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% |
- Alternative Performance Measure (see pages 110 to 112).
- For the year to 31 December.
- Reference Index is FTSE All World TR Index.
- As at 31 December.
- Dividends declared for the year to which they relate and assuming shareholder approval of final dividend.
- 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% |
- See definition on page 122.
- Capital values.
- Figures for 2022 have been restated to reflect the 5:1 sub-division as disclosed in note 14.
- Considered to be an Alternative Performance Measure as defined on pages 110 and 111.
- 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).
- 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.