,761
(Decrease)/increase in accrued expenses (459) 307
Overseas withholding tax (7,881) (7,652)
Decrease/(increase) in accrued income 150 (1,516)
Interest paid (3,161) (4,216)
Gains on investments (63,053) (62,838)
Overseas dividends – capital (301) (145)
Currency losses on foreign currency cash 6 336
(Increase)/decrease in other debtors (40) 55
Corporation tax received – 136
Return of capital included in investment income 301 145
Net cash inflow from operating activities 62,940 67,373
Investing activities
Purchases of investments (227,021) (95,353)
Sales of investments 313,188 155,624
Net cash from investing activities 86,167 60,271
Financing activities
Equity dividends paid 8 (71,925) (70,002)
Ordinary shares issued from Treasury 14 – 2,789
Ordinary shares bought back to Treasury 14 (44,322) (12,348)
Loan repayment (30,000) (60,000)
Net cash used in financing activities (146,247) (139,561)
Increase/(decrease) in cash and cash equivalents 2,860 (11,917)
Analysis of changes in cash and cash equivalents during the year
Opening balance 5,878 18,131
Effect of exchange rate rates on foreign currency cash (6) (336)
Increase/(decrease) in cash as above 2,860 (11,917)
Closing cash and cash equivalents 8,732 5,878
Represented by:
Cash at bank and in hand 8,732 5,878
The accompanying notes are an integral part of these financial statements.
Statement of Cash Flows
90 Murray International Trust PLC
1. Principal activity
The Company is a closed-end investment company, registered in Scotland No SC006705, with its Ordinary shares being listed in
the premium segment market of the London Stock Exchange.
2. Accounting policies
(a) Basis of preparation. The financial statements have been prepared in accordance with Financial Reporting Standard 102
and with the AIC’s Statement of Recommended Practice ‘Financial Statements of Investment Trust Companies and
Venture Capital Trusts’ (“AIC SORP”) 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 Directors have undertaken a robust review of the Company’s viability including scenario and sensitivity analysis (refer
to statement on page 43) and ability to continue as a going concern and consider that there are no material uncertainties.
The Company’s assets consist of a diverse portfolio of listed equity shares and bonds. The equities and a majority of the
bond portfolio are, in most circumstances, realisable within a very short timescale and the Company itself has a strong
balance sheet with considerable levels of distributable reserves.
The Directors are mindful of the principal risks and uncertainties disclosed on pages 41 and 42 and have reviewed
forecasts detailing revenue and liabilities. Notwithstanding the continuing uncertain economic environment, the Directors
believe that the Company has adequate financial resources to continue its operational existence for the foreseeable
future and 12 months from the date of this Annual Report. Accordingly, the Directors continue to adopt the going concern
basis in preparing these financial statements.
Significant accounting judgements, estimates and assumptions. The preparation of financial statements requires the use of
certain significant accounting judgements, estimates and assumptions which requires management to exercise its
judgement in the process of applying the accounting policies and are continually evaluated. The areas requiring most
significant judgement and assumption in the financial statements are: the determination of the fair value hierarchy
classification of quoted preference shares and bonds valued at £110,224,000 (2023 – £113,716,000) which have been
assessed as being Level 2 as they are not considered to trade in active markets ; and also the determination of whether
special dividends received are considered to be revenue or capital in nature on a case by case basis. The Directors do not
consider there to be any significant estimates within the financial statements.
(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 are recognised on their due date. Provision is made for any dividends not expected to
be received. Special dividends are credited to capital or revenue, according to their circumstances.
In some jurisdictions, investment income and capital gains are subject to withholding tax deducted at the source of the
income. The Company presents the withholding tax separately from the gross investment income in the Statement of
Comprehensive Income under taxation.
The fixed returns on debt securities are recognised on a time apportionment basis so as to reflect the effective yield on the
debt securities.
Interest receivable from cash and short-term deposits is accrued to the end of the year.
Notes to the Financial Statements
For the year ended 31 December 2024
Murray International Trust PLC 91
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(c) Expenses. All expenses are accounted for on an accruals basis and are charged to the Statement of Comprehensive
Income. Expenses are charged against revenue except as follows:
– transaction costs on the acquisition or disposal of investments are charged against capital in the Statement of
Comprehensive Income; and
– expenses are treated as a capital item in the Statement of Comprehensive Income and ultimately recognised in the
capital reserve 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 the capital
reserve to reflect the Company’s investment policy and prospective income and capital growth.
(d) Taxation. The tax expense 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 return 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.
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) Investments. As permitted under FRS 102, the Company has chosen to apply the recognition and measurement provisions
of IAS 39 Financial Instruments: Recognition and Measurement and 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 at fair value. For listed
investments, the valuation of investments at the year end is deemed to be bid market prices or closing prices on
recognised stock exchanges.
Gains and losses arising from changes in fair value are treated in net profit or loss 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 may include demand deposits. Cash equivalents may include
short-term, highly liquid investments, that are readily convertible to known amounts of cash and that are subject to an
insignificant risk of change in value.
92 Murray International Trust PLC
(g) Short-term debtors and creditors. Both short-term debtors and creditors are measured at amortised cost and not subject
to interest charges.
(h) Borrowings. Borrowings, which comprise interest bearing bank loans and unsecured 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. The finance costs of such borrowings are accounted for on an accruals basis using the effective
interest rate method and are charged 30% to revenue and 70% to capital in the Statement of Comprehensive Income to
reflect the Company’s investment policy and prospective income and capital growth.
(i) Nature and purpose of reserves
Called-up share capital. The Ordinary share capital on the Statement of Financial Position relates to the number of shares in
issue. This reserve is not distributable.
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 5p and the proceeds of sales of shares held in
Treasury in excess of the weighted average purchase price paid by the Company to repurchase the shares. This reserve is
not distributable.
Capital redemption reserve. The capital redemption reserve arose when Ordinary shares were cancelled, at which point an
amount equal to the par value of the Ordinary share capital was transferred from the share capital account to the capital
redemption reserve. This reserve is not distributable.
Capital reserve. This reserve reflects any gains or losses on investments realised in the period along with any movement 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 (c) and (h) above. This reserve is distributable for the purpose of funding share
buybacks and paying dividends to the extent that gains are deemed realised.
When the Company purchases its Ordinary shares to be held in Treasury, the amount of the consideration paid, which
includes directly attributable costs, is recognised as a deduction from the capital reserve.
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 represents the amount of the Company’s reserves distributable by way of
dividend.
(j) Foreign currency. Assets and liabilities in foreign currencies are translated at the rates of exchange ruling on the Statement
of Financial Position date. Transactions involving foreign currencies are converted at the rate ruling on the date of the
transaction. Gains and losses on dividends receivable are recognised in the Statement of Comprehensive Income and are
reflected in the revenue reserve. Gains and losses on the realisation of foreign currencies are recognised in the Statement
of Comprehensive Income and are then transferred to the capital reserve.
(k) 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.
(l) Dividends payable. Dividends payable to equity shareholders are recognised in the financial statements when they have
been approved by shareholders and become a liability of the Company. Interim dividends are recognised in the financial
statements in the period in which they are paid.
Notes to the Financial Statements
Continued
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3. Income
2024 2023
£’000 £’000
Income from investments (all listed)
UK dividend income 8,111 9,082
Overseas dividends 66,625 70,457
Overseas dividends – capital 301 145
Overseas interest 8,260 8,856
83,297 88,540
Other income
Deposit interest 92 203
Stock lending income 638 227
Interest on tax reclaim 1 8
Other income
A
489 –
Total income 84,517 88,978
A
Comprises a compensation payment received from abrdn of £489,000 (2023 – £nil) in respect of Swiss withholding tax reclaims, which fell outside the time period
allowed for submission.
4. Investment management fees
2024 2023
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Investment management fees 2,137 4,985 7,122 2,079 4,850 6,929
The Company has an agreement with abrdn Fund Managers Limited (“aFML”) for the provision of investment management,
secretarial, accounting and administration and promotional activity services.
The management fee is charged on net assets (i.e. excluding borrowings for investment purposes) averaged over the six
previous quarters at a rate of 0.5% per annum up to £500 million and 0.4% per annum thereafter. A fee of 1.5% per annum is
chargeable on the value of any unlisted investments. The investment management fee is chargeable 30% against revenue and
70% against realised capital reserves. During the year £7,122,000 (2023 – £6,929,000) of investment management fees was
payable to the Manager, with a balance of £1,796,000 (2023 – £1,740,000) being due at the year end.
No fees are charged in the case of investments managed or advised by the aberdeen Group. The management agreement
may be terminated by either party on the expiry of six months’ written notice. On termination the Manager is entitled to receive
fees which would otherwise have been due up to that date.
94 Murray International Trust PLC
5. Administrative expenses
2024 2023
£’000 £’000
Promotional activities
A
400 400
Registrars’ fees 50 202
Directors’ remuneration 220 208
Bank charges and custody fees 523 451
Depositary fees 156 155
Stock exchange fees 143 123
Printing and postage 4 61
Auditor’s fees for:
- Statutory Audit 49 48
- Other assurance services - 4
Other expenses - capital 59 -
Other expenses 193 138
1,797 1,790
A
In 2024 £400,000 (2023 - £400,000) was payable to aFML to cover promotional activities during the year. At the year end £100,000 (2023 - £200,000) was due to aFML.
6. Finance costs
2024 2023
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Bank loans and overdraft interest 79 185 264 391 912 1,303
Loan Notes 849 1,980 2,829 849 1,980 2,829
928 2,165 3,093 1,240 2,892 4,132
Notes to the Financial Statements
Continued
Murray International Trust PLC 95
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7. Taxation
2024 2023
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
(a) Total tax charge
Analysis for the year
Marginal tax relief 922 (922) - 956 (956) -
Overseas tax suffered 9,584 62 9,646 9,959 (91) 9,868
Overseas tax reclaimable (2,068) - (2,068) (3,086) - (3,086)
Total tax charge for the year 8,438 (860) 7,578 7,829 (1,047) 6,782
(b) Factors affecting the tax charge for the year. The UK corporation tax rate is 25% (2023 - effective rate of 23.5%). The tax
assessed for the year is lower than the corporation tax rate. The differences are explained below:
2024 2023
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Return before taxation
79,413 54,872 134,285
83,724 54,905 138,629
Return multiplied by the standard rate of
corporation tax of 25% (2023 - effective rate of
23.5%)
19,853 13,718 33,571
19,675 12,903 32,578
Effects of:
Non taxable UK dividend income
(2,028) (75) (2,103)
(2,134) (34) (2,168)
Gains on investments not taxable
- (15,763) (15,763)
- (14,767) (14,767)
Currency losses not taxable
- 318 318
- 79 79
Non taxable overseas dividends
(16,090) - (16,090)
(15,542) - (15,542)
Overseas tax suffered
9,584 62 9,646
9,959 (91) 9,868
Overseas tax reclaimable
(2,068) - (2,068)
(3,086) - (3,086)
Tax effect of expensed double taxation relief
(204) - (204)
(245) - (245)
Marginal tax relief
922 (922) -
956 (956) -
Expenses not deductible for tax purposes
(1,531) 1,802 271
(1,754) 1,819 65
Total tax charge for the year
8,438 (860) 7,578
7,829 (1,047) 6,782
The Company has not provided for deferred tax on chargeable gains or losses arising on the revaluation or disposal of
investments as it is exempt from corporation tax on these items because of its status as an investment trust company.
96 Murray International Trust PLC
The Company has not recognised a deferred tax asset (2023 - same). At the year end, the Company has, for taxation
purposes only, accumulated unrelieved management expenses and loan relationship deficits of £1,014,000 (2023 -
£280,000). A deferred tax asset at the standard rate of corporation of 25% (2023 - 25%) of £254,000 (2023 - £70,000) 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 highly unlikely that the Company will generate such profits and therefore no deferred tax asset
has been recognised.
8. Ordinary dividends on equity shares
2024 2023
£’000 £’000
Amounts recognised as distributions paid during the year:
Third interim for 2023 of 2.4p (2022 – 2.4p) 14,898 15,001
Final dividend for 2023 of 4.3p (2022 – 4.0p) 26,400 25,003
First interim for 2024 of 2.5p (2023 – 2.4p) 15,337 15,027
Second interim for 2024 of 2.5p (2023 – 2.4p) 15,288 14,971
Underpayment of dividends in prior year 2 –
71,925 70,002
A third interim dividend was declared on 29 November 2024 with an ex date of 2 January 2025. This dividend of 2.5p was paid on
17 February 2025 and has not been included as a liability in these financial statements. The proposed final dividend for 2024 is
subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial
statements.
Set out below are the total dividends paid and proposed in respect of the financial year, which is the basis on which the
requirements of Sections 1158–1159 of the Corporation Tax Act 2010 are considered. The revenue available for distribution by
way of dividend for the year is £70,975,000 (2023 – £75,895,000).
2024 2023
£’000 £’000
Three interim dividends for 2024 of 2.5p (2023 – 2.4p) 45,706 44,896
Proposed final dividend for 2024 of 4.3p (2023 – 4.3p) 25,590 26,400
71,296 71,296
The amount reflected above for the cost of the proposed final dividend for 2024 is based on 595,121,470 Ordinary shares, being
the number of Ordinary shares in issue excluding those held in Treasury at the date of this Report.
Notes to the Financial Statements
Continued
Murray International Trust PLC 97
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9. Return per Ordinary share
2024 2023
£’000 p £’000 p
Returns are based on the following figures:
Revenue return 70,975 11.6 75,895 12.1
Capital return 55,732 9.1 55,952 9.0
Total return 126,707 20.7 131,847 21.1
Weighted average number of Ordinary shares 613,268,463 624,513,971
10. Investments at fair value through profit or loss
2024 2023
£’000 £’000
Opening book cost 1,331,325 1,363,483
Opening investment holdings gains 456,538 421,337
Opening fair value 1,787,863 1,784,820
Analysis of transactions made during the year
Purchases at cost 227,021 95,353
Sales proceeds received (313,188) (155,451)
Gains on investments 63,053 62,838
Accretion of fixed income book cost
A
245 303
Closing fair value 1,764,994 1,787,863
A
In accordance with the AIC SORP guidance
Closing book cost 1,405,609 1,331,325
Closing investment gains 359,385 456,538
Closing fair value 1,764,994 1,787,863
The Company received £313,188,000 (2023 - £155,451,000) from investments sold in the period. The book cost of these
investments when they were purchased was £152,982,000 (2023 - £127,814,000). 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.
98 Murray International Trust PLC
2024 2023
The portfolio valuation £’000 £’000
Listed on stock exchanges:
United Kingdom:
- equities 94,451 56,605
- preference shares 6,907 6,417
Overseas:
- equities 1,560,319 1,617,542
- fixed income 103,317 107,299
Total 1,764,994 1,787,863
Transaction costs. During the year expenses were incurred in acquiring or disposing of investments classified as 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 408 190
Sales 346 195
754 385
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.
2024 2023
Stock Lending £’000 £’000
Aggregate value of securities on loan at the year end 46,790 40,676
Maximum aggregate value of securities on loan during the year 98,370 105,339
Fee income from stock lending 638 227
Stock lending is the temporary transfer of securities by a lender to a borrower, with an agreement by the borrower to return
equivalent securities to the lender at an agreed date. Fee income is received for making the investments available to the
borrower. The principal risks and rewards of holding the investments, namely the market movements in share prices and
dividend income, are retained by the Company. In all cases the securities lent continue to be recognised on the Statement of
Financial Position.
All stocks lent under these arrangements are fully secured by collateral. The value of the collateral held at 31 December 2024
was £49,245,000 (2023 - £42,840,000).
Notes to the Financial Statements
Continued
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11. Debtors: amounts falling due within one year
2024 2023
£’000 £’000
Overseas withholding tax 10,523 10,131
Prepayments 47 41
Other debtors 54 20
Accrued income 7,544 8,028
18,168 18,220
None of the above amounts is overdue or impaired.
12. Creditors
2024 2023
£’000 £’000
Amounts falling due within one year:
Bank loans (note 13) - 29,996
Amounts due to brokers 647 174
Investment management fees 1,796 1,740
Administrative expenses 395 910
Interest on bank loans and loan notes 291 374
3,129 33,194
2024 2023
£’000 £’000
Amounts falling due after more than one year:
Loan notes (note 13) 109,916 109,905
109,916 109,905
All financial liabilities are measured at amortised cost.
100 Murray International Trust PLC
13. Borrowings
2024 2023
£’000 £’000
Unsecured bank loan repayable within one year:
Fixed rate term loan facilities
– £30,000,000 at 2.25% – 16 May 2024 – 29,996
Unsecured loan notes repayable in more than five years:
– £50,000,000 at 2.24% – 13 May 2031 49,936 49,927
– £60,000,000 at 2.83% – 31 May 2037 59,980 59,978
109,916 139,901
The terms of these loan notes permit early repayment at the borrower’s option which may give rise to additional amounts being
either payable or repayable in respect of fluctuations in interest rates since drawdown. Since the Directors currently have no
intention of repaying the loan notes early, then no such charges are included in the cash flows used to determine their effective
interest rate.
In May 2024, the Company repaid its maturing £30 million 5 year fixed rate loan with The Royal Bank of Scotland International
Limited, London Branch.
At 31 December 2024, the Company had utilised £110 million of its £200 million Shelf Facility. Under the terms of the Loan Note
Agreement, dated May 2021, up to an additional £90 million will also be available for drawdown by the Company for a five year
period. Financial covenants contained within the loan note agreement provide, inter alia, that borrowings shall at no time
exceed 35% of net assets, that the Company must hold 40 investments or more and that the net assets must exceed £650
million. At 31 December 2024 the Company held 63 investments, net assets were £1,678,849,000 and borrowings were 6.6%
thereof. The Company has complied with all financial covenants throughout the year.
Notes to the Financial Statements
Continued
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14. Share capital
2024 2023
Number £’000 Number £’000
Allotted, called up and fully paid Ordinary shares of 5p
Balance brought forward 620,866,332 31,043 625,064,465 31,254
Ordinary shares issued from Treasury in the year – – 1,050,000 52
Ordinary shares bought back to Treasury in the year (17,737,113) (887) (5,248,133) (263)
Balance carried forward 603,129,219 30,156 620,866,332 31,043
Treasury shares:
Balance brought forward 26,193,683 1,310 21,995,550 1,099
Ordinary shares issued from Treasury in the year – – (1,050,000) (52)
Ordinary shares bought back to Treasury in the year 17,737,113 887 5,248,133 263
Balance carried forward 43,930,796 2,197 26,193,683 1,310
At 31 December 2024, shares held in Treasury represented 6.8% (2023 – 4.0%) of the Company’s total issued share capital.
During the year 17,737,113 Ordinary shares were bought back to Treasury representing 2.7% of the Company’s total issued
share capital (2023 – 5,248,133 representing 0.8% of the Company’s total issued share capital) at a total cost of £44,795,000
(2023 – £12,522,000) net of expenses. Subsequent to the year a further 8,007,749 Ordinary shares have been bought back to
Treasury at a cost of £21,378,000. During 2023 1,050,000 Ordinary shares were issued from Treasury representing 0.2% of the
Company’s total issued share capital. All these shares were issued at a premium to net asset value, enhancing net assets per
share for existing shareholders. The issue prices ranged from 265p to 267p.
On a winding up of the Company, any surplus assets available after payment of all debts and satisfaction of all liabilities of the
Company shall be applied in repaying the Ordinary shareholders the amounts paid up on such shares. Any surplus shall be
divided among the holders of Ordinary shares according to the amount paid up on such shares respectively.
Voting rights. In accordance with the Articles of Association of the Company, on a show of hands, every member (or duly
appointed proxy) present at a general meeting of the Company has one vote; and, on a poll, every member present in person or
by proxy shall have one vote for every 5p nominal amount of Ordinary shares held.
102 Murray International Trust PLC
15. Capital reserve
2024 2023
£’000 £’000
At 31 December 2023 1,189,686 1,143,961
Movement in fair value gains 63,053 62,838
Overseas dividends capital 301 145
Capital expenses (including taxation) (6,349) (6,695)
Buy back of shares to Treasury (44,795) (12,522)
Issue of shares from Treasury - 2,295
Currency losses (1,273) (336)
At 31 December 2024 1,200,623 1,189,686
Included in the total above are investment holdings gains at the year end of £359,385,000 (2023 - £456,538,000), which is not
considered distributable.
16. Net asset value per share
The net asset value per share and the net asset value attributable to the Ordinary shares at the year end, calculated in
accordance with the Articles of Association and FRS 102, were as follows:
As at As at
31 December 2024 31 December 2023
Attributable net assets (£’000) 1,678,849 1,668,862
Number of Ordinary shares in issue (excluding Treasury) 603,129,219 620,866,332
Net asset value per share (pence) 278.4 268.8
Notes to the Financial Statements
Continued
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17. Analysis of changes in net debt
At At
31 December Currency Cash Non-cash 31 December
2023 differences flows movements
A
2024
£’000 £’000 £’000 £’000 £’000
Cash at bank and in hand 5,878 (6) 2,860 – 8,732
Debt due within one year (29,996) – 30,000 (4) –
Debt due after more than one year (109,905) – – (11) (109,916)
(134,023) (6) 32,860 (15) (101,184)
At At
31 December Currency Cash Non-cash 31 December
2022 differences flows movements
A
2023
£’000 £’000 £’000 £’000 £’000
Cash at bank and in hand 18,131 (336) (11,917) – 5,878
Debt due within one year (59,989) – 60,000 (30,007) (29,996)
Debt due after more than one year (139,877) – – 29,972 (109,905)
(181,735) (336) 48,083 (35) (134,023)
A
Figures reflect a movement in maturity dates and amortisation of finance costs.
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.
18. Financial instruments and risk management
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 comprise listed equities and debt securities, cash balances,
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 may enter into derivative transactions for the purpose of managing
market risks arising from the Company’s activities in the form of swap contracts, forward foreign currency contracts, futures
and options.
The Board has delegated the risk management function to abrdn Fund Managers Limited (“aFML”) under the terms of its
management agreement with aFML (further details of which are included in the Directors’ Report). The Board regularly reviews
and agrees policies for managing each of the key financial risks identified with the Manager. The types of risk and the Manager’s
approach to the management of each type of risk, are summarised below. Such approach has been applied throughout the
year and has not changed since the previous accounting period. The numerical disclosures exclude short-term debtors
and creditors.
Risk management framework. The directors of aFML collectively assume responsibility for aFML’s obligations under the AIFMD
including reviewing investment performance and monitoring the Company’s risk profile during the year.
104 Murray International Trust PLC
aFML is a fully integrated member of the aberdeen Group (“the Group”), which provides a variety of services and support to
aFML in the conduct of its business activities, including in the oversight of the risk management framework for the Company.
The AIFM has delegated the day to day administration of the investment policy to abrdn Investments 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 AIFM 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 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 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’s Chief Executive
Officer 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 of aberdeen
plc, 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 on the committees’ terms of reference.
Risk management. The main risks the Company faces from its financial instruments are (i) market risk (comprising interest rate
risk, foreign currency risk and price risk), (ii) liquidity risk and (iii) credit risk.
(i) Market risk. The fair value and future cash flows of a financial instrument held by the Company may fluctuate because
of changes in market prices. This market risk comprises three elements – interest rate risk, foreign currency risk and
price risk.
(i)(a) Interest rate risk. Interest rate risk is the risk that interest rate movements will affect:
– the fair value of the investments in fixed interest rate securities; and
– the level of income receivable on cash deposits.
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.
The Board reviews the values of the fixed interest rate securities on a regular basis.
The Board imposes borrowing limits to ensure gearing levels are appropriate to market conditions and reviews these on
a regular basis. Borrowings comprise fixed rate facilities, which are used to finance opportunities at low rates. Current
bank covenant guidelines are detailed in note 13 on page 100.
Notes to the Financial Statements
Continued
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Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Interest rate risk profile. The interest rate risk profile of the portfolio of financial assets and liabilities at the Statement of
Financial Position date was as follows:
Weighted
average
period for Weighted Non–
which average Fixed Floating interest
rate is fixed interest rate rate rate bearing
At 31 December 2024 Years % £’000 £’000 £’000
Assets
Sterling – – 6,907 8,321 155,453
US Dollar 20.98 6.53 28,689 371 566,866
Indian Rupee 1.67 7.79 13,956 40 –
Indonesian Rupiah 5.49 7.49 29,281 – 16,133
Mexican Peso 1.18 5.75 14,653 – 79,406
South African Rand 6.16 7.00 15,035 – –
Turkish Lira 0.19 8.00 1,703 – –
Other – – – – 836,912
Total assets 110,224 8,732 1,654,770
Liabilities
Loan Notes 9.67 2.56 (109,916) – –
Total liabilities (109,916) – –
106 Murray International Trust PLC
Weighted
average
period for Weighted Non–
which average Fixed Floating interest
rate is fixed interest rate rate rate bearing
At 31 December 2023 Years % £’000 £’000 £’000
Assets
Sterling – – 6,417 5,032 129,203
US Dollar 21.95 6.53 27,755 291 549,257
Indian Rupee 2.67 7.79 14,073 91 –
Indonesian Rupiah 6.50 7.50 30,726 – 24,149
Mexican Peso 2.18 5.75 17,084 – 119,438
South African Rand 7.17 7.00 14,369 – –
Turkish Lira 0.87 8.52 3,292 – –
Other – – – 464 852,100
Total assets 113,716 5,878 1,674,147
Liabilities
Bank loans 0.38 2.25 (29,996) – –
Loan Notes 10.67 2.56 (109,905) – –
Total liabilities (139,901) – –
The weighted average interest rate is based on the current yield of each asset, weighted by its market value. The
weighted average interest rate on bank loans and loan notes are based on the interest rate payable, weighted by the
total value of the bank loans and loan notes. The maturity dates of the Company’s loan notes are shown in note 13 to the
financial statements.
The fixed rate assets represents quoted preference shares and bonds.
The floating rate assets consist of cash deposits on call earning interest at prevailing market rates.
The non-interest bearing assets represent the equity element of the portfolio.
Short-term debtors and creditors have been excluded from the above tables as they are not considered to be exposed
to interest rate risk.
Interest rate sensitivity. The sensitivity analyses below have been determined based on the exposure to interest rates for
non-derivative instruments at the Statement of Financial Position date and the stipulated change taking place at the
beginning of the financial year and held constant throughout the reporting period in the case of instruments that have
floating rates.
Notes to the Financial Statements
Continued
Murray International Trust PLC 107
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If interest rates had been 100 basis points higher or lower (based on the current parameter used by the Manager’s
Investment Risk Department on risk assessment) and all other variables were held constant, the Company’s revenue
return for the year ended 31 December 2024 would increase/decrease by £87,000 (2023 - increase/decrease by
£59,000). This is mainly attributable to the Company’s exposure to interest rates on its floating rate cash balances. These
figures have been calculated based on cash positions at each year end.
The capital return would decrease/increase by £3,825,000 (2023 - increase/decrease by £4,014,000) using VaR (“Value
at Risk”) analysis based on 100 observations of weekly VaR computations of fixed interest portfolio positions at each
year end.
(i)(b) Foreign currency risk. A significant proportion of the Company’s investment portfolio is invested overseas 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 investment holdings 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. It is not the Company’s policy to hedge this risk on a continuing basis but the Company may,
from time to time, match specific overseas investment with foreign currency borrowings. The Manager seeks, when
deemed appropriate, to manage exposure to currency movements on borrowings by using forward foreign currency
contracts as a hedge against potential foreign currency movements. At 31 December 2024 the Company did not have
any forward foreign currency contracts (2023 - none).
The revenue account is subject to currency fluctuation arising on overseas income. The Company does not hedge this
currency risk.
108 Murray International Trust PLC
Currency risk exposure. Currency risk exposure (excluding fixed interest securities) by currency of denomination:
31 December 2024 31 December 2023
UK and UK and
overseas Net Total overseas Net Total
equity monetary currency equity monetary currency
investments assets
A
exposure investments assets
A
exposure
£’000 £’000 £’000 £’000 £’000 £’000
US Dollar 566,866 371 567,237 549,257 291 549,548
Euro 291,907 - 291,907 299,585 - 299,585
Taiwan Dollar 129,221 - 129,221 137,498 - 137,498
Singapore Dollar 94,630 - 94,630 72,647 - 72,647
Canadian Dollar 91,834 - 91,834 70,820 - 70,820
Mexican Peso 79,406 - 79,406 119,438 - 119,438
Hong Kong Dollar 74,098 - 74,098 64,571 - 64,571
Swiss Franc 47,454 - 47,454 63,745 - 63,745
Danish Krone 32,776 - 32,776 33,264 - 33,264
Thailand Baht 24,660 - 24,660 21,822 - 21,822
Norwegian Krone 17,174 - 17,174 13,504 - 13,504
Australian Dollar 17,012 - 17,012 23,268 - 23,268
Swedish Krone 16,146 - 16,146 51,376 464 51,840
Indonesian Rupiah 16,133 - 16,133 24,149 - 24,149
Indian Rupee - 40 40 - 91 91
1,499,317 411 1,499,728 1,544,944 846 1,545,790
Sterling 155,453 (101,595) 53,858 129,203 (134,869) (5,666)
Total 1,654,770 (101,184) 1,553,586 1,674,147 (134,023) 1,540,124
A
Reflects cash, short-term deposits and bank borrowings.
The asset allocation between specific markets can vary from time to time based on the Manager’s opinion of the
attractiveness of the individual markets.
Foreign currency sensitivity. The following table details the Company’s sensitivity to a 10% decrease (in the context of a
10% increase the figures below should all be read as negative) in sterling against the major foreign currencies in which
the Company has exposure (based on exposure >5% of total exposure). The sensitivity analysis includes foreign
currency denominated monetary items and adjusts their translation at the year end for a 10% change in foreign
currency rates, being a reasonable range of fluctuations for the period.
Notes to the Financial Statements
Continued
Murray International Trust PLC 109
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
2024 2023
Capital
A
Capital
A
£’000 £’000
US Dollar 56,724 54,955
Euro 29,191 29,959
Taiwan Dollar 12,922 13,750
Singapore Dollar 9,463 -
Canadian Dollar 9,183 -
Mexican Peso 7,941 11,944
Total 125,424 110,608
A
Represents equity exposures to the relevant currencies.
(i)(c) 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. The Company’s stated objective is to achieve an above average dividend
yield, with long-term growth in dividends and capital ahead of inflation by investing principally in global equities.
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 country or sector. The allocation of assets to international
markets and the stock selection process, as detailed on pages 19 to 21, 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. The investments held by the Company are listed on various stock exchanges worldwide.
Price risk sensitivity. If market prices at the Statement of Financial Position date had been 10% higher or lower, which is a
reasonable range of annual price fluctuations, while all other variables remained constant, the return attributable to
Ordinary shareholders for the year ended 31 December 2024 would have increased/decreased by £165,477,000 (2023
– increase/decrease of £167,415,000) and equity would have increased/decreased by the same amount.
(ii) 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 below.
Within Within Within Within Within More than
1 year 1-2 years 2-3 years 3-4 years 4-5 years 5 years Total
At 31 December 2024 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Loan Notes - - - - - 110,000 110,000
Interest cash flows on
Loan Notes
2,818 2,818 2,818 2,818 2,818 14,415 28,505
Cash flows on other
creditors
2,838 - - - - - 2,838
5,656 2,818 2,818 2,818 2,818 124,415 141,343
110 Murray International Trust PLC
Within Within Within Within Within More than
1 year 1-2 years 2-3 years 3-4 years 4-5 years 5 years Total
At 31 December 2023 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Bank loans 30,000 - - - - - 30,000
Loan Notes - - - - - 110,000 110,000
Interest cash flows on
bank loans
337 - - - - - 337
Interest cash flows on
Loan Notes
2,818 2,818 2,818 2,818 2,818 17,233 31,323
Cash flows on other
creditors
2,824 - - - - - 2,824
35,979 2,818 2,818 2,818 2,818 127,233 174,484
Management of the risk. Liquidity risk is not considered to be significant as the Company’s assets comprise mainly readily
realisable securities, which can be sold to meet funding commitments if necessary. Short-term flexibility is achieved
through the use of loan and overdraft facilities (note 13).
(iii) Credit risk. This is failure of the counterparty to a transaction to discharge its obligations under that transaction that could
result in the Company suffering a loss.
Management of the risk
- where the Manager makes an investment in a bond, corporate or otherwise, the credit ratings of the issuer are taken
into account so as to manage the risk to the Company of default;
- investments in quoted bonds are made across a variety of industry sectors and geographic markets so as to avoid
concentrations of credit risk;
- transactions involving derivatives are entered into only with investment banks, the credit rating of which is taken into
account so as to minimise the risk to the Company of default;
- investment transactions are carried out with a number of brokers, whose credit-standing is reviewed periodically by
the Manager, and limits are set on the amount that may be due from any one broker;
- the risk of counterparty exposure due to failed trades causing a loss to the Company is mitigated by the daily review of
failed trade reports. In addition, both stock and cash reconciliations to the custodian’s records are performed daily to
ensure discrepancies are investigated in a timely manner. The Manager’s Compliance department carries out periodic
reviews of the custodian’s operations and reports its finding to the Manager’s Risk Management Committee;
- cash is held only with reputable banks with acceptable credit quality. 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.
Notes to the Financial Statements
Continued
Murray International Trust PLC 111
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Credit risk exposure. In summary, compared to the amounts in the Statement of Financial Position, the maximum
exposure to credit risk at 31 December 2024 was as follows:
2024 2023
Balance Maximum Balance Maximum
Sheet exposure Sheet exposure
£’000 £’000 £’000 £’000
Non-current assets
Quoted preference shares and bonds at fair value through
profit or loss
110,224 110,224 113,716 113,716
Current assets
Other debtors 54 54 20 20
Accrued income 7,544 7,544 8,028 8,028
Cash and short-term deposits 8,732 8,732 5,878 5,878
126,554 126,554 127,642 127,642
None of the Company’s financial assets is secured by collateral or other credit enhancements.
Credit ratings. The table below provides a credit rating profile using Moodys credit ratings for the quoted preference
shares and bonds at 31 December 2024 and 31 December 2023:
2024 2023
£’000 £’000
Ba1 3,547 3,197
Ba2 15,035 14,369
Baa2 43,934 47,810
Ba3 11,755 11,702
B1 – 16,053
B3 16,934 –
Non-rated 19,019 20,585
110,224 113,716
112 Murray International Trust PLC
Whilst a substantial proportion of the fixed interest portfolio does not have a rating provided by Moodys, the Manager
undertakes an ongoing review of their suitability for inclusion within the portfolio as set out in “Investment Process” on
pages 19 to 21. At 31 December 2024 Moodys credit ratings agency did not provide a rating for Indian bonds, Turkish
bonds and Irredeemable preference shares (2023 – Indian bonds, Turkish bonds and Irredeemable preference shares)
held by the Company and were accordingly categorised as non–rated in the table above. It was noted however that
Fitch credit ratings agency does provide a BB– rating for Turkish bonds with a value of £1,703,000 (2023 – £3,292,000 with
a B rating).
Fair values of financial assets and financial liabilities. The fair value of borrowings has been calculated at £85,097,000 as at
31 December 2024 (2023 – £119,497,000) compared to a carrying amount in the financial statements of £109,916,000
(2023 – £139,901,000) (note 13). The fair value of each loan is determined by aggregating the expected future cash
flows for that loan discounted at a rate comprising the borrower’s margin plus an average of market rates applicable to
loans of a similar period of time and currency. The carrying value of all other assets and liabilities is an approximation of
fair value.
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. The fair value hierarchy shall have the following classifications:
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 in Level 1 that are observable (ie developed using market data) for the asset or
liability, either directly or indirectly.
Level 3: inputs are unobservable (ie for which market data is unavailable) for the asset or liability.
The financial assets and liabilities measured at fair value in the Statement of Financial Position are grouped into the fair value
hierarchy at the reporting date as follows:
Level 1 Level 2 Level 3 Total
As at 31 December 2024 Note £’000 £’000 £’000 £’000
Financial assets at fair value through profit or loss
Quoted equities a) 1,654,770 - - 1,654,770
Quoted preference shares b) - 6,907 - 6,907
Quoted bonds b) - 103,317 - 103,317
Total 1,654,770 110,224 - 1,764,994
Notes to the Financial Statements
Continued
Murray International Trust PLC 113
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Level 1 Level 2 Level 3 Total
As at 31 December 2023 Note £’000 £’000 £’000 £’000
Financial assets at fair value through profit or loss
Quoted equities a) 1,674,147 - - 1,674,147
Quoted preference shares b) - 6,417 - 6,417
Quoted bonds b) - 107,299 - 107,299
Total 1,674,147 113,716 - 1,787,863
a) Quoted equities. The fair value of the Company’s investments in quoted equities has been determined by reference to their
quoted bid prices at the reporting date. Quoted equities included in Fair Value Level 1 are actively traded on recognised
stock exchanges.
b) Quoted preference shares and bonds. The fair value of the Company’s investments in quoted preference shares and bonds
has been determined by reference to their quoted bid prices at the reporting date. Investments categorised as Level 2 are
not considered to trade in active markets.
20. Capital management policies and procedures
The investment objective of the Company is to achieve an above average dividend yield, with long-term growth in dividends
and capital ahead of inflation by investing principally in global equities.
The capital of the Company consists of bank borrowings 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 planned level of gearing which takes into account the Investment Manager’s views on the market;
- the level of equity shares in issue; 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.
Details of the Company’s gearing facilities and financial covenants are detailed in note 13 of the financial statements. The
Company does not have any other externally imposed capital requirements.
114 Murray International Trust PLC
21. Related party transactions and transactions with the Manager
Directors’ fees and interests. Fees payable during the year to the Directors and their interests in shares of the Company are
disclosed within the Directors’ Remuneration Report on pages 69 and 70.
Transactions with the Manager. The Company has agreements with aFML for the provision of management, 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.
In the opinion of the Directors on the basis of shareholdings advised to them, the Company has no immediate or ultimate
controlling party.
Notes to the Financial Statements
Continued
Murray International Trust PLC 115
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
The Company engages in Securities Financing Transactions (SFTs) (as defined in Article 3 of Regulation (EU) 2015/2365, SFTs include
repurchase transactions, securities or commodities lending and securities or commodities borrowing, buy-sell back transactions or
sell-buy back transactions and margin lending transactions). In accordance with Article 13 of the Regulation, the Fund’s involvement
in and exposures related to securities lending for the accounting period are detailed below:
% of % of
Absolute value of assets
engaged in SFTs
£’000 lendable assets net assets
31 December 2024
Securities lending 46,790 2.65 2.79
31 December 2023
Securities lending 40,676 2.28 2.44
Top ten collateral issuers and collateral received
Based on market value of collateral received.
For all issuers, only equity securities with a main market listing were lent and the custodian was BNY Mellon.
2024 £’000 2023 £’000
US Treasury 48,615 US Treasury 41,895
Government of Australia 630 Government of Australia 945
49,245 42,840
2024 2023
Proportion held Proportion held
Market value in segregated Market value in segregated
of collateral held accounts of collateral held accounts
Collateral held per custodian £’000 % £’000 %
BNY Mellon 49,245 100 42,840 100
One custodian is used to hold the collateral, which is in a segregated account.
Securities Financin
g
Transactions Disclosure
116 Murray International Trust PLC
Market value
of collateral received
2024 2023
Collateral analysed by currency £’000 £’000
US Dollar 48,615 41,895
Australian Dollar 630 945
Total collateral received 49,245 42,840
Market value Countries of
Securities lending of securities lending counterparty Settlement
Top Ten Counterparties per type of SFT
A
£’000 establishment and clearing
31 December 2024
Goldman Sachs 46,263 USA Tri-party
UBS 527 Switzerland Tri-party
Total market value of securities lending 46,790
31 December 2023
Goldman Sachs 39,798 USA Tri-party
UBS 878 Switzerland Tri-party
Total market value of securities lending 40,676
A
All counterparties are shown
Maturity Tenor of SFTs (remaining period to maturity)
31 December 2024
Securities lending
The lending and collateral transactions are on an open basis and can be recalled on demand. As at 31 December 2024 there were
three securities on loan (31 December 2023 – none).
The Company does not engage in any re-use of collateral.
Securities Financin
g
Transactions Disclosure
Continued
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Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
2024 2023
Return and cost per type of SFT £’000 % £’000 %
Securities lending
Gross return 751 115 267 115
Direct operational costs (securities lending agent costs)
B
(113) (15) (40) (15)
Total costs (113) (15) (40) (15)
Net return 638 100 227 100
B
The unrounded direct operational costs and fees incurred for securities lending for the 12 months to 31 December 2024 is £112,471 (2023 – £40,038).
118 Murray International 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 viewed as particularly relevant for closed-end investment companies.
Discount to net asset value per Ordinary share
The discount is the amount by which the share price is higher or lower than the net asset value per share at the year end, expressed as
a percentage of the net asset value.
2024 2023
NAV per Ordinary share (p) a 278.4 268.8
Share price (p) b 257.5 258.0
Discount (b-a)/a –7.5% –4.0%
Dividend cover
Dividend cover measures the revenue return per share divided by total dividends per share, expressed as a ratio.
2024 2023
Revenue return per share (p) a 11.6 12.1
Dividends per share (p) b 11.8 11.5
Dividend cover a/b 0.98x 1.05x
Dividend yield
The annual dividend per Ordinary share divided by the share price at the year end, expressed as a percentage.
2024 2023
Dividends per share (p) a 11.8 11.5
Share price (p) b 257.5 258.0
Dividend yield a/b 4.6% 4.5%
Alternative Performance Measures
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Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Net gearing
Net gearing measures the total borrowings less cash and cash equivalents divided 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.
2024 2023
Borrowings (£’000) a 109,916 139,901
Cash (£’000) b 8,732 5,878
Amounts due to brokers (£’000) c 647 174
Shareholders’ funds (£’000) d 1,678,849 1,668,862
Net gearing (a-b+c)/d 6.1% 8.0%
Ongoing charges ratio (OCR)
The ongoing charges ratio has been calculated in accordance with guidance issued by the AIC as the total of investment
management fees and recurring administrative expenses, expressed as a percentage of the average daily net asset values with debt
at fair value published throughout the year.
2024 2023
Investment management fees (£’000) 7,122 6,929
Administrative expenses (£’000) 1,798 1,790
Less: non-recurring charges
A
(£’000) (106) (64)
Ongoing charges (£’000) 8,814 8,655
Average net assets (£’000) 1,694,445 1,638,136
Ongoing charges ratio (excluding look-through costs) 0.52% 0.53%
Look-through costs
B
– –
Ongoing charges ratio (including look-through costs) 0.52% 0.53%
A
Professional services comprising new Director recruitment costs and legal and advisory fees considered unlikely to recur. The prior year also includes costs relating to the sub-
division of shares.
B
Calculated in accordance with AIC guidance issued in October 2020 to include the Company’s share of costs of holdings in investment companies on a look-through basis.
The ongoing charges ratio above differs from that provided in the Company’s Key Information Document.
120 Murray International Trust PLC
Total return
NAV and share price total returns show how the NAV and share price have performed over a period of time in percentage terms,
taking into account both capital returns and dividends paid to shareholders. Share price and NAV returns are monitored against the
Reference Index.
Share
Year ended 31 December 2024 NAV Price
Opening at 1 January 2024 a 268.8p 258.0p
Closing at 31 December 2024 b 278.4p 257.5p
Price movements c=(b/a)-1 3.6% –0.2%
Dividend reinvestment
A
d 4.5% 4.7%
Total return c+d +8.1% +4.5%
Share
Year ended 31 December 2023 NAV Price
Opening at 1 January 2023 a 258.7p 266.8p
Closing at 31 December 2023 b 268.8p 258.0p
Price movements c=(b/a)-1 3.9% –3.3%
Dividend reinvestment
A
d 4.7% 4.4%
Total return c+d +8.6% +1.1%
A
NAV total return involves investing the net dividend in the NAV of the Company with debt at par value on the date on which that dividend goes ex-dividend. 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.
Alternative Performance Measures
Continued
Murray International Trust PLC 121
Corporate
Information
The Company’s Manager is abrdn
Investments Limited, a subsidiary of
aberdeen Group plc, whose group
companies as at 31 December 2024
had approximately £511.4 bn of
assets under management
and administration
122 Murray International Trust PLC
Introduction
Although the Company does not have sustainability
characteristics as part of its investment objective or policy,
ESG analysis is integrated into each part of the Manager’s
investment process outlined on pages 19 to 21 and is
integral to 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.
ESG Assessment
aberdeen has a well-established central sustainability
team which supports 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. aberdeen 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 Manager would be
comfortable investing 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 process also leverages a wealth of
knowledge, insight and expertise across asset classes and
regions within aberdeen. This allows the Manager to
exploit the skills of equity colleagues across all markets
who are meeting companies and conducting research
and sharing their insights using one common global
research platform.
The Manager’s bottom-up research process includes both
its investment insights and the assessment of the ESG
factors a company faces. The assessment of ESG factors
takes place within the overall structure of the investment
research carried out on each company. In assessing the
business fundamentals of a company, the Manager
analyses how the company makes money (including the
evolution and growth of the company, its track record of
execution and managing risk and the balance sheet
fundamentals), the attractiveness and characteristics of
its industry and the strength and sustainability of its
competitive advantage. It also conducts a thorough
evaluation of the ESG risks and opportunities of the
company.
As well as assigning a proprietary rating (1 indicates best
in class and 5 indicates laggards) to articulate the Quality
attributes of each company the Manager also assigns an
ESG Quality rating.
The Manager believes that understanding ESG factors
can complement broader understanding of the
competitive positioning of a business and help to build an
investment case. Integrating ESG analysis gives the
Manager an informational, analytical and behavioural
edge.
Finally, ESG information provides additional context to an
investment case and offers an alternative lens that the
market may not appreciate. This additional information
also helps the Manager better understand the quality of
companies and with ESG being a component of quality,
the Manager can act on a more informed and more
rational basis during periods of volatility, giving a
behavioural edge.
As part of this analysis, the Manager also evaluates the
ownership structures, governance and management
quality of the investee companies and assesses potential
environmental and social risks and opportunities that the
companies may face. These insights are captured in the
company research notes.
Climate Change
The Manager has a duty to consider all factors that may
have a financially material impact on returns. Climate
change is such a key factor.
The related physical and transition risks are vast and are
becoming increasingly financially material for many of our
investments. This is not only true in the obvious high-
emitting sectors such as energy, utilities and
transportation but also along the supply chain, providers
of finance and in those reliant on agricultural outputs
and water.
In the Manager’s view, companies that successfully
manage climate change risks will perform better in the
long term. It is important that the Manager assesses the
financial implications of material climate change risks
across all asset classes, including real assets, to make
portfolios more resilient to climate risk.
Adaptation measures are essential to help limit damages
from the physical impacts of climate change.
ESG and Climate Related Factors
Murray International Trust PLC 123
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
It is generally accepted that companies are responsible
for the effects of their operations and products on the
environment. The steps they take to assess and reduce
those impacts can lead to cost savings and reduce
potential reputational damage. Companies are
responsible for their impact on the climate and they face
increased regulation from world governments on activities
that contribute to climate change.
The Manager expects that companies will:
· identify, manage and reduce their environmental
impacts;
· understand the impact of climate change along the
company value chain;
· develop group-level climate policies and, where
relevant, set targets to manage the impact, report on
policies, practices and actions taken to reduce carbon
and other environmental risks within their operations;
· comply with all environmental laws and regulations, or
recognised international best practice as a minimum.
Where there are serious concerns regarding a board’s
actions or inaction in relation to the environment, the
Manager will consider taking voting action on an
appropriate resolution.
aberdeen’s position statement on the Environment may
be found at:
www.abrdn.com/en-
gb/institutional/sustainable-investing/environment
Regular engagement with high-emitting investee
companies allows the Manager to better understand its
exposure and management of climate change risks and
opportunities. In actively managed investments,
ownership provides a strong ability to challenge
companies where appropriate. The Manager can also
influence corporate behaviour positively in relation to
climate-risk management.
Through active engagement, it is possible to steer investee
companies towards ambitious targets and more
sustainable low-carbon solutions. The Manager strongly
encourages companies to consider the social dimension
of the energy transition to ensure it is inclusive and ‘just’.
This means worker and community needs are considered
on the path to a low-carbon economy so they are not left
stranded. Other social aspects, such as affordability and
reliability of energy supply are also important.
The Manager also pledges to reduce its own operational
carbon footprint. It has committed to reducing emissions
from energy use by 50% by 2025, procuring 100%
renewable electricity for its buildings, and offsetting those
emissions that have not yet been eliminated.
Working with Companies: Staying Engaged,
Driving Change
The Manager sees a programme of regular engagement
as a necessary fulfilment of its duty as a responsible
steward of clients’ assets. It is also an opportunity to share
examples of best practice seen in other companies and to
use the Manager’s influence to effect positive change. The
Manager’s engagement is not limited to the company’s
management team. It can include many other
stakeholders such as non-government agencies, industry
and regulatory bodies, as well as activists and the
company’s clients. What gets measured gets managed,
so the Manager strongly encourages companies to set
clear targets or key performance indicators on all material
factors, including ESG.
124 Murray International Trust PLC
Keeping You Informed
For internet users, detailed data on the Company
(including price, performance information and a monthly
fact sheet) is available from the Company’s website
(
murray-intl.co.uk) and the TrustNet website
(
trustnet.com).
You can register for regular email updates by visiting
murray-intl.co.uk or by activating the QR Code below using
the camera on your smart phone:
aberdeen Social Media Accounts
aberdeen Investment Trusts
@aberdeenTrusts
Investor Warning
The Board has been made aware by aberdeen that some
investors have received telephone calls from people
purporting to work for the Manager, 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 aberdeen and any
third party making such offers has no link with aberdeen.
aberdeen 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 aberdeen’s
investor services centre using the details provided below.
Shareholder Enquiries
In the event of queries regarding their holdings of shares,
lost certificates dividend payments, registered details, etc
shareholders holding their shares in the Company directly
should contact the registrars, MUFG Corporate Markets
(
formerly Link Group
) at Central Square, 29 Wellington
Street, Leeds LS1 4DL Tel: +44 (0) 371 664 0300 (lines are
open 9.00am-5.30pm Mon-Fri excluding public holidays in
England and Wales). Calls to 0371 numbers are charged
at the standard geographic rate and will vary by provider.
Calls outside the United Kingdom are charged at the
applicable international rate. Calls may be recorded and
monitored randomly for security and training purposes.
Alternatively, you can contact:
E-mail
: shareholderenquiries@cm.mpms.mufg.com
Share portal:
signalshares.com
Any general enquiries about the Company should be
directed to the Company Secretary, Murray International
Trust PLC, 1 George Street, Edinburgh EH2 2LL or by email
to
CEF.CoSec@abrdn.com.
Suitable for Retail/NMPI Status
The Company currently conducts its affairs so that its
securities can be recommended by a financial adviser to
ordinary retail investors in accordance with the Financial
Conduct Authority’s (FCA) rules in relation to non-
mainstream pooled investments (NMPIs) and intends to
continue to do so for the foreseeable future. The
Company’s shares are excluded from the FCA’s
restrictions which apply to non-mainstream investment
products because they are shares in an investment trust.
Key Information Document (“KID”)
The KID relating to the Company and published by the
Manager can be found in the ‘Literature Library’ section of
the Company’s website:
murray-intl.co.uk.
How to invest in Murray International and
other aberdeen managed investment trusts
A range of leading investment platforms and share
dealing services let you buy and sell aberdeen-managed
investment trusts including Murray International 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).
A note about the aberdeen Investment Trust Savings Plans
(the ‘Plans’)
The aberdeen Investment Trusts ISA, Share Plan and
Investment Plan for Children (the “Plans”) closed in
December 2023. All investors with a holding or cash
balance in the Plans at that date transferred to interactive
investor (“ii”), an aberdeen Group company. ii
communicated with Plan holders in late November 2023
to set up account security to ensure that investors would
continue to access their holdings via ii following the closure
of the Plans.
Investor Information
Murray International Trust PLC 125
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Former aberdeen Plan holders should contact ii for any
ongoing support with their ii accounts on 0345 646 1366, or
+44 113 346 2309 if calling from outside the UK. Lines are
open 8.00am to 5.00pm Monday to Friday. Alternatively,
Plan holders can access the website at
ii.co.uk/abrdn-
welcome
.
Platform Providers
Platforms featuring aberdeen Group managed
investment trusts include:
www.ii.co.uk/investment-trusts
(
an aberdeen owned business
)
www.ajbell.co.uk/markets/
investment-trusts
www.barclays.co.uk/smart-invest
www.bestinvest.co.uk
www.charles-stanley-direct.co.uk
www.fidelity.co.uk
www.halifax.co.uk/investing
www.hl.co.uk/shares/investment-
trusts
www.wealthtime.com/advisers/
www.transact-online.co.uk
www.abrdn.com/adviser/wrap
(
an aberdeen owned business
)
The list of platform providers is shown for illustrative
purposes only. Other platform providers are available. The
links provided direct you to external websites operated by
each platform provider. aberdeen is not responsible for
the content and information on these third-party sites.
Flexibility
Many investment platform providers will allow you to buy
and hold aberdeen 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.
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 provider. 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 provider will provide further
guidance. The Association of Investment Companies has
provided information on how to vote investment company
shares held on some of the major platforms. This
information can be found at:
www.theaic.co.uk/how-to-vote-your-shares.
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 and Financial
Advice Association at
pimfa.co.uk.
Independent Financial Advisers
To find an adviser who recommends on investment trusts,
visit
unbiased.co.uk.
126 Murray International Trust PLC
Regulation of Stockbrokers
Before approaching a stockbroker, always check that
they are regulated by the Financial Conduct Authority:
Tel: 0800 111 6768 or
at https://register.fca.org.uk/ or
email:
register@fca.org.uk
Getting advice
aberdeen 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
www.pimfa.co.uk
or
www.unbiased.co.uk. You will pay a fee for
advisory services.
Investor Warning
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.
Alternative Investment Fund Managers
Directive Disclosures (AIFMD)
aberdeen Group and the Company are required to make
certain disclosures available to investors in accordance
with the Alternative Investment Fund Managers Directive
('AIFMD'). Those disclosures that are required to be made
pre-investment are included within a pre-investment
disclosure document ('PIDD') which can be found on the
Company’s website asia-focus.co.uk. There have been no
material changes to the disclosures contained within the
PIDD since March 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
are included in the Strategic Report.
· None of the Company’s assets is 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 aFML.
All authorised Alternative Investment Fund Managers are
required to comply with the AIFMD Remuneration Code. In
accordance with the Remuneration Code, the Company’s
AIFM remuneration policy is available from the Company
Secretaries, abrdn Holdings Limited on request (see
contact details on page 124) and the numerical
remuneration in the disclosures in respect of the AIFM’s
reporting period for the year ended 31 December 2023
are available on the Company’s website.
Leverage
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 31 December 2024 1.12:1 1.12:1
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
gearing agreements. 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 aFML 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 pages 124 to 126 has been Issued by
aberdeen Investments Limited, which is authorised and regulated
by the Financial Conduct Authority in the United Kingdom. abrdn
Investments Limited is entered on the Financial Services Register
under registration number 121891
Investor Information
Continued
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Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
aFML
On 4 March 2025 the Manager announced a change in its
trading name to ‘aberdeen’ from ‘abrdn’. abrdn Fund
Managers Limited is a wholly owned subsidiary of
aberdeen Group PLC (formerly abrdn plc) and acts as the
Alternative Investment Fund Manager for the Company.
aFML is authorised and regulated by the Financial
Conduct Authority.
The aberdeen Group is headquartered in Edinburgh
investing globally and operating from offices around
the world.
AIC
The Association of Investment Companies – the AIC is the
trade body for closed-ended investment companies
(
theaic.co.uk).
AIFMD
The Alternative Investment Fund Managers Directive – The
AIFMD is European legislation which created a European-
wide framework for regulating managers of ‘alternative
investment funds’ (AIFs). It is designed to regulate any fund
which is not a UCITS (Undertakings for Collective
Investments in Transferable Securities) fund and which is
managed/marketed in the EU. The Company has been
designated as an AIF.
Alpha
Alpha measures the amount that the investment has
returned in comparison to the market index or other
broad benchmark that it is compared against.
Alternative Performance Measure or APM
An alternative performance measure is a financial
measure of historical or future financial performance,
financial position, or cash flows, other than a financial
measure defined or specified in the applicable financial
reporting framework.
Common Reporting Standards or CRS
Under CRS the Company is required to provide personal
information to HMRC on certain investors that purchase
shares in the Company. This information will be provided
annually to the local tax authority of the tax residencies of
a number of non UK based certificated shareholders and
corporate entities.
Compound Annual Growth Rate or CAGR
CAGR is an estimate of the average rate of return per
year. The CAGR is the effective rate of growth that, if
compounded annually, is equivalent to the actual rate
achieved over a period of time.
Discount
The amount by which the market price per share of an
investment trust is lower than the NAV per share. The
discount is normally expressed as a percentage of the
NAV per share (see also ‘Premium’).
Disclosure Guidance and Transparency
Rules or DTRs
The DTRs are issued by the Financial Conduct Authority
(FCA) and contain requirements for publishing and
distributing annual financial reports, half-yearly financial
reports and other regulatory statements, and are
applicable to investment companies which are listed on
the main market of the London Stock Exchange.
Dividend Cover
Revenue return per share divided by dividends per share
expressed as a ratio.
Dividend Entitlements
The Ordinary shares carry the right to receive the revenue
profits (including accumulated revenue reserves) of the
Company available for distribution as dividend and
determined to be distributed by way of interim and/or
final dividend and at such times as the Directors may
determine.
Electronic Communications
Any registered shareholders wishing to receive future
communications from the Company electronically should
contact the registrars, MUFG Corporate Markets (formerly
Link Group) at Central Square, 29 Wellington Street, Leeds
LS1 4DL Tel: +44 (0) 371 664 0300 (lines are open 9.00am-
5.30pm Mon-Fri excluding public holidays in England and
Wales). Calls to 0371 numbers are charged at the
standard geographic rate and will vary by provider. Calls
outside the United Kingdom are charged at the applicable
international rate. Calls may be recorded and monitored
randomly for security and training purposes.
Alternatively, you can contact:
E-mail
: shareholderenquiries@cm.mpms.mufg.com
Share portal:
signalshares.com
Glossary of Terms
128 Murray International Trust PLC
Environmental, Social and Governance
or ESG
ESG refers to the three key factors that can be used to
measure the sustainability and impact on society of an
investee company.
Gearing
Investment Trusts can ‘gear’ or borrow money to invest
but unit trusts are limited in this respect. Gearing can
magnify a fund’s return, however, a geared investment is
riskier because of the borrowed money.
Investment Manager or Manager
The Company’s Alternative Investment Fund Manager is
abrdn Fund Managers Limited (“aFML”) which is
authorised and regulated by the Financial Conduct
Authority. Day-to-day management of the portfolio is
delegated to abrdn Investments Limited (“aIL”). aIL and
aFML are collectively referred to as the “Investment
Manager” or the “Manager”.
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 anticipated
performance returns cannot be guaranteed.
Key Performance Indicator or KPI
In accordance with the Companies Act 2006, the
Strategic Report section of the Annual Report is required
to contain Key Performance Indicators. These are factors
by reference to which the development, performance
or position of the business of the Company can
be measured.
Listing Rules
The Financial Conduct Authority’s (FCA) Listing Rules are a
set of regulations that are applicable to all companies that
are listed on the London Stock Exchange.
MiFID
The Markets in Financial Instruments Directive 2004/39/EC
(MiFID)is a European Union law that provides harmonised
regulation for investment services across the 31 member
states of the European Economic Area.
Net Asset Value or NAV
The value of total assets less liabilities. Liabilities for this
purpose includes current and long-term liabilities. The
NAV divided by the number of shares in issue produces the
NAV per share.
Net Gearing/(Cash)
Net gearing/(cash) is calculated by dividing total assets
(as defined below) less cash or cash equivalents by
shareholders’ funds expressed as a percentage.
Ongoing Charges Ratio (OCR)
Ratio of expenses as percentage of average daily
shareholders’ funds calculated as per the AIC’s industry
standard method.
Peer Group
The Company is a member of the AIC’s Global Equity
Income sector and uses this grouping (excluding
companies with market capitalisations below £100m) as
its peer group for the purpose of a number of KPIs.
PIDD or Pre-Investment
Disclosure Document
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’), a copy of which
can be found on the Company’s website.
Glossary of Terms
Continued
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Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Premium
The amount by which the market price per share of an
investment trust exceeds the NAV per share. The
premium is normally expressed as a percentage of the
NAV per share.
Reference Index
The Company does not have a Benchmark. However,
performance is measured against a number of measures
including a Reference Index, the FTSE All World TR Index,
which was adopted from May 2020. Given the
composition of the portfolio and the Manager’s
investment process, it is likely that the Company’s
investment performance may diverge, possibly
significantly, from this Reference Index. Longer term
performance is measured against a composite
Benchmark Index (40% of the FTSE World UK Index and
60% of the FTSE World ex-UK Index) up to 27 April 2020
and the FTSE All World TR Index thereafter.
Total Assets
The total assets less current liabilities as shown on the
Balance Sheet with the addition of prior charges
(comprising bank loans and loan notes).
Total Return
Total Return involves reinvesting the net dividend in the
month that the share price goes ex dividend. The NAV
Total Return involves investing the same net dividend in the
NAV of the Company on the date to which that dividend
was earned, eg quarter end, half year or year-end date.
Voting Rights
In accordance with the Articles of Association of the
Company, on a show of hands, every member (or duly
appointed proxy) present at a general meeting of the
Company has one vote; and, on a poll, every member
present in person or by proxy shall have one vote for every
5p nominal amount of Ordinary shares held.
Winding-Up Entitlements
On a winding up of the Company, any surplus assets
available after payment of all debts and satisfaction of all
liabilities of the Company shall be applied in repaying the
Ordinary shareholders the amounts paid up on such
shares. Any surplus shall be divided among the holders of
Ordinary shares pari passu according to the amount paid
up on such shares respectively.
130 Murray International Trust PLC
General
The 2024 Annual General Meeting of the Company
will be held at 12:30 p.m. on 24 April 2025 at Wallacespace
Spitalfields, 15 Artillery Lane, London E1 7HA
Murray International Trust PLC 131
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
NOTICE IS HEREBY GIVEN that the one hundred and seventeenth Annual General Meeting of Murray International Trust
PLC (registered in Scotland under company number SC006705) will be held at 12:30 p.m. on 24 April 2025 at
Wallacespace Spitalfields, 15 Artillery Lane, London E1 7HA for the purposes of considering and, if thought fit, passing the
following resolutions, of which resolutions 1 to 11 (inclusive) will be proposed as Ordinary Resolutions and resolutions 12
and 13 will be proposed as Special Resolutions:
Ordinary Resolutions
1. To receive and adopt the Directors’ Report, the Auditor’s Report and audited financial statements for the year ended
31 December 2024.
2. To receive and approve the Directors’ Remuneration Report for the year ended 31 December 2024 (other than the
Directors’ Remuneration Policy).
3. To re-elect Ms C Binyon* as a Director of the Company.
4. To re-elect Mr N Melhuish* as a Director of the Company.
5. To re-elect Ms V Holmes* as a Director of the Company.
6. To re-elect Mr G Eckersley* as a Director of the Company.
7. To re-elect Ms W Colquhoun* as a Director of the Company.
8. To re-appoint BDO LLP as independent auditor of the Company to hold office from the conclusion of the Annual
General Meeting of the Company until the conclusion of the next general meeting at which financial statements are
laid before the Company.
9. To authorise the Directors to fix the remuneration of the independent auditor of the Company.
10. To declare a final dividend of 4.3p per Ordinary share in respect of the year ended 31 December 2024 to be paid on
19 May 2025 to holders of the Ordinary shares of the Company on the register at close of business on 4 April 2025.
11. THAT, in substitution for any existing authority but without prejudice to the exercise of any such authority prior to the
date hereof, the Directors of the Company be and they are hereby generally and unconditionally authorised in
accordance with Section 551 of the Act to exercise all the powers of the Company to allot Ordinary shares in the
Company (“Ordinary Shares”) and to grant rights to subscribe for, or to convert any security into, Ordinary Shares
(“Rights”) in the Company up to an aggregate nominal amount of £2,975,607 (being equal to approximately 10% of
the Company’s issued Ordinary Share capital (excluding Treasury shares) as at 5 March 2025) such authority to
expire on the earlier of the conclusion of the next annual general meeting of the Company after the passing of this
resolution and 30 June 2026 (unless previously renewed, varied or revoked by the Company in general meeting), but
so that this authority shall allow the Company to make, before the expiry of this authority, offers or agreements
which would or might require Ordinary Shares to be allotted or Rights to be granted after such expiry and the
Directors shall be entitled to allot shares and grant Rights in pursuance of such an offer or agreement as if such
authority had not expired.
Special Resolutions
12. THAT, in substitution for any existing authority but without prejudice to the exercise of any such authority prior to the
date hereof, the Directors of the Company be and they are hereby empowered, pursuant to sections 570 and 573 of
the Companies Act 2006 (the “Act”), to allot equity securities (as defined in Section 560 of the Act) for cash pursuant
to the authority given in accordance with section 551 of the Act by Resolution 11 as if section 561 of the Act did not
apply to any such allotment, provided that this power shall:
i. expire on the earlier of the conclusion of the next Annual General Meeting of the Company after the passing of
this resolution and 30 June 2026 (unless previously renewed, varied or revoked by the Company in general
meeting), but so that this power shall enable the Company to make, before the expiry of this authority, offers or
Notice of Annual General Meetin
g
132 Murray International Trust PLC
agreements which would or might require equity securities to be allotted after the expiry of this power and the
Directors shall be entitled to allot equity securities in pursuance of such an offer or agreement as if such power
had not expired;
ii. be limited to the allotment of equity securities up to an aggregate nominal amount of £2,975,607 (being equal to
approximately 10% of the Company’s issued Ordinary Share capital (excluding Treasury shares) as at 5 March
2025); and
iii. be limited to the allotment of equity securities at a price not less than 0.5% above the net asset value per
Ordinary share from time to time (as determined by the Directors and excluding Treasury shares).
This power applies to a sale of Treasury shares which is an allotment of equity securities by virtue of section 560(3)
of the Act as if in the first paragraph of this Resolution 12 the words ‘pursuant to the authority given in accordance
with Section 551 of the Act by Resolution 11’ were omitted.
13. THAT, in substitution for any existing authority, but without prejudice to the exercise of any such authority prior to the
date hereof, the Company be 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 fully paid Ordinary shares in the capital of the Company (“Ordinary Shares”) on such
terms and in such manner as the Directors from time to time determine, PROVIDED ALWAYS THAT:
i. the maximum aggregate nominal value of Ordinary Shares hereby authorised to be purchased is £4,460,435
(or, if less, the amount of nominal value representing 14.99% of the issued Ordinary Share capital of the
Company (excluding shares held in Treasury) as at the date of the passing of this Resolution 13);
ii. the minimum price (exclusive of expenses) which may be paid for each Ordinary Share shall be the nominal
value of that share;
iii. the maximum price (exclusive of expenses) which may be paid for each Ordinary Share shall not exceed the
higher of (i) an amount equal to 105% of the average of the middle market quotations for an Ordinary Share as
taken from, and calculated by reference to, the Daily Official List of the London Stock Exchange for the five
business days immediately preceding the day on which the Ordinary Share is purchased; and (ii) the higher of
the price of the last independent trade and the highest current independent bid for an Ordinary Share on the
London Stock Exchange at the time the purchase is carried out;
iv. any purchase of Ordinary Shares will be made in the market for cash at prices below the prevailing net asset
value per Ordinary Share (as determined by the Directors);
v. the authority hereby conferred shall expire at the conclusion of the next annual general meeting of the
Company after the passing of this resolution or on 30 June 2026, whichever is earlier, unless such authority is
previously revoked, varied or renewed by the Company in general meeting prior to such time; and
vi. the Company may, at any time prior to the expiry of the authority hereby conferred, enter into a contract or
contracts to purchase shares under such authority which would or might be completed or executed wholly or
partly after the expiration of such authority and may m
ake a purchase of shares pursuant to any such contract
or contracts as if the authority conferred hereby had not expired.
* The biographies of the Directors and reasons for re-election are on pages 56 to 58 of this Annual Report.
By order of the Board
abrdn Holdings Limited
Secretary,
5 March 2025
Registered Office
1 George Street
Edinburgh, EH2 2LL
Notice of Annual General Meetin
g
Continued
Murray International Trust PLC 133
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Notes
i. Only those shareholders registered in the register of members of the Company at close of business on 22 April 2025 shall be
entitled to attend and/or vote at the Annual General Meeting in respect of the number of shares registered in their name at that
time (“the specified time”). If the Meeting is adjourned to a time not more than 48 hours after the specified time applicable to the
original Meeting, that time will also apply for the purpose of determining the entitlement of shareholders to attend and/or vote at
the adjourned meeting. If the Meeting is adjourned for a longer period, the time by which a person must be entered on the register
of members of the Company in order to have the right to attend and/or vote at the adjourned meeting is the close of business
two days (excluding non working days) prior to the time of the adjourned meeting. Changes to entries on the register of
members after the relevant deadline shall be disregarded in determining the rights of any person to attend and/or vote at the
Annual General Meeting.
ii. As at 5 March 2025 (being the last practicable date prior to the publication of this Notice), the Company’s issued share capital
consisted of 595,121,470 Ordinary shares carrying one vote each on a poll and 51,938,545 Treasury shares. Therefore, the total
voting rights in the Company as at 5 March 2025 are 595,121,470 and the Treasury shares represent 8.0% of the total issued
Ordinary share capital (inclusive of treasury shares).
iii. A shareholder entitled to attend and vote at the Annual General Meeting is entitled to appoint one or more proxies to attend,
speak and vote instead of him or her, provided that if two or more proxies are appointed, each proxy must be appointed to
exercise the rights attaching to different shares. A Form of Proxy is enclosed with this Notice. A proxy need not be a shareholder of
the Company. Completion and return of the Form of Proxy will not preclude shareholders from attending or voting at the Annual
General Meeting, if they so wish. Details of how to appoint the Chair of the Meeting as your proxy using the Form of Proxy are set
out in the note to the Form of Proxy. In the event that a Form of Proxy is returned without an indication as to how the proxy shall
vote on the resolutions, the proxy will exercise his or her discretion as to whether, and if so how, he or she votes. You may also
submit your proxy electronically using The Share Portal service at signalshares.com. Shareholders can use this service to vote or
appoint a proxy online. The same voting deadline of 48 hours (excluding non-working days) before the time of the meeting
applies as if you were using your Personalised Voting Form to vote or appoint a proxy by post to vote for you. In order to utilise The
Share Portal, Shareholders will need to use the unique personal identification Investor Code, which can be found on your share
certificate. Shareholders should not show this information to anyone unless they wish to give proxy instructions on their behalf.
iv. To be valid, the Form of Proxy, together with the power of attorney or other authority, if any, under which it is executed (or a
notarially certified copy of such power or authority) must be deposited with the Company’s Registrar, for this purpose being PXS 1,
MUFG Corporate Markets, Central Square, 29 Wellington Street, Leeds, LS1 4DL, as soon as possible, but in any event not later than
12.30 p.m. on 22 April 2025. If you have any queries relating to the completion of the Form of Proxy, please contact MUFG
Corporate Markets via email at shareholderenquiries@cm.mpms.mufg.com or on 0371 664 0300 (lines are open 9.00am to 5.30pm
Mon-Fri). MUFG Corporate Markets cannot provide advice on the merits of the business to be considered nor give any financial,
legal or tax advice. Alternatively, if the shareholder holds his or her shares in uncertificated form (i.e. in CREST) they may vote using
the CREST System (see note (x) below). If yo
u are an institutional investor you may also be able to appoint a proxy electronically
via the Proxymity platform (see note xi below).
v. A vote given in accordance with the terms of an instrument of proxy shall be valid notwithstanding the previous death or insanity
of the principal or revocation of the proxy or of the authority under which the proxy was executed, or the transfer of the share in
respect of which the proxy is given, provided that no intimation in writing of such death, insanity, revocation or transfer as
aforesaid shall have been received by the Company at its registered office or the address specified in note (iv) above before the
commencement of the meeting or adjourned meeting at which the proxy is used.
vi. Where there are joint holders of any share, any one of such persons may vote at any meeting, and if more than one of such
persons is present at any meeting personally or by proxy, the vote of the senior holder who tenders the vote shall be accepted to
the exclusion of the votes of other joint holders and, for this purpose, seniority will be determined by the order in which the names
stand in the register of members of the Company.
vii. Any person to whom this notice is sent who is a person nominated under Section 146 of the Companies Act 2006 to enjoy
information rights (a “Nominated Person”) may, under an agreement between him/her and the shareholder by whom he/she
was nominated, have a right to be appointed (or to have someone else appointed) as a proxy for the Annual General Meeting. If a
Nominated Person has no such proxy appointment right or does not wish to exercise it, he/she may, under any such agreement,
have a right to give instructions to the shareholder as to the exercise of voting rights. Nominated Persons should also remember
134 Murray International Trust PLC
that their main point of contact in terms of their investment in the Company remains the shareholder who nominated the
Nominated Person to enjoy information rights (or, perhaps the custodian or broker who administers the investment on their
behalf). Nominated Persons should continue to contact that shareholder, custodian or broker (and not the Company) regarding
any changes or queries relating to the Nominated Person’s personal details and interests in the Company (including any
administrative matter). The statement of the rights of shareholders in relation to the appointment of proxies in notes (iii) to (v)
does not apply to Nominated Persons. The rights described in these notes can only be exercised by shareholders of the
Company.
viii. Any corporation which is a shareholder may authorise such person as it thinks fit to act as its representative at this meeting. Any
person so authorised shall be entitled to exercise on behalf of the corporation which he/she represents the same powers (other
than to appoint a proxy) as that corporation could exercise if it were an individual shareholder (provided, in the case of multiple
corporate representatives of the same corporate shareholder, they are appointed in respect of different shares owned by the
corporate shareholder or, if they are appointed in respect of the same shares, they vote the shares in the same way). To be able
to attend and vote at the Annual General Meeting, corporate representatives will be required to produce prior to their entry to the
Meeting evidence satisfactory to the Company of their appointment.
ix. Under section 338 and section 338A of the Companies Act 2006, members meeting the threshold requirements in those sections
have the right to require the Company (a) to give to members of the Company entitled to receive notice of the Meeting, notice of
any resolution which may properly be moved and is intended to be moved at the Meeting and/or (b) to include in the business to
be dealt with at the Meeting any matter (other than a proposed resolution) which may be properly included in the business.
A resolution may properly be moved or a matter may properly be included in the business unless (a) (in the case of resolution
only) it would, if passed, be ineffective (whether by reason of inconsistency with any enactment or the Company’s constitution or
otherwise), (b) it is defamatory of any person, or (c) it is frivolous or vexatious. Such a request may be in hard copy form or in
electronic form, must identify the resolution of which notice is to be given or the matter to be included in the business, must be
authorised by the person or persons making it, must be received by the Company not later than the date that is six weeks before
the Meeting, and (in the case of a matter to be included in the business only) must be accompanied by a statement setting out
the grounds for the request.
x. Notes on CREST Voting:
1. CREST Members who wish to appoint a proxy or proxies by utilising the CREST electronic proxy appointment service may do
so by utilising the procedures described in the CREST Manual, which is available to download from the Euroclear UK &
International (“Euroclear”) website (www.euroclear.com). CREST personal members or other CREST sponsored members, and
those CREST members who have appointed voting service provider(s) should contact their CREST sponsor or voting service
provider(s) who will be able to take the appropriate action on their behalf.
2. In order for a proxy appointment or instruction made using the CREST system to be valid, the appropriate CREST message (a
“CREST proxy instruction”) must be properly authenticated in accordance with Euroclear’s specifications and must contain the
information required for such instructions, as described in the CREST Manual. To appoint a proxy or to give or amend an
instruction to a previously appointed proxy via the CREST system, the CREST message must be received by the issuer’s agent
RA10 by 12:30 p.m. on 22 April 2025. For this purpose, the time of receipt will be taken to be the time (as determined by the
timestamp applied to the message by the CREST applications Host) from which the issuer’s agent is able to retrieve the
message. CREST members and, where applicable, their CREST sponsors or voting service providers should note that
Euroclear does not make available special procedures in CREST for any particular messages. 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 CREST sponsored member or has appointed a
voting service provider(s), to procure that
his CREST sponsor or voting service provider(s) takes(s)) such action as shall be
necessary to ensure that a message is transmitted by means of the CREST system by a particular time. For further information
on CREST procedures, limitations and system timings please refer to the CREST Manual. The Company may treat as invalid a
proxy appointment sent by CREST in the circumstances set out in Regulation 35(5)(a) of the Uncertificated Securities
Regulations 2001. In any case, a proxy form must be received by the Company’s registrars no later than 12:30 p.m. on
22 April 2025.
Notice of Annual General Meetin
g
Continued
Murray International Trust PLC 135
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
xi. Proxymity Voting – If you are an institutional investor, you may 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 12:30 p.m. on 22 April 2025 in order to be considered valid or, if the
Annual General 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.
xii. Shareholders are advised that unless otherwise provided, the telephone numbers and website addresses which are set out in this
Notice or the Form of Proxy are not to be used for the purpose of serving information or documents on the Company including the
service of information or documents relating to proceedings at the Company’s Annual General Meeting.
xiii. If the Chair, as a result of any proxy appointments, is given discretion as to how the votes the subject of those proxies are cast and
the voting rights in respect of those discretionary proxies, when added to the interests in the Company’s shares already held by
the Chair, result in the Chair holding such number of voting rights that he or she has a notifiable obligation under the Disclosure
Guidance and Transparency Rules, the Chair will make the necessary notifications to the Company and the Financial Conduct
Authority. As a result any person holding 3% or more of the voting rights in the Company who grants the Chair a discretionary
proxy in respect of some or all of those voting rights and so would otherwise have a notification obligation under the Disclosure
Guidance and Transparency Rules, need not make a separate notification to the Company and the Financial Conduct Authority.
xiv. In accordance with Section 311A of the Companies Act 2006, the contents of this notice of Meeting, details of the total number of
shares in respect of which members are entitled to exercise voting rights at the Annual General Meeting and, if applicable, any
members’ statements, members’ resolutions or members’ matters of business received by the Company after the date of this
notice will be available on the Company’s website murray-intl.co.uk.
xv. Pursuant to Section 319A of the Companies Act 2006, the Company must cause to be answered at the Annual General Meeting
any question relating to the business being dealt with at the Annual General Meeting which is put by a shareholder attending the
Meeting, except in certain circumstances, including if it is undesirable in the interests of the Company or the good order of the
Meeting that the question be answered or if to do so would involve the disclosure of confidential information.
xvi. Shareholders should note that it is possible that, pursuant to requests made by shareholders of the Company under section 527 of
the Companies Act 2006, the Company may be required to publish on a website a statement setting out any matter relating to: (i)
the audit of the Company’s accounts (including the auditor’s report and the conduct of the audit) that are to be laid out before
the Annual General Meeting; or (ii) any circumstance connected with an auditor of the Company ceasing to hold office since the
previous meeting at which annual accounts and reports were laid in accordance with section 437 of the Companies Act 2006,
that the shareholders propose to raise at the Annual General M
eeting. 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 that the time when it makes the statement available on the website. The
business which may be dealt with at the Meeting includes any statement that the Company has been required under section 527
of the Companies Act 2006 to publish on the website.
136 Murray International Trust PLC
Stock Exchange Codes SEDOL ISIN
Ordinary shares of 5p each BQZCCB7 GB00BQZCCB79
Annual General Meeting
The Annual General Meeting will be on 24 April 2025 at 12:30 p.m. at Wallacespace Spitalfields, 15 Artillery Lane, London
E1 7HA.
Online Shareholder Presentation
The Directors will be holding an Online Shareholder Presentation on 31 March 2025 at 11:00 a.m. Further details and how
to register are included in the Chair’s Statement.
Recent Ordinary Share Capital History
Shares Issued Share Buybacks Shares in Issue
Year ended 31 December
Ordinary* Ordinary* Ordinary*
2018
1,788,325 n/a 640,717,725
2019
5,942,290 n/a 646,660,015
2020
400,000 4,866,705 128,438,662
2021
- 12,884,030 629,309,280
2022
- 4,244,815 625,064,465
2023
1,050,000 5,248,133 620,866,332
2024
- 17,737,113 603,129,219
* 2018 to 2022 restated to reflect the 5:1 share subdivision on 24 April 2023
History
Murray International Trust PLC started its life in 1907 as The Scottish Western Investment Company Limited. The Scottish
Western of the early days was very highly geared but it was mainly invested in bonds, though the international spread
resembled that of today, with countries such as Argentina, China, Japan, Canada and many others appearing in the
portfolio. Although the range of currencies was much smaller, multi-currency or even gold-backed bonds were
commonplace, as many of the era’s bond certificates show. The big move into equities came after the 1930s slump,
when bond defaults forced the purchase of higher yielding equities to fund the costs of the Company’s gearing. The
Managers were not slow to spot an opportunity, but it started as Hobson’s choice, and was only later hailed as
brilliant foresight.
In 1929 just under 20% of the assets were in equities, in 1940 38%, in 1948 51% of the assets, which were still only £2.65
million. After deducting the preference shares (which were repaid in 1999) and debentures, the Company was
effectively over 100% geared into equities by the start of the great post war boom. After a number of amalgamations,
the Company emerged as a generalist investment trust. However, there was an excess of trusts with a similar broad
remit, so towards the end of the 1970s the Board defined the investment brief more narrowly as the achievement of
growth in income and capital through a well-diversified portfolio. Symbolised by the name change from Murray
Western to Murray International Trust PLC in 1984, the focus has since been on a relatively high yielding portfolio of
equities in a well-diversified mix of world markets.
In 2008 the Board circulated to all shareholders a short booklet to commemorate the centenary of the incorporation of
the Company on 18 December 1907. In 2018 the Centenary Booklet was updated. Copies are available on the website,
murray-intl.co.uk or from the Company Secretary.
Shareholder Information
Murray International Trust PLC 137
Directors
V. Holmes (Chair)
C. Binyon
W. Colquhoun
G. Eckersley
A. Mackesy (Senior Independent Director)
N. Melhuish
Secretaries and Registered Office
abrdn Holdings Limited
1 George Street
Edinburgh EH2 2LL
E-mail:
CEF.CoSec@abrdn.com
Registered in Scotland as an Investment
Company
Company Number SC006705
Website
murray-intl.co.uk
Points of Contact
The Chair, the Senior Independent Director and the
Company Secretary at the registered office of the
Company
Email:
VirginiaHolmes.Chair@abrdn.com
Manager
abrdn Investments Managers Limited
AIFM
abrdn Fund Managers Limited
Broker
JPMorgan Cazenove
Registrars
MUFG Corporate Markets (
formerly Link Group
)
Central Square
29 Wellington Street
Leeds LS1 4DL
Tel: +44 (0) 371 664 0300
(lines are open 9.00am-5.30pm Mon-Fri excluding public
holidays in England & Wales)
Calls to 0371 are charged at the standard geographic
rate and will vary by provider. Calls outside the United
Kingdom are charged at the applicable international rate.
E-mail
: shareholderenquiries@cm.mpms.mufg.com
Share portal:
signalshares.com
Depositary
The Bank of New York Mellon (International) Limited
Independent Auditor
BDO LLP
United States Internal Revenue Service
FATCA Registration Number (GIIN)
8Y8Z2N.99999.SL.826
Legal Entity Identifier (LEI)
549300BP77JO5Y8LM553
Contact Addresses
For more information visit murray-intl.co.uk
aberdeenplc.com