Half Yearly Results Announcement

RNS Number : 7064O

Murray International Trust PLC

11 August 2014

 



MURRAY INTERNATIONAL TRUST PLC

HALF YEARLY REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2014

The Directors of Murray International Trust PLC report the unaudited results of the Company for the six months ended 30 June 2014.

INTERIM BOARD REPORT

Background

Widespread concerns over global growth prospectsand the corresponding outlook for corporate profitability were largely ignored by financial markets in the period under review.  Galvanised by persistent, positive rhetoric from Central Banks declaring the need for interest rates to remain low, investors continued to pay increasingly higher prices for equities.  Highlighting a widening disconnect between asset prices and the real world of negative income growth and subdued corporate profits, a mood of optimistic complacency prevailed.  As valuations expanded, some market indices in the United States and the UK breached historical highs.

Performance

The net asset value total return, with net income reinvested for the six months to 30 June 2014, was 5.4% compared with a total return of 2.8% on the Company's benchmark (40% the FTSE World UK and 60% FTSE World ex UK).  Over the six month period, the share price rose by 3.8% (total return), reflecting a small reduction in the premium to net asset value on which the shares traded.

Absolute and relative performance was attributed to a mix of asset allocation and individual stock contributions.  By far the largest contributing factors to relative benchmark outperformance on an asset allocation basis were underweight exposures to the UK and Japan.  Indeed, in Sterling terms, Japan proved to be the only negative performing market amongst the major benchmarks.  Overweight exposures to Asia, Europe and Latin America also added to positive relative performance. The significant underweight position in North America proved negative on an asset allocation basis, as this benchmark heavyweight recorded one of the strongest regional returns over the period.  Strong stock selection in Japan positively impacted performance on both an absolute and relative basis as did stock contributions from Asia and the UK. In Europe, where the portfolio has close to double benchmark exposure, strong performance from large holdings in Casino, Total, Atlas Copco and Nordea produced the largest relative positive impact from stock selection.  Weakness in emerging market bonds early in the year presented the opportunity to increase the portfolio's fixed income exposure. Consequently close to 4% of gross assets were moved from equities to bonds, thus reducing the overall level of equity gearing to 102% at the period end. Despite the relentless rise of Sterling throughout the period, the fixed income allocation returned over 7%, adding further relative positive performance to overall gross assets.

Issue of New Shares

During the period under review the Company issued 1,070,500 new Ordinary shares at a premium to the prevailing net asset value per Ordinary share at the time of each issue. Since the start of the issuance programme, over £346 million of new funds has been raised through the issue of new shares and, by issuing these shares at a premium, the Company is able to enhance slightly the net asset value per share whilst also improving the liquidity of its shares.  As previously stated, such issuance is also important for Share Plan Participants and other regular purchasers of the Company's shares because it ensures that the premium is managed. At the AGM of the Company held in April 2014, shareholders authorised the Company to issue new Ordinary shares for cash representing up to 10% of the issued share capital. The Board will continue to consider the merits of issuing new shares, at a premium, when there is unfulfilled demand in the market and it is in shareholders' interests to do so, subject to the overriding Listing Rule requirement not to issue more than 10% of the outstanding equity in any rolling 12 month period.

As I reported last year, in the short term such issuance can have a dilutive impact upon the Company's earnings.  In practice, this means that the dividend paid on newly issued shares may not have been earned in full. We mitigate the impact of this by paying quarterly dividends, investing the proceeds promptly and by not issuing shares during the period before a dividend is paid.  The objective is to ensure that the premium received on new shares more than covers the revenue accrued to those shares.

Alternative Investment Fund Managers Directive

The Alternative Investment Fund Managers Directive (the "Directive"), proposed by the EU to enhance shareholder protection, was fully implemented in the UK on 22 July 2014. This Directive required the Company to appoint an authorised Alternative Investment Fund Manager ("AIFM") and a depositary, the latter strengthening the current custody arrangements.

The Company has now appointed Aberdeen Fund Managers Limited ("AFML"), following its authorisation by the FCA, to act as the Company's AIFM, entering a new management agreement with AFML on 14 July 2014. Under this agreement the AFML delegates portfolio management services to Aberdeen Asset Managers Limited, which continues to act as the Company's Investment Manager. There is no change in the commercial arrangements from the previous investment management agreement.

In addition, the Company entered into a depositary agreement with AFML and BNY Mellon Trust & Depositary (UK) Limited on 14 July 2014 which replaces the previous custodial arrangements. The appointment of a depositary is a new requirement under the Directive which will result in an increase in administrative costs estimated to be of the order of £100,000 per annum.

Gearing

As reported in the Annual Report for the year ended 31 December 2013, during the period a new £15 million facility was agreed with RBS and drawn in full, fixed for just over two years. The new facility was used to repay a maturing Yen 2.3 billion loan with surplus funds invested in the portfolio. At the period end the Company had net gearing of 14.6%.

Outlook

Financial markets are likely to remain hostage to the perceived momentum of global economic recovery and the implications this has for future corporate profit and dividend growth.  Powerful economic forces of exceptionally low interest rates, a general lack of pricing power for corporates, and unsustainable debt levels cannot be ignored.  Add to this the failure of unorthodox monetary policies convincingly to stimulate economic activity plus on-going negative real-returns from savings, and it becomes crystal clear just how distorted the prevailing economic environment has become.  Those expecting economic normality are likely to be disappointed.  For corporate management, a relatively opaque economic outlook with fiercely competitive downward pressure on selling prices suggests the struggle to deliver top line growth will continue.  Protecting margins remains of prime importance but, with diminishing marginal benefits from cost cutting now apparent, companies need to explore new avenues for growth.  At some point the reluctance to invest capital to expand must succumb to the necessity for growth.  Unfashionable as it may be, we believe the best opportunities to satisfy the Company's investment objective are still to be found outwith developed markets. Therefore the portfolio continues its emphasis on emerging markets, Asia and broad global diversification.

Kevin Carter

Chairman

8 August 2014

Principal Risks and Uncertainties

The Board has adopted a matrix of the key risks that affect the business. The major financial risks associated with the Company are detailed in note 19 to the Annual Report and Financial Statements for the year ended 31 December 2013 and the other principal risks are summarised below.  Further detail on the Principal Risks and Uncertainties is provided in the Company's Prospectus dated 21 December 2010 which is available on the website at www.murray-intl.co.uk/doc.nsf/Lit/ProspectusUKClosedMINT.

Details of the management of the risks and the Company's internal controls are disclosed on pages 29 to 30 of the Annual Report for the year ended 31 December 2013.

The Shares

The market value of, and the income derived from, the shares can fluctuate and, notwithstanding the Board's discount and premium control policy, may not always reflect the Net Asset Value per share. There can be no guarantee that any appreciation in the value of the Company's investments will occur and investors may not get back the full value of their investment. No assurance can be given that any sale of the Company's investments would realise proceeds which would be sufficient to repay any borrowings or provide funds for any capital repayment to shareholders. Shareholders will bear the rewards and risks of the success or otherwise of the Company's investments.

The market value of the shares, as well as being affected by their Net Asset Value, also takes into account their dividend yield and prevailing interest rates, supply and demand for the shares, market conditions and general investor sentiment.

Borrowings

The Company uses borrowings for investment purposes. Whilst the use of borrowings should enhance the total return on the shares where the return on the Company's underlying assets is rising and exceeds the cost of borrowing, it will have the opposite effect where the underlying return is falling, further reducing the total return on the shares. As a result, the use of borrowings by the Company may increase the volatility of the Net Asset Value and market price per share.

There is no guarantee that any borrowings of the Company would be refinanced on their maturity either at all or on terms that are acceptable to the Company.

Foreign Currency Risks

The Company's investments are principally in overseas securities. The Company accounts for its activities and reports its results in sterling. The Company currently hedges most of the foreign currency exposure in respect of the liabilities attached to its borrowings. Where the Company does not hedge its currency exposure, which is currently the case with the investment portfolio, the movement of exchange rates may have a favourable or unfavourable effect on the gains and losses experienced on investments and the income derived from investments which are made or realised in currencies other than pounds sterling.

Discount and Premium Control Policy

The Company operates a discount and premium control policy. The operation of the discount control element of this policy could lead to a significant reduction in the size of the Company over time, which would increase the Company's total expense ratio and prejudice the ability of the Company to pay satisfactory levels of dividend to shareholders. While the Company intends to issue new shares and to resell shares held in treasury at a small premium to the Net Asset Value per share where demand exceeds supply, this will be dependent upon the Company being able to issue new shares and to resell shares held in treasury at a premium, on market conditions generally at the relevant time, upon shareholders in general meeting conferring appropriate authorities on the Board to issue further shares and, where required under the Prospectus Rules, upon a prospectus having been approved by the Financial Conduct Authority and published. The ability of the Company to operate the discount control policy will depend on the Company being able to purchase its own shares, which relies upon shareholders in general meeting (typically at the AGM) conferring authority on the Board to purchase its own shares. The Directors will seek renewal of this authority from shareholders annually and at other times should this prove necessary. However, there can be no guarantee that requisite shareholder approvals will be obtained.

In accordance with the Listing Rules, the extent of each buy-back authority which will be sought by the Company from shareholders in general meeting will be limited to 14.99% of the Company's issued share capital as at the date on which such authority is granted. In order to continue purchasing its own shares once any such authority has been exhausted, the Company would be required to seek a renewal of such authority from shareholders in general meeting.

The ability of the Company to purchase its own shares will be subject to the Companies Act 2006 and all other applicable legislation, rules and regulations of any government, regulatory body or market applicable to the Directors or the Company and, in particular, will be dependent on the availability of distributable reserves.

Regulatory Risks

Cessation of Investment Trust Status: The Company attempts to conduct its business so as to satisfy the conditions for approval as an investment trust under Part 24 Chapter 4 of the Corporation Tax Act 2010. In respect of each accounting period for which approval is granted, the Company will be exempt from United Kingdom taxation on its capital gains. Any breach of the tests that a company must meet to obtain approval as an investment trust company could lead to the Company being subject to tax on capital gains.

Tax and Accounting: Any change in the Company's tax status or in taxation legislation or accounting practice could affect the value of the investments held by the Company, affect the Company's ability to provide returns to shareholders or alter the post-tax returns to shareholders. Representations in this document concerning the taxation of investors are based upon current tax law and practice which are subject to change. Any change in accounting standards may adversely affect the value of the Company's assets in its books of account or restrict the ability of the Company to pay dividends.

Referendum on Scottish Independence

The Company is registered in Scotland and the Board is mindful that there is uncertainty arising in relation to the referendum on Scottish independence due on 18 September 2014. The Board considers that a 'Yes' vote, in favour of independence, may prolong this uncertainty until implications for the Company, positive or negative, of an independent Scotland are understood and quantified in relation to the legislative and regulatory environment in which the Company operates.

Other Risks

Other risks, in addition to the principal ones outlined above, include those associated with:

-     Dividend Payments by the Company;

-     Investment Objective and Strategy;

-     Debt Instruments;

-     Market Price Risk;

-     Charges to Capital;

-     Reliance upon the Manager and Other Third Party Service Providers;

-     Fluctuations in Operating Results.

Related Party Transactions

Aberdeen Fund Managers Limited acts as Alternative Investment Fund Manager, Aberdeen Asset Managers Limited acts as Investment Manager and Aberdeen Asset Management PLC acts as Company Secretary to the Company; details of the service and fee arrangements can be found in the Annual Report for 2013, a copy of which is available on the Company's website.

Going Concern

The Company's assets consist of a diverse portfolio of listed equities and bonds which in most circumstances are realisable within a very short timescale. The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Directors' Responsibility Statement

The Directors are responsible for preparing this Half-Yearly Financial Report in accordance with applicable law and regulations. The Directors confirm that to the best of their knowledge:

-      the condensed set of financial statements contained within the Half-Yearly Financial Report has been prepared in accordance with the Accounting Standards Board's Statement "Half-Yearly Financial Reports"; and

-      the Interim Board Report (constituting the interim management report) includes a fair review of the information required by rule 4.2.7R of the UK Listing Authority Disclosure and Transparency Rules (being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements and a description of the principal risks and uncertainties for the remaining six months of the financial year) and 4.2.8R (being related party transactions that have taken place during the first six months of the financial year and that have materially affected the financial position of the Company during that period; and any changes in the related party transactions described in the last Annual Report that could so do).

The Half-Yearly Report for the six months to 30 June 2014 comprises the Interim Board Report and a condensed set of financial statements, and has not been audited or reviewed by the auditors pursuant to the Auditing Practices Board guidance on Review of Interim Financial Information.

For and on behalf of the Board of Murray International Trust PLC

Kevin Carter

Chairman

8 August 2014

HIGHLIGHTS

Financial Highlights	30 June 2014	31 December 2013	% change
Total assets{A} (£'000)	1,475,766	1,427,525	+3.4
Equity shareholders' funds (£'000)	1,282,885	1,236,718	+3.7
Share price - Ordinary share	1067.0p	1052.0p	+1.4
Share price - B Ordinary share	1542.5p	1305.0p	+18.2
Net asset value per Ordinary and B Ordinary share	1008.9p	981.0p	+2.8
Premium to net asset value per Ordinary share	5.8%	7.2%
{A} Represents total assets less current liabilities (before deducting prior charges).

Performance (total return)	Six months ended 30 June 2014	Year ended 31 December 2013
Net asset value total return per Ordinary and B Ordinary share with net income reinvested	+5.4%	+4.6%
Share price	+3.8%	+4.1%
Benchmark	+2.8%	+21.2%
Source: Aberdeen Asset Management, Morningstar & Russell Mellon

INCOME STATEMENT

		Six months ended
		30 June 2014
		(unaudited)
		Revenue	Capital		Total
	Note	£'000	£'000		£'000
Gains on investments		-	38,670		38,670
Income	3	35,740	-		35,740
Investment management fees		(1,084)	(2,528)		(3,612)
Performance fees		-	-		-
Other expenses		(1,039)	-		(1,039)
Currency losses		-	(195)		(195)
		________	________		________
Net return before finance costs and taxation		33,617	35,947		69,564
Finance costs		(751)	(1,752)		(2,503)
		________	________		________
Return on ordinary activities before tax		32,866	34,195		67,061
Tax on ordinary activities		(2,635)	407		(2,228)
		________	________		________
Return attributable to equity shareholders		30,231	34,602		64,833
		________	________		________
Return per Ordinary share assuming full conversion of the B Ordinary shares (pence)	5	23.9	27.4		51.3
		________	________		________
The total column of the Income Statement is the profit and loss account of the Company.
A Statement of Total Recognised Gains and Losses has not been prepared as all gains or losses are recognised in the Income Statement.
All revenue and capital items in the above statement derive from continuing operations.
Ordinary dividends on equity shares (£'000)	4	29,985	-	29,985
		________	________	________
The above dividend information does not form part of the Income Statement.

INCOME STATEMENT (Cont'd)

		Six months ended
		30 June 2013
		(unaudited)
		Revenue	Capital		Total
	Note	£'000	£'000		£'000
Gains on investments		-	76,487		76,487
Income	3	34,893	-		34,893
Investment management fees		(990)	(2,310)		(3,300)
Performance fees		-	3,899		3,899
Other expenses		(1,061)	-		(1,061)
Currency losses		-	(248)		(248)
		________	________		________
Net return before finance costs and taxation		32,842	77,828		110,670
Finance costs		(605)	(1,412)		(2,017)
		________	________		________
Return on ordinary activities before tax		32,237	76,416		108,653
Tax on ordinary activities		(1,484)	222		(1,262)
		________	________		________
Return attributable to equity shareholders		30,753	76,638		107,391
		________	________		________
Return per Ordinary share assuming full conversion of the B Ordinary shares (pence)	5	24.7	61.6		86.3
		________	________		________
The total column of the Income Statement is the profit and loss account of the Company.
A Statement of Total Recognised Gains and Losses has not been prepared as all gains or losses are recognised in the Income Statement.
All revenue and capital items in the above statement derive from continuing operations.
Ordinary dividends on equity shares (£'000)	4	27,558	-	27,558
		________	________	________
The above dividend information does not form part of the Income Statement.

INCOME STATEMENT (Cont'd)

		Year ended
		31 December 2013
		(audited)
		Revenue	Capital	Total
	Note	£'000	£'000	£'000
Gains on investments		-	150	150
Income	3	63,717	-	63,717
Investment management fees		(2,038)	(4,756)	(6,794)
Performance fees		-	5,336	5,336
Other expenses		(1,964)	-	(1,964)
Currency losses		-	(411)	(411)
		________	________	________
Net return before finance costs and taxation		59,715	319	60,034
Finance costs		(1,384)	(3,229)	(4,613)
		________	________	________
Return on ordinary activities before tax		58,331	(2,910)	55,421
Tax on ordinary activities		(3,514)	310	(3,204)
		________	________	________
Return attributable to equity shareholders		54,817	(2,600)	52,217
		________	________	________
Return per Ordinary share assuming full conversion of the B Ordinary shares (pence)	5	43.8	(2.1)	41.7
		________	________	________
The total column of the Income Statement is the profit and loss account of the Company.
A Statement of Total Recognised Gains and Losses has not been prepared as all gains or losses are recognised in the Income Statement.
All revenue and capital items in the above statement derive from continuing operations.
Ordinary dividends on equity shares (£'000)	4	51,328	-	51,328
		________	________	________
The above dividend information does not form part of the Income Statement.

BALANCE SHEET

		As at	As at	As at
		30 June 2014	30 June 2013	31 December 2013
		(unaudited)	(unaudited)	(audited)
	Notes	£'000	£'000	£'000
Non-current assets
Investments at fair value through profit or loss		1,469,226	1,478,227	1,421,277
		________	________	________
Current assets
Debtors		9,027	8,435	6,827
Cash and short-term deposits		4,987	41,075	4,535
		________	________	________
		14,014	49,510	11,362
		________	________	________
Creditors: amounts falling due within one year
Bank loans		(48,494)	(15,266)	(13,212)
Other creditors		(7,474)	(9,132)	(5,114)
		________	________	________
		(55,968)	(24,398)	(18,326)
		________	________	________
Net current (liabilities)/assets		(41,954)	25,112	(6,964)
		________	________	________
Total assets less current liabilities		1,427,272	1,503,339	1,414,313
Creditors: amounts falling due after more than one year
Bank loans and Debentures		(144,387)	(186,524)	(177,595)
Other creditors		-	(1,437)	-
		________	________	________
		(144,387)	(187,961)	(177,595)
		________	________	________
Net assets		1,282,885	1,315,378	1,236,718
		________	________	________
Capital and reserves
Called-up share capital		31,789	31,505	31,516
Share premium account		335,918	324,588	324,866
Capital redemption reserve		8,230	8,230	8,230
Capital reserve	6	838,582	883,229	803,986
Revenue reserve		68,366	67,826	68,120
		________	________	________
Equity shareholders' funds		1,282,885	1,315,378	1,236,718
		________	________	________
Net asset value per Ordinary and B Ordinary share (pence)	7	1008.9	1043.8	981.0
		________	________	________

RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

Six months ended 30 June 2014 (unaudited)
		Share	Capital
	Share	premium	redemption	Capital	Revenue
	capital	account	reserve	reserve	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 December 2013	31,516	324,866	8,230	803,986	68,120	1,236,718
Return on ordinary activities after taxation	-	-	-	34,602	30,231	64,833
Dividends paid (see note 4)	-	-	-	-	(29,985)	(29,985)
Issue of new shares	273	11,052	-	(6)	-	11,319
	______	______	______	______	______	______
Balance at 30 June 2014	31,789	335,918	8,230	838,582	68,366	1,282,885
	______	______	______	______	______	______
Six months ended 30 June 2013 (unaudited)
		Share	Capital
	Share	premium	redemption	Capital	Revenue
	capital	account	reserve	reserve	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 December 2012	30,546	282,240	8,230	806,596	64,631	1,192,243
Return on ordinary activities after taxation	-	-	-	76,638	30,753	107,391
Dividends paid (see note 4)	-	-	-	-	(27,558)	(27,558)
Issue of new shares	959	42,348	-	(5)	-	43,302
	______	______	______	______	______	______
Balance at 30 June 2013	31,505	324,588	8,230	883,229	67,826	1,315,378
	______	______	______	______	______	______
Year ended 31 December 2013 (audited)
		Share	Capital
	Share	premium	redemption	Capital	Revenue
	capital	account	reserve	reserve	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 December 2012	30,546	282,240	8,230	806,596	64,631	1,192,243
Return on ordinary activities after taxation	-	-	-	(2,600)	54,817	52,217
Dividends paid (see note 4)	-	-	-	-	(51,328)	(51,328)
Issue of new shares	970	42,626	-	(10)	-	43,586
	______	______	______	______	______	______
Balance at 31 December 2013	31,516	324,866	8,230	803,986	68,120	1,236,718
	______	______	______	______	______	______

CASH FLOW STATEMENT

	Six months ended	Six months ended	Year ended
	30 June 2014	30 June 2013	31 December 2013
	(unaudited)	(unaudited)	(audited)
	£'000	£'000	£'000
Net return before finance costs and taxation	69,564	110,670	60,034
Adjustments for:
Gains on investments	(38,670)	(76,487)	(150)
Effect of foreign exchange losses	195	248	411
Amortisation of fixed income book cost	3,075	(635)	(951)
Increase in accrued income	(1,847)	(1,495)	(1,452)
Decrease/(increase) in other debtors	1	(24)	(1)
Increase/(decrease) in accruals	113	(7,138)	(8,566)
Tax on unfranked income - overseas	(2,580)	(2,196)	(3,409)
	________	________	________
Net cash inflow from operating activities	29,851	22,943	45,916
Returns on investment and servicing of finance
Interest paid	(2,575)	(1,817)	(4,435)
	________	________	________
Net cash outflow from servicing of finance	(2,575)	(1,817)	(4,435)
Financial investment
Purchases of investments	(100,473)	(161,073)	(224,593)
Sales of investments	91,806	93,919	131,949
	________	________	________
Net cash outflow from financial investment	(8,667)	(67,154)	(92,644)
Equity dividends paid	(29,985)	(27,558)	(51,328)
	________	________	________
Net cash outflow before financing	(11,376)	(73,586)	(102,491)
Financing
Share issue	11,319	43,302	43,586
Loan repayment	(11,545)	(59,275)	-
Loan drawdown	15,000	120,000	53,924
	________	________	________
Net cash inflow from financing	14,774	104,027	97,510
	________	________	________
Increase/(decrease) in cash	3,398	30,441	(4,981)
	________	________	________
Analysis of changes in cash during the period
Opening balance	4,535	25,940	25,940
Increase/(decrease) in cash as above	3,398	30,441	(4,981)
Currency differences	(2,946)	(15,306)	(16,424)
	________	________	________
Closing balances	4,987	41,075	4,535
	________	________	________

NOTES TO THE ACCOUNTS

1.	Accounting policies
	(a)	Basis of accounting
		The financial statements have been prepared in accordance with applicable UK Accounting Standards, with pronouncements on Half-Yearly Reporting issued by the Accounting Standards Board and with the Statement of Recommended Practice for 'Financial Statements of Investment Trust Companies and Venture Capital Trusts'. They have also been prepared on a going concern basis and on the assumption that approval as an investment trust will continue to be granted.
		The financial statements and the net asset value per share figures have been prepared in accordance with UK Generally Accepted Accounting Practice (UK GAAP).
		The interim accounts have been prepared using the same accounting policies as the preceding annual accounts.
	(b)	Dividends payable
		Dividends are recognised in the period in which they are paid.

2.	Taxation
	The taxation expense reflected in the Income Statement is based on the estimated annual tax rate expected for the full financial year. The estimated annual corporation tax rate used for the year to 31 December 2014 is an effective rate of 21.5%. This is above the current corporation tax rate of 21% because prior to 1 April 2014 the prevailing corporation tax rate was 23%.

		Six months ended	Six months ended	Year ended
		30 June 2014	30 June 2013	31 December 2013
3.	Income	£'000	£'000	£'000
	Income from investments
	UK dividends	4,243	5,274	8,864
	UK unfranked investment income	74	345	703
	Overseas dividends	26,463	26,401	48,389
	Overseas interest	4,134	2,872	5,756
	Stock dividends	826	-	-
		________	________	________
		35,740	34,892	63,712
		________	________	________
	Interest
	Deposit interest	-	1	5
		________	________	________
	Total income	35,740	34,893	63,717
		________	________	________

		Six months ended	Six months ended	Year ended
		30 June 2014	30 June 2013	31 December 2013
4.	Ordinary dividends on equity shares	£'000	£'000	£'000
	Third interim dividend 2013 of 9.50p (2012 - 9.00p)	11,887	10,915	10,915
	Final dividend 2013 of 14.50p (2012 - 13.50p)	18,163	16,643	16,643
	First interim dividend 2013 of 9.50p	-	-	11,885
	Second interim dividend 2013 of 9.50p	-	-	11,885
	Refund of unclaimed dividends	(65)	-	-
		________	________	________
		29,985	27,558	51,328
		________	________	________
	A first interim dividend for 2014 of 10.00p (2013 - 9.50p) will be paid on 15 August 2014 to shareholders on the register on 11 July 2014. The ex-dividend date was 9 July 2014.
	A second interim dividend for 2014 of 10.00p (2013 - 9.50p) will be paid on 17 November 2014 to shareholders on the register on 10 October 2014. The ex-dividend date is 9 October 2014.
	In accordance with the terms of the Articles of Association of the Company the Directors will resolve to make bonus issues of B Ordinary shares to B Ordinary shareholders which correspond to the first and second interim dividends.

		Six months ended	Six months ended	Year ended
		30 June 2014	30 June 2013	31 December 2013
5.	Returns per share	£'000	£'000	£'000
	Based on the following figures:
	Revenue return	30,231	30,753	54,817
	Capital return	34,602	76,638	(2,600)
		________	________	________
	Total return	64,833	107,391	52,217
		________	________	________
	Weighted average number of Ordinary shares	125,444,909	123,506,933	124,315,341
	Weighted average number of B Ordinary shares	945,653	909,544	918,448
		________	________	________
	Weighted average number of Ordinary shares assuming conversion of B Ordinary shares	126,390,562	124,416,477	125,233,789
		________	________	________

6.	Capital reserves
	The capital reserve reflected in the Balance Sheet at 30 June 2014 includes gains of £395,760,000 (30 June 2013 - gains of £445,721,000; 31 December 2013 - gains of £368,310,000) which relate to the revaluation of investments held at the reporting date.

7.	Diluted net asset value
	The diluted net asset value per share and the net asset value attributable to the Ordinary shares (including conversion of the B Ordinary shares) at the period end calculated in accordance with the Articles of Association were as follows:
		As at	As at	As at
		30 June 2014	30 June 2013	31 December 2013
	Attributable net assets (£'000)	1,282,885	1,315,378	1,236,718
		________	________	________
	Number of shares in issue:
	Ordinary shares	126,196,707	125,098,742	125,126,207
	B Ordinary shares	958,813	921,545	935,633
		________	________	________
		127,155,520	126,020,287	126,061,840
		________	________	________

8.	Transaction costs
	During the period expenses were incurred in acquiring or disposing of investments classified as fair value through profit or loss. These have been expensed through capital and are included within gains on investments in the Income Statement. The total costs were as follows:
		Six months ended	Six months ended	Year ended
		30 June 2014	30 June 2013	31 December 2013
		£'000	£'000	£'000
	Purchases	38	424	485
	Sales	54	174	208
		________	________	________
		92	598	693
		________	________	________

9.	The financial information in this Half-Yearly Financial Report comprises non-statutory accounts as defined in Sections 434-436 of the Companies Act 2006. The financial information for the six months ended 30 June 2014 and 30 June 2013 has not been audited.
	The financial information for the year ended 31 December 2013 has been extracted from published accounts that have been delivered to the Registrar of Companies and on which the report of the auditors was unqualified under Section 498 (2), (3) and (4) of the Companies Act 2006.

10.	This Half-Yearly Financial Report was approved by the Board on 8 August 2014.

The Half Yearly Report will be printed and issued to shareholders and further copies will be available to the public at the registered office of the Company, 40 Princes Street, Edinburgh EH2 2BY and on the Company's web site www.murray-intl.co.uk*.

* Neither the Company's website nor the content of any website accessible from hyperlinks on it (or any other website) is (or is deemed to be) incorporated into, or forms (or is deemed to form) part of this announcement.

By order of the Board

ABERDEEN ASSET MANAGEMENT PLC, SECRETARY

8 August 2014

SUMMARY OF INVESTMENT CHANGES

	Valuation		Appreciation/		Valuation
	30 June 2014		(depreciation)	Transactions	31 December 2013
	£'000	%	£'000	£'000	£'000	%
Equities
United Kingdom	193,011	13.1	1,054	(12,495)	204,452	14.3
North America	205,536	13.9	4,632	263	200,641	14.1
Europe ex UK	281,611	19.1	18,254	4,170	259,187	18.2
Japan	29,210	2.0	4,922	(14,336)	38,624	2.7
Asia Pacific ex Japan	299,894	20.3	10,063	(21,286)	311,117	21.8
Latin America	288,973	19.6	(2,526)	14,184	277,315	19.4
Africa	27,055	1.8	(468)	-	27,523	1.9
	________	_______	_______	_______	________	_______
	1,325,290	89.8	35,931	(29,500)	1,318,859	92.4
	________	_______	_______	_______	________	_______
Fixed income
United Kingdom	6,659	0.5	868	(10,859)	16,650	1.2
Europe ex UK	-	-	398	(14,762)	14,364	1.0
Asia Pacific ex Japan	41,398	2.8	(1,409)	34,729	8,078	0.6
Latin America	95,879	6.5	3,444	29,109	63,326	4.4
	________	_______	_______	_______	________	_______
	143,936	9.8	3,301	38,217	102,418	7.2
	________	_______	_______	_______	________	_______
Other net assets	6,540	0.4	292	-	6,248	0.4
	________	_______	_______	_______	________	_______
Total assets{A}	1,475,766	100.0	39,524	8,717	1,427,525	100.0
	________	_______	_______	_______	________	_______
{A} Figure for 30 June 2014 excludes bank loan of £48,494,000 (31 December 2013 - £13,212,000) which is shown as a current liability in the Balance Sheet.

SUMMARY OF NET ASSETS

	Valuation		Valuation
	30 June 2014		30 June 2013
	£'000	%	£'000	%
Equities	1,325,290	103.3	1,382,319	105.1
Fixed income	143,936	11.2	95,908	7.3
Other net assets{A}	6,540	0.5	40,378	3.0
Bank loans and Debentures	(192,881)	(15.0)	(201,790)	(15.3)
Other long term liabilities	-	-	(1,437)	(0.1)
	________	_______	_______	_______
	1,282,885	100.0	1,315,378	100.0
	________	_______	_______	_______
{A} Excluding short-term bank loans.

INVESTMENT PORTFOLIO

AS AT 30 JUNE 2014

		Valuation	Total assets
Security	Country	£'000	%
British American Tobacco{A}	UK & Malaysia	60,939	4.1
Aeroportuario del Sureste ADS	Mexico	55,680	3.8
Casino	France	43,803	3.0
Taiwan Semiconductor Manufacturing	Taiwan	43,116	2.9
Unilever Indonesia	Indonesia	40,439	2.7
Philip Morris International	USA	38,447	2.6
Roche Holdings	Switzerland	38,376	2.6
Taiwan Mobile	Taiwan	37,967	2.6
Total	France	36,734	2.5
Nordea	Sweden	36,298	2.5
Top ten investments		431,799	29.3
Telus	Canada	34,939	2.4
Royal Dutch Shell	UK	34,578	2.3
Vale do Rio Doce{B}	Brazil	34,046	2.3
Souza Cruz	Brazil	33,820	2.3
Zurich Financial Services	Switzerland	31,707	2.1
Fomento Economico Mexicano	Mexico	31,219	2.1
Tenaris ADR	Mexico	30,340	2.1
Singapore Telecommunications	Singapore	30,265	2.1
Verizon Communications	USA	30,261	2.0
BHP Billiton	Australia	30,232	2.0
Top twenty investments		753,206	51.0
ENI	Italy	29,903	2.0
Standard Chartered	UK	29,483	2.0
Daito Trust Construction	Japan	29,210	2.0
PetroChina	China	28,044	1.9
Kimberly Clark de Mexico	Mexico	27,897	1.9
Telefonica Brasil	Brazil	27,216	1.9
MTN	South Africa	27,054	1.8
Pepsico	USA	26,119	1.8
Public Bank	Malaysia	25,636	1.8
Banco Bradesco{C}	Brazil	25,612	1.7
Top thirty investments		1,029,380	69.8
Potash Corporation of Saskatchewan	Canada	25,338	1.7
Johnson & Johnson	USA	24,465	1.7
HSBC	UK	23,123	1.6
Petrobras ADR	Brazil	22,853	1.5
Baxter International	USA	22,827	1.5
Wing Hang Bank	Hong Kong	21,660	1.5
Weir Group	UK	20,952	1.4
GDF Suez	France	20,285	1.4
Petroleos Mexicanos 5.5% 27/06/44	Mexico	18,265	1.2
Novartis	Switzerland	16,936	1.1
Top forty investments		1,246,084	84.4
Republic of Venezuela 8.5% 08/10/14	Venezuela	16,624	1.1
Nestlé	Switzerland	15,858	1.1
Republic of Brazil 10% 01/01/17	Brazil	15,361	1.0
Coca-Cola Amatil	Australia	14,763	1.0
Wilson & Sons	Brazil	13,931	1.0
PTT Exploration and Production	Thailand	12,074	0.8
Swire Pacific B	Hong Kong	12,062	0.8
Atlas Copco	Sweden	11,712	0.8
Oversea-Chinese Bank	Singapore	11,189	0.8
Bharti Airtel International 5.125% 11/03/23	India	10,185	0.7
Top fifty investments		1,379,843	93.5
Other investments		89,383	6.1
Total investments		1,469,226	99.6
Net current assets excluding bank loans		6,540	0.4
Total assets		1,475,766	100.0
{A} Holding comprises equity holdings in both UK and Malaysia, split £38,258,000 and £22,681,000 respectively.
{B} Holding comprises equity and fixed income securities, split £19,802,000 and £14,244,000 respectively.
{C} Holding comprises equity and fixed income securities, split £16,984,000 and £8,628,000 respectively.

 

END

 

 

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