abrdn.com

Murray Income Trust PLC

Annual Report 30 June 2022

An investment trust founded in 1923 aiming

for high and growing income with capital growth

The Company aims for a high and growing

income combined with capital growth through

investment in a portfolio principally of UK equities.

Financial Calendar

Payment months of quarterly dividends

March, June, September, December

Financial year end

30 June

Expected announcement of annual results

September

Annual General Meeting

November

Front cover image: Glasgow Science Centre

Investment Objective

Murray Income Trust PLC 1

Neil Rogan, Chairman

Charles Luke and Iain Pyle,

Investment Manager

Overview

Performance Highlights 2

Strategic Report

Chairman’s Statement 4

Investment Manager’s Review 7

Investment Case Studies 11

Performance 12

Financial Highlights and Dividends 14

Overview of Strategy 15

Promoting the Success of the Company 22

Portfolio

Ten Largest Investments 26

Portfolio 27

Sector Comparison with the Benchmark 30

Summary of Investment Changes During the Year 31

Governance

Board of Directors 34

Directors’ Report 37

Statement of Corporate Governance 45

Directors’ Remuneration Report 46

Audit Committee’s Report 50

Statement of Directors’ Responsibilities 53

Independent Auditors’ Report to the Members of Murray

Income Trust PLC 54

Financial Statements

Statement of Comprehensive Income 64

Statement of Financial Position 65

Statement of Changes in Equity 66

Statement of Cash Flows 67

Notes to the Financial Statements 68

Corporate Information

Information about the Manager including Investment

Process 90

How the Investment Manager approaches ESG 93

Investor Information 98

AIFMD Disclosures (Unaudited) 101

General

Alternative Performance Measures 103

Glossary of Terms 106

Notice of Annual General Meeting 107

Additional Shareholder Information 113

Contents

2 Murray Income Trust PLC

Net asset value total return

Share price total return

(

4.0

)

(

0.7

)

2021: +20.6% 2021: +18.5%

Benchmark total return

Ongoing charges

+1.6% 0.48%

2021: +21.4% 2021: 0.46%

Earnings per share (revenue) Dividend per share

40.5

36.00

2021: 33.7p 2021: 34.50p

Discount to net asset value

Dividend yield

3.8% 4.3%

2021: 6.8% 2021: 4.0%

Total return as defined on page 105.

Considered to be an Alternative Performance Measure. Further details can be found on pages 104 and 105.

The Company’s benchmark is the FTSE All-Share Index.

Net Asset Value per share Dividends per share Mid-market price per share

At 30 June – pence Year ended 30 June – pence At 30 June – pence

856.3

888.1

808.3

934.6

864.9

18 19 20 21 22

33.25

34.00

34.25

34.50

36.00

18 19 20 21 22

784.0

850.0

768.0

871.0

832.0

18 19 20 21 22

Performance Hi

hli

hts

Murray Income Trust PLC 3

Strategic Report

Owned partly by SSE, a portfolio company,

the Clyde Wind Farm in South Lanarkshire,

Scotland, operates 206 turbines with an

installed capacity of 522MW.

4 Murray Income Trust PLC

Highlights

· a poor second half resulted in full year performance

behind the FTSE All-Share Index

· total dividends per share increased by 4.3% to 36.00p,

the 49

year of consecutive increase

· the dividend yield was 4.3% based on the year end

share price of 832.0p

Review of the Year ended 30 June 2022

(the “Year”)

Having been a little ahead of the FTSE All-Share Index (the

“Benchmark”) at the interim stage, it is disappointing to

report that the total return numbers for the Year show

your NAV decreasing by 4.0% and your share price falling

marginally by 0.7%. Your Company has underperformed

the Benchmark which has seen a total return of 1.6%. The

pain was clearly taken in the second half and

performance attribution analysis shows that the

underperformance can be pinned in broadly equal parts

on style rotation and stock selection. Although your

Manager’s investment style does not lead to a technology

or an internet bias, its search for “quality” means it will

typically be underweight the “value” sectors of the market.

Additionally, like many other managers, their ESG work

has led them to have a low exposure to oil and gas stocks.

Prompted by the Nasdaq sell off that began in January,

and accelerated by the Russian invasion of Ukraine that

led to commodity prices rising dramatically, what were

deemed low-quality resource and bank stocks have

performed very strongly. Compounding this unfriendly

style rotation were some stock specific issues, as ever,

easier to see with hindsight. Coca Cola Hellenic, Inchcape

and Mondi (representing 5.7% of NAV, in aggregate) were

hit by their Russian exposure. Countryside

Partnerships had

problems all of its own making. The Investment Manager

explains performance in further detail in the Investment

Manager’s Review.

The Board has declared a fourth interim dividend per

share of 11.25p, payable on 15 September 2022, which

makes a total for the Year of 36.0p, an increase of 4.3% on

the 34.5p per share paid in the previous year. This marks

the 49

consecutive year of dividend increases, securing

our continued place on the AIC’s list of Dividend Heroes.

Revenue per share for the year grew to an all-time high of

40.5p, up 20.2% from the previous year’s 33.7p, and the

36.00p dividend was 112% covered by net income

received during the Year. As a consequence, we were

able to use the excess to bolster revenue reserves per

share from 12.9p to 17.5p, equivalent to 48% of the current

annual dividend of 36.00p, up from 37% coverage at the

previous year end. The Board gave extensive

consideration as to how much to grow the dividend,

recognising the impact that inflation is having on

shareholders’ real income, and how much to add to

reserves. Two factors influenced us in our decision. First,

the Board’s aim is that revenue reserves per share be in

the range of a half to a full year’s dividend per share.

Second is our Investment Manager’s projection that

revenue per share is expected to fall next year before

rising again thereafter, affected by the absence of some

companies’ post-Covid-19 bumper dividends and the

effects of continued supply chain disruption, as well as

increasing inflation.

Environmental, Social and Governance

(“ESG”)

ESG considerations are deeply embedded into the

company analysis carried out by our Investment Manager,

which is able to draw on the expertise of more than 40 in-

house ESG specialists. This aims to mitigate risk and

enhance returns, results in frequent dialogue with investee

companies and helps to ensure that the companies in the

portfolio are acting in the best long-term interests of their

shareholders and society at large. It is important to note

that the policy pursued by our Investment Manager on our

behalf is dynamic rather than static. ESG conclusions can

change if the inputs change: for example, one might look

at Russia’s invasion of Ukraine and conclude that the social

factor of security and safety is more important now than

previously considered. Similarly, one might consider

energy security be given a higher weight relative to

absolute CO

emissions and come to a different

conclusion on holding an oil or gas stock. Further

information on how the Investment Manager considers

ESG factors may be found on pages 93 to 97.

Discount

From the start to the end of the Company’s year, the

discount at which the Company’s share traded relative to

the NAV, narrowed from 6.8% to 3.8%. The average

discount over the year was 6.1% and the range was 3.1%

to 8.2%. The Board monitors the discount level closely and

requests permission from shareholders at each AGM to

renew the buyback and issuance policy.

Share Capital

The Company bought back 356,015 shares into Treasury

during the Year, equivalent to 0.3% of share capital. No

shares were issued or sold from Treasury. As at 30 June

2022, there were 116,690,472

Ordinary 25p shares in issue

with voting rights and 2,839,060

shares held in Treasury.

Chairman’s Statement

Murray Income Trust PLC 5

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

Ongoing Charges

The 2020 merger with Perpetual Income & Growth

Investment Trust has enabled us to reduce substantially

the level of ongoing charges to shareholders. The largest

cost is the investment management fee payable to abrdn

which is calculated on a sliding scale with a marginal rate

of 0.25% per annum on assets over £450m. The effect of

expanding the Company has produced a blended

management fee rate of 0.40% for the Year.

With most of the other ongoing charges being fixed costs,

the Company’s overall ongoing charges rate has risen

marginally to 0.48%, from 0.46%, as the NAV has fallen.

Borrowing and Gearing

The Board reviews on a regular basis both the Company’s

borrowings and the use of those borrowings to gear the

portfolio. The Company has £100m of long-term

borrowings with £40m due in 2027 and £60m due in 2029

at a blended annual interest rate of 3.6%. During the Year,

the short-term multicurrency facility with The Bank of

Nova Scotia Limited was increased by £30m to £50m.

Consequently, at the year end, the Company had £150m

of borrowing facilities available representing 14.9% of net

asset value. With the beta of the investment portfolio

currently running at 0.9 (typical of the Investment

Manager’s style), the Board believes that the appropriate

neutral gearing rate is 10%. At the year end the actual

gearing rate was 9.4% (2021: 10.3%). The annual cost of

the Company’s current borrowings was 0.23% of the year

end NAV.

Board Composition

As previously announced, Jean Park and Donald Cameron

retired from the Board at the conclusion of the November

2021 AGM, both having served their full nine-year terms.

We were pleased to announce that Nandita Sahgal Tully

joined us shortly thereafter, bringing with her more than 25

years’ experience in financial services, including ESG and

impact investing in both the UK and emerging markets,.

These changes take the Board back to its normal

complement of six Directors.

Shareholder Presentation on 2 November

2022

After welcoming shareholders to our Annual General

Meeting in London on 1 November 2022 we will also hold

an online presentation for existing and potential

shareholders at 2pm on 2 November 2022. This will include

the opportunity to pose questions to your Chairman and

Investment Manager.

Please register for this event at:

https://events.abrdn.com/zo7Yk3 or via the Company’s

website. Questions may also be submitted in advance to

murray.income@abrdn.com.

Annual General Meeting

The Company expects to hold the Annual General

Meeting (“AGM”) in its traditional format, without any

restrictions imposed by measures to restrict the

transmission of Covid-19. The Company will update

shareholders as to any changes to the proposed

arrangements for the AGM through its website at murray-

income.co.uk

and, where appropriate, through

announcement on the London Stock Exchange.

The AGM will be held at 12.30pm on 1 November 2022 at

The Mermaid Conference Centre, Puddle Dock,

Blackfriars, London EC4V 3DB. One of the advantages of

investing via investment trusts is that all shareholders have

the opportunity to meet their Investment Manager and the

Directors at the AGM. This year’s meeting will commence

with a presentation on the Company and market outlook

from our Investment Manager, Charles Luke. There will

then be the formal part of the meeting where

shareholders get to ask questions about, and vote on, the

AGM resolutions. After this will be an informal lunch at

which shareholders will be able to chat to the Investment

Manager and Directors. Shareholders may bring a guest

with them to the meeting.

I always welcome questions from our shareholders at the

AGM. Shareholders are asked to submit their questions

prior to the meeting (and in any event by no later than 18

October 2022) by email to murray.income@abrdn.com in

relation to the Annual Report, the Notice of AGM or the

Company more generally. This is also the email address if

you wish to attend the AGM and are unsure how to

endeavour to respond to all such questions received.

Update

From 30 June 2022 to 16 September 2022, being the latest

practicable date prior to approval of this Report, the share

price total return and NAV per share total return were

-2.8% and 1.5%, respectively, as compared to the

Benchmark total return of 1.9%.

Outlook

The Outlook section of the Chairman’s Statement is

always the most difficult to write. It obviously has to be a

considered and realistic reflection on the outlook for the

Company. But there is also an expectation for a wider

commentary and opinion on the outlook for markets.

6 Murray Income Trust PLC

Plus there’s scope for a personal touch. I’m still surprised at

how many Chairman’s statements appear to be written

by the Manager instead of the Chairman. I start writing in

July once the preliminary performance numbers come in

and I’ve been briefed about our Investment Manager’s

review. After a couple of drafts, it is submitted to the

Company Secretary who distributes it to the rest of the

Board for review in late August. My fellow Directors then

provide a welcome, and sometimes robust, number of

edits and often a section has to be completely rewritten

because it has been overtaken by events. Eventually, by

the time of our September Board meeting, we agree the

final wording for inclusion in the Annual Report for issue

to shareholders.

We find ourselves in a scarcely credible era of uncertainty

and without strong political, economic or social leadership.

Domestic politics, geopolitical tensions and war, inflation,

labour shortages, recession, strikes, energy shortages; all

these factors have the capacity to heavily affect the

outlook for the companies in which we invest. Every one of

them is impossible to predict with confidence at the

moment. So what is the outlook? In truth, we can’t be sure.

All the issues are fixable but not without strong leadership.

That’s the most concerning thing this time around. After

similar issues in the 1970s, the 1980s saw Margaret

Thatcher, Ronald Reagan, Mikhail Gorbachev and,

perhaps most importantly, Paul Volcker (chairman of the

US Federal Reserve from 1979 to 1987) provide very

strong leadership and guide their countries to recovery.

I’m a naturally optimistic person so I scour the TV news

and politics programmes for the world’s new generation

of strong leaders which will take us towards recovery. I’m

still looking. Full recovery may take a long time.

What will happen to the companies in our portfolio while

we wait? Based on trailing earnings, the PER (price to

earnings ratio, the most popular stock valuation measure)

of our current portfolio is 13x. That is down from 16x six

months ago and is the lowest I have seen it in the eight

years I have been a Director. It has been as high as 20x. To

me that means that a lot of the bad news is priced in. If you

think about the headlines we’ve been reading these past

six months, it is possible to make a case that much of the

bad news is behind us. But note that this is a valuation

measure based on the previous 12 months of earnings. If

corporate earnings are about to tumble, then stock

markets could move down in parallel and still give the

same valuation. That’s the real danger, so not surprisingly

our Investment Manager is analysing our holdings’

earnings prospects with extra vigilance. One of the main

reasons behind our Investment Manager’s quality

philosophy is that the companies selected should be

sufficiently robust and well managed to withstand

turbulent times like these. We have great faith in our

Investment Manager’s long-term investment approach.

In theory, it should be a good

moment for quality. In reality,

we will have to wait and see.

Neil Rogan

Chairman

21 September 2022

Chairman’s Statement

Continued

Murray Income Trust PLC 7

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

Background

For the UK equity market, the year ended 30 June 2022

(the “Year”) started with continued good progress aided

by robust earnings delivery and supportive oil prices. This

was despite concerns around Covid-19 (in particular the

Delta variant in July 2021 and the Omicron variant from

November 2021). While the stockmarket recognised rising

prospects for inflation and higher interest rates, these

were not yet seen as a risk. As the Year progressed these

two factors were increasingly in focus and have largely

driven stockmarket direction in the second half of the

Year. Early in 2022, the rising stockmarket stalled, as higher

interest rates led to a sharp market rotation away from

growth stocks and towards more value sectors. This

rotation was exacerbated as tensions escalated in

eastern Europe with the sharpest fall on 24 February 2022

when Russian troops invaded and launched attacks on

airports and military sites in Ukraine. The impact of the

Russian invasion on commodity prices increased

inflationary pressures globally. Markets recovered

somewhat soon after but ongoing fears of higher inflation

and the risk of a global recession fuelled a fresh wave of

selling in June 2022.

Domestic economic data published across the Year

reflected the circuitous return to more normal economic

conditions. Growth was initially aided by the lifting of the

remaining legal restrictions to control Covid-19 in late

February 2022. However, the rebound in activity levels

combined with tight supply in many areas and higher

commodity prices meant that levels of inflation have

repeatedly been higher than expected. The last reading of

9.9% in August (as measured by the Consumer Prices

Index) marked another 40-year high, down slightly from

10.1% for July. Energy prices, as well as clothing, food and

second-hand car prices, have been major factors,

compounded by ongoing global supply chain issues.

The Bank of England (“BoE”) raised interest rates to 0.25%

at its December meeting, which was the first movement

for over three years, before an additional four increases

resulted in a rate of 1.25% by 30 June 2022. In early August

2022, the BoE revised its forecasts for peak inflation of 13%

in late 2022, driven by higher household energy prices. A

predicted contraction in GDP for up to five quarters

signalled that the UK would enter a recession. At the same

time the BoE announced a further 0.5% increase in interest

rates, to 1.75%, the largest single rise in 27 years.

Overseas, the global economy is expected to slow in 2022

as remaining outbreaks of Covid-19 variants, supply

bottlenecks and the Russian invasion of Ukraine all weigh

on activity. At each of their June 2022 and July 2022

meetings, the US Federal Reserve raised rates by 0.75% as

it sought to control inflation. China continues to operate a

zero-Covid-19 policy which has led to renewed

lockdowns and weak GDP data. Oil and other commodity

prices have increased over the Year driven by the Russian

invasion of Ukraine and concerns over supply disruptions.

Risks of sustained higher prices are greater due to a period

of under investment compounded by supply disruption.

The International Monetary Fund expects the global

economy to grow by only 3.6% in each of 2022 and 2023,

as compared to growth of 6.1% in 2021.

Equities were stable over the Year, although that masks

the underlying volatility experienced by markets. The

Benchmark ended the Year 1.6% higher on a total return

basis (that is, with dividends reinvested), but that came as

a result of a 6.5% rise in the second half of calendar 2021,

followed by a 4.6% fall in the first six months of 2022. The

energy sector performed exceptionally strongly in the

Year as oil and gas prices spiked. On the other hand the

weakest performance was seen in the technology sector

where valuations of long-dated cash flows were impacted

by the significant rise in base rates. In a broad reversal of

the prior year’s performance, the more defensive areas of

the market such as healthcare, utilities and

telecommunications performed well while more cyclical,

economically-sensitive areas of the market such as

consumer discretionary and industrials underperformed.

From a size perspective, reversing the pattern of the

previous year, the FTSE 100 Index significantly

outperformed both the Mid 250 and Small Cap Index, with

the divergence in performance most prevalent in the first

half of 2022.

Performance

The Company generated a negative net asset value per

share total return of 4.0% for the Year which compares to

a strong 20.6% rise in the prior year. The benchmark FTSE

All-Share Index increased by 1.6% over the Year. The

portfolio modestly outperformed in the first and second

quarters of the Year but underperformed during the third

and final quarters. This relative underperformance since

the start of 2022 reflects a market style rotation from

growth and quality to value, initially benefitting the energy

and financial sectors, with the outperformance of energy

sustained following the Russian invasion of Ukraine.

Interest rate increases, as central banks look to control

rising inflation, have meant growth companies with long-

dated cash flows underperformed. Given the portfolio’s

focus on high quality companies, underweight position in

energy and tobacco stocks, and its above Benchmark

exposure to mid-cap companies, it is unsurprising that the

portfolio underperformed in these circumstances.

Investment Mana

er’s Review

8 Murray Income Trust PLC

Long term returns remain positive compared to the

Benchmark and it is also important to consider risk-

adjusted returns or, in other words, how much

performance is being generated for each unit of risk. One

measure of this is the ‘information ratio’ and it was

pleasing that the Company, for the second consecutive

year, was awarded the Citywire UK Equity Income

Investment Trust of the Year for a three year information

ratio considerably ahead of all of its peers.

On a total return basis, the Company’s share price

decreased by 0.7% which reflected a narrowing of the

discount to Net Asset Value at which the shares traded

from 6.8% to 3.8%.

In absolute terms, taking account of the £60m of senior

secured fixed rate notes 2029, £40m of senior secured

fixed rate notes 2027, as well as £6.5m drawn down from

an unsecured multi-currency revolving credit loan facility

agreement with The Bank of Nova Scotia Limited, debt

was £106.5m at the end of the Year. The net gearing was

9.4% at the end of the Year as compared to 10.3% at the

end of the prior year.

Looking specifically at the Company’s portfolio, asset

allocation and stock selection both held back

performance over the Year with asset allocation being a

more significant contributor to underperformance than

stock selection where the impact was more modest.

Negative asset allocation in the Year primarily reflected

the portfolio’s lower exposure to the energy sector and

higher exposure to the industrials and financials sectors.

Turning to the individual holdings, there were numerous

companies that demonstrated strong share price

increases. The share prices of Novo Nordisk, Drax, and

Total Energies all increased by over 40% during the Year.

However, the two poorest share price performances were

from Countryside Partnerships and Ashmore whose share

prices both fell by 52%. Countryside Partnerships

underperformed as the company announced the CEO

would be stepping down following poor execution and a

failure to meet build targets. In our view the issues the

company faced are fixable and partnership housing

remains an attractive segment of the market given

structural demand growth and high returns. The shares of

Ashmore have been weak as emerging market debt has

been out of favour leading to fund outflows. The holdings

in Coca Cola Hellenic, Inchcape and Mondi also contributed

negatively to performance, with each of these companies

having exposure to Russia and/or Ukraine

Performance Attribution for the

year ended 30 June 2022

Net Asset Value total return for year per Ordinary share

–4.0

FTSE All Share Index total return

1.6

Relative return

–5.6

Relative return

Stock selection

Energy

–0.2

Basic Materials

–0.5

Industrials

0.1

Health Care

0.3

Consumer Staples

–0.6

Consumer Discretionary

0.4

Telecommunications

–0.3

Utilities

0.3

Technology

0.2

Financials

–1.0

Real Estate

0.5

Total stock selection (equities)

–0.8

Asset allocation (equities)

Energy

–1.6

Basic Materials

–0.1

Industrials

–1.7

Health Care

–0.6

Consumer Staples

–0.8

Consumer Discretionary

0.5

Telecommunications

–0.1

Utilities

0.4

Technology

–0.8

Financials

0.9

Real Estate

–0.3

Total asset allocation (equities)

–4.2

Cash & options

0.4

Gearing

–0.4

Administrative expenses

–0.2

Management fees

–0.4

Total

–5.6

Sources : abrdn, BNP

Notes: Stock Selection – measures the effect of equity selection relative to the

benchmark. Asset Allocation – measures the impact of over or underweighting each

industry basket in the equity portfolio, relative to the benchmark weights. Cash &

options effect – measures the impact on relative returns of the two asset categories.

Gearing effect – measures the impact on relative returns of net borrowings.

Administrative expenses and management fees – these reduce total assets and

therefore reduce performance.

Investment Mana

er’s Review

Continued

Murray Income Trust PLC 9

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

Portfolio Activity and Structure

Turnover of approximately 18% was lower than in the prior

year. The pattern of trades reflects reduced exposure to

several of the largest companies in the market and a

willingness to increase the active share (see Glossary on

page 106) of the portfolio (being its similarity to the

constituents of the Benchmark), which is now

approximately 70%, while further both improving the

quality of the portfolio and maintaining the focus on

capital and dividend growth.

Eleven new holdings, of which three were large cap

companies, were added to the portfolio. The first of these

was Experian, the global information services company,

which has high margins and strong pricing power,

meaning this winning business should prove resilient to

higher inflationary pressures. We also started a position in

London Stock Exchange Group, the global financial

markets infrastructure and data provider, where there are

long-term structural drivers and signs of good operational

progress as it integrates the Refinitiv business. The sale of

Rio Tinto (see below) allowed the purchase of Anglo

American given its strong ESG characteristics and greater

exposure to future-facing commodities (further

information may be found on page 94).

There were five mid-cap company introductions. The first

was Drax, the renewable energy company working with

waste wood products, where we see upside potential

from BECCS (bioenergy with carbon capture and

storage) which now has robust political backing, support

from higher UK power prices and an attractive dividend

yield. The second mid-cap new entrant was insurer Hiscox

where we believe the strength of the retail business is

underappreciated and the company should benefit from

a stronger rate environment. We participated in the IPO of

private equity firm Bridgepoint, which has an experienced

management team and good client relationships. The

fourth purchase was HomeServe, the home emergency

and repair services provider, where we saw the valuation

as attractive given the good growth potential in the US as

well as a generous dividend yield. The final mid-cap new

entrant was a position in the high quality, high end

scientific instruments business, Oxford Instruments. The

business is exposed to high growth markets and the

management team have a good track record. The

valuation became particularly attractive in light of the

withdrawal of the bid from Spectris.

Two overseas holdings were added to the portfolio. The

first was Nordea which we view as a higher returning bank

operating in the Nordic region with an attractive dividend

yield. The return of positive interest rates will have a

material positive impact on bank profitability, and with a

strong capital position this should translate into appealing

shareholder distributions. We also started a new position in

Singapore-listed Oversea-Chinese Banking Corp which

provides attractive exposure to Asian banking, wealth

management and insurance markets and should be a

beneficiary of rising rates. Also, one small cap company

was introduced, Watkin Jones, a developer with a

market-leading position which provides exposure to the

attractive build to rent and purpose built student

accommodation markets

In addition, we increased exposure to a number of our

existing holdings which we believe have high quality

characteristics with attractive long term growth prospects

including: Aveva, RS Group, BP, Intermediate Capital,

Moonpig, Rentokil, Sage, and Unilever.

We sold fourteen holdings during the Year. Firstly,

LondonMetric

, as we believed that after a period of strong

performance, the valuation and dividend yield of the

company was no longer compelling. Secondly, the small

holding in Telecom Plus was exited given the uncertain

industry backdrop. Thirdly, the very small holding in

Jackson Financial

shares that were received when the

business was demerged from Prudential were sold. In the

first half of the Year both John Laing and Sanne were sold

at a pleasing profit following bids. The position in beverage

company Fever-Tree was exited as persistent earnings

downgrades weakened our conviction while the stock

was also still valued at a premium rating. The holding of

mining company Rio Tinto was sold with the proceeds

used to purchase a holding in Anglo American. Similarly,

later in the Year, the position in private equity firm

Bridgepoint was sold with proceeds reinvested into

Intermediate Capital. Following the firm offer from

Brookfield the position in HomeServe was sold, providing

an excellent return over a relatively short timeframe. Four

holdings with some cyclical exposure, which had become

smaller positions in the portfolio after profit taking during

the Year, were sold, namely Bodycote, DS Smith, Prudential

and Sirius Real Estate. Finally, the small position in

Woodside Energy that was received through the BHP spin-

off was sold.

In addition, we took profits in a number of holdings that

had performed strongly and where the valuation had

started to look less attractive including AstraZeneca,

Dechra Pharmaceuticals, VAT Group and National Grid.

We continued our measured option-writing programme

which is based on our fundamental analysis of the

holdings in the portfolio. We believe that the option-

writing strategy has been of benefit to the Company by

diversifying and increasing the level of income generated.

10 Murray Income Trust PLC

It also provides headroom to invest in companies with

lower starting yields but better dividend and capital

growth prospects. Income from writing options of £2.8m

represented 5.5% of total income earned in the Year.

With our longer term investment horizon, we continue to

put significant effort into engagement with the companies

in the portfolio to ensure that they are run in shareholders’

best interests. Examples of the subjects of our

engagement during the Year have included issues such as

board composition, capital allocation and M&A activity,

and risk management (including issues such as labour

management, diversity & inclusion, climate change and

environmental issues). These issues have been pursued

through meetings with the executive management of the

companies as well as the non-executives, particularly the

chairs of the board and remuneration committees. The

portfolio continues to be independently rated as ‘AAA’ (the

highest level) by MSCI for its ESG characteristics. Further

information may be found on page 96.

Our aspiration in terms of portfolio construction is simple:

to invest in good quality companies with attractive growth

prospects through a sensibly diversified portfolio with

appealing dividend characteristics. The ability to invest up

to 20% of gross assets overseas is helpful in achieving

these aims and, at the year end, the portfolio comprised

61 holdings with the overseas exposure representing

14.2% of gross assets.

Income

For the Year, the Company witnessed a significant

increase in the level of income due to the addition of new

dividend-paying holdings, growth in the dividends of

existing portfolio companies and a number of special

dividends. Six special dividends (from Kone, Rio Tinto, Mowi,

Fever-Tree, Anglo American and VAT Group) were

included in income from investments and were treated as

revenue items. We believe that this recognition is

appropriate given that, in each case, the return of cash

was from a build-up of profits generated by ongoing

operations rather than from a sale of assets.

According to Link Group’s most recent UK Dividend

Monitor report, UK plc dividends are expected to rise by

2.4% for calendar 2022 (following the 12.5% increase for

calendar 2021), with a record pay-out in the second

quarter, signalling a swifter recovery from the difficult

times experienced during Covid-19. The Company’s

earnings per share increased by 20.2% from 33.7p to

40.5p. Helped by bumper dividends from mining holdings

Rio Tinto and BHP, earnings per share for the Company

surpassed pre-pandemic levels in the Year. We remain

confident about the long term income growth potential of

the portfolio but income for the year ended 30 June 2023

is unlikely to match the exceptional income for the Year.

Outlook

Looking forward, the outlook is becoming more difficult

with a tightening policy backdrop and inflationary

challenges coupled with the implications of the Russian

invasion of Ukraine, all leading to slower global growth.

Despite that there are reasons to be confident in the

outlook for the Company. Our focus on quality companies

provides protection through a downturn: those companies

with pricing power, high margins and strong balance

sheets are better placed to navigate a more challenging

economic environment and emerge in a strong position.

Furthermore, these quality characteristics are helpful in

underpinning the portfolio’s income generation.

The valuations of UK-listed companies remain attractive

on a relative and absolute basis. Moreover, the dividend

yield of the UK market remains at an appealing premium

both to other regional equity markets and to other asset

classes. Indeed, we believe that in many cases the

attractiveness of our holdings is not reflected in their share

prices, particularly given the underlying strengths of the

businesses. This view is reflected in the bids for holdings

including HomeServe and Euromoney. We think a fair

proportion of the portfolio may be vulnerable to corporate

activity and it is noteworthy that private equity purchasers

often look for attractive quality characteristics in potential

acquisitions that dovetail with our investment criteria.

Furthermore, international investors remain underweight

the UK; this provides an additional underpin.

In summary, we feel comfortable maintaining our long

term focus on investments in high quality companies with

robust competitive positions and strong balance sheets,

which are led by experienced management teams and

are capable of delivering sustainable earnings and

dividend growth.

Charles Luke and Iain Pyle

Investment Manager

21 September 2022

Investment Mana

er’s Review

Continued

Murray Income Trust PLC 11

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

London Stock Exchange Group

With a market capitalisation of approximately £46bn,

London Stock Exchange Group was purchased for the

portfolio during the year. With the acquisition of Refinitiv in

2021 the company has continued its transformation from

a traditional exchange towards being a global financial

markets infrastructure and data provider. Approximately

70% of revenues now come from providing Data &

Analytics services, exposing the group to the structural

growth in demand for financial data. A similar portion of

group revenues are recurring, subscription-based in

nature which provides resilience. We see some areas of

the business, for example the clearing house LCH, as

having very high barriers to entry. The cash generative

nature of the group means that the balance sheet has

strengthened quickly following the Refinitiv acquisition. We

think that accelerating revenue growth and delivery of

revenue and cost synergies will lead to the company

being valued as a leading information services company

with clear quality characteristics.

Oxford Instruments

Oxford Instruments, the provider of high technology

instrumentation products and services to industrial and

scientific research communities, was added to the

portfolio in the year. The company has an approximate

market capitalisation of £1bn. Oxford Instruments is a

technological leader in the products it provides and strong

commercial leadership has ensured strong customer

relationships and high barriers to entry. The company is

well diversified by end market, customer type and

geographically which helps mitigate volatility and we think

its strong pricing power will be helpful in the current

environment. The financials of the company are on an

improving trajectory with revenue growth aligned to the

long-term growth in research and development budgets

and expanding margins. The company has a net cash

balance sheet and high returns. We added the stock to

the portfolio following the withdrawal of a bid for the

company from Spectris which created a particularly

attractive entry point for the valuation of a company with

strong fundamentals and good prospects over the

medium to long term.

Investment Case Studies

12 Murray Income Trust PLC

Performance (total return, including reinvested dividends)

1 year return 3 year return 5 year return 10 year return

% % % %

Share price

–0.7 +10.8 +29.6 +100.7

Net asset value per Ordinary share

–4.0 +9.6 +22.9 +101.3

Benchmark

+1.6 +7.4 +17.8 +94.6

Considered to be an Alternative Performance Measure. Further details can be found on page 105.

FTSE All-Share Index.

Source: abrdn & Morningstar

Ten Year Financial Record

Year end 30 June 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Income (£’000) 23,566 23,926 25,476 24,838 26,667 25,987 25,597 22,804 35,979 51,018

Shareholders’ funds (£’000) 492,878 547,652 515,888 515,036 576,462 570,929 587,150 534,361 1,093,859 1,009,255

Per Ordinary share (p)

Net revenue return 31.1 30.5 33.1 32.0 34.9 33.6 34.9 30.5 33.7 40.5

Dividends

30.75 31.25 32.00 32.25 32.75 33.25 34.00 34.25 34.50 36.00

Net asset value (capital only) 734.6 805.2 757.1 766.5 860.1 856.3 888.1 808.3 934.6 864.9

The figures for dividends per share reflect the years to which their declaration relates and not the years they were paid.

Performance

Murray Income Trust PLC 13

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

Total Return of NAV and Share Price vs FTSE All-Share Index

Five years ended 30 June 2022 (rebased to 100 at 30 June 2017)

100

110

120

130

140

150

30/06/17 30/06/18 30/06/19 30/06/20 30/06/21 30/06/22

Source: Morningstar & Lipper

Price

NAV

FTSE All

Share Price Discount to NAV with debt at par value

Five years ended 30 June 2022

-12%

-10%

-8%

-6%

-4%

-2%

30/06/2017 30/06/2018 30/06/2019 30/06/2020 30/06/2021 30/06/2022

Source: abrdn & Lipper

14 Murray Income Trust PLC

30 June 2022 30 June 2021 % change

Shareholders’ funds (£’000) 1,009,255 1,093,859 –7.7

Net asset value per Ordinary share – debt at par 864.9p 934.6p –7.5

Market capitalisation (£’000) 970,865 1,019,475 –4.8

Share price of Ordinary share 832.0p 871.0p –4.5

Discount to net asset value on Ordinary shares – debt at par

3.8% 6.8%

Gearing (ratio of borrowing to shareholders’ funds)

Net gearing

9.4% 10.3%

Dividends and earnings

Revenue return per share 40.5p 33.7p +20.2

Dividends per share

36.00p 34.50p +4.3

Dividend cover

1.13 times 0.98 times

Dividend yield

4.3% 4.0%

Revenue reserves (£’000)

Prior to payment of fourth interim dividend

33,491 26,485

After payment of fourth interim dividend 20,363 15,073

Operating costs

Ongoing charges ratio

0.48% 0.46%

Considered to be an Alternative Performance Measure. Further details can be found on pages 103 and 104.

The figures for dividends per share reflect the years in which they were earned (see note 7 on pages 74 and 75).

Per the Statement of Financial Position on page 65.

Dividends

Rate XD date Record date Payment date

First interim 8.25p 25 Nov 2021 26 Nov 2021 22 Dec 2021

Second interim 8.25p 17 Feb 2022 18 Feb 2022 17 Mar 2022

Third interim 8.25p 19 May 2022 20 May 2022 16 Jun 2022

Fourth interim 11.25p 18 Aug 2022 19 Aug 2022 15 Sep 2022

Total dividends 36.00p

Financial Hi

hli

hts and Dividends

Murray Income Trust PLC 15

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

Business Model

Murray Income Trust PLC (the “Company”) is an

investment trust whose Ordinary shares are listed on the

premium segment of the London Stock Exchange.

The Company is governed by a Board of Directors (the

“Board”), all of whom are non-executive, and has no

employees. The Board is responsible for determining the

Company’s investment objective and investment policy.

Like other investment companies, the day-to-day

investment management and administration of the

Company is outsourced by the Board to an investment

management group, abrdn, and other third party

providers. The Company has appointed abrdn Fund

Managers Limited (see Glossary on page 106) as its

alternative investment fund manager, which has in turn

delegated certain responsibilities, including investment

management, to the Investment Manager.

The Company complies with Section 1158 of the

Corporation Tax Act 2010 which permits the Company to

operate as an investment trust.

Investment Objective

The Company aims for a high and growing income

combined with capital growth through investment in a

portfolio principally of UK equities.

Investment Policy

In pursuit of the Company’s investment objective, the

Company’s investment policy is to invest in the shares of

companies that have potential for real earnings and

dividend growth, while at the same time providing an

above-average portfolio yield. The emphasis is on the

management of risk and on the absolute return and yield

from the portfolio as a whole rather than the individual

companies which the Company invests in, which is

achieved by ensuring an appropriate diversification of

stocks and sectors within the portfolio, with a high

proportion of assets in strong, well-researched

companies. The Company makes use of borrowing

facilities to enhance shareholder returns when

appropriate.

Delivering the Investment Policy

The Company maintains a diversified portfolio of the

equity securities of UK and overseas companies with an

emphasis on investing in quality companies with good

management, strong cash flow, a sound balance sheet

and which are generating a reliable earnings stream.

The Investment Manager follows a bottom-up investment

process based on a disciplined evaluation of companies

through direct visits by its fund managers. Stock selection

is the major source of added value, concentrating on

quality first, then price. Top-down investment factors are

secondary in the Investment Manager’s portfolio

construction with diversification rather than formal

controls guiding stock and sector weights.

Board Investment Limits

The Board sets additional investment guidelines within

which the Investment Manager must operate :

· the portfolio typically comprises between 50 and 70

holdings (but without restricting the Company from

holding a more or less concentrated portfolio from time

to time);

· the Company may invest up to 100% of its gross assets

in UK-listed equities and other securities and is permitted

to invest up to 20% of its gross assets in other overseas-

listed equities and securities;

· the Investment Manager may invest in any market

sector, however, the top five holdings may not exceed

40% of the total value of the portfolio and the top three

sectors represented in the portfolio may not exceed

50%; and

· the Company may invest no more than 15% of its gross

assets in other listed investment companies (including

investment trusts).

The Company may use derivatives for the purpose of

enhancing portfolio returns and for hedging purposes in a

manner consistent with the Company’s broader

investment policy. The Investment Manager is permitted

to invest in options and in structured products, provided

that any structured product issued in the form of a note or

bond has a minimum credit rating of “A”.

Gearing

The Board is responsible for setting the gearing policy of

the Company and for the limits on gearing. The Manager

is responsible for gearing within the limits set by the Board.

The Board has set its gearing limit at a maximum of 25% of

NAV at the time of draw down. Gearing - borrowing

money - is used selectively to leverage the Company’s

portfolio in order to enhance returns where this is

considered appropriate. Particular care is taken to ensure

that any financial covenants permit maximum flexibility of

investment policy. Significant changes to gearing levels

are communicated to shareholders.

Overview of Strate

16 Murray Income Trust PLC

Key Performance Indicators

At each Board meeting, the Directors consider a number of Key Performance Indicators (“KPIs”) to assess the

Company’s success in achieving its objectives, and these are described below, with those also categorised as Alternative

Performance Measures marked with an asterisk:

KPI Description

NAV (total return) * relative to

the Company’s benchmark

The Board considers the Company’s NAV (total return), relative to the FTSE All-Share Index, to be

the best indicator of performance over different time periods. A graph showing NAV total return

performance against the FTSE All-Share Index over the past five years is shown on page 13.

Share price (total return) * The Board monitors share price performance relative to open-ended and closed-ended

competitor products, taking account of differing investment objectives and policies pursued by

those products.

The figures for share price (total return) for the Year and for the past three, five and ten years, as

well as for the NAV (total return) per share, are shown on page 12. A graph showing share price

total return performance against the FTSE All-Share Index over the past five years is shown on

page 13.

Discount/premium to NAV * The discount/premium at which the Company’s share price trades relative to the NAV per share is

closely monitored by the Board. A graph showing the discount/premium over the last five years is

shown on page 13.

Earnings and dividends per

The Board aims to meet the ‘high and growing’ element of the Company’s investment objective by

developing revenue reserves sufficient to support the payment of a growing dividend; figures may

be found in Financial Highlights on page 14 in respect of earnings and dividends per share, together

with the level of revenue reserves, for the Year and previous year.

Ongoing charges* The Board monitors the Company’s operating costs and their composition with a view to limiting

increases wherever possible. Ongoing charges are disclosed on page 14 for the Year and the

previous year, and include look through costs.

Principal Risks and Uncertainties

There are a number of risks and uncertainties which, if

realised, could have a material adverse effect on the

Company’s business model, future performance and

solvency. The Board, through the Audit Committee, has

put in place a robust process to identify, assess and

monitor these by means of a risk assessment and internal

controls system. This system was reviewed during the

year and enhanced, as explained in the Audit Committee

Report on page 51. As noted therein, the committee has a

risk register and uses a post-mitigation heat risk map to

identify principal, and emerging, risks.

Macroeconomic uncertainty has been a significant risk

with the second half of the Year particularly affected by

the geopolitical uncertainty caused by the Russian

invasion of Ukraine. By contrast, the economic and market

instability due to Covid-19 gradually receded during the

Year although secondary impacts are ongoing. Other

than these changes, the Audit Committee does not

consider that the principal risks and uncertainties

identified have changed during the Year, although

impacts and probabilities thereof have changed.

In addition the Board has identified, as an emerging risk

which it considers is likely to become more relevant for the

Company in the future, the implications for the Company’s

investment portfolio of climate change; further details

may be found under ‘Market Risk’.

The following table sets out the Company’s principal risks

and the Company’s mitigating actions and comments if

the post-mitigation risk assessment has changed,

together with the reason why.

Overview of Strate

Continued

Murray Income Trust PLC 17

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

Principal Risk Mitigating Action

STRATEGIC

Discount control risk (increased)

Investment trust shares tend to trade at discounts to their

underlying NAVs, although they can also trade at premium.

Discounts and premiums can fluctuate considerably leading to

more volatile returns for shareholders.

The Board monitors the discount at which the Company’s

shares trade and will buy back or issue shares to try to minimise

the impact of any discount or premium volatility. Whilst these

measures seek to reduce volatility, they are not guaranteed to

do this.

The Board has assessed the discount control risk as elevated

due to the discount at which the Company’s shares trade

widening as compared to the Company’s peer group.

Gearing risk

The Company uses credit facilities. These arrangements

increase the funds available for investment. While this has the

potential to enhance investment returns in rising markets, in

falling markets the impact could be detrimental.

Gearing is monitored and strict restrictions on borrowings are

imposed: gearing continues to operate within pre-agreed limits

so as not to exceed 25% of NAV at the time of draw down.

MARKET

Market risk (increased)

Market risk arises from the volatility in prices of the Company’s

investments and the potential loss the Company could suffer

through realising investments following negative market

movements.

Changes in general geopolitical, economic or market conditions,

such as interest rates, exchange rates and rates of inflation, as

well as global political events and trends could substantially and

adversely affect the prices of securities and, as a consequence,

the value of the Company’s investment portfolio, its prospects

and share price.

Current geopolitical risks include the global increase in inflation,

the Russian invasion of Ukraine, and the longer term emergence

of the effects on investee companies of climate change, and the

regulatory environment around this.

The Company’s investment policy and its approach to risk

diversification may be found on page 15, both of which serve to

mitigate the effect of market risk on the portfolio. The Board

considers the diversification of the portfolio, asset allocation,

stock selection and levels of gearing on a regular basis. The

Board also monitors the Company’s relative performance as

compared to peers and the Company’s benchmark.

The Board assesses climate change as an emerging risk in terms

of how it develops, including how investor sentiment is evolving

towards climate change within investment portfolios, and will

consider how the Company may mitigate this risk, any other

emerging risks, if and when they become material.

The Board engages with the Manager, at each Board meeting,

as part of its ESG oversight, to understand how climate change,

and environmental factors are being assessed . Both are key

considerations within the Manager’s investment process

(see also pages 93 to 97 for further information on the

approach to ESG).

During the Year, the Board evaluated market risk as elevated

due to the limit on the Company’s ability to mitigate the effect of

external factors such as the uncertainty caused by the Russian

invasion of Ukraine and rising global inflation.

18 Murray Income Trust PLC

Overview of Strate

Continued

Principal Risk Mitigating Action

INVESTMENT MANAGEMENT

Investment management risk

The Company relies on the Manager, to whom responsibility for

the management of the Company has been delegated under a

management agreement (further details of which are set out on

pages 37 and 38).

The Board has set investment limits and guidelines. The Board

reviews the compliance with these limits.

The Company reviews the performance of the Investment

Manager informally at each Board meeting and a formal

annual review is undertaken by the Management

Engagement Committee.

Dividend risk

There is a risk that the Company fails to generate sufficient

income from its investment portfolio to meet the Company’s

dividend requirements.

A cut in the dividend of the Company would likely cause a

drop in the share price and would end the Company’s

“Dividend Hero” status.

The Board reviews monthly detailed estimates of revenue

income and expenditure prepared by the Investment Manager

and, if required, challenges the Investment Manager as to the

underlying assumptions made in individual securities’ earnings

and the Company’s expenditure.

The Company’s level of revenue reserves is monitored and can

be added to in years of surplus, or used to support the dividend in

years where there is a revenue deficit. In addition, at the AGM in

2020, shareholders approved a change to the Company’s

Articles of Association to allow dividends to be paid from capital,

which provides additional flexibility.

REGULATORY

Regulatory risk, including change of existing rules and regulation

The Company is required to comply with relevant rules and

regulations. Failure to do so could result in loss of investment

trust status, fines, suspension of the Company’s shares, criminal

proceedings or financial or reputational damage.

This risk would be exacerbated by inadequate resources or

insufficient training within the Company’s third party providers

to properly manage compliance with current and

future requirements.

The Company’s business model could become non-viable as a

result of new or revised rules or regulations arising from, for

example, policy change or financial monitoring pressure.

The Manager provides investment, company secretarial,

administration and accounting services through qualified third

party professional providers. The Board receives regular reports

from them in respect of their compliance with all applicable rules

and regulations.

The Board receives regular reports from its broker, depositary,

registrar and Manager as well as the industry trade body (the

Association of Investment Companies) on changes to

regulations which could impact the Company and its industry.

The Company monitors events and relies on the Manager and

its other key third party providers to manage this risk by

preparing for any changes, adverse or otherwise.

Murray Income Trust PLC 19

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

Principal Risk Mitigating Action

OPERATIONAL

Service provider risk (increased)

In common with most other investment companies, the

Company relies on the services provided by third parties and is

dependent on the control systems of the Manager (who acts as

investment manager, company secretary and maintains the

Company’s assets, dealing procedures and accounting

records); BNP Paribas Securities Services (who acts as

Depositary and Custodian); and the registrar. The security of

the Company’s assets, dealing procedures, accounting records

and adherence to regulatory and legal requirements depend

on the effective operation of the systems of these third party

service providers.

Failure by any service provider to carry out its obligations could

have a material adverse effect on the Company’s performance.

Disruption, including that caused by information technology

breakdown or another cyber-related issue, could prevent, for

example, the functioning of the Company; accurate reporting to

the Board or shareholders; or payment of dividends in

accordance with the announced timetable.

Contracts with third party providers are entered into after

appropriate due diligence. Thereafter the performance of each

provider is subject to an annual review by the Audit Committee.

The Depositary reports to the Audit Committee at least

annually, including on the Company’s compliance with AIFMD.

The Manager also regularly reviews the performance of

the Depositary.

Global assurance reports are obtained from the Manager, BNP

Paribas Securities Services and the registrar. These are reviewed

by the Audit Committee. The reports include an independent

assessment of the effectiveness of risks and internal controls at

the service providers including their planning for business

continuity and disaster recovery scenarios, together with their

policies and procedures designed to address the risks posed to

the Company’s operations by cyber-crime. The Audit

Committee receives an annual update on the Manager’s

IT resilience.

The Company’s assets are subject to a strict liability regime and,

in the event of a loss of assets, the Depositary must return assets

of an identical type or the corresponding amount, unless able to

demonstrate the loss was a result of an event beyond its

reasonable control.

The Board has assessed the risk posed by cyber-crime as

elevated, despite the available mitigation, reflecting the potential

disruption which might be caused to the Company’s operations

by a cyber-attack.

The following are other risks identified by the Board which could have a major impact on the Company, but due to

mitigation are not deemed to be principal risks:

Other Risks Mitigating Action

Financial risk

The Company’s investment activities expose it to a variety of

financial risks which include market risk (which is identified as a

principal risk and is covered earlier in this section on page 17),

liquidity risk and credit risk (including counterparty risk).

Details of these risks and the policies and procedures for their

monitoring and mitigation are disclosed earlier in this section

and in note 18 on pages 81 to 86.

Emerging risk

Failure to have in place procedures that assist in identifying

emerging risks. This may cause reactive actions rather than

being pro-active and, in the worst case, could cause the

Company to become unviable or otherwise fail.

The Board regularly reviews all risks to the Company, including

emerging risks, which are identified by a variety of means,

including advice from the Company’s professional advisors, the

AIC, and Directors’ knowledge of markets, changes and events.

The principal risks associated with an investment in the Company’s shares can be found in the pre-investment disclosure

document (“PIDD”) published by the Manager, which is available from the Company’s website: murray-income.co.uk.

20 Murray Income Trust PLC

Promotional Activities

The Board recognises the importance of promoting the

Company to existing and prospective investors both for

improving liquidity and enhancing the rating of the

Company’s shares. The Board believes one effective way

to achieve this is through subscription to, and participation

in, the promotional programme run by the Manager on

behalf of a number of investment trusts under its

management. The Company also supports the Manager’s

investor relations programme which involves regional

roadshows, promotional and public relations campaigns.

The Manager’s promotional and investor relations teams

report to the Board on a quarterly basis giving analysis of

their activities as well as updates on the shareholder

Communicating the long-term attractions of the

Company is key. The promotional programme includes

commissioning independent paid for research on the

Company, most recently from Edison Investment

Research Limited; a copy may be found on the

Company's website.

The UK Stewardship Code and Proxy Voting

The Company supports the UK Stewardship Code 2020,

and seeks to play its role in supporting good stewardship

of the companies in which it invests. Responsibility for

actively monitoring the activities of portfolio companies

has been delegated by the Board to the Manager

which has sub-delegated that authority to the

Investment Manager.

abrdn 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 on a six monthly basis

on stewardship (including voting) issues and additional

information may be found on pages 96 and 97.

Global Greenhouse Gas Emissions and

Streamlined Energy and Carbon Reporting

(“SECR”)

All of the Company’s activities are outsourced to third

parties. The Company therefore has no greenhouse gas

emissions to report from the operations of its business, nor

does it have responsibility for any other emissions

producing sources under the Companies Act 2006

(Strategic Report and Directors’ Reports) Regulations

2013. For the same reason as set out above, the

Company considers itself to be a low energy user under

the SECR regulations and therefore is not required to

disclose energy and carbon information.

Viability Statement

The Company does not have a fixed period strategic plan

but the Board does formally consider risks and strategy on

at least an annual basis. The Board regards the Company,

with no fixed life, as a long term investment vehicle but for

the purposes of this viability statement has decided that a

period of five years (the “Review Period”) is an appropriate

timeframe over which to report. The Board considers that

this Review Period reflects a balance between looking out

over a long term horizon and the inherent uncertainties of

looking out further than five years.

In assessing the viability of the Company over the

Review Period the Directors have focused upon the

following factors:

· the Company’s principal risks and uncertainties as set

out in the Strategic Report on pages 16 to 19;

· the relevance of the Company’s investment objective;

· the demand for the Company’s shares as indicated by

the level of premium and/or discount;

· the level of income generated by the Company’s

portfolio as compared to its expenses;

· the overall liquidity of the Company’s investment

portfolio;

· the likelihood of the Company being able to continue to

meet the covenants under its current borrowing

arrangements, and the covenants attaching to any

replacement borrowing arrangements, over the next

five years;

· the £40m senior loan notes and £60m senior loan notes,

which are repayable in 2027 and in 2029, respectively ;

and

Overview of Strate

Continued

Murray Income Trust PLC 21

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

· any requirement for the Company to repay or refinance

the drawn-down element of its three year £50 million

bank loan facility prior to, or at, its maturity in

October 2024.

In making this assessment, the Board has considered in

particular a large economic shock, such as a further

global pandemic, a period of increased stock market

volatility and/or markets at depressed levels, a significant

reduction in the liquidity of the portfolio, or persistent

inflationary pressures, or changes in investor sentiment or

regulation, and how these factors might affect the

Company’s prospects and viability in the future. The Board

undertook scenario analysis, incorporating income

forecasting, in reaching its conclusions, but recognising

that the Company’s expenses are significantly lower than

its total income.

Taking into account the Company’s current position and

the potential impact of its principal risks and uncertainties,

the Directors have a reasonable expectation that the

Company will be able to continue in operation and meet

its liabilities as they fall due for a period of five years from

the date of this Report.

Performance, Financial Position and Outlook

A review of the Company’s activities and performance

during the Year, including future developments, is set out in

the Chairman’s Statement and in the Investment

Manager’s Review. These cover market background,

investment activity, portfolio strategy, dividend policy,

gearing and investment outlook. A comprehensive

analysis of the portfolio is provided on pages 26 to 31 while

the full portfolio of investments is published monthly on the

Company’s website. The Company’s Statement of

Financial Position on page 65 shows the assets and

liabilities at the year end. Borrowing facilities at the year

end comprised a mix of fixed and floating debt: a three

year £50 million bank loan, the £40 million of senior loan

notes due for repayment in 2027 and £60 million of senior

loan notes due for repayment in 2029. Details of these are

shown in notes 13 and 14 respectively.

The future strategic direction and development of the

Company is regularly discussed as part of Board meeting

agendas. The Board also considers the Manager’s

promotional strategy for the Company, including effective

communications with shareholders. The Board intends to

maintain, for the year ending 30 June 2023, the strategy

set out in the Strategic Report as it believes that this is in

the best interests of shareholders.

Environmental, Community, Social and

Human Rights Issues

The Company has no employees and, accordingly, there

are no disclosures to be made in respect of employees. In

relation to the investment portfolio, the Board has

delegated assessment of these issues to the Investment

Manager, responsibility and further information may be

found on pages 93 to 97.

Modern Slavery Act

Due to the nature of its business, being a company that

does not offer goods and services to customers, the Board

considers that the Company is not within the scope of the

Modern Slavery Act 2015 because it has no turnover. The

Company is therefore not required to make a slavery and

human trafficking statement. The Board considers the

Company’s supply chains, dealing predominantly with

professional advisers and service providers in the financial

services industry, to be low risk in relation to this matter.

Board diversity

At 30 June 2022, there were three male Directors and

three female Directors (2021 – four male Directors and

three female Directors). Further information on Board

diversity may be found in the Directors’ Report on pages

38 and 39.

The Strategic Report has been approved by the Board and

signed on its behalf by:

Neil Rogan

Chairman

21 September 2022

22 Murray Income Trust PLC

The Board is required to report how it has discharged its

duties and responsibilities under section 172 of the

Companies Act 2006 during the Year. Under this

requirement, the Directors have a duty to promote the

success of the Company for the benefit of its members

(shareholders) as a whole, taking into account the likely

long term consequences of decisions, the need to foster

relationships with the Company’s stakeholders, and the

impact of the Company’s operations on the environment.

In addition the Directors must act fairly between

shareholders and be cognisant of maintaining the

reputation of the Company.

The Purpose of the Company and Role

of the Board

The Company has been established as an investment

vehicle for the purpose of delivering its investment

objective which is set out on the inside front cover of this

Report. Investment trusts, such as the Company, are long-

term investment vehicles that are typically externally-

managed, have no employees, and are overseen by an

independent non-executive board of directors.

The Board is responsible for all decisions relating to the

Company’s investment objective and policy, gearing,

corporate governance and strategy, and for monitoring

the performance of the Company’s third party service

providers, including the Manager.

The Board’s philosophy is that the Company should foster

a culture where all parties are treated with respect. The

Directors provide mutual support combined with

constructive challenge. Integrity, openness and diligence

are defining characteristics of the Board’s culture. The

Company has a number of policies and procedures in

place to aid a culture of good governance, such as those

relating to Director’s conflicts of interests and dealings in

the Company’s shares, annual evaluation of Directors,

anti-bribery and anti-tax evasion. At its regular meetings,

the Board engages with the Manager to understand its

culture and receives regular reporting and feedback from

the other key service providers.

The Company’s primary stakeholders have been

identified as its shareholders, the Manager, other key

third party service providers, lenders and investee

companies and the following table sets out details of

the Company’s engagement.

Shareholders The Directors place great importance on communication with shareholders. Further details on the

Company’s relations with Shareholders, including its approach to the Annual General Meeting and

investor relations can be found in the Directors’ Report on pages 43 and 44.

In addition, the Chairman and Manager are holding an online shareholder presentation on 2 November

2022, further details of which may be found in the Chairman’s Statement on page 5.

Manager The Investment Manager’s Review on pages 7 to 10 details the key investment decisions taken during the

Year. The Board engages with the Manager at every Board meeting and receives presentations from the

Investment Manager to help it to exercise effective oversight of the Investment Manager and delivery of

the Company’s strategy. The Board also receives regular updates from the Manager outside of these

meetings.

The Management Engagement Committee’s monitoring of the performance of the Manager over the

Year is detailed on pages 40 and 41.

Other Key Third Party

Service Providers

The Board ensures that it promotes the success of the Company by engaging specialist third party

suppliers with the resources, controls and performance records to deliver the service required. The

Board seeks to maintain constructive relationships with its key service providers (the Company’s

registrar, the Depositary and Broker) either directly, or through the Manager, with ongoing dialogue and

formal regular meetings. The Audit Committee conducts an annual assessment of key service providers

as set out in the Committee’s report on page 51. The Board seeks regular assurance that key third party

service providers have in place appropriate business continuity plans and which are expected to allow

them to maintain service levels in the face of disruption.

Promotin

the Success of the Company

Murray Income Trust PLC 23

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

Investee Companies The Board is committed to investing in a responsible manner and actively monitors the activities of

investee companies through its delegation to the Manager. In order to achieve this, the Manager has

discretionary powers to exercise voting rights on resolutions proposed by the investee companies and

reports quarterly to the Board on stewardship issues, including voting. The Board monitors investments

made and divested and questions the rationale for exposures taken and voting decisions made.

Information on how the Investment Manager engages with investee companies may be found on

pages 96 and 97.

Lenders to the Company On behalf of the Board, the Manager maintains a positive working relationship with the provider of the

Company’s multi-currency loan facility and the holders of the Company’s Senior Loan Notes, assuring

compliance with lenders’ covenants and providing regular updates on business activity.

Specific Examples of Stakeholder

Consideration During the Year

While the importance of giving due consideration to the

Company’s stakeholders is not a new requirement, and is

considered as part of every Board decision, the Directors

were particularly mindful of stakeholder considerations

during the following decisions reached during the Year.

Dividends Paid to Shareholders

The level, frequency and timing of dividends paid are key

considerations for the Board, taking into account net

earnings for the year and the Company’s objective of

providing shareholders with a high and growing income,

combined with the Company’s Dividend Hero status.

The total dividend per share of 36.0p in respect of the

Year, representing an increase of 4.3% on the prior year,

and the Company’s dividend policy to make four equally-

spaced payments to shareholders throughout the Year,

reflects this.

Share Buy Backs

During the Year the Company bought back 356,015

Ordinary shares to be held in treasury, providing a small

accretion to the NAV and a degree of liquidity to the

market at times when the discount to the NAV per share

had widened during normal market conditions. It is the

view of the Board that this policy remains in the best

interests of all shareholders.

Renewal of the Bank Loan

The Company’s one year £20 million multi-currency

unsecured revolving bank credit facility with Scotiabank

Europe expired in November 2021.

The Directors considered that it would be beneficial for the

Company to be able to access a larger short term

borrowing facility following the substantial increase in its

size. Accordingly, the Company entered into a new three

year £50 million multi-currency unsecured revolving bank

credit facility with Bank of Nova Scotia Limited. Alongside

the Company’s 2027 and 2029 Senior Loan Notes, the

Directors consider that this provides the Company with

flexible gearing, in the form of shorter and longer term

facilities, to enhance long-term total returns to

shareholders, where appropriate.

Board Composition

In accordance with the succession plan of the Company

for the orderly refreshment of the Board, the Company

engaged a search consultant during the Year, which

resulted in the appointment of Nandita Sahgal Tully.

Further information about the search process and Board

diversity may be found in the Directors’ Report on pages

38 and 39.

24 Murray Income Trust PLC

Portfolio

Murray Income Trust PLC 25

Oxford Instruments, the

provider of high technology

instrumentation products

and services to industrial

and scientific research

communities (including in

atomic force microscopy,

pictured), was added to the

portfolio during the year.

For further information, see

the Investment Case Study

on page 11.

26 Murray Income Trust PLC

As at 30 June 2022

AstraZeneca

Diageo

AstraZeneca researches, develops, produces

and markets pharmaceutical products. With a

significant focus on oncology and rare

diseases, the company offers appealing

growth potential over the medium term..

Diageo produces, distills and markets alcoholic

beverages including vodkas, whiskies, tequilas,

gins and beer. The company should benefit

from attractive long term drivers such as

population and income growth, and

premiumisation. The company has a variety of

very strong brands and faces very limited

private label competition.

Relx

TotalEnergies

Relx is a global provider of information and

analytics for professionals and businesses

across a number of industries including

scientific, technical, medical and law. The

company offers resilient earnings combined

with long term structural growth opportunities.

TotalEnergies is a broad energy company that

produces and markets fuels, natural gas and

electricity. It is a leader in the sector’s energy

transition with an attractive pipeline of

renewable assets

BHP Group

SSE

BHP Group (formerly BHP Billiton) is a

diversified resources group with a global

portfolio of high quality assets particularly iron

ore and copper. The company provides an

appealing dividend yield combined with a

strong balance sheet.

SSE is a utility company mostly focused on

networks and renewables. The path to net

zero will require significant investment in

distribution networks and the company

should also benefit from its strong position

in offshore wind generation.

Unilever

Standard Chartered

Unilever is a global consumer goods company

supplying food, home and personal care

products. The company has a portfolio of

strong brands including: Dove, Knorr, Axe and

Persil. Over half of the company’s sales are to

developing and emerging markets.

Standard Chartered is an international banking

group offering a broad mix of services, primarily

in emerging markets. The strategy is focused

on creating a higher quality business, growing

with end markets while controlling costs

leading to improving returns.

Euromoney Institutional Investor

Euromoney is a global information services

provider with services including commodity

price benchmarks and analysis, independent

research and people intelligence. Revenues

are primarily subscription-based. We believe

that the company is materially mis-priced for

the quality of its assets.

BP is a fully integrated energy company

involved in exploration, production, refining,

transportation and marketing of oil and natural

gas. We believe the industry is currently in a

sweetspot with rising prices and benign costs.

The company provides an attractive dividend

yield and is well placed for the energy transition.

Ten Lar

est Investments

Murray Income Trust PLC 27

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

As at

June

2022

Valuation Total Valuation

2022 investments 2021

Investment FTSE All-Share Sector Country £’000 % £’000

AstraZeneca Pharmaceuticals and Biotechnology

69,318 6.3 63,191

Diageo Beverages

55,310 5.0 58,387

Relx Media

45,388 4.1 41,956

TotalEnergies Oil Gas and Coal

France

37,496 3.4 28,330

BHP Group Industrial Metals and Mining

36,349 3.3 43,653

SSE Electricity

35,431 3.2 31,672

Unilever Personal Care Drug and Grocery Stores

34,656 3.2 41,830

Standard Chartered Banks

29,465 2.7 30,991

Euromoney Institutional Investor Media

28,356 2.6 21,510

BP Oil Gas and Coal

27,437 2.5 18,350

Top ten investments

399,206 36.3

Anglo American Industrial Metals and Mining

26,093 2.4 –

National Grid Gas Water and Multi-utilities

24,423 2.2 32,760

Safestore Holdings Real Estate Investment Trusts

23,659 2.2 23,467

Inchcape Industrial Support Services

23,151 2.1 25,599

Coca-Cola HBC Beverages

23,144 2.1 33,204

Close Brothers Banks

21,839 2.0 32,310

Novo-Nordisk Pharmaceuticals and Biotechnology

Denmark

20,888 1.9 16,757

Rentokil Initial Industrial Support Services

20,624 1.9 18,709

Experian Industrial Support Services

20,282 1.8 –

GSK Pharmaceuticals and Biotechnology

20,068 1.8 18,591

Top twenty investments

623,377 56.7

Portfolio

28 Murray Income Trust PLC

Portfolio

Continued

As at

June

2022

Valuation Total Valuation

2022 investments 2021

Investment FTSE All-Share Sector Country £’000 % £’000

Aveva Software and Computer Services

19,733 1.8 28,093

Croda International Chemicals

18,387 1.7 23,643

London Stock Exchange Finance and Credit Services

17,862 1.6 –

M&G Life Insurance

17,707 1.6 20,819

Direct Line Insurance Non-life Insurance

17,493 1.6 19,807

Convatec Medical Equipment and Services

17,025 1.6 17,990

Marshalls Construction and Materials

16,346 1.5 19,096

Howden Joinery Retailers

15,780 1.4 21,383

Nestlé Food Producers

Switzerland

15,523 1.4 17,011

Oversea-Chinese Banking

Corporation

Banks

Singapore

14,833 1.4 –

Top thirty investments

794,066 72.3

OSB Finance and Credit Services

14,469 1.3 11,718

Nordea Bank Banks

Sweden

14,075 1.3 –

Drax Electricity

13,933 1.3 –

Sage Group Software and Computer Services

13,676 1.2 9,186

Weir Group Industrial Engineering

13,416 1.2 18,214

Telenor Telecommunications Service Providers

Norway

12,742 1.2 15,491

Vistry Household Goods and Home Construction

12,639 1.2 9,943

Microsoft Software and Computer Services

United States

11,452 1.0 13,310

Unite Group Real Estate Investment Trusts

11,310 1.0 8,239

Mondi General Industrials

11,227 1.0 17,801

Top forty investments

923,005 84.0

Murray Income Trust PLC 29

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

As at

June

2022

Valuation Total Valuation

2022 investments 2021

Investment FTSE All-Share Sector Country £’000 % £’000

Countryside Partnerships Household Goods and Home Construction

11,116 1.0 18,897

Intermediate Capital Investment Banking and Brokerage Services

10,929 1.0 10,326

Ashmore Group Investment Banking and Brokerage Services

10,649 1.0 18,485

Assura Real Estate Investment Trusts

10,467 1.0 14,230

Genuit Construction and Materials

10,162 0.9 16,280

RS Group Industrial Support Services

10,027 0.9 –

Kone Industrial Engineering

Finland

9,047 0.8 13,693

Smith & Nephew Medical Equipment and Services

8,946 0.8 15,931

Hiscox Non-life Insurance

8,922 0.8 –

Dechra Pharmaceuticals Pharmaceuticals and Biotechnology

8,461 0.8 13,229

Top fifty investments

1,021,731 93.0

Industrials REIT Real Estate Investment Trusts

8,098 0.7 6,096

Oxford Instruments Electronic and Electrical Equipment

7,962 0.7 –

Mowi Food Producers

Norway

7,840 0.7 7,730

XP Power Electronic and Electrical Equipment

7,806 0.7 15,283

Watkin Jones Household Goods and Home Construction

7,733 0.7 –

VAT Group Electronic and Electrical Equipment

Switzerland

7,486 0.7 13,947

Chesnara Life Insurance

7,389 0.7 6,993

Moonpig Retailers

7,278 0.7 6,246

Sirius Real Estate Real Estate Investment and Services

7,239 0.6 14,380

Accton Technology Telecommunications Equipment

Taiwan

5,273 0.5 6,859

Top sixty investments

1,095,835 99.7

Bodycote Industrial Metals and Mining

2,958 0.3 14,083

Total investments

1,098,793 100.0

30 Murray Income Trust PLC

Investments held at 30 June 2022 (percentage of portfolio)

0% 5% 10% 15% 20% 25%

Basic Materials

Consumer Discretionary

Consumer Staples

Energy

Financials

Health Care

Industrials

Real Estate

Technology

Telecommunications

Utilities

Company

FTSE All-Share

Investments held at 30 June 2021 (percentage of portfolio)*

0% 5% 10% 15% 20% 25%

Basic Materials

Consumer Discretionary

Consumer Staples

Energy

Financials

Health Care

Industrials

Real Estate

Technology

Telecommunications

Utilities

Company

FTSE All-Share

*During the year ended 30 June 2021 FTSE All-Share classification sectors changed substantially as a result of which the above two charts are not directly comparable.

Sector Comparison with the Benchmark

Murray Income Trust PLC 31

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

Valuation Valuation

30 June 2021 Transactions Gains / (losses) 30 June 2022

£’000 % £’000 £’000 £’000 %

Equities

UK 1,069,162 88.9 (37,211) (89,813) 942,138 85.7

Denmark 16,757 1.4 (3,109) 7,240 20,888 1.9

Finland 13,693 1.1 – (4,646) 9,047 0.8

France 28,330 2.4 – 9,166 37,496 3.4

Norway 23,221 1.9 (1,222) (1,417) 20,582 1.9

Singapore – – 15,178 (345) 14,833 1.4

Switzerland 30,958 2.6 (8,692) 743 23,009 2.1

Sweden – – 18,288 (4,213) 14,075 1.3

Taiwan 6,859 0.6 – (1,586) 5,273 0.5

United States 13,310 1.1 (2,943) 1,085 11,452 1.0

Total investments 1,202,290 100.0 (19,711) (83,786) 1,098,793 100.0

Summary of Investment Chan

es Durin

the Year

32 Murray Income Trust PLC

Governance

Murray Income Trust PLC 33

National Grid, a portfolio company, is at the heart of

transforming an energy system which is innovating to

decarbonise the future of energy.

34 Murray Income Trust PLC

Neil Rogan

Independent Chairman

Length of service

8 years; appointed Chairman on 6 November 2017

Experience and other public

company directorships:

Neil Rogan, who was appointed a Director on 26

November 2013, is former Head of the Global Equities

Teams at both Gartmore and Henderson and former

Head of International Equities as well as a former member

of the Investment Division Executive Committee at

Gartmore. He previously managed Fleming Far Eastern

Investment Trust. He is non-executive chairman of Invesco

Asia Trust plc and a non-executive director of JPMorgan

Global Growth & Income plc.

Committee Membership:

Management Engagement Committee (Chairman),

Nomination Committee (Chairman) and Remuneration

Committee.

Contribution:

The Nomination Committee has reviewed the contribution

of Neil Rogan in light of his proposed re-election at the

forthcoming AGM and has concluded that he continues to

chair the Company expertly, fostering a collaborative

spirit between the Board and Manager while ensuring that

meetings remain focussed on the key areas of

stakeholder relevance.

Peter Tait

Senior Independent Non-Executive Director and

Chairman of the Remuneration Committee

Length of service

4 years

Experience and other public

company directorships:

Peter Tait, who was appointed a Director on 7 November

2017, retired from the Nestlé Group where he was initially

Head of Investments for the Nestlé UK Pension Fund and

then CEO & CIO of Nestlé Capital Management. Prior to

Nestlé he worked for many years in the investment

management industry managing portfolios for investment

trusts, pension funds and charitable foundations. During

that time he was a managing director at BlackRock

International and, before that, a director of Dunedin Fund

Managers and a portfolio analyst at Scottish Widows Life

Assurance Fund.

Committee Membership:

Audit Committee, Management Engagement Committee,

Nomination Committee and Remuneration Committee

(Chairman).

Contribution:

The Nomination Committee has reviewed the contribution

of Peter Tait in light of his proposed re-election at the

forthcoming AGM and has concluded that he continues to

bring to the Board his knowledge of investment

management as well as experience of investment

companies.

Board of Directors

Murray Income Trust PLC 35

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

Stephanie Eastment

Independent Non-Executive Director and Chair of the

Audit Committee

Length of service

4 years; appointed Chair of the Audit Committee on 5

November 2018

Experience and other public

company directorships:

Stephanie Eastment, appointed a Director on 2 August

2018, was formerly Head of Specialist Fund Accounts and

Corporate Secretariat at Invesco Perpetual. Her career

spans over 30 years working in financial services including

roles at UBS, Wardley Investment Services International

and KPMG. She qualified while at KPMG and is a Fellow of

the Institute of Chartered Accountants in England and

Wales and a Fellow of the Institute of Chartered

Secretaries and Administrators. She is an independent

non-executive director and audit chair of Herald

Investment Trust plc, Impax Environmental Markets plc

and Alternative Income REIT plc, and an independent non-

executive director of RBS Collective Investment Funds

Limited.

Committee Membership:

Audit Committee (Chair), Management

Engagement Committee, Nomination Committee and

Remuneration Committee.

Contribution:

The Nomination Committee has reviewed the contribution

of Stephanie Eastment in light of her proposed re-election

at the forthcoming AGM and has concluded that she

continues to chair the Audit Committee expertly as well as

bringing to the Board her extensive knowledge of the

governance of investment companies

Merryn Somerset Webb

Independent Non-Executive Director

Length of service

3 years

Experience and other public

company directorships:

Merryn Somerset Webb, who was appointed a Director on

7 August 2019, is the Editor-in-Chief of UK personal

finance magazine MoneyWeek and is a regular

commentator on financial matters across radio and

television, including as a columnist for the Financial Times.

She is a non-executive director of BlackRock Throgmorton

Trust plc.

Committee Membership:

Audit Committee, Management Engagement Committee,

Nomination Committee and Remuneration Committee

Contribution:

The Nomination Committee has reviewed the contribution

of Merryn Somerset Webb in light of her proposed re-

election at the forthcoming AGM and has concluded that

she continues to bring to the Board her expertise relating

to the promotion of investment companies in addition to

her wider experience in the sphere of personal finance.

36 Murray Income Trust PLC

Alan Giles

Independent Non-Executive Director

Length of service

2 years

Experience and other public

company directorships:

Alan Giles was appointed a Director on 17 November 2020

following the Company’s combination with Perpetual

Income and Growth Investment Trust plc. He is Senior

Independent Director and Chairman of the remuneration

committee of Foxtons Group plc, Chairman of The

Remuneration Consultants Group, an Associate Fellow at

Saïd Business School, University of Oxford, and an

honorary visiting professor at Bayes Business School, City,

University of London. He was formerly Chairman of Fat

Face Group Limited, Chief Executive of HMV Group plc,

Managing Director of Waterstones, and an executive

director of WH Smith plc. He previously held non-executive

directorships at The Competition & Markets Authority,

Rentokil Initial plc, The Office of Fair Trading, Somerfield plc

and Wilson Bowden Plc. He became a director of

Perpetual Income and Growth Investment Trust plc on 6

November 2015.

Committee Membership:

Audit Committee, Management Engagement Committee,

Nomination Committee and Remuneration Committee

Contribution:

The Nomination Committee has reviewed the contribution

of Alan Giles in light of his proposed re-election at the

forthcoming AGM and has concluded that his extensive

boardroom experience, particularly in the retail and

other commercial sectors, broadens the Board’s

overall expertise.

Nandita Sahgal Tully

Independent Non-Executive Director

Length of service

10 months

Experience and other public

company directorships:

Nandita Sahgal Tully, who was appointed a Director on 3

November 2021, is a Fellow of the Institute of Chartered

Accountants in England and Wales and a Member of the

Chartered Institute for Securities and Investment. She is a

Managing Director at ThomasLloyd Group, an impact

investor focussed on clean energy and ESG.

Committee Membership:

Audit Committee, Management Engagement Committee,

Nomination Committee and Remuneration Committee

Contribution:

The Nomination Committee has reviewed the contribution

of Nandita Sahgal Tully in light of her proposed election at

the forthcoming AGM and has concluded that she brings

to the Board investment management expertise with a

particular focus on ESG.

Board of Directors

Continued

Murray Income Trust PLC 37

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

The Directors present their report and the audited

financial statements for the Year.

Results and Dividend Policy

The financial statements for the Year indicate a total loss

attributable to equity shareholders for the year of

£41,101,000 (2021 – gain of £161,217,000) and an

explanation for the Company’s financial performance

may be found in the Chairman’s Statement on pages

4 to 6.

At the AGM on 2 November 2021, shareholders approved

a dividend policy to pay four quarterly interim dividends

per year. On 4 November 2021, the Company announced

a first interim dividend of 8.25p per share to be paid on 22

December 2021, a second interim dividend of 8.25p per

share to be paid on 17 March 2022 and a third interim

dividend of 8.25p per share to be paid on 16 June 2022.

The Company announced, on 2 August 2022, the

payment to shareholders on 15 September 2022 of a

fourth interim dividend for the year of 11.25p per share

(2021 – 9.75p) with an ex-dividend date of 18 August 2022

and a record date of 19 August 2022. This resulted in total

dividends of 36.0 per share for the year ended 30 June

2022, an increase of 4.3% on the 34.5p paid for the prior

year, which represented the 49

year of consecutive

growth in the Company’s annual dividend.

The Board is proposing to maintain the dividend policy of

paying four interim dividends each year. In line with good

corporate governance, the Board therefore proposes to

put the Company’s dividend policy to Shareholders for

approval at the AGM as resolution 3.

Principal Activity and Status

The Company, which was incorporated in 1923, is

registered as a public limited company in Scotland under

company number SC012725 and is an investment

company within the meaning of Section 833 of the

Companies Act 2006.

The Company has been accepted by HM Revenue &

Customs as an investment trust subject to the Company

continuing to meet the relevant eligibility conditions of

Section 1158 of the Corporation Tax Act 2010 and the

ongoing requirements of Part 2 Chapter 3 Statutory

Instrument 2011/2999 for all financial years commencing

on or after 1 July 2012. The Directors are of the opinion

that the Company has conducted its affairs during the

Year so as to enable it to comply with the ongoing

requirements for investment trust status.

The Company has conducted its affairs so as to satisfy the

requirements as a qualifying security for Individual Savings

Accounts. The Directors intend that the Company will

continue to conduct its affairs in this manner.

Capital Structure and Voting Rights

At 30 June 2022, the Company had 116,690,472 (2021 –

117,046,487) fully paid Ordinary shares of 25p each with

voting rights in issue and an additional 2,839,060 (2021 –

2,483,045) shares in Treasury. During the Year, 356,015

Ordinary shares were bought back into Treasury

(2021 – nil).

Since the year end, the Company has bought back a

further 230,000 Ordinary shares into treasury. Accordingly,

as at the date of this Report, the Company’s issued share

capital consisted of 116,460,472 Ordinary shares of

25 pence each and 3,069,060 Ordinary shares held

in treasury.

Ordinary shareholders are entitled to vote on all

resolutions which are proposed at general meetings of the

Company. The Ordinary shares, excluding shares in

Treasury, carry a right to receive dividends. On a winding

up, after meeting the liabilities of the Company, the surplus

assets will be paid to Ordinary shareholders in proportion

to their shareholdings. There are no restrictions on the

transfer of Ordinary shares in the Company other than

certain restrictions which may be applied from time to

time by law (for example, laws prohibiting insider trading).

Manager and Company Secretary

The Manager has been appointed by the Company, under

a management agreement, to provide investment

management, risk management, administration and

company secretarial services as well as promotional

activities. The Company’s portfolio is managed by the

Investment Manager by way of a group delegation in

place with the Manager. In addition, the Manager has

sub-delegated promotional activities to the Investment

Manager and administrative and secretarial services to

Aberdeen Asset Management PLC.

Under the management agreement, the Manager is

entitled to a monthly fee of one-twelfth of: 0.55% pa on the

first £350 million of net assets, 0.45% pa on net assets

between £350 million and £450 million and 0.25% pa on

any net assets in excess of £450 million.

The value of any investments in unit trusts, open ended

and closed ended investment companies and investment

trusts of which the Manager, or another company within

abrdn, is the operator, manager or investment adviser, is

deducted from net assets when calculating the fee.

Directors’ Report

38 Murray Income Trust PLC

The management agreement is terminable on not less

than three months’ notice. In the event of termination by

the Company on less than the agreed notice period,

compensation is payable to the Manager in lieu of the

unexpired notice period.

An annual secretarial fee of £75,000 (plus applicable VAT)

is payable to Aberdeen Asset Management PLC, which is

chargeable 100% to revenue. An annual fee equivalent to

up to 0.05% of gross assets (calculated at 30 September

each year) is paid to the Investment Manager to cover

promotional activities undertaken on behalf of

the Company.

The finance costs and investment management fees are

charged 70% to capital and 30% to revenue in line with

the Board’s expectation of the split of future investment

returns.

The management, secretarial and promotional activity

fees paid to subsidiaries of abrdn during the Year are

shown in notes 4 and 5 to the financial statements.

External Agencies

The Board has contractually delegated to external

agencies, including the Manager and other service

providers, certain services including: the management of

the investment portfolio, the day-to-day accounting and

company secretarial requirements, the depositary

services (which include cash monitoring, the custody and

safeguarding of the Company’s financial instruments and

monitoring the Company’s compliance with investment

limits and leverage requirements) and the share

registration services. Each of these contracts was entered

into after full and proper consideration by the Board of the

quality and cost of services offered in so far as they relate

to the affairs of the Company. In addition, ad hoc reports

and information are supplied to the Board as requested.

Directors

As at the date of this Report, the Board consisted of a non-

executive Chairman and five non-executive Directors.

Neil Rogan, Stephanie Eastment, Peter Tait, Merryn

Somerset Webb and Alan Giles were Directors throughout

the Year. Nandita Sahgal Tully was appointed a Director

on 3 November 2021. Jean Park and Donald Cameron

retired as Directors on 2 November 2021.

Jean Park was Senior Independent Director and Chairman

of the Remuneration Committee until her retirement,

following which Peter Tait was appointed as her

successor. Stephanie Eastment is Chairman of the

Audit Committee.

Board Diversity

The Board recognises the importance of having a range

of skilled, experienced individuals with the right knowledge

represented on the Board in order to allow it to fulfil its

obligations. The Board also recognises the benefits and is

supportive of, and will give due regard to, the principle of

diversity in its recruitment of new Board members. The

Board will not display any bias for age, gender, race,

sexual orientation, socio-economic background, religion,

ethnic or national origins or disability in considering the

appointment of Directors. The Board will continue to

ensure that all appointments are made on the basis of

merit against the specification prepared for each

appointment. The Board will take account of the targets

set out in the FCA’s Listing Rules, which are set out below.

The Board voluntarily discloses the following information in

relation to its diversity.

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. However, the Board considers the

Chair of the Audit Committee to be a senior board position

and the following disclosure is made on this basis. Other

senior board positions recognised by the FCA are chair of

the board and senior independent director (SID). 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 provided by each

Director. There have been no changes since 30 June 2022.

Directors’ Report

Continued

Murray Income Trust PLC 39

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

Board as at 30 June 2022

Number of board members Percentage of the board

Number of senior positions

on the board

Men 3 50% 2

Women 3 50% 1

Prefer not to say - - -

Number of board members Percentage of the board Number of senior positions

on the board

White British or other White

(including minority-white groups)

5 83.3% 3

Asian/Asian British 1 16.7% 0

Prefer not to say - - -

The Role of the Chairman and Senior Independent Director

The Chairman 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

Chairman facilitates the effective contribution of, and

encourages active engagement by, each Director. In

conjunction with the Company Secretary, the Chairman

ensures that Directors receive accurate, timely and clear

information to assist them with effective decision-making.

The Chairman acts upon the results of the Board

evaluation process by recognising strengths and

addressing any weaknesses and also ensures that the

Board engages with major shareholders and that all

Directors understand shareholder views.

The SID acts as a sounding board for the Chairman and

acts as an intermediary for other directors, when

necessary. The SID takes responsibility for an orderly

succession process for the Chairman and leads the

annual appraisal of the Chairman’s performance. The SID

is also available to shareholders to discuss any concerns

they may have.

Management of Conflicts of Interest, Anti-Bribery Policy and

Tax Evasion Policy

The Board has a procedure in place to deal with a

situation where a Director has a conflict of interest. As part

of this process, the Directors prepare a list of other

positions held and all other conflict situations that may

need to be authorised either in relation to the Director

concerned or his/her connected persons. The Board

considers each Director’s situation and decides whether

to approve any conflict, taking into consideration what is in

the best interests of the Company and whether the

Director’s ability to act in accordance with his/her wider

duties is affected. Each Director is required to notify the

Company Secretaries of any potential, or actual, conflict

situations which will need authorising by the Board.

Authorisations given by the Board are reviewed at each

Board meeting.

The Board takes a zero-tolerance approach to bribery

and has adopted appropriate procedures designed to

prevent bribery. abrdn also takes a zero-tolerance

approach and has its own detailed policy and procedures

in place to prevent bribery and corruption.

It is the Company’s policy to conduct all of its business in

an honest and ethical manner. The Company takes a

zero-tolerance approach to facilitation of tax evasion,

whether under UK law or under the law of any foreign

country and its full policy on tax evasion may be found on

its website.

Directors’ Insurance and Indemnities

The Company’s Articles of Association indemnify each of

the Directors out of the assets of the Company against

any liabilities incurred by them as a Director of the

Company in defending proceedings, or in connection with

any application to the Court in which relief is granted. In

addition, the Directors have been granted qualifying

indemnity provisions by the Company which are currently

in force. Directors’ and Officers’ liability insurance cover

has been maintained throughout the Year at the expense

of the Company.

40 Murray Income Trust PLC

Corporate Governance

The Company is committed to high standards of

corporate governance and its Statement of Corporate

Governance is set out on page 45.

Matters Reserved for the Board

The Board sets the Company’s objectives and ensures

that its obligations to its shareholders are met. It has

formally adopted a schedule of matters which are

required to be brought to it for decision, thus ensuring that

it maintains full and effective control over appropriate

strategic, financial, operational and compliance issues.

These matters include:

· the maintenance of clear investment objectives and risk

management policies;

· the monitoring of the business activities of the Company

ranging from analysis of investment performance

through to review of quarterly management accounts;

· monitoring requirements such as approval of the Half-

Yearly Report and Annual Report and financial

statements and approval and recommendation of any

dividends;

· setting the range of gearing in which the Manager may

operate;

· major changes relating to the Company’s structure

including share buy-backs and share issuance;

· Board appointments and removals and the related

terms;

· authorisation of Directors’ conflicts or possible conflicts

of interest;

· terms of reference and membership of Board

Committees;

· appointment and removal of the Manager and the

terms and conditions of the Management Agreement

relating thereto; and

· London Stock Exchange/Financial Conduct Authority -

responsibility for approval of all circulars, listing

particulars and other releases concerning matters

decided by the Board.

Full and timely information is provided to the Board to

enable it to function effectively and to allow the Directors

to discharge their responsibilities.

Board Committees

The Board has appointed a number of Committees as set

out below. Copies of their terms of reference, which define

the responsibilities and duties of each Committee, are

available on the Company’s website.

Audit Committee

The Audit Committee’s Report is on pages 50 to 52.

Management Engagement Committee

The terms and conditions of the Company’s agreement

with the Manager, set out on pages 37 and 38, are

considered by the Management Engagement Committee

which comprises the whole Board and is chaired by Neil

Rogan. The key responsibilities of the Management

Engagement Committee include:

· monitoring and evaluating the performance of the

Manager;

· reviewing, at least annually, the continued retention of

the Manager;

· reviewing, at least annually, the terms of appointment of

the Manager including, but not limited to, the level and

methodology of the management fees as well as the

notice period of the Manager.

In monitoring the performance of the Manager, the

Committee considers the investment record of the

Company over the short and long term, taking into

account its performance against the Benchmark, peer

group investment trusts and open-ended funds, and

against its delivery of the investment objective to

shareholders. The Committee also reviews the

management processes, risk control mechanisms and

promotional activities of the Manager.

In support of the work undertaken by the Management

Engagement Committee, the Board engaged Lintstock

Limited, an independent firm, to facilitate a review of the

Manager. This involved the completion of questionnaires

by each Director and the subsequent discussion by the

Management Engagement Committee of a summary,

prepared by Lintstock Limited, of the key findings. The

review covered all services provided to the Company by

the Manager including investment management, risk

management and internal controls, marketing and

investor relations, company secretarial and administration

services, and also included consideration as to the

appropriateness of the management fee arrangements.

In light of the above, the Directors consider the continuing

appointment of the Manager, on the current terms (see

pages 37 and 38), to be in the best interests of

shareholders because they believe that the Manager has

the investment management, promotional and

associated secretarial and administrative skills required

for the effective operation of the Company.

Directors’ Report

Continued

Murray Income Trust PLC 41

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

Nomination Committee

The Board has established a Nomination Committee,

comprising all of the Directors, with Neil Rogan as

Chairman. The Committee is responsible for:

· determining the overall size and composition of the

Board (including the skills, knowledge, experience and

diversity);

· undertaking longer term succession planning, including

setting a policy on tenure for Directors;

· undertaking an annual evaluation of the Directors,

including establishing that each Director possesses the

capacity to commit sufficient time to discharge their

responsibilities;

· oversight of appointments to the Board, including open

advertising or engagement of independent search

consultants, with a view to attracting candidates from a

wide range of backgrounds and with different

experience, with due regard to the benefits of diversity

on the Board;

· assessing, annually, the effectiveness and

independence of each Director; and

· making recommendations for the election or re-

election of any Director, having evaluated their individual

performance, capacity and contribution.

The Committee’s overriding priority in appointing new

Directors is to identify the candidate with the optimal

range of skills and experience to complement the existing

Directors. The Board also recognises the benefits, and is

supportive, of the principle of diversity in its recruitment of

new Directors. Trust Associates, an independent search

firm with no connection with the Company, was engaged

in the search which resulted in the appointment of Nandita

Sahgal Tully as a Director during the Year.

During the Year, through the work of the Nomination

Committee, the Board engaged an independent firm,

Lintstock Limited, to facilitate a review of the Board, its

Committees and the performance of individual Directors.

The process involved the completion of questionnaires by

each Director and the production of a report to the Board

by Lintstock Limited summarising the findings of the

review. The results of the process were discussed by the

Board following its completion, with appropriate action

points agreed.

The review of the Chairman was undertaken by the Senior

Independent Director.

Following the evaluation process, Lintstock Limited

concluded that the Board operates effectively to promote

the success of the Company and that each Director

makes a significant contribution to the collective Board.

All six Directors will retire, and each being eligible, will seek

election or re-election, as applicable, at the AGM on 1

November 2022.

The Directors attended meetings, including a strategy

session during the Year as follows (with their eligibility to

attend the relevant meetings in brackets). The Board

meets more frequently when business needs require;

Board

Meetings

(including

strategy

and Board

Committees)

Audit

Committee

Meetings

Management

Engagement

Committee

Meetings

Nomination

Committee

Meetings

Remuneration

Committee

Meetings

Neil

Rogan

11 (11) - (-) 2 (2) 4 (4) 2 (2)

Jean Park

6 (6) 1 (1) 1 (1) 2 (2) 1 (1)

Stephanie

Eastment

10 (10) 3 (3) 2 (2) 4 (4) 2 (2)

Donald

Cameron

5 (5) 1 (1) 1 (1) 2 (2) 1 (1)

Peter Tait 11 (11) 3 (3) 2 (2) 4 (4) 2 (2)

Merryn

Somerset

Webb

10 (10) 3 (3) 2 (2) 4 (4) 2 (2)

Alan Giles 9 (9) 3 (3) 2 (2) 4 (4) 2 (2)

Nandita

Sahgal

Tully

2 (2) 1 (1) 1 (1) 1 (1) 1 (1)

Not a member of the Audit Committee but attends at the invitation of the

Committee Chairman.

Resigned as a Director on 2 November 2021.

Appointed as a Director on 3 November 2021.

Policy on Tenure

The Committee has adopted a policy whereby all

Directors will stand for re-election at each AGM. In

addition Directors, including the Chairman, will not stand

for re-election as a Director of the Company later than the

AGM following the ninth anniversary of their appointment

to the Board unless in relation to exceptional

circumstances.

The ninth anniversary of Neil Rogan’s appointment as a

Director is 26 November 2022.

42 Murray Income Trust PLC

The other Directors, led by Peter Tait as Senior

Independent Director, have determined that it is in the

best interests of shareholders that Neil Rogan continue as

Chairman in order to oversee the Company’s centenary in

2023. Neil Rogan will retire at the conclusion of the

Company’s AGM in November 2023.

The Board as a whole believes that each Director remains

independent of the Manager and free of any relationship

which could materially interfere with the exercise of his or

her independent judgement on issues of strategy,

performance, resources and standards of conduct and

confirms that, following formal performance evaluations,

the individuals’ performance continues to be effective and

demonstrates commitment to the role.

The biographies of each of the Directors seeking election

or re-election are shown on pages 34 to 36 and include

their experience, length of service and the contribution

that each Director makes to the Board. Each Director

has the requisite high level and range of business and

financial experience which enables the Board to provide

clear and effective leadership and proper stewardship

of the Company.

Accordingly, Stephanie Eastment, Alan Giles, Merryn

Somerset Webb, Peter Tait and Neil Rogan, each being

eligible, offer themselves for re-election as Directors of the

Company. Nandita Sahgal Tully, being eligible, offers

herself for election as a Director of the Company.

Remuneration Committee

The Board has established a Remuneration Committee,

comprising all of the Directors, whose Chairman was Jean

Park until 2 November 2021 and Peter Tait thereafter. The

Directors’ Remuneration Report on pages 46 to 49 sets out

the responsibilities of the Committee and the work

undertaken by the Committee during the Year.

Accountability and Audit

The responsibilities of the Directors and the auditor in

connection with the financial statements appear on

pages 53, 59 and 60.

The Directors who held office at the date of this Report

each confirm that, so far as they are aware, there is no

relevant audit information of which the Company’s auditor

is unaware and that they have taken all the steps that they

could reasonably be expected to have taken as a Director

in order to make themselves aware of any relevant audit

information and to establish that the Company’s auditor is

aware of that information. Further, there have been no

important, additional events since the year end which

warrant disclosure.

The Directors confirm that no non-audit services were

provided by the auditor during the Year and, after

reviewing the auditor’s procedures in connection with

the provision of any such services, remain satisfied that

the auditor’s objectivity and independence is

being safeguarded.

Going Concern

The Directors have undertaken a rigorous review and

consider both that there are no material uncertainties

and that the adoption of the going concern basis of

accounting is appropriate. This conclusion is consistent with

the longer term Viability Statement on pages 20 and 21.

The Company’s assets consist primarily of a diverse

portfolio of listed equity shares nearly all of which, in most

circumstances, are realisable within a short timescale. The

Board has set limits for borrowing and regularly reviews

the level of any gearing, cash flow projections and

compliance with banking and loan note covenants.

The Directors are mindful of the principal risks and

uncertainties disclosed on pages 16 to 19, and have

reviewed forecasts detailing revenue and liabilities. The

Directors are satisfied that the Company has adequate

resources to continue in operational existence for the

foreseeable future, being at least 12 months from the date

of approval of this Annual Report.

Independent Auditor

Shareholders approved the re-appointment of

PricewaterhouseCoopers LLP as the Company’s auditor

at the AGM on 2 November 2021 and resolutions to

approve its re-appointment for the Year to 30 June 2023,

and to authorise the Directors to determine its

remuneration, will be proposed at the forthcoming AGM.

Financial Instruments

The financial risk management objectives and policies

arising from financial instruments and the exposure of

the Company to risk are disclosed in note 18 to the

financial statements.

Relations with suppliers, customers and

others

The Directors have regard to the need to foster the

Company’s business relationships with suppliers,

customers and others, and the effect of that regard,

including on the principal decisions taken by the Company

during the financial year; further information on the

Company’s responsibilities under Section 172 of

Companies Act 2006 may be found on pages 22 and 23.

Directors’ Report

Continued

Murray Income Trust PLC 43

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

Substantial Interests

As at 30 June 2022 and 31 August 2022 the following

interests over 3% in the issued Ordinary share capital of

the Company (excluding treasury shares) had been

disclosed in accordance with the requirements of the

FCA’s Guidance and Transparency Disclosure Rules:

30 June 2022 31 August 2022

Shareholder Number of

shares held

held

Number of

shares held

held

Interactive Investor 16,600,467 14.2 16,580,891 14.2

Hargreaves Lansdown 14,031,919 12.0 14,127,176 12.1

abrdn retail plans 12,844,446 11.0 12,825,752 11.0

Rathbones 12,359,696 11.0 12,367,387 10.6

Charles Stanley 3,728,254 3.2 3,673,886 3.2

A J Bell 3,521,980 3.0 3,547,821 3.0

The above interests, as at 31 August 2022, were

unchanged as at the date of approval of this Report.

Relations with Shareholders

The Directors place great importance on communication

with shareholders. The Company’s shareholder register is

retail-dominated and the Manager, together with the

Company’s broker, regularly meets with current and

prospective shareholders to discuss performance. The

Board receives investor relations updates from the

Manager on at least a quarterly basis. Any changes in the

shareholder register as well as shareholder feedback is

discussed by the Directors at each Board meeting.

Regular updates are provided to shareholders through the

Annual Report, Half Yearly Report, monthly factsheets,

company announcements, including daily net asset value

announcements, all of which are available through the

Company’s website at: murray-income.co.uk. The Annual

Report is also widely distributed to other parties who have

an interest in the Company’s performance. Shareholders

and investors may obtain up-to-date information on the

Company through its website or via abrdn’s Customer

Services Department (see page 113 for details).

The Board’s policy is to communicate directly with

shareholders and their representative bodies without the

involvement of the management group (either the

Company Secretary or abrdn) in situations where direct

communication is required and representatives from the

Board offer to meet with major shareholders on an annual

basis in order to gauge their views. The Company

Secretary acts on behalf of the Board, not the Manager,

and there is no filtering of communication. At each Board

meeting the Board receives full details of any

communication from shareholders to which the Chairman

responds, as appropriate, on behalf of the Board.

In addition, in relation to institutional shareholders,

members of the Board may be either accompanied by

the Manager or conduct meetings in the absence of

the Manager.

The Company’s Annual General Meeting ordinarily

provides a forum, both formal and informal, for

shareholders to meet and discuss issues with the Directors

and Investment Manager. The Notice of AGM included

within the Annual Report is normally sent out at least 20

working days in advance of the meeting.

The Company will also hold an online presentation for

existing and potential shareholders on 2 November 2022.

Further information on how to register may be found in the

Chairman’s Statement on page 5.

Future Developments of the Company

Disclosures relating to the future developments of the

Company may be found in the Chairman’s Statement on

pages 5 and 6.

Disclosures Required by FCA Listing

Rule 9.8.4

This rule requires listed companies to report certain

information in a single identifiable section of their annual

financial reports. None of the prescribed information is

applicable to the Company in the Year.

Annual General Meeting (“AGM”)

Among the special business being put at the AGM of the

Company to be held on 1 November 2022, the following

resolutions will be proposed:

Authority to allot shares and disapply pre-emption rights

(Resolutions 12 and 13)

Ordinary resolution No. 12 will renew the authority to allot

the unissued share capital up to an aggregate nominal

amount of £1.5m (equivalent to approximately 5.8m

Ordinary shares, or, if less, 5% of the Company’s existing

issued share capital (excluding treasury shares) on the

date of passing of this resolution). Such authority will

expire on the date of the AGM in 2023 or on 31 December

2023, whichever is earlier. This means that the authority

will require to be renewed at the next AGM.

44 Murray Income Trust PLC

When shares are to be allotted for cash, Section 561 of the

Companies Act 2006 (the “Act”) provides that existing

shareholders have pre-emption rights and that the new

shares to be issued, or sold from treasury, must be offered

first to such shareholders in proportion to their existing

holding of shares. However, shareholders can, by special

resolution, authorise the Directors to allot shares or sell

from treasury otherwise than by a pro rata issue to

existing shareholders. Special resolution No. 13 will, if

passed, give the Directors power to allot for cash or sell

from treasury equity securities up to an aggregate

nominal amount of £2.9m (equivalent to approximately

11.7m Ordinary shares, or, if less, 10% of the Company’s

existing issued share capital (excluding treasury shares)

on the date of passing of this resolution, as if Section 561 of

the Act does not apply). This authority will also expire on

the date of the AGM in 2023 or on 31 December 2023,

whichever is earlier. This authority will not be used in

connection with a rights issue by the Company.

The Directors intend to use the authorities given by

resolutions 12 and 13 to allot shares or sell shares from

treasury and disapply pre-emption rights only in

circumstances where this will be clearly beneficial to

shareholders as a whole. The issue proceeds would be

available for investment in line with the Company’s

investment policy. No issue of shares will be made which

would effectively alter the control of the Company without

the prior approval of shareholders in general meeting. It is

the intention of the Board that any issue of shares or any

re-sale of treasury shares would only take place at a price

not less than 0.5% above the NAV per share prevailing at

the date of sale. It is also the intention of the Board that

sales from treasury would only take place when the Board

believes that to do so would assist in the provision of

liquidity to the market.

Purchase of the Company’s own Ordinary shares

(Resolution 14)

At the AGM held on 2 November 2021, shareholders

approved the renewal of the authority permitting the

Company to repurchase its Ordinary shares. The Directors

wish to renew the authority given by shareholders at the

previous AGM. A share buy-back facility enhances

shareholder value by acquiring shares at a discount to

NAV as and when the Directors consider this to be

appropriate. The purchase of shares, when they are

trading at a discount to NAV per share, should result in an

increase in the NAV per share for the remaining

shareholders. This authority, if conferred, will only be

exercised if to do so would result in an increase in the NAV

per share for the remaining shareholders and if it is in the

best interests of shareholders generally. Any purchase of

shares will be made within guidelines established from

time to time by the Board. It is proposed to seek

shareholder authority to renew this facility for another

year at the AGM.

Under the FCA’s Listing Rules, the maximum price that

may be paid on the exercise of this authority must not

exceed the higher of (i) 105% of the average of the middle

market quotations for the shares over the five business

days immediately preceding the date of purchase and (ii)

the higher of the last independent trade and the highest

current independent bid on the trading venue where the

purchase is carried out. The minimum price which may be

paid is 25p per share. Shares which are purchased under

this authority will either be cancelled or held as treasury

shares. Special resolution No. 14 will renew the authority to

purchase in the market a maximum of 14.99% of shares in

issue at the date of passing of the resolution (amounting to

approximately 17.5m Ordinary shares). Such authority will

expire on the date of the AGM in 2023, or on 31 December

2023, whichever is earlier. This means in effect that the

authority will have to be renewed at the next AGM, or

earlier, if the authority has been exhausted. No dividends

may be paid on any shares held in treasury and no voting

rights will attach to such shares. The benefit of the ability to

hold treasury shares is that such shares may be sold at

short notice. This should give the Company greater

flexibility in managing its share capital, and improve

liquidity in its shares.

Recommendation

The Directors believe that the resolutions to be proposed

at the AGM are in the best interests of the Company and

its shareholders as a whole, and recommend that

shareholders vote in favour of the resolutions, as the

Directors intend to do in respect of their own beneficial

shareholdings, amounting to 51,666 Ordinary shares,

representing 0.04% of the Company’s issued share capital

(excluding treasury shares) at 30 June 2022.

On behalf of the Board

Neil Rogan

Chairman

21 September 2022

Directors’ Report

Continued

Murray Income Trust PLC 45

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

Murray Income Trust PLC (the “Company”) is committed

to high standards of corporate governance. The Board is

accountable to the Company’s shareholders for good

governance and this statement describes how the

Company has applied the principles identified in the UK

Corporate Governance Code as published in July 2018

(the “UK Code”), which is available on the Financial

Reporting Council’s (the “FRC”) website: frc.org.uk, and is

applicable for the Company’s Year.

The Board has also considered the principles and

provisions of the AIC Code of Corporate Governance as

published in February 2019 (the “AIC Code”). The AIC

Code addresses the principles and provisions set out in the

UK Code, as well as setting out additional provisions on

issues that are of specific relevance to the Company. The

AIC Code is available on the AIC’s website: theaic.co.uk.

The Board considers that reporting against the principles

and provisions of the AIC Code, which has been endorsed

by the FRC, provides more relevant information to

shareholders.

The Board confirms that, during the Year, the Company

has complied with the principles and provisions of the AIC

Code and the relevant provisions of the UK Code, except

for those provisions relating to:

· the role and responsibility of the chief executive;

· executive directors’ remuneration; and

· the requirement for an internal audit function.

The Board considers that these provisions are not relevant

to the position of the Company being an externally

managed investment company. In particular, all of the

Company’s day-to-day management and administrative

functions are outsourced to third parties. As a result, the

Company has no executive directors, employees or

internal operations. The Company has therefore not

reported further in respect of these provisions.

Information on how the Company has applied the AIC

Code, the UK Code, the Companies Act 2006 and the

FCA’s DTR 7.2.6 can be found in the Annual Report as

follows:

· the composition and operation of the Board and its

Committees are detailed on pages 40 to 42, and on

pages 50 to 52 in respect of the Audit Committee;

· the Board’s policy on diversity is on page 21 while

information on Board diversity is on pages 38 and 39;

· the Company’s approach to internal control and risk

management is detailed on pages 50 and 51;

· the contractual arrangements with the Manager are set

out on pages 37 and 38 while details of the annual

assessment of the Manager may be found on pages 40

and 41;

· the Company’s capital structure and voting rights are

summarised on page 37;

· the substantial interests disclosed in the Company’s

shares are listed on page 43;

· the rules concerning the appointment and replacement

of Directors are contained in the Company’s Articles of

Association and are summarised on page 46. There are

no agreements between the Company and its Directors

concerning compensation for loss of office; and

· the powers to issue or buy back the Company’s ordinary

shares, which are sought annually, and any

amendments to the Company’s Articles of Association

require a special resolution (75% majority) to be passed

by shareholders and information on these resolutions

may be found on pages 43 and 44.

By order of the Board

Aberdeen Asset Management PLC Secretaries

1 George Street

Edinburgh

EH2 2LL

21 September 2022

Statement of Corporate Governance

46 Murray Income Trust PLC

The Remuneration Committee, established by the Board,

has prepared this Directors’ Remuneration Report which

consists of three parts:

a) a Remuneration Policy, which is subject to a binding

shareholder vote every three years - most recently

voted on at the AGM on 27 November 2020 where the

proxy votes on the relevant resolution were: For -

38,821,360 votes (99.36%); Discretionary - 40,287

votes (0.10%); Against - 210,997 votes (0.54%); and

Withheld - 155,239 votes. The Remuneration Policy

will be put to a shareholder vote at the AGM in 2023;

b) an annual Implementation Report, which is subject to

an advisory vote; and

c) an Annual Statement.

The law requires the Company’s auditor to audit certain of

the disclosures provided in this report. Where disclosures

have been audited, they are indicated as such. The

independent auditor’s opinion is included on pages

54 to 61.

The fact that the Remuneration Policy is subject to a

binding vote at least every three years does not imply any

change on the part of the Company. The principles

remain the same as for previous years. There have been

no changes to the Directors’ Remuneration Policy during

the period of this Report.

Remuneration Policy

This part of the Remuneration Report provides details of

the Company’s Remuneration Policy for Directors of the

Company, which takes into consideration corporate

governance principles. No shareholder views were sought

in setting the Remuneration Policy although any

comments received from shareholders are considered on

an ongoing basis.

The Directors are non-executive and it is the Board’s

policy that the remuneration of Directors be reviewed

annually, although such review may not necessarily result

in any change. The annual review should ensure

remuneration reflects Directors’ duties and responsibilities,

expected time commitment, the level of skills and

experience required and the need for Directors to

maintain on an ongoing basis an appropriate level of

knowledge of regulatory and compliance requirements in

an industry environment of increasing complexity.

Remuneration should be fair and comparable to that of

similar investment trusts.

Appointment

· The Company only intends to appoint non-executive

Directors.

· All the Directors are non-executive appointed under the

terms of letters of appointment.

· Directors must retire and be subject to re-election at the

first AGM after their appointment; the Company has

also determined that every Director will stand for re-

election at each AGM.

· New appointments to the Board will be placed on the

fee applicable to all Directors at the time of

appointment.

· No incentive or introductory fees will be paid to

encourage a directorship.

· Directors are not eligible for bonuses, pension benefits,

share options, long term incentive schemes or other

benefits.

· The Company indemnifies its Directors for all costs,

charges, losses together with certain expenses and

liabilities which may be incurred in the discharge of

duties, as a Director of the Company.

Performance, Service Contracts, Compensation

and Loss of Offices

· 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 subject to three months’ written notice.

· Compensation will not be due upon leaving office.

· No Director is entitled to any other monetary payment

or to any assets of the Company.

· No Director will stand for re-election as a Director of the

Company later than the AGM following the ninth

anniversary of their appointment to the Board unless in

relation to exceptional circumstances.

Directors’ & Officers’ liability insurance cover is maintained

by the Company on behalf of the Directors.

Directors’ Remuneration Report

Murray Income Trust PLC 47

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

Articles Limit on Directors’ Fees

The Company’s Articles of Association limit to £250,000

the aggregate annual fees payable to Directors. The limit

can be amended by shareholder resolution from time to

time and was last increased at the AGM in 2017.

Implementation Report

Directors’ Fees

The level of fees for the Year and the preceding year are

set out in the table below. There are no further fees to

disclose as the Company has no employees, Chief

Executive or Executive Directors.

30 June 2022

30 June 2021

Chairman 40,200 37,500

Chairman of Audit Committee 33,500 30,000

Senior Independent Director 29,500 25,500

Director 26,800 25,500

Directors’ fees were last revised on 1 July 2021. The Board

carried out a review of Directors’ annual fees during the

Year by reference to inflation, measured by the increase in

the Consumer Prices Index since 1 July 2021, and taking

account of peer group comparisons by sector and by

market capitalisation. Following this review, it was decided

that Directors’ annual fees would be increased, with effect

from 1 July 2022, to £41,200 for the Chairman, £34,300 for

the Audit Committee Chairman, £30,200 for the Senior

Independent Director and £27,500 for the other Directors.

These increased fees are considered to reflect

increases in inflation, be commensurate with the time

commitment required of Directors of the Company to

adequately discharge their responsibilities, taking into

account increasingly complex and onerous

regulatory requirements.

Company Performance

The graph shows the share price total return (assuming all

dividends are reinvested) to Ordinary shareholders

compared to the total return from the FTSE All-Share

Index for the ten year period ended 30 June 2022

(rebased to 100 at 30 June 2012). This index was chosen

for comparison purposes, as it is the benchmark used for

investment performance measurement purposes.

100

120

140

160

180

200

220

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Shar e Price FTSE All-Share

Statement of Proxy Voting at Annual General Meeting

At the Company’s latest AGM, held on 2 November 2021,

shareholders approved the Directors’ Remuneration

Report (other than the Directors’ Remuneration Policy) in

respect of the year ended 30 June 2021 and the following

proxy votes received on the relevant resolution were:

For – 46,680,614 (99.5%); Discretionary – 54,105 votes

(0.1%); Against – 195,358 votes (0.4%); and Withheld –

154,937 votes.

48 Murray Income Trust PLC

Audited Information

Directors’ Remuneration

The Directors received the following remuneration in the form of fees and taxable expenses:

Year ended 30 June 2022 Year ended 30 June 2021

Fees

Taxable

Expenses

Total

Fees

Taxable

Expenses

Total

Neil Rogan 40,200 1,245 41,445 37,500 - 37,500

Stephanie Eastment 33,500 452 33,952 30,000 - 30,000

Peter Tait (appointed SID on 2 November 2021) 28,592 763 29,355 25,500 - 25,500

Merryn Somerset Webb 26,800 463 27,263 25,500 - 25,500

Alan Giles

(appointed on 17 November 2020) 26,800 576 27,376 15,867 - 15,867

Nandita Sahgal Tully (appointed on 3 November 2021) 17,718 - 17,718 n/a - n/a

Jean Park (resigned on 2 November 2021) 9,997 128 10,125 25,500 - 25,500

Donald Cameron (resigned on 2 November 2021) 9,082 484 9,566 25,500 - 25,500

Richard Laing (appointed on 17 November 2020 and

resigned on 1 April 2021)

n/a n/a n/a 9,562 - 9,562

Georgina Field (appointed on 17 November 2020 and

resigned on 19 February 2021)

n/a n/a n/a 6,001 - 6,001

Total 192,689 4,111 196,800 200,930 - 200,930

Taxable expenses refer to amounts claimed by Directors for travelling to attend meetings. The above amounts exclude

any employers’ national insurance contributions, if applicable. Due to Covid-19, there were no taxable expenses claimed

by Directors in the year ended 30 June 2021. All fees are at a fixed rate and there is no variable remuneration. Fees are

pro-rated where a change takes place during a financial year. No payments were made to third parties. There are no

other fees to disclose as the Company has no employees, chief executive or executive directors.

Annual Percentage Change in Directors’ Remuneration

The table below sets out, for the Directors who served during the Year, the annual percentage change in Directors’ fees

for the past three years.

Year ended 30 June

2022

Year ended 30 June

2021

Year ended 30 June

2020

Fees

Neil Rogan 7.2 0.0 0.0

Stephanie Eastment 11.7 0.0 14.3

Peter Tait (appointed SID on 2 November 2021) 12.1 0.0 0.0

Merryn Somerset Webb 5.1 11.0

See note

Alan Giles (appointed on 17 November 2020) 68.9

See note

n/a

Directors’ Remuneration Report

Continued

Murray Income Trust PLC 49

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

Year ended 30 June

2022

Year ended 30 June

2021

Year ended 30 June

2020

Fees

Nandita Sahgal Tully (appointed on 3 November 2021) See note

n/a n/a

Jean Park (resigned on 2 November 2021) (60.8)

0.0 (5.8)

Donald Cameron (resigned on 2 November 2021) (64.4)

0.0 0.0

Percentage change figure cannot be calculated in the year of appointment.

If the Director had been appointed for the whole of the previous year, the annual change figure would have been nil for Merryn Somerset Webb and 5.1% for Alan Giles

The percentage figure for the year ended 30 June 2022 represents a period of less than 12 months.

Spend on Pay

As the Company has no employees, the Directors do not

consider it appropriate to present a table comparing

remuneration paid to Directors with distributions to

shareholders. However, for ease of reference, the total

fees paid to Directors are shown in the table on page 47

while dividends paid to shareholders are set out in note 7

and share buybacks are detailed in note 15.

Directors’ Interests in the Company

The Directors are not required to have a shareholding in

the Company. The Directors (including their persons

closely associated) at 30 June 2022, and 30 June 2021,

had no interest in the share capital of the Company other

than those interests shown below, all of which are

beneficial interests, unless indicated otherwise:

30 June 2022 30 June 2021

Director Ord 25p Ord 25p

Neil Rogan 37,157 35,000

Stephanie Eastment 4,500

4,500

Peter Tait 5,000 5,000

Merryn Somerset Webb 3,449 3,449

Alan Giles 5,000 2,977

Nandita Sahgal Tully 560 -

Jean Park 5,575

5,575

Donald Cameron 1,691

1,691

Georgina Field

n/a n/a

Richard Laing

2,977

Of which 1,700 shares were held non-beneficially

As at date of resignation on 2 November 2021

As at date of resignation on 10 February 2021

As at date of resignation on 1 April 2021

There have been no changes to the Directors’ interests in

the share capital of the Company since the year end up to

the date of approval of this Report.

Annual Statement

On behalf of the Board and in accordance with Part 2 of

Schedule 8 of the Large and Medium-sized Companies

and Groups (Accounts and Reports) (Amendment)

Regulations 2013, I confirm that the above Report on

Remuneration Policy and Remuneration Implementation

summarises, as applicable, for the Year:

· the major decisions on Directors’ remuneration;

· any substantial changes relating to Directors’

remuneration made during the Year; and

· the context in which the changes occurred and in which

decisions have been taken.

On behalf of the Board

Peter Tait

Chairman of the Remuneration Committee

21 September 2022

50 Murray Income Trust PLC

Stephanie Eastment is Chairman of the audit committee,

membership of which comprises all of the Directors of the

Company with the exception of Neil Rogan. In compliance

with the July 2018 UK Code on Corporate Governance

(the “Code”), the Chairman of the Board is not a member

of the committee but attends the committee by invitation

of the Chair.

The Directors have satisfied themselves that at least two

of the committee’s members have recent and relevant

financial experience – Stephanie Eastment and Nandita

Sahgal Tully are both Fellows of the Institute of Chartered

Accountants in England & Wales – and that, collectively,

the committee possesses competence relevant to

investment trusts.

The committee meets at least twice each year, in line with

the cycle of annual and half-yearly reports, which is

considered by the Directors to be a frequency

appropriate to the size and complexity of the Company.

Role of the Audit Committee

In summary, the committee’s main audit review

functions are:

· to review and monitor the internal control systems and

risk management systems (including review of non-

financial risks) on which the Company is reliant (see

“Internal Controls and Risk Management”, below);

· to consider annually whether there is a need for the

Company to have its own internal audit function;

· to monitor the integrity of the half-yearly and annual

financial statements of the Company by reviewing, and

challenging where necessary, the actions and

judgements of the Manager;

· to review, and report to the Board on, the significant

financial reporting issues and judgements made in

connection with the preparation of the Company’s

financial statements, half-yearly reports,

announcements and related formal statements;

· to review the content of the Annual Report and financial

statements and advise the Board on whether, taken as a

whole, it is fair, balanced and understandable and

provides the information necessary for shareholders to

assess the Company’s position and performance,

business model and strategy;

· to meet with the external auditor to review their

proposed audit programme of work and the findings as

auditor

· to develop and implement a policy on the engagement

of the auditor to supply non-audit services;

· to review a statement from the Manager detailing the

arrangements in place for the Manager’s staff, in

confidence, to escalate concerns about possible

improprieties in matters of financial reporting or other

matters (“whistleblowing”);

· to oversee and manage audit tenders and selection

processes, to make recommendations to the Board in

relation to the appointment of the auditor and removal

of the auditor and to approve the remuneration and

terms of engagement of the auditor;

· to monitor and review annually the auditor’s

independence, objectivity, effectiveness, resources and

qualification; and

· to investigate the reasons giving rise to any resignation

of the auditor and consider whether any action is

required.

The committee fulfilled all the above required roles and

responsibilities during the Year.

Internal Controls and Risk Management

Through the committee, the Board is ultimately

responsible for the Company’s system of internal control

and risk management and for reviewing its effectiveness.

The committee confirms that there is a robust process for

identifying, evaluating and managing the Company’s

significant business and operational risks, that it has been

in place for the Year and up to the date of approval of the

Annual Report and Financial Statements, and that it is

regularly reviewed by the Board and accords with the risk

management and internal control guidance for directors

in the Code.

The design, implementation and maintenance of controls

and procedures to safeguard the assets of the Company

and to manage its affairs extends to operational and

compliance controls and risk management.

The Directors have delegated the investment

management of the Company’s assets to the Manager

within overall guidelines and this embraces

implementation of the system of internal control, including

financial, operational and compliance controls and risk

management. Internal control systems are monitored and

supported by the Manager’s Internal Audit department

which undertakes periodic examination of business

processes and ensures that recommendations to improve

controls are implemented.

Audit Committee’s Report

Murray Income Trust PLC 51

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

Risks are identified and documented through a risk

management framework by each function within the

Manager’s activities. Risk is considered in the context of the

FRC and AIC Code guidance, and includes financial,

regulatory, market, operational and reputational risks. This

helps the internal audit risk assessment model identify

those functions for review. Any weaknesses identified are

reported to the Board, and timetables are agreed for

implementing improvements to systems. The

implementation of any remedial action required is

monitored and feedback provided to the Board.

The principal risks and uncertainties facing the Company

are identified on pages 16 to 19 of this Report.

The key components designed to provide effective

internal control are outlined below:

· the Manager prepares forecasts and management

accounts which allow the Board to assess the

Company’s activities and review its performance; the

emphasis is on obtaining the relevant degree of

assurance and not merely reporting by exception;

· the Board and Manager have agreed clearly-defined

investment criteria, specified levels of authority and

exposure limits. Reports on these, including

performance statistics and investment valuations, are

regularly submitted to the Board and there are

meetings with the Manager as appropriate;

· as a matter of course, the Manager’s compliance

department continually reviews the Manager’s

operations;

· written agreements are in place which specifically

define the roles and responsibilities of the Manager and

other third-party service providers and the committee

reviews, where relevant, ISAE3402 Reports, a global

assurance standard for reporting on internal controls for

service organisations; in particular, the Board receives

equivalent assurance from Link Group, the Company’s

Registrar; and

· at its September 2022 meeting, the committee carried

out its annual assessment of internal controls for the Year

including the internal audit and compliance functions, and

taking account of events since 30 June 2022.

In addition, the Manager ensures that clearly documented

contractual arrangements exist in respect of any activities

that have been delegated to external professional

organisations. A senior member of the Manager’s Internal

Audit department reports six-monthly to the Audit

committee and has direct access to the Directors

at any time.

Internal control systems are designed to meet the

Company’s particular needs and the risks to which it is

exposed. Accordingly, the internal control systems are

designed to manage, rather than eliminate, the risk of

failure to achieve business objectives and, by their nature,

can only provide reasonable, and not absolute, assurance

against misstatement and loss.

Review of Risk Management and Internal Controls

During the Year, the committee appointed a sub-

committee to review the Company’s Risk Management

and Internal Controls. This review resulted in:

· a revision of the impact and probability criteria to assess

risks;

· the introduction of pre- and post-mitigation Risk Heat

Maps and trend reporting for risks;

· update of the Company’s Risk Register; and

· clear alignment between the top risks identified and

the principal risks and uncertainties shown on pages

16 to 19.

Significant Risks for the Audit Committee

During its review of the Company’s financial statements

for the Year, the committee considered the following

significant risks including, in particular, those

communicated by the auditor as key areas of audit

emphasis during their planning and reporting of the year

end audit:

Valuation and Existence of Investments

How the risk was addressed

The valuation of investments is undertaken in accordance

with the accounting policies, disclosed in note 2 (f) to the

financial statements. All investments are considered liquid

and quoted in active markets and have been categorised

as Level 1 within the FRS 102 fair value hierarchy and can

be verified against daily market prices. The portfolio is

reviewed and verified by the Manager on a regular basis

and management accounts, including a full portfolio

listing, are prepared each month and circulated to the

Board. The portfolio is also reviewed annually by the

auditor. The Company used the services of an

independent depositary (BNP Paribas Trust Corporation

UK Limited) during the Year through whom the assets of

the Company were held. The depositary confirmed that

the accounting records correctly reflected all investee

holdings and that these agreed to custodian records.

52 Murray Income Trust PLC

Income Recognition

How the risk was addressed

The recognition of investment income is undertaken in

accordance with accounting policy note 2(c) to the

financial statements. Special dividends are allocated to

the capital or revenue accounts according to the nature

of the payment and the intention of the underlying

company. The Directors also review, at each meeting, the

Company’s income, including income received, revenue

forecasts and dividend comparisons.

Internal Auditor

The Board has considered the need for an internal audit

function but, because the Company is externally-

managed, the Board has decided to place reliance on the

Manager’s risk management/internal controls systems

and internal audit procedures.

External Auditor

Review of the Auditor

The committee has reviewed the effectiveness of the

auditor including:

· independence - the auditor discusses with the

committee, at least annually, the steps it takes to ensure

its independence and objectivity, including the level of

non-audit fees it has received from the Company, and

makes the committee aware of any potential issues,

explaining all relevant safeguards;

· quality of audit work including the ability to resolve issues

in a timely manner - identified issues are satisfactorily

and promptly resolved;

· its communications/presentation of outputs - the

explanation of the audit plan, any deviations from it and

the subsequent audit findings are comprehensive and

comprehensible, and working relationship with

management - the auditor has a constructive working

relationship with the Manager; and

· quality of people and service including continuity and

succession plans - the audit team is made up of

sufficient, suitably experienced staff with provision

made for knowledge of the investment trust sector and

retention of that knowledge on rotation of the partner.

For the Year, the committee was satisfied with the

auditor’s effectiveness, independence and the objectivity

of the audit process.

Re-appointment of the Auditor

This year’s audit of the Company’s Annual Report is the

third performed by PricewaterhouseCoopers LLP since

their appointment following an audit tender process held

by the Company in 2019.

Shareholders will have the opportunity to vote on the re-

appointment of PricewaterhouseCoopers LLP as auditor,

and to authorise the committee to approve the auditor’s

remuneration, as Ordinary Resolutions 10 and 11 at the

AGM on 1 November 2022.

Provision of Non-Audit Services

The committee has put in place a policy on the supply of

non-audit services provided by the auditor. Such services

are considered on a case-by-case basis and may only be

provided if the service is at a reasonable and competitive

cost and does not constitute a conflict of interest or

potential conflict of interest or prevent the auditor from

remaining objective and independent. All non-audit

services require the pre-approval of the committee. No

non-audit fees were paid to the auditor during the Year

(2021 - nil). The committee confirms that it has complied

with Part 5.1 of the Competitions and Market Authority’s

Order 2014.

FRC Review of the Company’s Annual Report

for the Year Ended 30 June 2021

In February 2022, correspondence was received from the

FRC’s Corporate Reporting Review Team (the “FRC Review

Team”) following their review of the Company’s Annual

Report for the year ended 30 June 2021. The FRC’s review

was limited to the 30 June 2021 Annual Report, as

published, and the FRC Review Team did not benefit from

detailed knowledge of the Company’s business or an

understanding of the underlying transactions entered into.

However, it was conducted by staff who have an

understanding of the relevant legal and accounting

framework.

The FRC Review Team asked for further information in

relation to the cash inflows associated with the purchase

of assets from Perpetual Income and Growth Investment

Trust plc. Further details of this are set out in Note 2(b) on

page 68.

In addition, the Company was advised of two other areas

where enhancements could be made to the Company’s

2022 annual report if deemed to be material and of

relevance to the Company’s financial reporting. As a

result, the frequency of net asset values used in the

denomination of the calculation of ongoing charges,

which was daily, has been added to the disclosure of this

alternative performance measure on page 104.

Stephanie Eastment,

Chairman of the Audit Committee

21 September 2022

Audit Committee’s Report

Continued

Murray Income Trust PLC 53

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

The Directors are responsible for preparing the Annual

Report and the financial statements in accordance with

applicable law and regulations.

Company law requires the Directors to prepare financial

statements for each financial year. Under that law the

Directors have elected to prepare the financial

statements in accordance with United Kingdom Generally

Accepted Accounting Practice (United Kingdom

Accounting Standards and applicable law) including FRS

102 ‘The Financial Reporting Standard applicable in the UK

and Republic of Ireland’. Under company law the Directors

must not approve the financial statements unless they are

satisfied that they give a true and fair view of the state of

affairs of the Company and of the profit or loss of the

Company for that period.

In preparing these financial statements, the Directors are

required to:

· select suitable accounting policies and then apply

them consistently;

· make judgments and accounting estimates that are

reasonable and prudent;

· state whether applicable UK Accounting Standards

have been followed, subject to any material departures

disclosed and explained in the financial statements; and

· adopt a going concern basis of accounting for the

financial statements unless it is inappropriate to assume

that the Company will continue in business.

The Directors are responsible for keeping adequate

accounting records that are sufficient to show and explain

the Company’s transactions and disclose with reasonable

accuracy at any time the financial position of the

Company and enable them to ensure that the financial

statements comply with the Companies Act 2006. They

are also responsible for safeguarding the assets of the

Company and hence for taking reasonable steps for the

prevention and detection of fraud and other irregularities.

Under applicable law and regulations, the Directors are

also responsible for preparing a Directors’ Report,

Directors’ Remuneration Report, Strategic Report and

Statement of Corporate Governance that comply with

that law and those regulations.

The financial statements are published on murray-

income.co.uk which is a website maintained by the

Company’s Manager. The work carried out by the auditor

does not involve consideration of the maintenance and

integrity of the website and, accordingly, the auditor

accepts no responsibility for any changes that have

occurred to the financial statements since being initially

presented on the website. Legislation in the UK governing

the preparation and dissemination of financial statements

may differ from legislation in other jurisdictions.

Each of the Directors confirms to the best of his or her

knowledge that:

· the financial statements, prepared in accordance with

the applicable accounting standards, give a true and fair

view of the assets, liabilities, financial position and profit

of the Company;

· the Annual Report includes a fair review of the

development and performance of the business and the

position of the Company, together with a description of

the principal risks and uncertainties that the Company

faces;

· in the opinion of the Board, the Annual Report and

financial statements taken as a whole, is fair, balanced

and understandable and provides the information

necessary for shareholders to assess the Company’s

position and performance, business model and strategy;

and

· the financial statements are prepared on an ongoing

concern basis.

For and on behalf of the Board of Murray

Income Trust PLC

Neil Rogan

Chairman

21 September 2022

Statement of Directors’ Responsibilities

54 Murray Income Trust PLC

Report on the audit of the financial statements

Opinion

In our opinion, Murray Income Trust PLC’s financial statements:

· give a true and fair view of the state of the Company’s affairs as at 30 June 2022 and of its net return and cash flows for

the year then ended;

· have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United

Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and

Republic of Ireland”, and applicable law); and

· have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements, included within the Annual Report, which comprise: the Statement of Financial

Position as at 30 June 2022; the Statement of Comprehensive Income; the Statement of Changes in Equity; the

Statement of Cash Flows for the year then ended; and the Notes to the Financial Statements, which include a description

of the significant accounting policies.

Our opinion is consistent with our reporting to the Audit Committee.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law.

Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial

statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to

provide a basis for our opinion.

Independence

We remained independent of the Company in accordance with the ethical requirements that are relevant to our audit

of the financial statements in the UK, which includes the FRC’s Ethical Standard, as applicable to listed public interest

entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

To the best of our knowledge and belief, we declare that non-audit services prohibited by the FRC’s Ethical Standard

were not provided to the Company.

We have provided no non-audit services to the Company in the period under audit.

Our audit approach

Overview

Audit Scope

· The Company is a standalone Investment Trust Company and engages abrdn Fund Managers Limited (the “AIFM”) to

manage its assets.

· We conducted our audit of the financial statements using information from the AIFM and BNP Paribas Securities

Services (the “Administrator”) to whom the Directors have delegated the provision of all administrative functions.

· We tailored the scope of our audit taking into account the types of investments within the Company, the involvement

of the AIFM and the Administrator referred to above, the accounting processes and controls, and the industry in which

the Company operates.

· We obtained an understanding of the control environment in place at the AIFM and adopted a fully substantive testing

approach using reports obtained from the AIFM.

Independent Auditors’ Report to the Members

of Murray Income Trust PLC

Murray Income Trust PLC 55

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

Key audit matters

· Income from investments.

· Valuation and existence of listed investments.

Materiality

· Overall materiality: £10,092,000 (2021: £10,930,000) based on approximately 1% of Net assets.

· Performance materiality: £7,569,000 (2021: £8,197,500).

The scope of our audit

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the

financial statements.

Key audit matters

Key audit matters are those matters that, in the auditors’ professional judgement, were of most significance in the audit

of the financial statements of the current period and include the most significant assessed risks of material misstatement

(whether or not due to fraud) identified by the auditors, including those which had the greatest effect on: the overall

audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team. These matters,

and any comments we make on the results of our procedures thereon, were addressed in the context of our audit of the

financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on

these matters.

This is not a complete list of all risks identified by our audit.

Consideration of impacts of COVID-19 and Accounting applied on initial recognition of the acquisition of assets and

liabilities from Perpetual Income and Growth Investment Trust plc, which were key audit matters last year, are no longer

included because of reduced uncertainty of the impact of COVID-19 in the current year as markets and economies

continue to recover and the one off nature of the prior year acquisition of assets and liabilities from Perpetual Income

and Growth Investment Trust plc, respectively. Otherwise, the key audit matters below are consistent with last year.

Key audit matter How our audit addressed the key audit matter

Income from investments

Refer to page 52 (Audit Committee’s Report), page 69

(Accounting Policies) and page 72 (Notes to the Financial

Statements).

ISAs (UK) presume there is a risk of fraud in income recognition

because of the pressure management may feel to achieve a

certain objective. In this instance, we consider that ‘income’

refers to all the Company’s income streams, both revenue and

capital (including gains and losses on investments).

As the Company has an Income objective, there might be an

incentive to overstate income. As such, we focussed this risk on

the existence/occurrence of revenue from investments,

completeness of gains/losses from investments and its

We assessed the accounting policy for income recognition for

compliance with accounting standards and the AIC SORP and

performed testing to confirm that income had been accounted

for in accordance with this stated accounting policy. We found

that the accounting policies implemented were in accordance

with accounting standards and the AIC SORP, and that income

has been accounted for in accordance with the stated

accounting policy.

We understood and assessed the design and implementation of

key controls surrounding income recognition.

The gains and losses on investments held at fair value comprise

realised and unrealised gains and losses. For unrealised gains

and losses, we tested the valuation of the portfolio at the year-

end (see Valuation and existence of listed investments Key Audit

Matter), together with testing of the reconciliation of opening

and closing investments and agreeing the year end holdings to

independent confirmation. For realised gains and losses, we

56 Murray Income Trust PLC

Key audit matter How our audit addressed the key audit matter

presentation in the Statement of Comprehensive Income as set

out in the requirements of The Association of Investment

Companies’ Statement of Recommended Practice

(the “AIC SORP”).

tested a sample of disposal proceeds by agreeing the proceeds

to bank statements.

We tested the accuracy of all dividend receipts by agreeing the

dividend rates from investments to independent market data.

We tested occurrence by testing that all dividends recorded in

the year had been declared in the market by investment

holdings, and we traced a sample of dividends received to bank

statements.

We tested the allocation and presentation of dividend income

between the revenue and capital return columns of the

Statement of Comprehensive Income in line with the

requirements set out in the AIC SORP by determining the reasons

behind dividend distributions.

Based on the audit procedures performed and evidence

obtained, we concluded that income from investments was not

materially misstated.

Valuation and existence of listed investments

Refer to page 51 (Audit Committee’s Report), page 70

(Accounting Policies) and pages 76 and 77 (Notes to the

Financial Statements). The investment portfolio at 30 June 2022

comprised listed equity investments of £1,099 million. We

focused on the valuation and existence of investments because

investments represent the principal element of the net asset

value as disclosed in the Statement of Financial Position in the

financial statements.

We tested the valuation of all the listed investments by agreeing

the prices used in the valuation to independent third party

sources.

We tested the existence of all listed investments by agreeing the

holdings to an independent confirmation from the Depositary,

BNP Paribas Securities Services as at 30 June 2022.

No material misstatements were identified from this testing.

How we tailored the audit scope

We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the

financial statements as a whole, taking into account the structure of the company, the accounting processes and

controls, and the industry in which it operates.

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial

statements. In particular, we looked at where subjective judgements are made, for example in respect of classification of

special dividends as revenue or capital.

In planning our audit, we made enquiries of the Directors to understand the extent of the potential impact of climate

change risk on the Company’s financial statements.

The Directors concluded that the impact on the measurement and disclosures within the financial statements is not

material because the Company's investment portfolio is made up of level 1 quoted securities which are valued at fair

value based on market prices. We found this to be consistent with our understanding of the Company's investment

activities.

We also considered the consistency of the Climate change disclosures included in the Strategic Report with the financial

statements and our knowledge from our audit.

Independent Auditors’ Report to the Members

of Murray Income Trust PLC

Continued

Murray Income Trust PLC 57

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

Materiality

The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for

materiality. These, together with qualitative considerations, helped us to determine the scope of our audit and the

nature, timing and extent of our audit procedures on the individual financial statement line items and disclosures and in

evaluating the effect of misstatements, both individually and in aggregate on the financial statements as a whole.

Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:

Overall Company materiality £10,092,000 (2021: £10,930,000).

How we determined it Approximately 1% of Net assets.

Rationale for benchmark applied We believe that net assets is the primary measure used by the

shareholders in assessing the performance of the entity, and is a

generally accepted auditing benchmark. This benchmark provides an

appropriate and consistent year on year basis for our audit.

We use performance materiality to reduce to an appropriately low level the probability that the aggregate of

uncorrected and undetected misstatements exceeds overall materiality. Specifically, we use performance materiality in

determining the scope of our audit and the nature and extent of our testing of account balances, classes of transactions

and disclosures, for example in determining sample sizes. Our performance materiality was 75% (2021: 75%) of overall

materiality, amounting to £7,569,000 (2021: £8,197,500) for the Company financial statements.

In determining the performance materiality, we considered a number of factors - the history of misstatements, risk

assessment and aggregation risk and the effectiveness of controls - and concluded that an amount at the upper end of

our normal range was appropriate.

We agreed with the Audit Committee that we would report to them misstatements identified during our audit above

£504,600 (2021: £546,500) as well as misstatements below that amount that, in our view, warranted reporting for

qualitative reasons.

Conclusions relating to going concern

Our evaluation of the Directors’ assessment of the Company’s ability to continue to adopt the going concern basis of

accounting included:

· evaluating the Directors' updated risk assessment and considering whether it addressed relevant threats, including the

ongoing impact of COVID-19, rising inflation, Russia’s Invasion of Ukraine, and the subsequent economic uncertainty;

· evaluating the Directors' assessment of potential operational impacts, considering their consistency with other

available information and our understanding of the business and assessed the potential impact on the financial

statements;

· reviewing the Directors' assessment of the Company's financial position in the context of its ability to meet future

expected operating expenses and debt repayments, their assessment of liquidity as well as their review of the

operational resilience of the Company and oversight of key third-party service providers; and

· assessing the implication of significant reductions in Net Asset Value (NAV) as a result of market performance on the

ongoing ability of the Company to operate.

58 Murray Income Trust PLC

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions

that, individually or collectively, may cast significant doubt on the Company’s ability to continue as a going concern for a

period of at least twelve months from when the financial statements are authorised for issue.

In auditing the financial statements, we have concluded that the Directors’ use of the going concern basis of accounting

in the preparation of the financial statements is appropriate.

However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the

Company's ability to continue as a going concern.

In relation to the Directors’ reporting on how they have applied the UK Corporate Governance Code, we have nothing

material to add or draw attention to in relation to the Directors’ statement in the financial statements about whether the

Directors considered it appropriate to adopt the going concern basis of accounting.

Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant

sections of this report.

Reporting on other information

The other information comprises all of the information in the Annual Report other than the financial statements and our

auditors’ report thereon. The Directors are responsible for the other information. Our opinion on the financial statements

does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent

otherwise explicitly stated in this report, any form of assurance thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,

consider whether the other information is materially inconsistent with the financial statements or our knowledge

obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency

or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement

of the financial statements or a material misstatement of the other information. If, based on the work we have

performed, we conclude that there is a material misstatement of this other information, we are required to report that

fact. We have nothing to report based on these responsibilities.

With respect to the Strategic Report and Directors’ Report, we also considered whether the disclosures required by the

UK Companies Act 2006 have been included.

Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain

opinions and matters as described below.

Strategic Report and Directors’ Report

In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic Report and

Directors’ Report for the year ended 30 June 2022 is consistent with the financial statements and has been prepared in

accordance with applicable legal requirements.

In light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we

did not identify any material misstatements in the Strategic Report and Directors’ Report.

Directors’ Remuneration

In our opinion, the part of the Directors' Remuneration Report to be audited has been properly prepared in accordance

with the Companies Act 2006.

Corporate governance statement

The Listing Rules require us to review the Directors’ statements in relation to going concern, longer-term viability and that

part of the corporate governance statement relating to the Company’s compliance with the provisions of the UK

Corporate Governance Code specified for our review. Our additional responsibilities with respect to the corporate

governance statement as other information are described in the Reporting on other information section of this report.

Independent Auditors’ Report to the Members

of Murray Income Trust PLC

Continued

Murray Income Trust PLC 59

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the

corporate governance statement is materially consistent with the financial statements and our knowledge obtained

during the audit, and we have nothing material to add or draw attention to in relation to:

· the Directors’ confirmation that they have carried out a robust assessment of the emerging and principal risks;

· the disclosures in the Annual Report that describe those principal risks, what procedures are in place to identify

emerging risks and an explanation of how these are being managed or mitigated;

· the Directors’ statement in the financial statements about whether they considered it appropriate to adopt the going

concern basis of accounting in preparing them, and their identification of any material uncertainties to the Company’s

ability to continue to do so over a period of at least twelve months from the date of approval of the financial

statements;

· the Directors’ explanation as to their assessment of the Company’s prospects, the period this assessment covers and

why the period is appropriate; and

· the Directors’ statement as to whether they have a reasonable expectation that the Company will be able to continue

in operation and meet its liabilities as they fall due over the period of its assessment, including any related disclosures

drawing attention to any necessary qualifications or assumptions.

Our review of the Directors’ statement regarding the longer-term viability of the group was substantially less in scope

than an audit and only consisted of making inquiries and considering the Directors’ process supporting their statement;

checking that the statement is in alignment with the relevant provisions of the UK Corporate Governance Code; and

considering whether the statement is consistent with the financial statements and our knowledge and understanding of

the Company and its environment obtained in the course of the audit.

In addition, based on the work undertaken as part of our audit, we have concluded that each of the following elements of

the corporate governance statement is materially consistent with the financial statements and our knowledge obtained

during the audit:

· the Directors’ statement that they consider the Annual Report, taken as a whole, is fair, balanced and understandable,

and provides the information necessary for the members to assess the Company's position, performance, business

model and strategy;

· the section of the Annual Report that describes the review of effectiveness of risk management and internal control

systems; and

· the section of the Annual Report describing the work of the Audit Committee.

We have nothing to report in respect of our responsibility to report when the Directors’ statement relating to the

Company’s compliance with the Code does not properly disclose a departure from a relevant provision of the Code

specified under the Listing Rules for review by the auditors.

Responsibilities for the financial statements and the audit

Responsibilities of the Directors for the financial statements

As explained more fully in the Statement of Directors' Responsibilities, the Directors are responsible for the preparation of

the financial statements in accordance with the applicable framework and for being satisfied that they give a true and

fair view. The Directors are also responsible for such internal control as they determine is necessary to enable the

preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Directors are responsible for assessing the Company’s ability to continue as a

going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of

accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic

alternative but to do so.

60 Murray Income Trust PLC

Auditors’ responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with

ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are

considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic

decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line

with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The

extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with

laws and regulations related to breaches of section 1158 of the Corporation Tax Act 2010 and we considered the extent

to which non-compliance might have a material effect on the financial statements. We also considered those laws and

regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated

management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of

override of controls), and determined that the principal risks were related to posting inappropriate journal entries to

increase revenue (investment income and capital gains) or to increase net asset value. Audit procedures performed by

the engagement team included:

· discussions with the AIFM and the audit committee, including specific enquiry of known or suspected instances of non-

compliance with laws and regulation and fraud where applicable;

· reviewing relevant meeting minutes, including those of the Audit Committee;

· assessment of the Company’s compliance with the requirements of section 1158 of the Corporation Tax Act 2010,

including recalculation of numerical aspects of the eligibility conditions;

· identifying and testing journal entries, in particular any material or revenue-impacting manual journal entries posted as

part of the Annual Report preparation process; and

· designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances

of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the

financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not

detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional

misrepresentations, or through collusion.

Our audit testing might include testing complete populations of certain transactions and balances, possibly using data

auditing techniques. However, it typically involves selecting a limited number of items for testing, rather than testing

complete populations. We will often seek to target particular items for testing based on their size or risk characteristics. In

other cases, we will use audit sampling to enable us to draw a conclusion about the population from which the sample is

selected.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at:

www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.

Use of this report

This report, including the opinions, has been prepared for and only for the Company’s members as a body in

accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these

opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or

into whose hands it may come save where expressly agreed by our prior consent in writing.

Independent Auditors’ Report to the Members

of Murray Income Trust PLC

Continued

Murray Income Trust PLC 61

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

Other required reporting

Companies Act 2006 exception reporting

Under the Companies Act 2006 we are required to report to you if, in our opinion:

· we have not obtained all the information and explanations we require for our audit; or

· adequate accounting records have not been kept by the Company, or returns adequate for our audit have not been

received from branches not visited by us; or

· certain disclosures of Directors’ remuneration specified by law are not made; or

· the financial statements and the part of the Directors’ Remuneration Report to be audited are not in agreement with

the accounting records and returns.

We have no exceptions to report arising from this responsibility.

Appointment

Following the recommendation of the Audit Committee, we were appointed by the members on 5 November 2019 to

audit the financial statements for the year ended 30 June 2020 and subsequent financial periods. The period of total

uninterrupted engagement is three years, covering the years ended 30 June 2020 to 30 June 2022.

Gillian Alexander (Senior Statutory Auditor)

for and on behalf of PricewaterhouseCoopers LLP

Chartered Accountants and Statutory Auditors

Edinburgh

21 September 2022

62 Murray Income Trust PLC

Financial

Statements

Murray Income Trust PLC 63

Unilever, a portfolio company,

operates under 400+ brands that

are household names across

190+ countries.

64 Murray Income Trust PLC

Year ended 30 June 2022 Year ended 30 June 2021

Revenue Capital Total Revenue Capital Total

Notes £’000 £’000 £’000 £’000 £’000 £’000

(Losses)/gains on investments 10 – (83,786) (83,786) – 131,260 131,260

Currency (losses)/gains – (216) (216) – 62 62

Income 3 51,018 – 51,018 35,979 – 35,979

Investment management fees 4 (1,199) (2,798) (3,997) (753) (1,759) (2,512)

Administrative expenses 5 (1,350) – (1,350) (1,443) – (1,443)

Net return before finance costs and tax 48,469 (86,800) (38,331) 33,783 129,563 163,346

Finance costs 6 (692) (1,615) (2,307) (560) (1,282) (1,842)

Net return before tax 47,777 (88,415) (40,638) 33,223 128,281 161,504

Taxation 8 (463) – (463) (287) – (287)

Net return after tax 47,314 (88,415) (41,101) 32,936 128,281 161,217

Return per Ordinary share 9 40.5p (75.7)p (35.2)p 33.7p 131.4p 165.1p

The total column of this statement represents the profit and loss account of the Company prepared in accordance with FRS 102. The

‘Revenue’ and ‘Capital’ columns represent supplementary information prepared under guidance issued by the Association of

Investment Companies.

All revenue and capital items in the above statement derive from continuing operations.

No operations were acquired or discontinued in the year.

The accompanying notes are an integral part of the financial statements.

Statement of Comprehensive Income

Murray Income Trust PLC 65

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

As at As at

30 June 2022 30 June 2021

Notes £’000 £’000

Fixed assets

Investments at fair value through profit or loss 10 1,098,793 1,202,290

Current assets

Other debtors and receivables 11 9,061 8,345

Cash and cash equivalents 12 20,131 4,493

29,192 12,838

Creditors: amounts falling due within one year

Other payables (1,513) (2,749)

Bank loans (6,507) (6,241)

13 (8,020) (8,990)

Net current assets 21,172 3,848

Total assets less current liabilities 1,119,965 1,206,138

Creditors: amounts falling due after more than one year

2.51% Senior Loan Notes (39,930) (39,918)

4.37% Senior Loan Notes (70,780) (72,361)

14 (110,710) (112,279)

Net assets 1,009,255 1,093,859

Capital and reserves

Share capital 15 29,882 29,882

Share premium account 438,213 438,213

Capital redemption reserve 4,997 4,997

Capital reserve 502,672 594,282

Revenue reserve 33,491 26,485

Total Shareholders’ funds 1,009,255 1,093,859

Net asset value per Ordinary share 16

Debt at par value 864.9p 934.6p

The financial statements were approved by the Board of Directors and authorised for issue on 21 September 2022 and were signed

on its behalf by:

Neil Rogan

Chairman

The accompanying notes are an integral part of the financial statements.

Statement of Financial Position

66 Murray Income Trust PLC

For the year ended 30 June 2022

Share Capital

Share premium redemption Capital Revenue

capital account reserve reserve reserve Total

Notes £’000 £’000 £’000 £’000 £’000 £’000

Balance at 1 July 2021 29,882 438,213 4,997 594,282 26,485 1,093,859

Net (loss)/return after tax – – – (88,415) 47,314 (41,101)

Buyback of Ordinary shares for treasury 15 – – – (3,195) – (3,195)

Dividends paid 7 – – – – (40,308) (40,308)

Balance at 30 June 2022 29,882 438,213 4,997 502,672 33,491 1,009,255

For the year ended 30 June 2021

Share Capital

Share premium redemption Capital Revenue

capital account reserve reserve reserve Total

Notes £’000 £’000 £’000 £’000 £’000 £’000

Balance at 1 July 2020 17,148 24,020 4,997 466,001 22,195 534,361

Net return after tax – – – 128,281 32,936 161,217

Issue of shares on combination 12,734 414,486 – – – 427,220

Cost of shares issued in respect of the PLI

transaction

– (293) – – – (293)

Dividends paid 7 – – – – (28,646) (28,646)

Balance at 30 June 2021 29,882 438,213 4,997 594,282 26,485 1,093,859

The accompanying notes are an integral part of the financial statements.

Statement of Chan

es in Equity

Murray Income Trust PLC 67

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

*Restated

Year ended Year ended

30 June 2022 30 June 2021

Notes £’000 £’000

Operating activities

Net (loss)/return before finance costs and taxation (38,331) 163,346

(Decrease)/increase in accrued expenses (80) 209

Overseas withholding tax (1,360) (943)

Dividend income 3 (48,158) (33,368)

Dividends received 47,888 31,894

Interest income 3 (39) (1)

Interest received 20 1

Interest paid (2,272) (1,455)

Losses/(gains) on investments 10 83,786 (131,260)

Amortisation on Loan Notes 6 (1,569) (969)

Foreign exchange losses/(gains) 216 (62)

Decrease/(increase) in other debtors 46 (100)

Stock dividends included in investment income 3 (3,728) (1,699)

Net cash inflow from operating activities 36,419 25,593

Investing activities

Purchases of investments (238,613) (199,801)

Sales of investments 261,285 153,910

Costs associated with the PLI transaction – (2,519)

Net cash inflow/(outflow) from investing activities 22,672 (48,410)

Financing activities

Dividends paid 7 (40,308) (28,646)

Buyback of Ordinary shares for treasury (3,195) –

Cost of shares issued in respect of the PLI transaction – (293)

Net cash acquired and received following the PLI transaction 20 – 40,248

Repayment of bank loans (6,290) (513)

Draw down of bank loans 6,258 507

Net cash (outflow)/inflow from financing activities (43,535) 11,303

Increase/(decrease) in cash 15,556 (11,514)

Analysis of changes in cash during the year

Opening balance 4,493 16,365

Effect of exchange rate fluctuations on cash held 82 (358)

Increase/(decrease) in cash as above

15,556 (11,514)

Closing balance

20,131 4,493

Represented by:

Cash at bank and in hand

1,503 4,493

Money market funds

18,628 –

20,131 4,493

* 2021 restated to move a £40,248,000 cash inflow from investing activities to financing activities; further details are set out in Note 2(b) on page 68.

The accom

notes are an inte

ral

art of these financial statements.

Statement of Cash Flows

68 Murray Income Trust PLC

1. Principal activity

The Company is a closed-end investment company, registered in Scotland No SC012725, with its Ordinary shares being listed

on the London Stock Exchange.

2. Accounting policies

(a) Basis of preparation. The financial statements have been prepared in accordance with Financial Reporting Standard 102,

the Companies Act 2006 and with the Statement of Recommended Practice ‘Financial Statements of Investment Trust

Companies and Venture Capital Trusts’ issued in April 2021. The financial statements are prepared in Sterling which is

the functional currency of the Company and rounded to the nearest £’000. They have also been prepared on the

assumption that approval as an investment trust will continue to be granted. The accounting policies applied are

unchanged from the prior year and have been applied consistently.

The Company’s assets consist primarily of a diverse portfolio of listed equity shares nearly all of which, in most

circumstances, are realisable within a very short timescale. The Board has set limits for borrowing and regularly reviews

the level of any gearing, cash flow projections and compliance with banking and loan note covenants. The Directors are

mindful of the principal risks and uncertainties disclosed on pages 16 to 19, including the Russian invasion of Ukraine, the

ongoing disruption caused by the pandemic and macroeconomic pressures, and have reviewed forecasts detailing

revenue and liabilities. Notwithstanding the continuing uncertain economic outlook, the Directors are satisfied that: the

Company has adequate resources to continue in operational existence for the foreseeable future being at least twelve

months from the date of approval of this Annual Report; the Company is financially sound; and the Company’s key third

party service providers had in place appropriate business continuity plans and had, and will, be able to maintain service

levels despite the ongoing impact of the pandemic. Accordingly, the Board continues to adopt the going concern basis

of accounting in preparing the financial statements.

(b) Restatement of 2021 Statement of Cash Flows

In February 2022, correspondence was received from the FRC’s Corporate Reporting Review Team which had reviewed

the Company’s annual report for the year ended 30 June 2021. The FRC asked for further information in relation to the

cash inflows associated with the purchase of assets, including cash and cash equivalents, from Perpetual Income and

Growth Investment Trust plc (“PLI”). The FRC queried the basis for classifying the cash inflow of £40,248,000 associated

with the PLI transaction as an investing activity rather than as a financing activity.

The Board originally assessed the classification of the cash received in the context of the wider PLI transaction and

determined that the substance of the transaction was the purchase of a pool of investment assets in exchange for non-

cash consideration. The cash inflow was therefore classified as an investing activity within the Statement of Cash Flows.

The Board considers that there are merits in disclosing the £40,248,000 cash inflow as either an investing activity or as a

financing activity based on the nature of the PLI transaction. However, after consideration, on balance the Board has

judged that the cash inflow will be restated as a financing activity pursuant to the issuance of shares and the assumption

of debt in the Statement of Cash Flows in the Company’s annual report for the year ended 30 June 2022. Consequently,

for the year ended 30 June 2021 the Company’s net cash outflow from investing activities has been restated from

£8,162,000 to £48,410,000 while net cash outflow from financing activities of £28,945,000 has been restated to net cash

inflow from financing activities of £11,303,000. This change in presentation has no impact on the Company’s net assets

or Statement of Comprehensive Income.

Notes to the Financial Statements

For the year ended 30 June 2022

Murray Income Trust PLC 69

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

(c) Income. Dividends receivable on equity shares are treated as revenue for the year on an ex-dividend basis. Where no ex-

dividend date is available dividends receivable on or before the year end are treated as revenue for the year. Where the

Company has elected to receive dividends in the form of additional shares rather than cash, the amount of the cash

dividend foregone is recognised as revenue and any residual amount is recognised as capital. Provision is made for any

dividends not expected to be received. Special dividends are credited to capital or revenue, according to the

circumstances. Dividend revenue is presented gross of any non-recoverable withholding taxes, which are disclosed

separately within the Statement of Comprehensive Income.

Interest receivable from cash and short-term deposits and stock lending income is recognised on an accruals basis.

(d) Expenses. All expenses are accounted for on an accruals basis. All expenses are charged through the revenue column of

the Statement of Comprehensive Income except as follows:

– transaction costs on the acquisition or disposal of investments are recognised as a capital item in the Statement of

Comprehensive Income.

– expenses are charged as a capital item in the Statement of Comprehensive Income where a connection with the

maintenance or enhancement of the value of the investments can be demonstrated. In this respect the investment

management fee has been allocated 30% to revenue and 70% to capital to reflect the Company’s investment policy

and prospective income and capital growth.

(e) Taxation. Taxation represents the sum of tax currently payable and deferred tax. Any tax payable is based on the

taxable profit for the year. Taxable profit differs from net profit as reported in the Statement of Comprehensive Income

because it excludes items of income or expense that are taxable or deductible in other years and it further excludes

items that are never taxable or deductible. The Company’s liability for current tax is calculated using tax rates that were

applicable at the Statement of Financial Position date.

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.

70 Murray Income Trust PLC

(f) Valuation of investments. The Company has chosen to apply the recognition and measurement provisions of IAS 39

Financial Instruments: Recognition and Measurement. All investments have been designated upon initial recognition at

fair value through profit or loss. This is done because all investments are considered to form part of a group of financial

assets which is evaluated on a fair value basis, in accordance with the Company’s documented investment strategy,

and information about the grouping is provided internally on that basis. Investments are recognised and de-recognised

at trade date where a purchase or sale is under a contract whose terms require delivery within the timeframe

established by the market concerned, and are measured initially at fair value. Subsequent to initial recognition,

investments are valued at fair value through profit or loss. For listed investments, this is deemed to be bid market prices or

closing prices for SETS (London Stock Exchange’s electronic trading service) stocks sourced from the London Stock

Exchange. Gains and losses arising from changes in fair value are included in the net return for the period as a capital

item in the Statement of Comprehensive Income and are ultimately recognised in the capital reserve.

(g) Cash and cash equivalents. Cash comprises cash in hand and demand deposits. Cash equivalents are short-term, highly

liquid investments that are readily convertible to known amounts of cash and that are subject to insignificant risk of

change in value.

(h) Borrowings and finance costs. Borrowings of interest bearing bank loans and 2.51% Senior Loan Notes are recognised

initially at the fair value of the consideration received, net of any issue expenses, and subsequently at amortised cost

using the effective interest method. Borrowings of 4.37% Senior Loan Notes, which were novated to the Company on the

merger with Perpetual Income and Growth Investment Trust plc, were recorded initially at their fair value of £73,344,000

and are amortised over the remaining life of the loan towards their redemption value of £60,000,000. The amortisation

adjustment is presented as a finance cost. Finance costs accrue using the effective interest rate over the life of the

borrowings and are allocated 30% to revenue and 70% to capital.

(i) Traded options. The Company may enter into certain derivative contracts (eg options) to gain exposure to the market.

The option contracts are classified as fair value through profit or loss, held for trading, and accounted for as separate

derivative contracts and are therefore shown in other assets or other liabilities at their fair value ie market value. The

premium on the option (as with written options generally) is treated as the option’s initial fair value and is recognised over

the life of the option in the revenue column of the Statement of Comprehensive Income along with fair value changes in

the open position which occur due to the movement in underlying securities. Losses realised on the exercise of the

contracts are recorded in the capital column of the Statement of Comprehensive Income as they arise. Where the

Company enters into derivative contracts to manage market risk, gains or losses arising on such contracts are recorded

in the capital column of the Statement of Comprehensive Income.

(j) 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.

(k) Nature and purpose of reserves

Share capital. The Ordinary share capital on the Statement of Financial Position relates to the number of shares in issue

and in treasury. Only when the shares are cancelled, either from treasury or directly, is a transfer made to the capital

redemption reserve. This is a non-distributable reserve.

Share premium account. The balance classified as share premium includes the premium above nominal value from the

proceeds on issue of any equity share capital comprising Ordinary shares of 25p and includes the premium arising

following the issue of shares on the combination with Perpetual Income and Growth Investment Trust plc on 17

November 2020. This is a non-distributable reserve.

Capital redemption reserve. The capital redemption reserve reflects the cancellation of Ordinary shares, when an

amount equal to the par value of the Ordinary share capital is transferred from the share capital reserve to the capital

redemption reserve. This is a non-distributable reserve.

Notes to the Financial Statements

Continued

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Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

Capital reserve. This reserve reflects any gains or losses on investments realised in the period along with any movements

in the fair value of investments held that have been recognised in the Statement of Comprehensive Income. These

include gains and losses from foreign currency exchange differences. Additionally, expenses, including finance costs, are

charged to this reserve in accordance with (c) and (g) above. When making a distribution to shareholders, the Directors

determine profits available for distribution by reference to ‘Guidance on realised and distributable profits under the

Companies Act 2006’ issued by the Institute of Chartered Accountants in England and Wales and the Institute of

Chartered Accountants of Scotland in April 2017. The availability of distributable reserves in the Company is dependent

on those distributions meeting the definition of qualifying consideration within the guidance and on available cash

resources of the Company and other accessible sources of funds. The distributable reserves are therefore subject to

any future restrictions or limitations at the time such distribution is made.

The capital reserve, to the extent it constitutes realised profits, is distributable. This may include unrealised (losses)/gains

on investments where these are readily convertible to cash. The amount of the capital reserve that is distributable is

complex to determine and is not necessarily the full amount of the reserve as disclosed within these financial statements

of £502,672,000 as at 30 June 2022 as this is subject to fair value movements and may not be readily realisable at

short notice.

Revenue reserve. This reserve reflects all income and costs which are recognised in the revenue column of the

Statement of Comprehensive Income. The revenue reserve is distributable by way of dividend.

(l) Treasury shares. When the Company buys back the Company’s equity share capital as treasury shares, the amount of

the consideration paid, including directly attributable costs and any tax effects, is recognised as a deduction from equity.

When these shares are sold or reissued subsequently, the net amount received is recognised as an increase in equity,

and the resulting surplus or deficit on the transaction is transferred to or from the capital reserve.

(m) Dividends payable. Final dividends are recognised from the date on which they are approved by Shareholders. Interim

dividends are recognised when paid. Dividends are shown in the Statement of Changes in Equity.

(n) Foreign currency. Transactions in foreign currencies are converted to Sterling at the exchange rate ruling at the date of

the transaction. Monetary assets and liabilities and non-monetary assets held at fair value denominated in foreign

currencies are translated into Sterling at rates of exchange ruling at the Statement of Financial Position date. Exchange

gains and losses are taken to the Statement of Comprehensive Income as a capital or revenue item depending on the

nature of the underlying item.

(o) Significant estimates and judgements. The Directors do not believe that any accounting estimates or judgements have

been applied to these financial statements that have a significant risk of causing material adjustment to the carrying

amount of assets and liabilities. However the Directors made a judgement in the prior year that the acquisition of assets

and liabilities from Perpetual Income and Growth Investment Trust plc outlined in Note 20 does not meet the definition of

a business combination under FRS 102 and accordingly have not accounted for it as such in these financial statements.

72 Murray Income Trust PLC

3. Income

2022 2021

£’000 £’000

Income from investments

UK dividends (all listed):

– ordinary 32,710 24,539

– special 1,676 1,251

Property income dividends 1,153 1,007

Overseas dividends (all listed)

– ordinary 8,731 4,773

– special 160 99

Stock dividends 3,728 1,699

48,158 33,368

Other income

Deposit interest 7 1

Money Market interest 32 –

Traded option premiums 2,820 2,504

Compensation payments 1 106

2,860 2,611

Total income 51,018 35,979

All special dividends for the year of £1,836,000 (2021 – £1,350,000) have been recognised as being revenue in nature.

During the year, the Company received premiums totalling £2,820,000 (2021 – £2,504,000) in exchange for entering into

derivative transactions. At the year end there were no open positions (2021 – none).

Other income in the year ended 30 June 2021 includes an amount of £101,000 for compensation received from the Manager.

This receipt offset an HMRC penalty of £91,000 and related interest of £10,000 which arose due to the Manager’s late

payment of stamp duty to HMRC on the Company’s behalf. A further £5,000 was received from the Manager in respect of a

trading error which occurred during the year.

Notes to the Financial Statements

Continued

Murray Income Trust PLC 73

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

nvestment mana

ement

ees

2022 2021

Revenue Capital Total Revenue Capital Total

£’000 £’000 £’000 £’000 £’000 £’000

Management fee 1,199 2,798 3,997 753 1,759 2,512

The management fee is based on 0.55% per annum for net assets up to £350 million, 0.45% per annum on the next £100 million

of net assets and 0.25% per annum for net assets over £450 million, calculated and payable monthly. The fee has been

allocated 30% to revenue and 70% to capital. The management agreement is terminable on three months’ notice. The fee

payable to the Manager at the year end was £642,000 (2021 – £584,000).

In the prior year, the Manager agreed to waive the management fee payable by the Company in respect of the net assets

transferred to the Company for a period of 182 days following completion of the merger on 17 November 2020. This

amounted to approximately £804,000.

Under the terms of the management agreement, the value of the Company’s investments in commonly managed funds is

excluded from the calculation of the management fee. The Company held no such commonly managed funds at the year

end (2021 – none).

5. Administrative ex

enses

2022 2021

£’000 £’000

Shareholders’ services

A,D

400 507

Directors’ remuneration

193 201

Secretarial fees

C,D

75 90

Registrars fees

110 128

Depositary fees

96 100

HMRC penalty

– 91

Custody fees 60 49

Printing and postage 34 60

Auditors’ remuneration

– fees payable to the Company’s auditors for the audit of the Company’s

annual financial statements

42 38

Legal and professional fees

51 59

Irrecoverable VAT for the current year

98 –

Irrecoverable VAT for the previous year

28 –

Other expenses

163 120

1,350 1,443

Includes savings scheme and other wrapper administration and promotion expenses, paid to the Manager under a delegation agreement with the Manager to cover

promotional activities during the year. There was £100,000 (2021 – £120,000) due to the Manager in respect of these promotional activities at the year end.

Refer to the Directors’ Remuneration section of the Directors’ Remuneration Report on page 48 for further details.

Payable to the Manager, balance outstanding of £19,000 (2021 – £23,000) at the year end.

The Company was granted VAT registered status on 18 March 2022, backdated to 1 January 2021. As a result the above current year expenses, where applicable,

are disclosed net of VAT. All of the prior year expenses above includes irrecoverable VAT where applicable with the exception of Auditors’ remuneration for the

statutory audit.

Relating to the late payment of stamp duty arising on the transfer of assets from Perpetual Income and Growth Investment Trust plc to the Company during the year

ended 30 June 2021.

74 Murray Income Trust PLC

6. Finance costs

2022 2021

Revenue Capital Total Revenue Capital Total

£’000 £’000 £’000 £’000 £’000 £’000

Bank loans and overdraft interest 75 175 250 43 98 141

2.51% Senior Loan Note 301 703 1,004 301 703 1,004

4.37% Senior Loan Note 787 1,835 2,622 497 1,159 1,656

Interest payable to HMRC – – – 10 – 10

Amortisation of 2.51% Senior Loan Note issue

expenses

3 9 12 4 10 14

Amortisation of 4.37% Senior Loan Note (474) (1,107) (1,581) (295) (688) (983)

692 1,615 2,307 560 1,282 1,842

The 4.37% Senior Loan Notes, with a par value £60,000,000, were novated to the Company following the transaction with

Perpetual Income and Growth Investment Trust plc (note 20) during the year ended 30 June 2021. They were novated at fair

value of £73,344,000 and are being amortised over the remaining life of the loan.

Interest payable includes an amount of £10,000 relating to the late payment of stamp duty to HMRC arising on the transfer of

assets from Perpetual Income and Growth Investment Trust plc to the Company during the year ended 30 June 2021.

With the exception of the interest payable to HMRC, which is allocated wholly to revenue, finance costs are allocated 30% to

revenue and 70% to capital.

7. Ordinary dividends on equity shares

2022 2021

Rate £’000 Rate £’000

Fourth interim dividend previous year 9.75p 11,412 9.50p 6,280

First interim dividend current year 8.25p 9,641 12.55p 8,297

Second interim dividend current year 8.25p 9,628 3.95p 4,623

Third interim dividend current year 8.25p 9,627 8.25p 9,656

Return of unclaimed dividends – (210)

40,308 28,646

The fourth interim dividend for 2022 of 11.25p per Ordinary share has not been included as a liability in these financial

statements as it was not paid until after the reporting date (15 September 2022).

The following table sets out the total dividends paid and proposed in respect of the financial year, which is the basis on which

the requirements of Section 1158–1159 of the Corporation Tax Act 2010 are considered. The revenue available for distribution

by way of dividend for the year is £47,316,000 (2021 – £32,936,000).

Notes to the Financial Statements

Continued

Murray Income Trust PLC 75

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

2022 2021

Rate £’000 Rate £’000

Three interim dividends of 8.25p each (2021: 12.55p, 3.95p and 8.25p) 24.75p 28,896 24.75p 22,576

Fourth interim dividend 11.25p 13,128 9.75p 11,412

36.00p 42,024 34.50p 33,988

. Taxation

2022 2021

Revenue Capital Total Revenue Capital Total

£’000 £’000 £’000 £’000 £’000 £’000

(a) Analysis of charge for the year

Overseas tax incurred 1,961 – 1,961 1,102 – 1,102

Overseas tax reclaimable (1,498) – (1,498) (815) – (815)

Total tax charge for the year 463 – 463 287 – 287

(b) Factors affecting the tax charge for the year. The UK corporation tax rate is 19% (2021 – 19%). The tax charge for the

year is lower than the corporation tax rate (2021 – lower). The differences are explained below:

2022 2021

Revenue Capital Total Revenue Capital Total

£’000 £’000 £’000 £’000 £’000 £’000

Net return before taxation 47,777 (88,415) (40,638) 33,223 128,281 161,504

Net return multiplied by the standard rate of

corporation tax of 19% (2021 – 19%)

9,078 (16,799) (7,721) 6,312 24,373 30,685

Effects of:

Non-taxable UK dividends (6,305) – (6,305) (5,091) – (5,091)

Non-taxable overseas dividends (2,553) – (2,553) (1,011) – (1,011)

Expenses not deductible for tax purposes 56 – 56 19 – 19

Movement in unutilised management

expenses

(276) 839 563 (229) 578 349

Realised and unrealised losses/(gains) on

investments held

– 15,919 15,919 – (24,939) (24,939)

Currency movements not taxable – 41 41 – (12) (12)

Overseas tax payable 463 – 463 287 – 287

Total tax charge 463 – 463 287 – 287

76 Murray Income Trust PLC

accounting period.

The Company has not provided for deferred tax on capital gains or losses arising on the revaluation or disposal of

investments as it is exempt from tax on these items because of its status as an investment trust company.

At the year end, the Company has, for taxation purposes only, accumulated unrelieved management expenses and

loan relationship deficits of £71,665,000 (2021 – £68,702,000). A deferred tax asset at the standard rate of corporation of

25% (2021 – 25%) of £17,916,000 (2021 – £17,176,000) has not been recognised and these expenses will only be utilised

if the Company has profits chargeable to corporation tax in the future. It is considered too uncertain that the Company

will generate such profits and therefore no deferred tax asset has been recognised. The Finance Act 2021 received

Royal Assent on 10 June 2021 and the rate of Corporation Tax of 25% effective from 1 April 2023 has been used to

calculate the potential deferred tax asset of £17,916,000.

9. Return per Ordinary share

2022 2021

£’000 p £’000 p

Returns are based on the following figures:

Revenue return 47,314 40.5 32,936 33.7

Capital return (88,415) (75.7) 128,281 131.4

Total return (41,101) (35.2) 161,217 165.1

Weighted average number of Ordinary shares in issue 116,831,407 97,648,914

10. Investments at fair value through profit or loss

2022 2021

£’000 £’000

Opening book cost 995,661 461,306

Opening investment holdings gains 206,629 99,901

Opening fair value 1,202,290 561,207

Analysis of transactions made during the year

Assets acquired in respect of PLI transaction – 459,361

Costs associated with the PLI transaction – 2,519

Purchases at cost 241,150 202,157

Sales proceeds received (260,861) (154,214)

(Losses)/gains on investments (83,786) 131,260

Closing fair value 1,098,793 1,202,290

Notes to the Financial Statements

Continued

Murray Income Trust PLC 77

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

2022 2021

£’000 £’000

Closing book cost 1,017,087 995,661

Closing investment gains 81,706 206,629

Closing fair value 1,098,793 1,202,290

2022 2021

Losses/(gains) on investments £’000 £’000

Costs associated with the PLI transaction – (2,519)

Realised gains on sale of investments at fair value

41,137 27,051

Net movement in investment holdings gains (124,923) 106,728

(83,786) 131,260

Includes losses on the exercise of £nil (2021 – £78,000).

The Company received £260,861,000 (2021 – £154,214,000) from investments sold in the year. The book cost of these

investments when they were purchased was £219,724,000 (2021 – £127,085,000). These investments have been revalued

over time and until they were sold any unrealised gains/(losses) were included in the fair value of the investments.

The Company may write and purchase both exchange traded and over the counter derivative contracts as part of its

investment policy. The Company pledges collateral greater than the market value of the traded options in accordance with

standard commercial practice. At 30 June 2022 there were no shares pledged as part of the option underwriting programme

(30 June 2021 – none). The liability of collateral held at the year end was £nil as no open positions existed (30 June 2021 – £nil).

Transaction costs. During the year expenses were incurred in acquiring or disposing of investments classified at fair value

through profit or loss. These have been expensed through capital and are included within gains on investments in the

Statement of Comprehensive Income. The total costs were as follows:

2022 2021

£’000 £’000

Purchases 885 909

Costs associated with the PLI transaction – 2,519

Sales 146 77

1,031 3,505

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.

78 Murray Income Trust PLC

11. Other debtors and receivables

2022 2021

£’000 £’000

Amounts due from brokers 2,490 2,914

Accrued income 2,685 2,415

Taxation recoverable 3,844 2,899

Prepayments 42 117

9,061 8,345

12. Cash and cash equivalents

2022 2021

£’000 £’000

Cash at bank and in hand 1,503 4,493

Money market funds 18,628 -

20,131 4,493

The Company holds £18,628,000 (2021 - £nil) in Aberdeen Standard Liquidity Fund (Lux) - Sterling Fund which is managed

and administered by abrdn.

13. Creditors: amounts falling due within one year

2022 2021

£’000 £’000

Other creditors 1,513 1,558

Amounts due to brokers – 1,191

Bank loans 6,507 6,241

8,020 8,990

The Company’s one year £20 million multi-currency unsecured revolving bank credit facility with Scotiabank Europe expired

on 3 November 2021. The Company entered into a new three year £50 million multi-currency unsecured revolving bank

credit facility with Bank of Nova Scotia Limited, committed until 27 October 2024. Under the terms of the agreement,

advances from the facility may be made for periods of up to six months or for such longer periods agreed by the lender.

As at 30 June 2022, the Company had drawn down the following amounts from the facility, all with a maturity date of 27 July

2022 (2021 – 7 July 2021):

Notes to the Financial Statements

Continued

Murray Income Trust PLC 79

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

2022 2021

Currency £’000 Currency £’000

Swiss Franc at an all-in rate of 1.35% (2021: 0.95%) 2,500,000 2,150 2,500,000 1,958

Euro at an all-in rate of 1.15% (2021: 0.95%) 2,326,000 2,002 2,326,000 1,997

Norwegian Krone at an all-in rate of 2.59% (2021: 1.13%) 13,145,000 1,096 13,145,000 1,106

Danish Krona at an all-in rate of 1.15% (2021: 0.95%) 5,410,000 626 5,410,000 624

US Dollar at an all-in rate of 2.70% (2021: 1.03%) 768,000 633 768,000 556

6,507 6,241

At the date this Report was approved, the Company had drawn down the following amounts from the facility, all with a

maturity date of 26 September 2022:

– Swiss Franc 2,500,000 at an all-in rate of 1.35%, equivalent to £2,271,000.

– Euro 2,326,000 at an all-in rate of 1.229%, equivalent to £2,042,000.

– Norwegian Krone 13,145,000 at an all-in rate of 3.1%, equivalent to £1,123,000.

– Danish Krona 5,410,000 at an all-in rate of 1.533%, equivalent to £639,000.

– US Dollar 768,000 at an all-in rate of 3.544%, equivalent to £673,000.

Financial covenants contained within the facility agreement provide, inter alia, that the ratio of net assets to borrowings must

be greater than 3.5:1 and that net assets must exceed £550 million. All financial covenants were met during the year and also

during the period from the year end to the date of this report.

14. Creditors: amounts falling due after more than one year

2022 2021

£’000 £’000

2.51% Senior Loan Note 40,000 40,000

Unamortised 2.51% Senior Loan Note issue expenses (70) (82)

4.37% Senior Loan Note at fair value 73,344 73,344

Amortisation of 4.37% Senior Loan Note (2,564) (983)

110,710 112,279

On 8 November 2017 the Company issued £40,000,000 of 10 year Senior Loan Notes at a fixed rate of 2.51%. Interest is

payable in half yearly instalments in May and November and the Loan Notes are due to be redeemed at par on 8 November

2027. The Loan Notes are secured by a floating charge over the whole of the assets of the Company. The Company has

complied with the Senior Loan Note Purchase Agreement covenant throughout the year that the ratio of net assets to gross

borrowings must be greater than 3.5:1, and that net assets will not be less than £550,000,000.

80 Murray Income Trust PLC

As a result of the transaction with Perpetual Income and Growth Investment Trust plc on 17 November 2020, £60,000,000 of

15 year Senior Loan Notes at a fixed rate of 4.37% issued on 8 May 2014 were novated to the Company. Under FRS 102 the

loan notes are required to be recorded initially at their fair value of £73,344,000 in the Company’s Financial Statements and

are then amortised over the remaining life of the loan towards their redemption value of £60,000,000. The amortisation

adjustment is presented as a finance cost, split 70% to capital and 30% to revenue. Interest is payable in half yearly

instalments in May and November and the Loan Notes are due to be redeemed at par on 8 May 2029. The Loan Notes are

secured by a floating charge over the whole of the assets of the Company. The Company has complied with the Note

Purchase Agreement that the ratio of net assets to gross borrowings must be greater than 3.5:1, and that net assets will not be

less than £550,000,000 throughout the year.

15. Share capital

2022 2021

Shares £’000 Shares £’000

Allotted, called-up and fully-paid:

Ordinary shares of 25p each: publicly held 116,690,472 29,172 117,046,487 29,261

Ordinary shares of 25p each: held in treasury 2,839,060 710 2,483,045 621

119,529,532 29,882 119,529,532 29,882

During the year 356,015 Ordinary shares were bought back (2021 – nil) to be held in treasury by the Company at a total cost

of £3,195,000 (2021 – £nil) representing 0.3% (2021 – 0.0%) of called-up share capital.

16. Net asset value per Ordinary share

The net asset value per Ordinary share and the net asset value attributable to the Ordinary shares at the year end follow.

These were calculated using 116,690,472 (2021 – 117,046,487) Ordinary shares in issue at the year end (excluding treasury

shares).

2022 2021

Net Asset Value Attributable Net Asset Value Attributable

£’000 pence £’000 pence

Net asset value – debt at par 1,009,255 864.9 1,093,859 934.6

Add: amortised cost of 2.51% Senior Loan Notes 39,930 34.1 39,918 34.1

Less: fair value of 2.51% Senior Loan Notes (39,725) (33.9) (40,000) (34.2)

Add: amortised cost of 4.37% Senior Loan Notes 70,780 60.5 72,361 61.8

Less: fair value of 4.37% Senior Loan Notes (63,905) (54.6) (70,893) (60.6)

Net asset value – debt at fair value 1,016,335 871.0 1,095,245 935.7

Notes to the Financial Statements

Continued

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17. Analysis of changes in net debt

At Currency Non-cash At

1 July 2021 differences Cash flows movements 30 June 2022

£’000 £’000 £’000 £’000 £’000

Cash and cash equivalents* 4,493 82 15,556 - 20,131

Debt due within one year (6,241) (298) 32 - (6,507)

Debt due after more than one year (112,279) - - 1,569 (110,710)

(114,027) (216) 15,588 1,569 (97,086)

At Currency Non-cash At

1 July 2020 differences Cash flows movements 30 June 2021

£’000 £’000 £’000 £’000 £’000

Cash and cash equivalents* 16,365 (358) (11,514) - 4,493

Debt due within one year (6,667) 420 6 - (6,241)

Debt due after more than one year (39,904) - - (72,375) (112,279)

(30,206) 62 (11,508) (72,375) (114,027)

* An analysis of cash and cash equivalents between cash at bank and in hand and money market funds is provided in note 12 on page 78.

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

This note summarises the risks deriving from the financial instruments that comprise the Company’s assets and liabilities.

The Company’s investment activities expose it to various types of financial risk associated with the financial instruments and

markets in which it invests. The Company’s financial instruments, other than derivatives, comprise securities and other

investments, cash balances, liquid resources, loans and debtors and creditors that arise directly from its operations; for

example, in respect of sales and purchases awaiting settlement, and debtors for accrued income. The Company also has the

ability to enter into derivative transactions in the form of forward foreign currency contracts, futures and options, subject to

Board approval, for the purpose of enhancing portfolio returns and for hedging purposes in a manner consistent with the

Company’s broader investment policy. As at 30 June 2022 there were no open positions in derivatives transactions

(2021 – same).

Risk management framework. The directors of abrdn Fund Managers Limited collectively assume responsibility for the

Manager’s obligations under the AIFMD including reviewing investment performance and monitoring the Company’s risk

profile during the year.

82 Murray Income Trust PLC

The Manager is a wholly owned subsidiary of the abrdn Group (“the Group”), which provides a variety of services and support

to the Manager in the conduct of its business activities, including in the oversight of the risk management framework for the

Company. The Manager has delegated the day to day administration of the investment policy to Aberdeen Asset Managers

Limited, which is responsible for ensuring that the Company is managed within the terms of its investment guidelines and the

limits set out in its pre-investment disclosures to investors (details of which can be found on the Company’s website). The

Manager has retained responsibility for monitoring and oversight of investment performance, product risk and regulatory and

operational risk for the Company.

The Manager conducts its risk oversight function through the operation of the Group’s risk management processes and

systems which are embedded within the Group’s operations. The Group’s Risk Division (“the Division”) supports management

in the identification and mitigation of risks and provides independent monitoring of the business. The Division includes

Compliance, Business Risk, Market Risk, Risk Management and Legal. The team is headed up by the Group’s Chief Risk Officer,

who reports to the Chief Executive Officer (“CEO”) of the Group. The Risk Division achieves its objective through embedding

the Risk Management Framework throughout the organisation using the Group’s operational risk management system

(“SHIELD”).

The Group’s Internal Audit Department is independent of the Risk Division and reports directly to the Group CEO and to the

Audit Committee of the Group’s Board of Directors. The Internal Audit Department is responsible for providing an independent

assessment of the Group’s control environment.

The Group’s corporate governance structure is supported by several committees to assist the board of directors, its

subsidiaries and the Company to fulfil their roles and responsibilities. The Group’s Risk Division is represented on all

committees, with the exception of those committees that deal with investment recommendations. The specific goals and

guidelines on the functioning of those committees are described in the committees’ terms of reference.

Risk management of the financial instruments. The main risks the Company faces from these financial instruments are (a)

market risk (comprising (i) interest rate, (ii) foreign currency and (iii) other price risk), (b) liquidity risk and (c) credit risk.

In order to mitigate risk, the investment strategy is to select investments for their fundamental value. Stock selection is

therefore based on disciplined accounting, market and sector analysis. It is the Board’s policy to hold an appropriate spread of

investments in the portfolio in order to reduce the risk arising from factors specific to a particular sector. The Attribution

Analysis, detailing the allocation of assets and the stock selection, is shown in the Performance Attribution table on page 8. The

Investment Manager actively monitors market prices throughout the year and reports to the Board, which meets regularly in

order to consider investment strategy. Current strategy is detailed in the Chairman’s Statement on pages 4 to 6, in the

Investment Manager’s Report on pages 7 to 10 and in Overview of Strategy on page 21.

The Board has agreed the parameters for net gearing, which was 9.4% of net assets as at 30 June 2022 (2021 – 10.3%). The

Manager’s policies for managing these risks are summarised below and have been applied throughout the current and

previous year. The numerical disclosures in the tables listed below exclude short-term debtors and creditors.

18 (a) Market risk. The Company’s investment portfolio is exposed to market price fluctuations, which are monitored by the

Manager in pursuance of the investment objective as set out on page 15. Adherence to investment guidelines and to

investment and borrowing powers set out in the management agreement mitigates the risk of exposure to any particular

security or issuer. Further information on the investment portfolio is set out in the Investment Manager’s Report on pages

7 to 10.

Market price risk arises mainly from uncertainty about future prices of financial instruments used in the Company’s

operations. It represents the potential loss the Company might suffer through holding market positions as a consequence of

price movements. It is the Board’s policy to hold equity investments in the portfolio in a broad spread of sectors in order to

reduce the risk arising from factors specific to a particular sector. A summary of investment changes during the year under

review is on page 31 and an analysis of the equity portfolio by sector is on page 30.

Notes to the Financial Statements

Continued

Murray Income Trust PLC 83

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

18 (a)(i) Interest rate risk. Interest rate movements may affect:

– the level of income receivable on cash deposits;

– interest payable on the Company’s variable rate borrowings; and

– the fair value of any investments in fixed interest rate securities.

Management of the risk. The possible effects on fair value and cash flows that could arise as a result of changes in interest

rates are taken into account when making investment and borrowing decisions. Details of the bank loan and interest rates

applicable can be found in note 13.

The Board imposes borrowing limits to ensure gearing levels are appropriate to market conditions and reviews these on a

regular basis. Interest rate risk is the risk of movements in the value of financial instruments as a result of fluctuations in

interest rates.

Financial assets. The interest rate risk of the portfolio of financial assets at the reporting date was as follows:

Floating rate Non-interest bearing

2022 2021 2022 2021

£’000 £’000 £’000 £’000

Danish Krona 93 – 20,888 16,757

Euro 268 – 46,543 42,023

Norwegian Krone 66 – 20,582 23,221

Singapore Dollars – – 14,833 –

Sterling 19,704 3,809 942,138 1,069,162

Swedish Krone – – 14,075 –

Swiss Francs – 684 23,009 30,958

Taiwan Dollars – – 5,273 6,859

US Dollars – – 11,452 13,310

Total 20,131 4,493 1,098,793 1,202,290

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.

Financial liabilities. The Company has floating rate borrowings by way of its loan facility and fixed rate senior loan note issues,

details of which are in notes 13 and 14.

Interest rate sensitivity. The sensitivity analysis below has been determined based on the exposure to interest rates for both

derivative and non-derivative instruments at the reporting date and the stipulated change taking place at the beginning of

the financial year and held constant in the case of instruments that have floating rates.

84 Murray Income Trust PLC

If interest rates had been 1% higher or lower and all other variables were held constant, the Company’s profit before tax for

the year ended 30 June 2022 and net assets would increase/decrease by £161,000 (2021 - £12,000) respectively. This is

mainly attributable to the Company’s exposure to interest rates on its floating rate cash balances and borrowings.

18 (a)(ii) Foreign currency risk. A proportion of the Company’s investment portfolio is invested in overseas securities whose

values are subject to fluctuation due to changes in foreign exchange rates. In addition, the impact of changes in foreign

exchange rates upon the profits of investee companies can result, indirectly, in changes in their valuations. Consequently, the

Statement of Financial Position can be affected by movements in exchange rates.

Management of the risk. The revenue account is subject to currency fluctuations arising on dividends receivable in foreign

currencies and, indirectly, due to the impact of foreign exchange rates upon the profits of investee companies. It is not the

Company’s policy to hedge this currency risk but the Board keeps under review the currency returns in both capital

and income.

Foreign currency risk exposure by currency of denomination falling due within one year is set out in the table below.

Net monetary assets/(liabilities) comprise cash and loan balances and exclude other debtors and receivables and

other payables.

30 June 2022 30 June 2021

Net Net

monetary Total monetary Total

assets/ currency assets/ currency

Investments (liabilities) exposure Investments (liabilities) exposure

£’000 £’000 £’000 £’000 £’000 £’000

Danish Krona 20,888 (533) 20,355 16,757 (624) 16,133

Euro 46,543 (1,734) 44,809 42,023 (1,580) 40,443

Norwegian Krone 20,582 (1,030) 19,552 23,221 (1,106) 22,115

Singapore Dollars 14,833 - 14,833 - - -

Swedish Krone 14,075 - 14,075 - - -

Swiss Francs 23,009 (2,150) 20,859 30,958 (1,274) 29,684

Taiwan Dollars 5,273 - 5,273 6,859 - 6,859

US Dollars 11,452 (633) 10,819 13,310 (556) 12,754

Total 156,655 (6,080) 150,575 133,128 (5,140) 127,988

Foreign currency sensitivity. The following table details the impact on the Company’s net assets to a 10% decrease (in the

context of a 10% increase the figures below should all be read as negative) in Sterling against the foreign currencies in which

the Company has exposure. The sensitivity analysis includes foreign currency denominated monetary and non-monetary

items and adjusts their translation at the period end for a 10% change in foreign currency rates.

Notes to the Financial Statements

Continued

Murray Income Trust PLC 85

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

2022 2021

£’000 £’000

Danish Krona 2,036 1,613

Euro 4,481 4,044

Norwegian Krone 1,955 2,212

Singapore Dollars 1,483 -

Swedish Krone 1,408 -

Swiss Francs 2,086 2,968

Taiwan Dollars 527 686

US Dollars 1,082 1,275

Total 15,058 12,798

18(a)(iii) Other price risk. Other price risks (ie changes in market prices other than those arising from interest rate or currency

risk) may affect the value of the quoted investments.

Management of the risk. It is the Board’s policy to hold an appropriate spread of investments in the portfolio in order to reduce

the risk arising from factors specific to a particular sector. The allocation of assets to international markets and the stock

selection process, as detailed in the section “Delivering the Investment Policy” on page 15, both act to reduce market risk. The

Manager actively monitors market prices throughout the year and reports to the Board, which meets regularly in order to

review investment strategy.

Other price risk sensitivity. If market prices at the reporting date had been 10% higher or lower while all other variables

remained constant, the return attributable to Ordinary shareholders and equity for the year ended 30 June 2022 would have

increased/decreased by £109,879,000 (2021 – £120,229,000).

18 (b) Liquidity risk. This is the risk that the Company will encounter difficulty in meeting obligations associated with financial

liabilities as they fall due in line with the maturity profile analysed as follows:

Within Within Within More than

1 year 1-3 years 3-5 years 5 years Total

At 30 June 2022 £000 £000 £000 £000 £000

Bank loans 6,507 – – – 6,507

2.51% Senior Loan Note – – – 40,000 40,000

4.37% Senior Loan Note – – – 60,000 60,000

Interest cash flows on bank loans 1 – – – 1

Interest cash flows on 2.51% Senior Loan Note 1,004 2,008 2,008 502 5,522

Interest cash flows 4.37% Senior Loan Note 2,622 5,244 5,244 5,244 18,354

Cash flows on other creditors 1,513 – – – 1,513

11,647 7,252 7,252 105,746 131,897

86 Murray Income Trust PLC

Within Within Within More than

1 year 1-3 years 3-5 years 5 years Total

At 30 June 2021 £000 £000 £000 £000 £000

Bank loans 6,241 – – – 6,241

2.51% Senior Loan Note – – – 40,000 40,000

4.37% Senior Loan Note – – – 60,000 60,000

Interest cash flows on bank loans 5 – – – 5

Interest cash flows on 2.51% Senior Loan Note 1,004 2,008 2,008 1,506 6,526

Interest cash flows 4.37% Senior Loan Note 2,622 5,244 5,244 7,866 20,976

Cash flows on other creditors 2,749 – – – 2,749

12,621 7,252 7,252 109,372 136,497

Management of the risk. The Company’s assets comprise readily realisable securities which can be sold to meet funding

commitments if necessary. Short-term flexibility is achieved through the use of committed loan and overdraft facilities.

As at 30 June 2022 the Company utilised £6,507,000 (2021 – £6,241,000) of a £50,000,000 multi–currency revolving bank credit

facility, which is committed until 27 October 2024 (2021 – of a £20,000,000 multi–currency revolving bank credit facility

committed until 3 November 2021). Details of maturity dates and interest charges can be found in note 13. The aggregate

of all future interest payments at the rate ruling at 30 June 2022 and the redemption of the loan amounted to £6,508,000

(2021 – £6,246,000).

18 (c) Credit risk. This is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other

party to incur a financial loss.

Management of the risk. The risk is mitigated by the Investment Manager reviewing the credit ratings of counterparties. The

risk attached to dividend flows is mitigated by the Investment Manager’s research of potential investee companies. The

Company’s custodian bank is responsible for the collection of income on behalf of the Company and its performance is

reviewed by the Depositary (on an ongoing basis) and by the Board on a regular basis. It is the Manager’s policy to trade only

with A– and above (Long Term rated) and A–1/P–1 (Short Term rated) counterparties. The maximum credit risk at 30 June

2022 is £25,306,000 (30 June 2021 – £9,822,000) consisting of £2,685,000 (2021 – £2,415,000) of dividends receivable from

equity shares, £2,490,000 (2021 – £2,914,000) receivable from brokers and £20,131,000 (2021 – £4,493,000) in cash and

cash equivalents.

None of the Company’s financial assets are past due or impaired (2021 – none).

Notes to the Financial Statements

Continued

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Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

19. Fair value hierarchy

FRS 102 requires an entity to classify fair value measurements using a fair value hierarchy that reflects the significance of the

inputs used in making the measurements. Categorisation within the hierarchy is determined on the basis of the lowest level

input that is significant to the fair value measurement of each relevant asset or liability. The fair value hierarchy has the

following levels:

Level 1: unadjusted quoted prices in an active market for identical assets or liabilities that the entity can access at the

measurement date;

Level 2: inputs other than quoted prices included within Level 1 that are observable (ie developed using market data) for the

asset or liability, either directly or indirectly; and

Level 3: inputs are unobservable (ie for which market data is unavailable) for the asset or liability.

The valuation techniques used by the Company are explained in the accounting policies note 2(f). The Company’s portfolio

consists wholly of quoted equities, all of which are Level 1.

The fair value of the 2.51% Senior Loan Notes have been calculated 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. The fair value and amortised cost amounts can be found in note 16 on page 80.

The fair value of the 4.37% Senior Loan Notes have been calculated based on a comparable debt security. The fair value and

amortised cost amounts can be found in note 16 on page 80.

All other financial assets and liabilities of the Company are included in the Statement of Financial Position at their book value

which in the opinion of the Directors is not materially different from their fair value.

20. Transaction with Perpetual Income and Growth Investment Trust plc (“PLI”)

On 17 November 2020, the Company announced that it had acquired £427 million of net assets from PLI in consideration

for the issue of 50,936,074 new Ordinary shares based on the respective formula asset values of the two entities on

12 November 2020.

Net assets acquired £’000

Investments 459,361

Cash 40,248

Debtors 1,003

Current liabilities (48)

Long term liabilities - 4.37% Senior Loan Notes 2029 (73,344)

Net assets 427,220

Satisfied by the value of new Ordinary shares issued 427,220

There were no fair value adjustments on completion of the combination made to the above figures.

88 Murray Income Trust PLC

21. Related party transactions and transactions with the Manager

Fees payable during the year to the Directors and their interests in shares of the Company are considered to be related party

transactions and are disclosed within the Directors’ Remuneration section of the Directors’ Remuneration Report on pages

46 to 49.

The Company has agreements with the Manager for the provision of management, secretarial, accounting and

administration services and promotional activities. Details of transactions during the year and balances outstanding at the

year end are disclosed in notes 4 and 5.

22. Capital management policies and procedures

The investment objective of the Company is to achieve a high and growing income combined with capital growth through

investment in a portfolio principally of UK equities.

The capital of the Company consists of debt (comprising loan notes and bank loans) and equity (comprising issued capital,

reserves and retained earnings). The Company manages its capital to ensure that it will be able to continue as a going

concern while maximising the return to shareholders through the optimisation of the debt and equity balance.

The Board monitors and reviews the broad structure of the Company’s capital on an ongoing basis. This review includes:

- the level of equity shares in issue;

– the planned level of gearing which takes into account the Investment Manager’s views on the market (net gearing figures

can be found on page 14); and

- the extent to which revenue in excess of that which is required to be distributed should be retained.

The Company’s objectives, policies and processes for managing capital are unchanged from the preceding

accounting period.

Notes 13 and 14 give details of the Company’s bank facility agreement and loan notes respectively.

Notes to the Financial Statements

Continued

Murray Income Trust PLC 89

Corporate Information

Nordea, a portfolio company, is the largest

bank in the Nordics with a 200-year history

and is listed on the stock exchanges in

Helsinki, Stockholm and Copenhagen.

90 Murray Income Trust PLC

Aberdeen Asset Managers Limited

The Company’s Investment Manager is Aberdeen Asset

Managers Limited, a subsidiary of abrdn, whose assets

under management and administration were £508 billion

as at 30 June 2022, including 22 UK-listed closed end

investment companies.

The Investment Team

Charles Luke

Senior Investment Director

BA in Economics and Japanese Studies from Leeds

University and an MSc in Business and Economic History

from the London School of Economics. Joined abrdn’s Pan

European equities team in 2000. He previously worked at

Framlington Investment Management.

Rhona Millar

Investment Analyst

An Investment Analyst in UK & European equities team

since 2018, Rhona joined abrdn in 2016 and previously

worked at EY. Rhona graduated with a BSc in Mathematics

from the University of St Andrews. She is a Chartered

Accountant and a CFA Level III candidate.

Iain Pyle

Investment Director

Investment Director in the UK equities team, having joined

Standard Life Investments in 2015. Prior to joining, he was

an analyst on the top-ranked Oil & Gas research team at

Sanford Bernstein. Iain graduated with a MEng degree in

Chemical Engineering from Imperial College and an

MSc (Hons) in Operational Research from Warwick

Business School. He is a chartered accountant and

a CFA Charterholder.

Information about the Manager including

Investment Process

Murray Income Trust PLC 91

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

The Investment Process

Investment Philosophy and Style

The Investment Manager believes that company

fundamentals ultimately drive stock prices but are often

priced inefficiently. It believes that in-depth company

research delivers insights that can be used to exploit these

market inefficiencies. It focuses on investing in high quality

companies, with the market often underestimating the

sustainability of their returns. Quality companies tend to

produce more resilient earnings streams with fewer tail

risks, allowing them to better navigate challenging market

conditions whilst also capitalising on opportunities to

create value. This makes the approach well suited to

identifying companies with sustainable and growing

income generation. Investment insights are generated by

the extensive equity research platform at abrdn. Ideas are

generated through frequent direct company contact,

deep fundamental analysis and integrated ESG analysis

with rigorous team debate strengthening analytical

conclusions. The Investment Manager has a long-term

approach, aiming to buy and hold companies for a multi-

year time horizon although it has the ability to react

quickly if necessary. It is willing to take sizeable deviations

to the benchmark based on the companies where it finds

the highest quality and most attractive valuations.

Investment Process

The investment process has three stages:

1. Idea Generation and Research. Comprehensive

coverage of the UK equity market with a team of

analysts generating investment ideas from company

meetings, combined with corroborating evidence

from competitors, suppliers and customers.

External secondary research is also generated

to gain insight on the consensus view and

supplement proprietary research.

2. Stock Selection. Buy ideas are peer reviewed by the

UK and European equity team, evaluating the level of

conviction and the materiality, corroboration and

correlation of those investment opportunities. For the

Company specifically, the Investment Manager aims

to select high quality stocks. Quality is defined by

reference to management, business focus, balance

sheet and corporate governance.

3. Portfolio Construction and Risk Management. Portfolio

construction is undertaken in a disciplined way,

prioritising the taking of company specific risk with a

rigorous sell discipline. Non-proprietary and

proprietary quantitative tools are used to identify and

control risk factor exposures, including sector and

geographic weights

The Investment Manager believes that good investment

decision making requires clarity of responsibility for those

decisions. Every stock has a named analyst responsible for

its coverage, and every portfolio has a named fund

manager responsible for its management. The individual

portfolio managers make those decisions supported and

challenged by the team, but accountability for the final

decision is clear.

ESG integration means identifying and including all ESG

analysis in each investment decision and the Investment

Manager is regarded as a leader in this area. A central

ESG team supports investment teams across different

asset classes with its thematic work on areas such as

remuneration and climate change, as well as taking

responsibility for voting policies. Further information on

ESG may be found on pages 93 to 97.

The investment process also leverages a wealth of

knowledge, insight and expertise across asset classes and

regions within abrdn. This allows the Investment Manager

to take advantage of equity colleagues across the globe

who are meeting companies and conducting research

and sharing their insights using one common global

research platform. This is invaluable when investing in the

UK equity market, which is one of the most global markets

in the world. Corporate level insights are shared with the

credit team which enriches the equity view through an

understanding of the full capital structure of the

businesses invested in. Members of the Investment

Manager’s multi-asset and economics teams regularly

attend the equity team’s daily meeting to share macro

level insights.

92 Murray Income Trust PLC

Risk Management

The Investment Manager utilises a number of quantitative

risk tools to ensure it is fully aware of and understand all

the risks prevalent in portfolios it manages. These risk

management systems monitor and analyse active risk, the

composition of portfolio positions, as well as contribution

to risk and marginal contribution to risk of the portfolio’s

holdings. The systems break down the risk within the

portfolio by industry and country factors, and highlight the

stocks with the highest marginal contribution to risk and

the largest diversification benefit. Sector, thematic and

geographical positions are a residual of stock selection

decisions, but are monitored to ensure excessive risk is not

taken in any one area. The Investment Manager also

makes use of pre-trade analytics to assess the impact of

any trades on the portfolio risk metrics.

Accountability and Performance Evaluated at Each Stage of the Process

Information about the Manager including

Investment Process

Murray Income Trust PLC 93

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

Summary

Some key information is set out below about the way ESG considerations have been embedded in the

portfolio by the Investment Manager.

abrdn

40+

Dedicated ESG

experts across

our business

A+

Rating across 6

categories in the

latest Principles for

Responsible

Investment (PRI)

assessment

1393

Company

engagements

covering ESG topics

Equities Investment Team

A+/A

PRI Rating for

Integration/Active

Ownership in

Listed Equities

100%

of researched

companies include

integration of ESG

company analysis

Company

14.5%

Lower carbon

intensity relative

to the Benchmark

Number of

meetings where

the Company

voted

17.9%

Number of

meetings with at

least one vote

against

management

Quartile

Peer Group MSCI

Rating

AAA

Fund MSCI ESG

Rating

Please note that Morningstar does not provide a sustainability rating for this fund.

Engagement: time period referenced is preceding 6 months

Voting: time period referenced is preceding 12 months

How the Investment Mana

er approaches ESG

94 Murray Income Trust PLC

Introduction

The Board relies on its Investment Manager to apply

appropriate Environment, Social and Governance (“ESG”)

principles to how the portfolio is constructed and

managed within the confines of its investment objective

and policy. Having an income objective means that the

Company needs to acquire investments which typically

provide a higher than average yield. In some cases, this

means more exposure to older industries such as mining

and oil and gas but, nevertheless the Investment

Manager’s ESG principles are applied in deciding on a

specific investment. Even within these more mature

industries it is evident that the possibility of engagement

by the Investment Manager can lead to change, for

example business models adapting to account for social

and environmental responsibilities. This is irrespective of

government interventions. For example, Anglo American

increased its scoring having improved its ESG quality

rating. The ESG component was driven in part by Anglo

American’s position as a strong performer in its sector -

key risks are deeply interwoven into strategy and aligned

with management remuneration. It has also developed

clear deliverables within its Sustainable Mining Plan. The

stock presented an attractive dividend yield and was

subsequently added to the Company’s portfolio.

Although ESG factors are not the overriding criteria in

relation to the investment decisions taken by the

Investment Manager as the Company does not follow a

sustainability approach, prominence is placed on ESG

and climate-related factors throughout the

investment process.

The following explains how ESG and climate change

factors are considered by the Investment Manager.

The Investment Manager does not judge the suitability of

an investment from an ESG perspective on a purely binary

basis. Instead, a dynamic approach is taken, investing in

companies where the greatest alignment to mitigating

the risks can be seen or pursued further through the

investee companies’ commitment to improving their ESG

profile. The Investment Manager believes in active

engagement with our investments and potential

investments: from providing initial guidance on suitable

metrics through to holding the company to account for

delivering on its promises. It is through this filter that the

Investment Manager is comfortable investing in, for

example, sectors such as mining and oil & 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 their

energy transition. The Investment Manager has high

expectations for these companies given that many

commodities are necessary for the transition to a low

carbon future.

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.

The Investment Manager is an active investor, voting at

shareholder meetings in a considered manner, working

with companies to drive positive change, and engaging

with policymakers on ESG and stewardship matters.

How the Investment Mana

er approaches ESG

Continued

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Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

There are three core principles which underpin the Investment Manager’s investment approach (shown below) and the time

it dedicates to ESG analysis as part of its overall fundamental equity research process:

How the Investment Manager embeds ESG into its Investment Process

01. Investment Insight 02. Active Ownership 03. Risk & Monitoring 04. Our People

High quality fundamental and

first hand research

Assessment of ESG for all

stocks under coverage

Engage and vote with aim of

improving financial resilience

and investment performance

Raise standards in companies

and industries we invest in,

and help drive industry

best practice

Combine in-house and

external scoring to inform view

Active tracking of portfolio

holdings against ESG objectives

Over 130 equity professionals,

and 40+ central and on-desk

ESG specialists across

the world

96 Murray Income Trust PLC

Details of the proprietary ESG scoring system that the

Investment Manager uses within its investment process

can be found in the bi-annual Sustainability Investment

Report which the Board receives. The report includes

updates on the key data and sustainability ratings for the

Company’s portfolio and is made available on its website

at: murray-income.co.uk/sustainable-investment-report

Benchmarking: MSCI ESG Ratings

MSCI company ratings are provided by MSCI to enable

comparisons with investments held elsewhere in a

standardised format. As described above, our Investment

Manager conducts its own proprietary research which

may lead it to a rating that differs to the MSCI score. MSCI

rates companies on a AAA-CCC scale according to their

exposure to ESG risks and how well they manage those

risks relative to peers.

The Company’s MSCI ESG Quality Score assesses the

resilience of a fund's aggregate holdings to long term ESG

risks and is provided on a 0-10 scale, with 10 being the

highest possible fund score. It is based on a granular

breakdown of a company’s business, its core product or

business segments, the locations of its assets or revenues

and other relevant measures such as outsourced

production. The Company’s MSCI ESG Quality Score is 9.5.

The MSCI ESG Rating measures the resiliency of portfolios

to long term risks and opportunities arising from

environmental, social, and governance factors. The ESG

Rating is calculated as a direct mapping of the " MSCI ESG

Quality Score" to letter rating categories.

The fund MSCI ESG Rating is

AAA

Based on the Company’s holdings as at 30 June 2022

Climate Change

Climate change is one of the most significant challenges

of the 21st century and has big implications for investors.

The energy transition is underway in many parts of the

world, and policy changes, falling costs of renewable

energy, and a change in public perception are happening

at a rapid pace. The task force on climate-related

financial disclosures (referred to as TCFD) is now

becoming a global standard for reporting climate risks

and opportunities. As a listed investment company, the

Company is not subject to the Listing Rule requirement to

comply with TCFD reporting, but your Investment

Manager will be required to report on the Company as

one of its products. However, the Board is a keen

supporter of the ambitions of TCFD, as it believes it will

improve disclosure of climate related risks. This in turn will

help the Investment Manager and other stakeholders

better assess the risks which will support sound

investment decisions.

Assessing the risks and opportunities of climate change is

already an integral part of the investment process

associated with your portfolio. In particular, the Investment

Manager considers:

Transition risks and opportunities

Governments could take robust climate change

mitigation actions to reduce emissions and transition to a

low-carbon economy. This is reflected in targets, policies

and regulation and can have a considerable impact on

high-emitting companies.

Physical risks and opportunities

Insufficient climate change mitigation action will lead to

more severe and frequent physical damage. This results in

financial implications, including damage to crops and

infrastructure, and the need for physical adaptation such

as flood defences.

The Investment Manager has aligned its approach with

that advocated by the investor agenda of the Principles

for Responsible Investment (PRI) – a United Nations-

supported initiative to promote responsible investment as

a way of enhancing returns and better managing risk.

Importance of Engagement

The Investment Manager is committed to regular, ongoing

engagement with the companies in which it invests, to

help to maintain and enhance their ESG standards into

the future.

As part of the investment process, the Investment

Manager undertakes a significant number of company

meetings each year on behalf of the Company, supported

by on-desk ESG analysts as well as a well-resourced

specialist ESG Investment team. These meetings provide

an opportunity to discuss various relevant ESG issues

including board composition, remuneration, audit, climate

change, labour issues, human rights, bribery and

corruption. Companies are strongly encouraged to set

clear targets or key performance indicators on all material

ESG risks.

This engagement is not limited to a 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 customers and clients.

Continued

How the Investment Mana

er approaches ESG

Murray Income Trust PLC 97

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

Our Engagement Activity

The Investment Manager regularly engages with

companies it invests in. The following chart shows the

engagements that have included ESG topics. Over the

year to 30 June 2022 we met with 40 portfolio companies

on ESG topics and had 92 engagements with them. This

does not include positions we have moved out of or are

considering. These are the themes that we have

engaged on:

Climate

Environment

Labour Management,

Diversity & Inclusion

Human Rights &

Stakeholders

Corporate Behaviour

Corporate

Governance

abrdn’s Voting Activity

The following is a summary of the Investment Manager’s

voting activity, on behalf of the Company, for the Year to

30 June 2022 (Source abrdn):

Voting Summary Total

How many meetings were you eligible to vote? 72

How many meetings did you vote at? 67

How many resolutions were you eligible to vote on? 1346

What % of resolutions did you vote on for which you

were eligible?

92.7%

Of the resolutions on which you voted, what % did

you vote with management?

98.3%

Of the resolutions on which you voted, what % did

you vote against management?

1.5%

Of the resolutions on which you voted, what % did

you abstain from voting?

0.2%

In what % of meetings, for which you did vote, did

you vote at least once against management?

16.4%

While it is most common for the Investment Manager to vote in line with an investee board’s voting recommendation,

abrdn will vote against resolutions which are not consistent with the Company’s best interests. For example, abrdn may

vote against resolutions which are not aligned with its policies or which conflict with local governance guidelines, such as

the Investment Association in the UK. Although the Investment Manager seeks to vote either in favour or against a

resolution, it does make use of an abstain vote where this is considered appropriate. The Investment Manager aims

to vote at all eligible meetings unless share blocking (which can be a feature of voting in non UK jurisdictions) makes

this unviable.

98 Murray Income Trust PLC

Alternative Investment Fund Managers

Directive (“AIFMD”) and Pre-Investment

Disclosure Document (“PIDD”)

The Company has appointed the Manager as its

alternative investment fund manager and BNP Paribas

Trust Corporation UK Limited as its depositary

under the AIFMD.

The AIFMD requires the Manager, as the Company’s

alternative investment fund manager, to make available

to investors certain information prior to such investors’

investment in the Company. Details of the leverage and

risk policies which the Company is required to have in

place under AIFMD are published in the Company’s PIDD

which can be found on its website: murray-income.co.uk

The periodic disclosures required to be made by the

Manager under the AIFMD are set out on page 101.

Benchmark

The Company’s benchmark is the FTSE All-Share Index.

Investor Warning: Be alert to share fraud and

boiler room scams

abrdn has been contacted by investors informing us that

they have received telephone calls and emails from

people who have offered to buy their investment

company shares, purporting to work for abrdn or for third

party firms. abrdn also been notified of emails claiming

that certain investment companies under our

management have issued claims in the courts against

individuals. These may be scams which attempt to gain

your personal information with which to commit identity

fraud or could be ‘boiler room’ scams where a payment

from you is required to release the supposed payment for

your shares. These callers/senders do not work for abrdn

and any third party making such offers/claims has no link

with abrdn.

abrdn does not ‘cold-call’ investors in this way. If you have

any doubt over the veracity of a caller, do not offer any

personal information, end the call and contact our

Customer Services Department using the details on

page 113.

The Financial Conduct Authority provides advice with

respect to share fraud and boiler room scams at:

fca.org.uk/consumers/scams

Shareholder Enquiries

For queries regarding shareholdings, lost certificates,

dividend payments, registered details and related

matters, shareholders holding their shares directly in the

Company are advised to contact the Registrar (see page

113). Changes of address must be notified to the Registrar

in writing.

If you have any general questions about your Company,

the Manager or performance, please contact the abrdn

Customer Services Department by calling 0808 500 0040,

sending an email to inv.trusts@abrdn.com or writing to:

abrdn Investment Trusts

PO Box 11020

Chelmsford

Essex CM99 2DB

Dividend Tax Allowance

The annual tax-free personal allowance for dividend

income, for UK investors, is £2,000 for the 2022/23 tax year

(2021/22 tax year - £2,000). Above this amount, individuals

pay tax on their dividend income at a rate dependent on

their income tax bracket and personal circumstances. The

Company provides registered shareholders with a

confirmation of dividends paid by the Company and this

should be included with any other dividend income

received when calculating and reporting to HMRC total

dividend income received. It is the shareholder’s

responsibility to include all dividend income when

calculating any tax liability.

How to Invest

Investors can buy and sell shares in the Company directly

through a stockbroker or indirectly through a lawyer,

accountant or other professional adviser. Alternatively, for

retail clients, shares can be bought directly through the

abrdn Investment Plan for Children, abrdn Investment

Trust Share Plan or abrdn Investment Trust ISA.

abrdn Investment Plan for Children

abrdn operates an investment plan for Children (the

“Children’s Plan”) which covers a number of investment

companies under its management, including the

Company. Anyone can invest in the Children’s Plan

(subject to the eligibility criteria as stated within the terms

and conditions), including parents, grandparents and

family friends. All investments are free of dealing charges

on the initial purchase of shares, although investors will

suffer the bid-offer spread which can, on some occasions,

be a significant amount. Lump sum investments start at

£150 per trust, while regular savers may invest from £30

per month. Investors simply pay Government Stamp Duty

(currently 0.5%) on entry, where applicable. Selling costs

are £10 + VAT, if applicable. There is no restriction on how

Investor Information

Murray Income Trust PLC 99

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

long an investor need invest in the Children’s Plan, and

regular savers can stop or suspend participation by

instructing abrdn in writing at any time. In common with

other schemes of this type, all investments are held in

nominee accounts.

abrdn Investment Trust Share Plan

abrdn operates an Investment Trust Share Plan (the

“Plan”) through which shares in the Company can be

purchased. There are no dealing charges on the initial

purchase of shares, although investors will suffer the bid-

offer spread which can, on some occasions, be a

significant amount. Lump sum investments start at £250,

while regular savers may invest from £100 per month.

Investors simply pay Government Stamp Duty (currently

0.5%) on entry. Selling costs are £10 + VAT, if applicable.

There is no restriction on how long an investor need invest

in a Plan, and regular savers can stop or suspend

participation by instructing abrdn in writing at any time.

abrdn Investment Trust ISA

abrdn operates an Investment Trust ISA (“ISA”) through

which an investment may be made of up to £20,000 in the

tax year 2022/23.

There are no brokerage or initial charges for the ISA,

although investors will suffer the bid-offer spread, which

can be a significant amount. Investors only pay

Government Stamp Duty (currently 0.5%) on purchases,

where applicable. Selling costs are £15 + VAT, if applicable.

The annual ISA administration charge is £24 + VAT, if

applicable, calculated annually and applied on 31 March

(or the last business day in March) and collected soon

thereafter either by direct debit or, if there is no valid direct

debit mandate in place, from the available cash in the ISA

prior to the distribution or reinvestment of any income, or,

where there is insufficient cash in the ISA, from the sale of

investments held in the ISA. Under current legislation,

investments in ISAs can grow free of capital gains tax.

ISA Transfer

Investors can choose to transfer previous tax year

investments to abrdn, which can be invested in the

Company while retaining their ISA wrapper. The minimum

lump sum for an ISA transfer is £1,000 and is subject to a

minimum per trust of £250.

Nominee Accounts and Voting Rights

All investments in the abrdn Investment Plan for Children,

abrdn Investment Trust Share Plan or abrdn Investment

Trust ISA are held in nominee accounts and investors are

provided with the equivalent of full voting and other rights

of share ownership.

How to Attend and Vote at

Company Meetings

Investors who hold their shares in the Company via the

Children’s Plan, Share Plan or ISA and would like to attend

and vote at Company meetings (including AGMs) will be

sent for completion and return a Letter of Direction in

connection with the relevant meeting.

Investors who hold their shares via another platform or

share plan provider (for example Hargreaves Lansdown,

Interactive Investor or AJ Bell) and would like to attend and

vote at Company meetings (including AGMs) should

contact their platform or share plan provider directly to

make arrangements. Further details of how to attend and

vote if you hold your shares via a platform or share plan

provider are available at

https://www.theaic.co.uk/shareholder-voting-

consumer-platforms

Keeping You Informed

Further information may be found on the Company’s

dedicated website: murray-income.co.uk. This provides

access to information on the Company’s share price

performance, capital structure, London Stock Exchange

announcements, current and historic Annual and Half-

Yearly Reports and the latest monthly factsheet on the

Company issued by the Manager. The Company’s

Ordinary share price appears under the heading

‘Investment Companies’ in the Financial Times and in The

Daily Telegraph and The Times. Alternatively, please call

0808 500 0040 (Freephone) or email inv.trusts@abrdn.com

or write to abrdn.

If you have an administrative query which relates to a

direct shareholding in the Company, please contact the

Registrar (see page 113 for details). If investors would like

details on the Company or information on the abrdn

Investment Plan for Children, abrdn Investment Trust

Share Plan or abrdn Investment Trust ISA or ISA Transfers,

please e-mail inv.trusts@abrdn.com

or telephone 0808 500 0040

or write to –

abrdn Investment Trusts

PO Box 11020

Chelmsford

Essex CM99 2DB.

Details are also available at: invtrusts.co.uk.

100 Murray Income Trust PLC

Literature Request Service

For literature and application forms for the abrdn

Investment Plan for Children, abrdn Investment Trust

Share Plan or abrdn Investment Trust ISA or ISA transfer,

please visit invtrusts.co.uk or call 0808 500 0040.

Terms and Conditions

Terms and conditions for abrdn managed savings

products can also be found under the Literature section of

our website at: invtrusts.co.uk.

Key Information Document (“KID”)

The KID relating to the Company can be found on the

Company’s website.

Suitable for Retail/NMPI Status

The Company’s shares are intended for investors,

primarily in the UK, including retail investors, professionally-

advised private clients and institutional investors who are

seeking a high and growing income combined with capital

growth through investment in a portfolio principally of UK

equities, and who understand and are willing to accept the

risks of exposure to equities.

Investors should consider consulting a financial adviser

who specialises in advising on the acquisition of shares

and other securities before acquiring shares. Investors

should be capable of evaluating the risks and merits of

such an investment and should have sufficient resources

to bear any loss that may result.

The Company currently conducts its affairs so that the

securities issued by the Company can be recommended

by a financial adviser to ordinary retail investors in

accordance with the Financial Conduct Authority’s rules in

relation to non-mainstream pooled investments (“NMPIs”)

and intends to continue to do so for the foreseeable future.

The Company’s securities are excluded from the Financial

Conduct Authority’s restrictions which apply to NMPIs

because they are securities issued by an investment trust.

Online Dealing

There are a number of online dealing platforms for private

investors that offer share dealing, ISAs and other means to

invest in the Company. Real-time execution-only

stockbroking services allow you to trade online, manage

your portfolio and buy UK listed shares. These sites do not

give advice. Some comparison websites also look at

dealing rates and terms.

Discretionary Private Client Stockbrokers

If you have a large sum to invest, you may wish to contact

a discretionary private client stockbroker. They can

manage your entire portfolio of shares and will advise you

on your investments. To find a private client stockbroker

visit The Personal Investment Management & Financial

Advice Association at: pimfa.co.uk.

Financial Advisers

To find an adviser who recommends on investment trusts,

visit: unbiased.co.uk

Regulation of Stockbrokers

Before approaching a stockbroker, always check that

they are regulated by the Financial Conduct Authority:

Tel: 0800 111 6768 or

at fca.org.uk/firms/financial-services-register

Email: consumerqueries@fca.org.uk

Note

Please remember that past performance is not a guide to

the future. Stock market and currency movements may

cause the value of shares and the income from them to

fall as well as rise and investors may not get back the

amount they originally invested. As with all equity

investments, the value of investment trusts purchased will

immediately be reduced by the difference between the

buying and selling prices of the shares, the market maker’s

spread. Investors should further bear in mind that the

value of any tax relief will depend on the individual

circumstances of the investor and that tax rates and

reliefs, as well as the tax treatment of ISAs, may be

changed by future legislation.

The information on pages 98 to 100 has been approved

for the purposes of Section 21 of the Financial Services

and Markets Act 2000 (as amended by the Financial

Services Act 2012) by Aberdeen Asset Managers Limited

which is authorised and regulated by the Financial

Conduct Authority in the United Kingdom.

Investor Information

Continued

Murray Income Trust PLC 101

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

The Manager and the Company are required to make certain disclosures available to investors in accordance

with the AIFMD. Those disclosures that are required to be made pre-investment are included within a pre-investment

disclosure document (“PIDD”) which may be found on the Company’s website (murray-income.co.uk), maintained

by the Manager.

AIFMD or the Directive

The Alternative Investment Fund Managers Directive -

There have been no material changes to the disclosures contained within the PIDD since its latest publication

in September 2022.

The periodic disclosures as required under the AIFMD to investors are made below:

· information on the investment strategy, geographic and sector investment focus and principal stock exposures is

included in the Strategic Report;

· none of the Company’s assets are subject to special arrangements arising from their illiquid nature;

· the Strategic Report on pages 4 to 23, Note 17 to the financial statements and the PIDD, together set out the risk profile

and risk management systems in place. There have been no changes to the risk management systems in place in the

period under review and no breaches of any of the risk limits set, with no breach expected;

· there are no new arrangements for managing the liquidity of the Company or any material changes to the liquidity

management systems and procedures employed by the Manager;

· all authorised Alternative Investment Fund Managers are required to comply with the AIFMD Remuneration Code. In

accordance with the AIFMD Remuneration Code, the AIFM’s remuneration policy in respect of its reporting period

ended 31 December 2021 is available on the Company’s website, or on request from the Company Secretaries,

Aberdeen Asset Management PLC.

Leverage

For the purposes of the Alternative Investment Fund Managers Directive, leverage is any method which increases the

Company’s exposure, including the borrowing of cash and the use of derivatives. It is expressed as a ratio between the

Company’s exposure and its net asset value and can be calculated on a gross and a commitment method. Under the

gross method, exposure represents the sum of the Company’s positions after the deduction of Sterling cash balances,

without taking into account any hedging and netting arrangements. Under the commitment method, exposure is

calculated without the deduction of Sterling cash balances and after certain hedging and netting positions are offset

against each other.

The table below sets out the current maximum permitted limit and actual level of leverage for the Company:

Gross Method Commitment Method

Maximum level of leverage 2.50:1 2.00:1

Actual level at 30 June 2022 1.21:1 1.22:1

There have been no breaches of the maximum level during the period and no changes to the maximum level of

leverage employed by the Company. There is no right of re-use of collateral or any guarantees granted under the

leveraging arrangement. Changes to the information contained either within this Annual Report or the PIDD in relation to

any special arrangements in place, the maximum level of leverage which the AIFM may employ on behalf of the

Company; the right of use of collateral or any guarantee granted under any leveraging arrangement; or any change to

the position in relation to any discharge of liability by the Depositary will be notified via a regulatory news service without

undue delay in accordance with the AIFMD.

The information on this page has been approved for the purposes of Section 21 of the Financial Services and Markets Act

2000 (as amended by the Financial Services Act 2012) by the Manager which is authorised and regulated by the

Financial Conduct Authority in the United Kingdom.

AIFMD Disclosures

(

Unaudited

)

102 Murray Income Trust PLC

General

Experian, a portfolio company, has managed the

UK’s largest and most comprehensive source of

consumer information for over 30 years.

Murray Income Trust PLC 103

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

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 lower than the net asset value per share, expressed as a percentage of the net

asset value.

2022 2021

NAV per Ordinary share (p) a 864.9 934.6

Share price (p) b 832.0 871.0

Discount (b-a)/a –3.8% –6.8%

Dividend cover

Dividend cover is the revenue return per share divided by dividends per share expressed as a ratio.

2022 2021

Revenue return per share a 40.50p 33.73p

Dividends per share b 36.00p 34.50p

Dividend cover a/b 1.13 0.98

Dividend yield

The annual dividend per Ordinary share divided by the share price, expressed as a percentage.

2022 2021

Dividends per share a 36.00p 34.50p

Share price b 832.00p 871.00p

Dividend yield a/b 4.3% 4.0%

Alternative Performance Measures

104 Murray Income Trust PLC

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.

2022 2021

Borrowings (£’000) a 117,217 118,520

Cash (£’000) b 20,131 4,493

Amounts due to brokers (£’000) c – 1,191

Amounts due from brokers (£’000) d 2,490 2,914

Shareholders’ funds (£’000) e 1,009,255 1,093,859

Net gearing (a-b+c-d)/e 9.4% 10.3%

Ongoing charges ratio

The ongoing charges ratio has been calculated based on the total of investment management fees and administrative expenses less

non-recurring charges and expressed as a percentage of the average daily net asset values with debt at fair value published

throughout the year.

2022 2021

Investment management fees (£’000) a 3,997 2,512

Administrative expenses (£’000) b 1,350 1,443

Less: non-recurring charges

(£’000) c (30) (115)

Ongoing charges (£’000) a+b+c 5,317 3,840

Average net assets (£’000) d 1,102,862 841,850

Ongoing charges ratio e=(a+b+c)/d 0.48% 0.46%

2022 comprises £20,000 director recruitment fee, £8,000 legal fees relating to the private placement notes and £2,000 professional fees for Taiwan tax work. 2021 comprises

£18,000 for legal fees and £6,000 for audit fees relating to the merger and £91,000 relating to HMRC penalty for late payment of stamp duty associated with the merger.

The ongoing charges ratio provided in the Company’s Key Information Document is calculated in line with the PRIIPs regulations,

which includes financing and transaction costs.

Alternative Performance Measures

Continued

Murray Income Trust PLC 105

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

Total return

Share price and NAV total returns show how the NAV and share price has performed over a period of time in percentage terms,

taking into account both capital returns and dividends paid to shareholders. Share price and NAV total returns are monitored against

open-ended and closed-ended competitors, and the FTSE All-Share Index, respectively.

Year ended 30 June 2022 Price NAV

Opening at 1 July 2021 a 871.0p 934.6p

Closing at 30 June 2022 b 832.0p 864.9p

Price movements c=(b/a)-1 –4.5% –7.5%

Dividend reinvestment

d 3.8% 3.5%

Total return c+d –0.7% –4.0%

Year ended 30 June 2021 Price NAV

Opening at 1 July 2020 a 768.0p 808.3p

Closing at 30 June 2021 b 871.0p 934.6p

Price movements c=(b/a)-1 13.4% 15.6%

Dividend reinvestment

d 5.1% 5.0%

Total return c+d 18.5% 20.6%

Share price total return involves reinvesting the net dividend in the share price of the Company on the date on which that dividend goes ex-dividend. NAV total return involves

investing the net dividend in the NAV of the Company with debt at fair value on the date on which that dividend goes ex-dividend.

106 Murray Income Trust PLC

Active Share

A measure of the difference between a portfolio and a

benchmark, calculated as a percentage

abrdn or the Group

The abrdn plc group of companies.

AIFMD

Alternative Investment Fund Managers Directive

AIC

The Association of Investment Companies (theaic.co.uk).

Benchmark

FTSE All-Share Index.

Depositary

A depositary is responsible for cash monitoring, the

custody and safeguarding of the Company’s financial

instruments and monitoring the Company’s compliance

with investment limits and leverage requirements. During

the year the Depositary was BNP Paribas Securities

Services, London Branch. The depositary agreement was

novated to BNP Paribas Trust Corporation UK Limited on

30 June 2022.

FCA

The Financial Conduct Authority.

Investment Manager

Aberdeen Asset Managers Limited

Investment Trust

A type of Closed-End Fund which invests in other

securities, allowing shareholders to share the risks, and

returns, of collective investment.

Key Information Document or KID

The Packaged Retail and Insurance-based Investment

Products (“PRIIPS”) Regulation requires the Manager, as

the Company’s PRIIP ‘manufacturer’, to prepare a Key

Information Document (“KID”) in respect of the Company.

This KID must be made available by the Manager to retail

investors prior to them making any investment decision

and is available via the Company’s website. The Company

is not responsible for the information contained in the KID

and investors should note that the procedures for

calculating the risks, costs and potential returns are

prescribed by law. The figures in the KID may not reflect

the expected returns for the Company and performance

returns cannot be guaranteed.

Manager

abrdn Fund Managers Limited (formerly Aberdeen

Standard Fund Managers Limited, until 31 July 2022), is a

wholly owned subsidiary of abrdn and acts as the

alternative investment fund manager for the Company.

abrdn Fund Managers Limited is authorised and regulated

by the Financial Conduct Authority.

Price/Earnings Ratio

The ratio is calculated by dividing the middle-market price

per share by the earnings per share. The calculation

assumes no change in earnings but in practice the

multiple reflects the stock market’s view of a company’s

prospects and profit growth potential.

Scrip Dividend

An issue of shares to a shareholder in proportion to their

existing holding, in lieu of paying a dividend.

Glossary of Terms

Murray Income Trust PLC 107

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

NOTICE IS HEREBY GIVEN that the Annual General Meeting of Murray Income Trust PLC will be held at 12.30pm on

Tuesday 1 November 2022 at The Mermaid Conference Centre, Puddle Dock, Blackfriars, London EC4V 3DB, for the

purpose of considering and if thought fit passing the following resolutions, of which Resolutions 1 to 12 inclusive will be

proposed as Ordinary Resolutions and Resolutions 13 and 14 inclusive will be proposed as Special Resolutions:–

Ordinary Business

1. To receive and adopt the Directors’ Report, Auditor’s Report and the audited financial statements for the year ended

30 June 2022.

2. To receive and adopt the Directors’ Remuneration Report for the year ended 30 June 2022 other than the Directors’

Remuneration Policy.

3. To approve the Company’s dividend policy to pay four quarterly interim dividends per year.

4. To elect Nandita Sahgal Tully* as a Director of the Company.

5. To re-elect Stephanie Eastment* as a Director of the Company.

6. To re-elect Alan Giles* as a Director of the Company.

7. To re-elect Merryn Somerset Webb* as a Director of the Company.

8. To re-elect Peter Tait* as a Director of the Company.

9. To re-elect Neil Rogan* as a Director of the Company.

10. To re-appoint PricewaterhouseCoopers LLP as independent auditor of the Company.

11. To authorise the Audit Committee to fix the remuneration of PricewaterhouseCoopers LLP as independent auditor

of the Company for the year ended 30 June 2023.

Special Business

Authority to Allot

12. THAT, in substitution of all existing powers, the Directors be and are hereby generally and unconditionally authorised

in accordance with Section 551 of the Companies Act 2006 (the “Act”) to exercise all the powers of the Company to

allot Ordinary shares of 25p each in the capital of the Company (“shares”) up to an aggregate nominal amount of

£1,455,755 (or, if less, the number representing 5 per cent. of the total Ordinary shares in issue (excluding treasury

shares) as at the date of passing of this resolution), during the period expiring on the conclusion of the next Annual

General Meeting of the Company after the passing of this resolution or on 31 December 2023, whichever is the

earlier, but so that this authority shall allow the Company to make offers or agreements before the expiry of this

authority which would or might require shares to be allotted after such expiry and the Directors shall be entitled to

allot shares in pursuance of such an offer or agreement as if such authority had not expired.

Disapplication of Pre-emption Rights

13. THAT, subject to the passing of Resolution 12 proposed at the Annual General Meeting of the Company convened

for 1 November 2022, and in substitution for all existing powers, the Directors be and are hereby empowered,

pursuant to Section 570 of the Companies Act 2006 (the “Act”), to allot equity securities (as defined in Section 560(1)

of the Act) for cash pursuant to the authority given in accordance with Section 551 of the Act by Resolution 12 or

otherwise as if Section 561 of the Act did not apply to any such allotment and to sell or transfer equity securities if,

immediately before the sale or transfer, such equity securities are held by the Company as treasury shares (as

defined in Section 724(5) of the Act) as if Section 561 of the Act did not apply to any such sale or transfer, provided

that this power:-

Notice of Annual General Meetin

108 Murray Income Trust PLC

i. expires at the conclusion of the next Annual General Meeting of the Company after the passing of this resolution

or on 31 December 2023, whichever is the earlier, but so that this power shall enable the Company to make

offers or agreements which would or might require equity securities to be allotted or treasury shares to be sold

or transferred after the expiry of this power and the Directors may allot equity securities or sell or transfer

treasury shares in pursuance of any such offers or agreements as if this power had not expired;

ii. shall be limited to the allotment of equity securities up to an aggregate nominal amount of £2,911,511 (or, if less,

the number representing 10 per cent. of the total Ordinary shares in issue (excluding treasury shares) as at the

date of passing of this resolution); and

iii. shall be limited in respect of the issue of shares or the sale of equity securities from treasury in the

circumstances as detailed in the section headed “Authority to allot shares and disapply pre-emption rights” in

the Directors’ Report on pages 43 and 44 of the Annual Report of the Company for the year ended 30 June 2022

and at a price not less than 0.5% above the net asset value per share (as determined by the Directors).

Authority to Make Market Purchases of Shares

14. THAT the Company be and is hereby generally and, subject as hereinafter appears, unconditionally authorised in

accordance with Section 701 of the Companies Act 2006 (the “Act”) to make market purchases (within the meaning

of Section 693(4) of the Act) of Ordinary shares of 25p each in the capital of the Company (“shares”) and to cancel

or hold in treasury such shares, provided always that:

i. the maximum number of shares hereby authorised to be purchased shall be an aggregate of 17,457,424

Ordinary shares or, if less, the number representing 14.99% of the total Ordinary shares in issue (excluding

treasury shares) as at the date of passing this resolution;

ii. the minimum price which may be paid for each share shall be 25p;

iii. the maximum price (exclusive of expenses) which may be paid for a share is the higher of (i) 5% above the

average of the middle market quotations for a share taken from, and calculated by reference to, the London

Stock Exchange Daily Official List for the five business days immediately preceding the day on which the share is

purchased; and (ii) the higher of the price of the last independent trade and the highest current independent bid

on the London Stock Exchange at the time the purchase is carried out;

iv. the authority hereby conferred shall expire on 31 December 2023 or, if earlier, at the conclusion of the next

Annual General Meeting of the Company unless such authority is previously varied, revoked or renewed prior to

such time;

v. the Company may enter into a contract to purchase shares under the authority hereby conferred prior to the

expiry of such authority and may purchase shares pursuant to any such contract notwithstanding such

expiry above.

*The biographies of the Directors offering themselves for election or re-election may be found on pages 34 to 36.

By order of the Board

Aberdeen Asset Management PLC

Secretaries

21 September 2022

Registered Office

1 George Street

Edinburgh

EH2 2LL

Notice of Annual General Meetin

Continued

Murray Income Trust PLC 109

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

Notes

i. To be entitled to attend and vote at the Meeting (and for the purpose of the determination by the Company of the

number of votes they may cast), shareholders must be registered in the Register of Members of the Company at

close of trading on 28 October 2022. Changes to the Register of Members after the relevant deadline shall be

disregarded in determining the rights of any person to attend and vote at the Meeting.

ii. Shareholders, or their proxies, intending to attend the Meeting in person are requested, if possible, to arrive at the

Meeting venue at least 20 minutes prior to the commencement of the Meeting at 12.30pm (UK time) on 1

November 2022 so that their shareholding may be checked against the Company’s Register of Members and

attendances recorded.

iii. Shareholders are entitled to appoint another person as a proxy to exercise all or part of their rights to attend and to

speak and vote on their behalf at the Meeting. A shareholder may appoint more than one proxy in relation to the

Meeting provided that each proxy is appointed to exercise the rights attached to a different ordinary share or

ordinary shares held by that shareholder. A proxy need not be a shareholder of the Company.

iv. In the case of joint holders, where more than one of the joint holders purports to appoint a proxy, only the

appointment submitted by the most senior holder will be accepted. Seniority is determined by the order in which

the names of the joint holders appear in the Company’s Register of Members in respect of the joint holding (the first

named being the most senior).

v. A vote withheld is not a vote in law, which means that the vote will not be counted in the calculation of votes for or

against the resolution. If no voting indication is given, your proxy will vote or abstain from voting at his or her

discretion. Your proxy will vote (or abstain from voting) as he or she thinks fit in relation to any other matter which is

put before the Meeting.

vi. You can vote either:

· by logging on to signalshares.com and following the instructions; or

· you may request a hard copy form of proxy directly from the registrars, Link Group, on Tel: 0371 664 0300. Calls

are charged at the standard geographic rate and will vary by provider. Calls from outside the UK will be charged

at the applicable international rate. Lines are open between 09:00 – 17:30, Monday to Friday excluding public

holidays in England and Wales.

· in the case of CREST members, by utilising the CREST electronic proxy appointment service in accordance with

the procedures set out below.

In order for a proxy appointment to be valid a form of proxy must be completed. In each case the form of proxy

must be received by Link Group at PXS 1, Central Square, 29 Wellington Street, Leeds, LS1 4DL by 12.30pm on

28 October 2022.

vii. If you return more than one proxy appointment, either by paper or electronic communication, the appointment

received last by the Registrar before the latest time for the receipt of proxies will take precedence. You are advised

to read the terms and conditions of use carefully. Electronic communication facilities are open to all shareholders

and those who use them will not be disadvantaged.

viii. The return of a completed form of proxy, electronic filing or any CREST Proxy Instruction (as described in note (x)

below) will not prevent a shareholder from attending the Meeting and voting in person if he/she wishes to do so.

ix. CREST members who wish to appoint a proxy or proxies through the CREST electronic proxy appointment service

may do so for the Meeting (and any adjournment of the Meeting) by using the procedures described in the CREST

Manual (available from euroclear.com/site/public/EUI ). CREST Personal Members or other CREST sponsored

members, and those CREST members who have appointed a service provider(s), should refer to their CREST

sponsor or voting service provider(s), who will be able to take the appropriate action on their behalf.

110 Murray Income Trust PLC

x. In order for a proxy appointment or instruction made by means of CREST to be valid, the appropriate CREST

message (a ‘CREST Proxy Instruction’) must be properly authenticated in accordance with Euroclear UK & Ireland

Limited’s specifications and must contain the information required for such instructions, as described in the CREST

Manual. The message must be transmitted so as to be received by the issuer’s agent (ID RA10) by 12.30pm on 28

October 2022. For this purpose, the time of receipt will be taken to mean the time (as determined by the timestamp

applied to the message by the CREST application host) from which the issuer’s agent is able to retrieve the

message by enquiry to CREST in the manner prescribed by CREST. After this time, any change of instructions to

proxies appointed through CREST should be communicated to the appointee through other means.

xi. CREST members and, where applicable, their CREST sponsors or voting service providers should note that

Euroclear UK & Ireland Limited does not make available special procedures in CREST for any particular message.

Normal system timings and limitations will, therefore, apply in relation to the input of CREST Proxy Instructions. It is

the responsibility of the CREST member concerned to take (or, if the CREST member is a CREST personal member,

or sponsored member, or has appointed a voting service provider(s), to procure that his CREST sponsor or voting

service provider(s) take(s)) such action as shall be necessary to ensure that a message is transmitted by means of

the CREST system by any particular time. In this connection, CREST members and, where applicable, their CREST

sponsors or voting system providers are referred, in particular, to those sections of the CREST Manual concerning

practical limitations of the CREST system and timings. The Company may treat as invalid a CREST Proxy Instruction

in the circumstances set out in Regulation 35(5)(a) of the Uncertificated Securities Regulations 2001.

xii. Any corporation which is a shareholder can appoint one or more corporate representatives who may exercise on

its behalf all of its powers as a shareholder provided that no more than one corporate representative exercises

powers in relation to the same shares.

xiii. As at 21 September 2022 (being the latest practicable business day prior to the publication of this Notice), the

Company’s ordinary issued share capital consists of 116,460,472 ordinary shares, carrying one vote each and

3,069,060 shares held in treasury. Therefore, the total voting rights in the Company as at 21 September 2022 are

116,460,472.

xiv. Under Section 527 of the Companies Act 2006, shareholders meeting the threshold requirements set out in that

section have the right to require the Company to publish on a website a statement setting out any matter relating

to: (i) the audit of the Company’s financial statements (including the Auditor’s Report and the conduct of the audit)

that are to be laid before the Meeting; or (ii) any circumstances connected with an auditor of the Company

ceasing to hold office since the previous meeting at which annual financial statements and reports were laid in

accordance with Section 437 of the Companies Act 2006 (in each case) that the shareholders propose to raise at

the relevant meeting. The Company may not require the shareholders requesting any such website publication to

pay its expenses in complying with Sections 527 or 528 of the Companies Act 2006. Where the Company is

required to place a statement on a website under Section 527 of the Companies Act 2006, it must forward the

statement to the Company’s auditor not later than the time when it makes the statement available on the website.

The business which may be dealt with at the Meeting for the relevant financial year includes any statement that the

Company has been required under Section 527 of the Companies Act 2006 to publish on a website.

xv. Any shareholder attending the Meeting has the right to ask questions. The Company must cause to be answered

any such question relating to the business being dealt with at the Meeting but no such answer need be given if: (a)

to do so would interfere unduly with the preparation for the Meeting or involve the disclosure of confidential

information; (b) the answer has already been given on a website in the form of an answer to a question; or (c) it is

undesirable in the interests of the Company or the good order of the Meeting that the question be answered.

xvi. Copies of the Directors’ letters of appointment will be available for inspection during normal business hours at the

registered office of the Company on any business day from the date of this Notice until the time of the Meeting and

may also be inspected at the Meeting venue, as specified in this Notice, for 15 minutes before and during the

Annual General Meeting until the conclusion of the Meeting.

Notice of Annual General Meetin

Continued

Murray Income Trust PLC 111

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

xvii. You may not use any electronic address (within the meaning of Section 333(4) of the Companies Act 2006)

provided in either this Notice or any related documents (including the form of proxy) to communicate with the

Company for any purposes other than those expressly stated.

xviii. A copy of this Notice, and other information required by Section 311A of the Companies Act 2006, can be found on

the Company’s website at murray-income.co.uk

xix. There are special arrangements for holders of shares through the abrdn Investment Plan for Children, Investment

Trust Share Plan and Investment Trust Individual Savings Account (“ISA”). These are explained in the separate

‘Letter of Direction’ which such holders will have received with this Annual Report.

xx. If the law or Government guidance in relation to the risks posed by Covid-19 so requires at the time of the Meeting,

physical attendance at the Meeting may not be possible. In these circumstances, the Chairman will limit, in his sole

discretion, the number of individuals in physical attendance at the meeting two persons. Should there be no

restrictions imposed by law or Government at the time of the Meeting, the Company may still impose entry

restrictions on certain persons wishing to attend the Meeting in order to ensure the safety of those attending the

Meeting. As set out in the Chairman’s Statement, shareholders are encouraged to submit questions in advance of

the Meeting to murray.income@abrdn.com

THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. If you are in any doubt about the action you should take, you are

recommended to seek your own independent financial advice from your stockbroker, bank manager, solicitor, accountant or other independent financial

adviser authorised under the Financial Services and Markets Act 2000 (as amended by the Financial Services Act 2012) if you are in the United Kingdom or,

if not, from another appropriately authorised financial adviser.

If you have sold or otherwise transferred all your Ordinary shares in Murray Income Trust PLC, please forward this document together with the

accompanying documents immediately to the purchaser or transferee, or to the stockbroker, bank or agent through whom the sale or transfer was

effected for transmission to the purchaser or transferee.

112 Murray Income Trust PLC

Murray Income Trust PLC 113

Directors

Neil Rogan (Chairman)

Peter Tait (Senior Independent Director)

Stephanie Eastment (Chairman of the Audit Committee)

Alan Giles

Merryn Somerset Webb

Nandita Sahgal Tully

Company Secretaries, Registered Office and

Company Number

Aberdeen Asset Management PLC

1 George Street

Edinburgh EH2 2LL

Registered in Scotland under company number SC012725

Website

murray-income.co.uk

Legal Entity Identifier

549300IRNFGVQIQHUI13

United States Internal Revenue Service

FATCA Registration Number (“GIIN”)

8Q8ZFE.99999.SL.826

Points of Contact

The Chairman or Company Secretaries at the Registered

Office of the Company

Email: murray.income@abrdn.com

Customer Services Department and abrdn

Children’s Plan, Share Plan and ISA Enquiries

abrdn Investment Trusts

PO Box 11020

Chelmsford

Essex CM99 2DB

Freephone: 0808 500 0040

(open Monday to Friday from 9.00am to 5.00pm,

excluding public holidays)

Email: inv.trusts@abrdn.com

Twitter:

@abrdnTrusts

LinkedIn:

abrdn Investment Trusts

Alternative Investment Fund Manager

abrdn Fund Managers Limited

Authorised and regulated by the Financial Conduct

Authority

Investment Manager

Aberdeen Asset Managers Limited

Authorised and regulated by the Financial Conduct

Authority

Registrar (for direct shareholders)

The Share Portal, operated by Link Group, is a secure

online website where shareholdings can be managed

quickly and easily, including changing address or

arranging to pay dividends directly into a bank account, or

to receive electronic communications. To register,

shareholders will need their Investor Code which may be

found on their share certificate or by contacting the

Registrar at: signalshares.com

Alternatively, please contact the Registrar –

By email, via the above website

By phone, Tel: 0371 664 0300

(UK calls cost 10p per minute plus network extras)

From overseas: +44 208 639 3399

(open Monday to Friday, from 9.00am to 5.30pm,

excluding public holidays)

By post -

Link Group

PXS 1

Central Square

29 Wellington Street

Leeds

LS1 4DL

Independent Auditor

PricewaterhouseCoopers LLP

Depositary

BNP Paribas Trust Corporation UK Limited

Lawyer

Dickson Minto W.S.

Stockbroker

Investec Bank plc

Additional Shareholder Information

For more information visit murray-income.co.uk

abrdn.com