Murray International Trust PLC

A high conviction global portfolio designed to deliver a strong and rising income and to grow capital

Annual Report

31 December 2023

murray-intl.co.uk

Glasgow's Finnieston Crane, a symbol of the city's industrial heritage. The Company's roots can be traced back to Glasgow's thriving industrial and shipbuilding-based economy

"Your Board is recommending an increased final dividend of 4.3p per Ordinary 5p share (2022: 4.0p as restated).If the final dividend is approved, the total Ordinary dividend for the year will amount to 11.5p (2022: 11.2p as restated), an increase over the previous year of 2.7%.This represents the 19th year of dividend increases for the Company, which remains an AIC 'Next Generation Dividend Hero'"

Virginia Holmes,

Chair

"Over the full financial year, the 8.6% NAV total return was welcomed, marking a return to real growth given the moderating UK Retail Prices inflation rate of 5.2%.Whereas overall global equity index strength tended to be extremely concentrated in just a handful of large US technology stocks, the portfolio's positive performance in total return terms was spread across numerous regions, sectors and businesses"

Bruce Stout,

abrdn Investments Limited

Murray International Trust PLC

1

Performance Highlights

Net asset value total returnAB - 2023

+8.6%

2022

+8.8%

Reference Index total returnBC - 2023

+15.7%

2022

-7.3%

Dividends per shareBEF - 2023

11.5p

2022

11.2p

Retail Prices IndexB - 2023

+5.2%

2022

+13.4%

Share price total returnAB - 2023

+1.1%

2022

+20.6%

(Discount)/premium to net asset valueAD - 2023

-4.0%

2022

+3.1%

Revenue return per shareBF - 2023

12.1p

2022

12.0p

Ongoing charges ratioAD

0.53%

2022

0.52%

  1. Alternative Performance Measure (see pages 110 to 112).
  2. For the year to 31 December.
  3. Reference Index is FTSE All World TR Index.
  4. As at 31 December.
  5. Dividends declared for the year to which they relate and assuming shareholder approval of final dividend.
  6. Figures for 2022 have been restated to reflect the 5:1 sub-division as disclosed in note 14.

Net asset value per share

Dividends per share

Mid-Market price per share

At 31 December - pence

Year ended 31 December - pence

At 31 December - pence

267

238

248

259

269

252

258

228

11.2 11.5

226

231

10.7

10.9

11.0

19

20

21

22

23

19

20

21

22

23

19

20

21

22

23

2

Murray International Trust PLC

Contents

Overview

Financial Calendar

4

Financial Highlights

5

Strategic Report

Chair's Statement

8

Investment Manager's Review

12

The Manager's Investment Process

20

Investment Case Studies

23

Key Performance Indicators (KPIs)

25

Performance Track Record

26

Investment Objective and Investment Policy

28

Promoting Your Company's Success

29

Risk Management and Viability

35

Portfolio

Ten Largest Investments

40

List of Investments

41

Sector/Geographical Analysis

44

Governance

Board of Directors

50

Directors' Remuneration Report

61

Report of Audit and Risk Committee

65

Statement of Directors' Responsibilities

67

Independent Auditor's Report to the Members of

Murray International Trust PLC

68

Financial Statements

Statement of Comprehensive Income

78

Statement of Financial Position

79

Statement of Changes in Equity

80

THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR

Statement of Cash Flows

81

IMMEDIATE ATTENTION.If you are in any doubt about the

Notes to the Financial Statements

82

action you should take, you are recommended to seek

Securities Financing Transactions Disclosure

107

your own independent financial advice from your

Alternative Performance Measures

109

stockbroker, bank manager, solicitor, accountant or other

independent financial adviser authorised under the

Corporate Information

Financial Services and Markets Act 2000 if you are in the

Information about the Investment Manager

113

United Kingdom or, if not, from another appropriately

ESG and Climate Related Factors

114

authorised financial adviser.If you have sold or otherwise

Investor Information

117

transferred all your Ordinary shares in Murray

Glossary of Terms

119

International Trust PLC, please forward this document,

together with the accompanying documents immediately

General

to the purchaser or transferee, or to the stockbroker, bank

Notice of Annual General Meeting

123

or agent through whom the sale or transfer was effected

Shareholder Information

128

for transmission to the purchaser or transferee.

Contact Addresses

129

Murray International Trust PLC

3

Financial Calendar

Payment dates of future quarterly dividends

20 May 2024

16 August 2024

18 November 2024

17 February 2025

Financial year end

31 December

Online Shareholder Presentation

Friday 5 April 2024 at 11.00 a.m.

Annual General Meeting (London)

Friday 19 April 2024 at 12:30 p.m.

Dividends

Rate

Ex-dividend date

Record date

Payment date

1st interim

2.4p

6 July 2023

7 July 2023

16 August 2023

2nd interim

2.4p

5 October 2023

6 October 2023

17 November 2023

3rd interim

2.4p

4 January 2024

5 January 2024

16 February 2024

Proposed final

4.3p

25 April 2024

26 April 2024

20 May 2024

Total dividends

11.5p

4

Murray International Trust PLC

Financial Highlights

31 December 2023

31 December 2022

% change

Total assetsA

£1,808.8m

£1,816.6m

-0.4

Net assets

£1,668.9m

£1,616.8m

+3.2

Market capitalisation

£1,601.8m

£1,667.7m

-4.0

Net Asset Value per Ordinary shareBC

268.8p

258.7p

+3.9

Share price per Ordinary share (mid market)BC

258.0p

266.8p

-3.3

(Discount)/premium to Net Asset Value per Ordinary shareD

-4.0%

3.1%

Net gearingD

8.0%

11.2%

Revenue return per shareC

12.1p

12.0p

+0.8

Dividends per shareCE

11.5p

11.2p

+2.7

Dividend cover (including proposed final dividend)D

1.05x

1.07x

Dividend yieldD

4.5%

4.2%

Revenue reservesF

£75.1m

£69.2m

Ongoing charges ratioD

0.53%

0.52%

  1. See definition on page 122.
  2. Capital values.
  3. Figures for 2022 have been restated to reflect the 5:1 sub-division as disclosed in note 14.
  4. Considered to be an Alternative Performance Measure as defined on pages 110 and 111.
  5. The figure for dividends per share reflects the years to which their declaration relates (see note 8 on page 89) and assuming approval of the final dividend of 4.3p (2022 - final dividend of 4.0p).
  6. The revenue reserve figure does not take account of the third interim and final dividends amounting to £14,890,000 and £26,592,000 respectively (2022 - third interim dividend of £15,002,000 and final dividend of £25,003,000).

Overview

Strategic Report

Portfolio

General Corporate Information Financial Statements Governance

Murray International Trust PLC

5

Strategic

Report

6

Murray International Trust PLC

Murray International Trust PLC is an investment company with its Ordinary shares listed on the premium segment of the London Stock Exchange. The Company is an approved investment trust and aims to achieve an above average dividend yield, with long-term growth in dividends and capital ahead of inflation, by investing principally in global equities

Murray International Trust PLC

7

Chair's Statement

I am pleased to present this Annual Report following my appointment as Chair on 31 December 2023 and would like to take this opportunity to reiterate, on behalf of the Board, all our thanks to David Hardie for his contribution to the Company, particularly in his willingness to take on the role of Chair following the sad death of his predecessor, Simon Fraser.

Background

The disparity that so often exists between economic fundamentals and financial market performance proved extremely pronounced in 2023. The impacts of sharply rising interest rates, which had begun in earnest in early 2022, began to have a negative impact on most global economies. Scrutinised by sceptical bond markets, Central Banks remained vigilant about ongoing inflationary pressures. Interest rates continued to rise, debt servicing costs increased further and economic stagnation remained a constant threat. Whilst most countries experienced decelerating rates of inflation, overall prices continued to rise, putting further pressure on already stretched household budgets. With no tangible relief in the cost-of-living crisis throughout the indebted Developed World, it was no surprise that global consumption struggled to support growth. Corporate profit margins also succumbed to input cost increases, revenue declines and general wage pressures. The overall environment of tighter liquidity, constrained earnings and fragile confidence could hardly have been described as positive for financial markets. Yet what transpired most definitely defied expectations. Whilst economic fundamentals generally tend to reflect reality, global financial fundamentals are always open to a variety of interpretations. So it proved once again. Global equity markets treaded water for most of the year, but markets' performance during the final two months of 2023 was nothing short of remarkable. Fuelled by a resurgence in positive sentiment towards a perceived end to interest rate hikes, global equity markets surged higher. Such positive market momentum towards year end, combined with ongoing robustness in the Company's income statement, delivered another year of strong total returns on net assets. It is also pleasing to report that once again the proposed increase in the Company's dividend is fully covered by the net revenue generated from the portfolio.

Performance

The Company's net asset value ("NAV") posted a total return for the year (i.e. with net income reinvested) of 8.6%. Although the Company does not use a benchmark, it is worth noting that over the same period the UK Retail Prices Index rose 5.2% and the Reference Index (the FTSE All World TR Index) increased 15.7%. The share price posted a lower total return of 1.1% (2022: 20.6%), reflecting a widening in the discount to NAV. Revenue return per share generated from the Company's portfolio amounted to 12.1p for the year (2022: 12.0p, restated for the share subdivision in April 2023), enabling the ongoing improvement in the total level of dividend. The Manager's investment focus continues to emphasise both geographical and sector diversification across a broad range of quality companies in order to deliver both income and capital growth. Such characteristics tend not to be represented in more concentrated indices where fashionable growth stocks are inclined to dominate.

Your Board is recommending an increased final dividend of 4.3p per Ordinary 5p share (2022: 4.0p as restated)

Dividends

Three interim dividends of 2.4p per share (2022: three interims of 2.4p as restated) have been declared during the year. Your Board is recommending an increased final dividend of 4.3p per Ordinary 5p share (2022: 4.0p as restated). If approved at the Annual General Meeting, this final dividend will be paid on 20 May 2024 to Shareholders on the register on 26 April 2024 (ex dividend 25 April 2024). If the final dividend is approved, the total Ordinary dividend for the year will amount to 11.5p (2022: 11.2p as restated), an increase over the previous year of 2.7%. This represents the 19th year of dividend increases for the Company, which remains an AIC 'Next Generation Dividend Hero'.

8

Murray International Trust PLC

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Murray International Trust plc published this content on 15 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 March 2024 12:09:10 UTC.