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Murray Intnl Trust (MYI)

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Friday 08 August, 2008

Murray Intnl Trust

Interim Results

RNS Number : 9194A
Murray International Trust PLC
08 August 2008
 



MURRAY INTERNATIONAL TRUST PLC


HALF YEARLY RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2008



The Directors of Murray International Trust PLC report the unaudited results of the Company for the six months ended 30 June 2008.


Background

Global equity markets were generally weak over the past six months, dragged down by investors' concerns over economic growth and inflation. Banks were forced to disclose the full extent of potential bad debts on their balance sheets as global credit conditions continued to deteriorate. Declining house prices and rising unemployment added further to the mood of uncertainty. Respite, in the form of lower bond yields, was not forthcoming as policy options became constrained by rising inflation due mainly to sharply higher commodity prices. Over the period, in sterling terms, most global equity markets declined, with the only positive notable return coming from a 12.4% rise in Brazil. Within a global context, the UK market return of -11.1% was poor.


Performance

The Net Asset Value total return, with net income reinvested, for the six months to 30 June 2008 was -3.4% compared with a return of -10.5% on the Trust's benchmark (40% the FTSE World UK and 60% the FTSE World ex UK). Over the six months the share price of our Ordinary shares rose by 3.5%, reflecting an improvement in the discount to net asset value on which the shares trade. The Board is pleased with this performance bearing in mind the poor markets that existed during the period.


Absolute and relative performance were enhanced by maintaining low levels of investment in the USA and UK, combined with significant positive contributions from stock selection in Europe, Asia and Latin America. The widespread global diversification of the total portfolio coupled with healthy positions in cash and fixed income added value during a difficult period for world equity markets.


Issue of New Shares

At the Annual General Meeting of the Company held on 22 April 2008 ('AGM'), shareholders authorised the Company to issue new Ordinary shares for cash representing up to 5 per cent. of the issued share capital. During the period from the AGM to 30 June 2008 the Company successfully issued 310,500 new Ordinary shares at a premium to the prevailing net asset value per Ordinary share at the time of each issue. Subsequent to the period end a further 545,000 new Ordinary shares have been issued. By issuing shares at a premium, the Company is able to improve the liquidity of its shares and enhance very slightly the net asset value per share. 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 and does not become too large. Accordingly, the Board will continue to authorise the issue of new shares, at a premium, as and when there is unfulfilled demand in the market.


Outlook

As the first phase of the current credit crunch slowly runs its course, the total worldwide corporate write downs and credit losses have surpassed the $400bn mark. Although it is still impossible to predict the full magnitude and duration of this financial crisis, the process of unwinding the debt excesses of previous years is clearly gaining momentum. As always equity markets cling to the hope that the down cycle will be short, but this looks increasingly unlikely. The sheer scale of financial leverage and indebtedness in the UK and the United States means that it will take time to unwind. Thankfully such negative economic fundamentals do not prevail throughout the world. Regions such as Asia, Latin America and the emerging world may not experience growth rates as high as those of previous years, but they will continue to provide numerous investment opportunities for international investors seeking positive longer term returns.




J F H Trott

Chairman

7 August 2008


Principal Risks and Uncertainties

The Listing Rules require the Company to remind its shareholders of the principal risks arising from the Company's shares. Many of the stocks in which the Company invests are exposed to the risk of political change, exchange controls, tax or other regulations which may affect their value and marketability. Currency fluctuations may also affect the value of the Company's investments and the income derived therefrom. Companies in emerging markets are not always subject to the equivalent accounting, auditing and financial standards of those in the United Kingdom. There may therefore be less supervision and regulation in this respect.


Currently 70% of the investment management fee and finance costs and 100% of the performance fee are taken out of capital. This increases distributable income at the expense of capital growth, which will either be eroded or constrained. Maintaining a high level of dividend may also diminish capital value. In common with most investment trusts, Murray International Trust is able to borrow for investment purposes. The use of gearing is likely to lead to volatility in the Net Asset Value (NAV), meaning that a relatively small movement either down or up in value of the Company's total assets will result in a magnified movement in the same direction of that NAV. There is no guarantee that the market price of shares in investment trusts will fully reflect their underlying NAV.


The market prices of fixed interest stocks and, to a lesser extent, convertibles may be affected by changes in interest rates.


Information on each of these areas is given in the Annual Report and Accounts for the year ended 31 December 2007.


Directors' Responsibility Statement

The Directors are responsible for preparing this half-yearly report in accordance with applicable law and regulations. The Directors confirm that to the best of their knowledge:


  • the condensed set of interim financial statements contained within the half yearly financial report have been prepared in accordance with the Accounting Standards Board's statement 'Half-Yearly Financial Reports'; and,
  • the Interim Board Report includes a fair review of the information required by 4.2.7R and 4.2.8R of the Financial Services Authority's Disclosure and Transparency Rules.


The half yearly report includes a fair review of the information required on material transactions with related

parties and changes since the Annual Report.




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



J F H Trott

Chairman

7 August 2008


  Income Statement


 

Six months ended

 

30 June 2008

 

(unaudited)

 

Revenue

Capital

Total

 

£'000

£'000

£'000

Losses on investments

-

(29,551)

(29,551)

 




Income 

17,728

-

17,728 

Investment management fees

(506)

(1,181)

(1,687)

Performance fees

-

(2,284)

(2,284)

Other expenses

(646)

-

(646)

Currency losses

-

(1,537)

(1,537)


________

________

________

Net return before finance costs and taxation

16,576

(34,553)

(17,977)

 




Finance costs of borrowing

(355)

(829)

(1,184)


________

________

________

Return on ordinary activities before tax

16,221

(35,382)

(19,161)

 




Tax on ordinary activities

(4,008)

1,224

(2,784)


________

________

________

Return attributable to equity Shareholders

12,213

(34,158)

(21,945)

 

________

________

________

 




Return per Ordinary share (pence)

14.1

(39.4)

(25.3)


________

________

________

Return per Ordinary share assuming full conversion of the B Ordinary shares (pence)

13.9

(38.9)

(25.0)

 

________

________

________






The total column of the statement represents the profit and loss account of the Company. 

The Company has no other gains or losses other than those recognised in the Income Statement above. 

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


Ordinary dividends on equity shares (£'000)

10,740

-

10,740


________

________

________


The above dividend information does not form part of the Income Statement.     


  Income Statement


 

Six months ended

 

30 June 2007

 

(unaudited)

 

Revenue

Capital

Total

 

£'000

£'000

£'000

Gains on investments

-

25,796

25,796

 




Income 

14,530

-

14,530

Investment management fees

(483)

(1,127)

(1,610)

Performance fees

-

314

314

Other expenses

(606)

-

(606)

Currency losses

-

(2,091)

(2,091)


________

________

________

Net return before finance costs and taxation

13,441

22,892

36,333

 




Finance costs of borrowing

(298)

(696)

(994)


________

________

________

Return on ordinary activities before tax

13,143

22,196

35,339

 




Tax on ordinary activities

(2,788)

1,965

(823)


________

________

________

Return attributable to equity Shareholders

10,355

24,161

34,516

 

________

________

________

 




Return per Ordinary share (pence)

12.0

27.9

39.9


________

________

________

Return per Ordinary share assuming full conversion of the B Ordinary shares (pence)

11.8

27.6

39.4

 

________

________

________






The total column of the statement represents the profit and loss account of the Company. 

The Company has no other gains or losses other than those recognised in the Income Statement above. 

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


Ordinary dividends on equity shares (£'000)

6,580

-

6,580


________

________

________






The above dividend information does not form part of the Income Statement.


  Income Statement


 

Year ended 

 

31 December 2007

 

(audited)

 

Revenue

Capital

Total

 

£'000

£'000

£'000

Gains on investments

-

68,348

68,348

 



 

Income 

26,776

-

26,776

Investment management fees

(966)

(2,253)

(3,219)

Performance fees

-

(2,151)

(2,151)

Other expenses

(1,251)

-

(1,251)

Currency losses

-

(3,550)

(3,550)


________

________

________

Net return before finance costs and taxation

24,559

60,394

84,953

 



 

Finance costs of borrowing

(609)

(1,422)

(2,031)


________

________

________

Return on ordinary activities before tax

23,950

58,972

82,922

 



 

Tax on ordinary activities

(5,550)

3,625

(1,925)


________

________

________

Return attributable to equity Shareholders

18,400

62,597

80,997 

 

________

________

________

 



 

Return per Ordinary share (pence)

21.2

72.3

93.5


________

________

________

Return per Ordinary share assuming full conversion of the B Ordinary shares (pence)

21.0

71.4

92.4

 

________

________

________






The total column of the statement represents the profit and loss account of the Company. 

The Company has no other gains or losses other than those recognised in the Income Statement above.

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


Ordinary dividends on equity shares (£'000)

14,028

-

14,028


________

________

________






The above dividend information does not form part of the Income Statement.



  Balance Sheet


 

As at

As at

As at

 

30 June 
2008

30 June 
2007

31 December 2007

 

(unaudited)

(unaudited)

(audited)

 

£'000

£'000

£'000

Non-current assets



 

Investments at fair value through profit or loss

647,196

673,859

679,577

 



 

Current assets



 

Debtors

4,698

5,855

4,376

Cash and short-term deposits

75,208

1,569

44,687


________

________

________

 

79,906

7,424

49,063

 

________

________

________

Creditors: amounts falling due within one year



 

Bank loans

-

(16,749)

(18,662)

Other creditors

(8,817)

(4,149)

(3,213)


________

________

________

 

(8,817)

(20,898)

(21,875)


________

________

________

Net current assets/(liabilities)

71,089

(13,474)

27,188


________

________

________

Total assets less current liabilities

718,285

660,385

706,765

 



 

Creditors: amounts falling due after more than one year



 

Bank loans and debentures

(98,913)

(51,262)

(56,931)

Other creditors

(3,560)

(1,919)

(3,597)


________

________

________

 

(102,473)

(53,181)

(60,528)


________

________

________

Net assets

615,812

607,204

646,237

 

________

________

________

 



 

Capital and reserves



 

Called-up share capital

22,008

21,922

21,926

Share premium account

2,204

22

22

Capital redemption reserve

8,230

8,230

8,230

Capital reserve - realised

543,873

539,603

578,035

Revenue reserve

39,497

37,427

38,024


________

________

________

Equity Shareholders' funds

615,812

607,204

646,237

 

________

________

________

 



 

Net Asset Value per Ordinary and B Ordinary share (pence)

699.5

692.4

736.8


________

________

________


  


Reconciliation of Movements in Shareholders' Funds



Six months ended 30 June 2008 (unaudited)

 

 

 

 

 

 

 

 


Share

Capital

Capital

Capital


 

 

Share

premium

redemption

reserve -

reserve -

Revenue

 

 

capital

account

reserve

realised

unrealised

reserve

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Balance at 31 December 2007

21,926

22

8,230

366,239

211,796

38,024

646,237

Return on ordinary activities after taxation

-

-

-

26,945

(61,103)

12,213

(21,945)

Dividends paid (see note 3)

-

-

-

-

-

(10,740)

(10,740)

Issue of new shares

82

2,182

-

(4)

-

-

2,260


_____

_______

_________

_______

_________

_______

 _______

Balance at 30 June 2008

22,008

2,204

8,230

393,180

150,693

39,497

615,812

 

_____

_______

_________

_______

_________

_______

 _______

 







 

Six months ended 30 June 2007 (unaudited)







 

 


Share

Capital

Capital

Capital


 

 

Share

premium

redemption

reserve -

reserve -

Revenue

 

 

capital

account

reserve

realised

unrealised

reserve

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Balance at 31 December 2006

21,919

22

8,230

298,874

216,571

33,652

579,268

Return on ordinary activities after taxation

-

-

-

14,040

10,121

10,355

34,516

Dividends paid (see note 3)

-

-

-

-

-

(6,580)

(6,580)

Issue of new shares

3

-

-

(3)

-

-

-


_____

_______

_________

_______

_________

_______

 _______

Balance at 30 June 2007

21,922

22

8,230

312,911

226,692

37,427

607,204

 

_____

_______

_________

_______

_________

_______

 _______

 







 

Year ended 31 December 2007 (audited)







 

 


Share

Capital

Capital

Capital


 

 

Share

premium

redemption

reserve -

reserve -

Revenue

 

 

capital

account

reserve

realised

unrealised

reserve

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Balance at 31 December 2006

21,919

22

8,230

298,874

216,571

33,652

579,268

Return on ordinary activities after taxation

-

-

-

67,372

(4,775)

18,400

80,997

Dividends paid (see note 3)

-

-

-

-

-

(14,028)

(14,028)

Issue of new shares

7

-

-

(7)

-

-

-


_____

_______

_________

_______

_________

_______

 _______

Balance at 31 December 2007

21,926

22

8,230

366,239

211,796

38,024

646,237


_____

_______

_________

_______

_________

_______

 _______




  Cash Flow Statement 


 

Six months ended

Six months ended

Year 
ended

 

30 June 2008

30 June 2007

31 December 2007

 

(unaudited)

(unaudited)

(audited)

 

£'000

£'000

£'000

Net return before finance costs and taxation

(17,977)

36,333

84,953

Adjustments for:



 

Losses/(gains) on investments

29,551

(25,796)

(68,348)

Amortisation of fixed income book cost

215

281

462

Effect of foreign exchange losses

1,537

2,091

3,550

Increase in accrued income

(792)

(2,060)

(172)

Increase in other debtors

(38)

(4)

(87)

Increase/(decrease) in other creditors

773

(2,185)

517

Overseas tax suffered

(1,203)

(920)

(1,209)


___________

___________

___________

Net cash inflow from operating activities

12,066 

7,740 

19,666 

 



 

Returns on investment and servicing of finance



 

Interest paid

(1,179)

(989)

(1,998)


___________

___________

___________

Net cash outflow from servicing of finance

(1,179)

(989)

(1,998)

 



 

Corporation tax paid

-

-

(414)

 



 

Financial investment



 

Purchases of investments

(88,203)

(69,126)

(135,699)

Sales of investments

91,238

76,416 

179,642


___________

___________

___________

Net cash inflow from financial investment

3,035

7,290 

43,943

 



 

Equity dividends paid

(10,740)

(9,869)

(17,317)


___________

___________

___________

Net cash inflow before financing

3,182

4,172 

43,880

 



 

Financing



 

Proceeds from issue of shares

2,260

-

-

Loans repaid

(19,850)

-

-

Loans received

38,915

-

-


___________

___________

___________

Net cash inflow from financing

21,325

-

-


___________

___________

___________

Increase in cash  

24,507

4,172

43,880

 

___________

___________

___________

 



 

Analysis of changes in cash during the period



 

Opening balance

44,687

3,870

3,870

Increase in cash as above

24,507

4,172

43,880

Currency differences

6,014

(6,473)

(3,063)


___________

___________

___________

Closing balances

75,208

1,569

44,687


___________

___________

___________



MURRAY INTERNATIONAL TRUST PLC

Six months ended 30 June 2008


Notes to the Accounts


1.    Accounting policies

(a)    Basis of accounting

The accounts 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' (December 2005). They have also been prepared 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.


 

 

Six months ended 

Six months ended 

Year

ended

 


30 June

2008

30 June

2007

31 December 2007

2.

Income

£'000

£'000

£'000

 

Income from investments



 

 

UK dividends

2,152

3,774

5,679

 

UK unfranked investment income

1,204

1,210

2,815

 

Overseas dividends

11,934

8,300

15,009

 

Overseas interest

1,463

1,212

2,660



___________

___________

___________

 


16,753

14,496

26,163

 


___________

___________

___________

 

Interest



 

 

Deposit interest

975

34

613



___________

___________

___________

 

Total income

17,728

14,530

26,776



___________

___________

___________



 

 

Six months ended

Six months ended

Year 
ended

 


30 June

2008

30 June

2007

31 December 2007

3

Ordinary dividends on equity shares

£'000

£'000

£'000

 

Third interim dividend 2007 of 4.30p

3,724

-

-

 

Final dividend 2007 of 8.10p (2006 - 7.60p)

7,016

6,580 

6,580 

 

First interim dividend 2007 of 4.30p

-

-

3,724 

 

Second interim dividend 2007 of 4.30p

-

-

3,724 



___________

___________

___________

 


10,740

6,580 

14,028 

 


___________

___________

___________


A first interim dividend for 2008 of 4.80p (2007 - 4.30p) will be paid on 14 August 2008 to Shareholders on the register on 11 July 2008. The ex-dividend date was 9 July 2008. 


A second interim dividend for 2008 of 4.80p (2007 - 4.30p) will be paid on 14 November 2008 to Shareholders on the register on 3 October 2008. The provisional ex-dividend date is 1 October 2008.


 

 

Six months ended

Six months ended

Year 
ended

 


30 June 
2008

30 June

2007

31 December 2007

4

Returns per share 

£'000

£'000

£'000

 

The returns per share have been based on the following figures:

 

Revenue return

12,213

10,355

18,400 

 

Capital return

(34,158)

24,161

62,597



___________

___________

___________

 

Total return

(21,945)

34,516

80,997

 


___________

___________

___________

 

Weighted average number of Ordinary shares

86,682,589

86,584,151

86,598,500

 

Weighted average number of B Ordinary shares

1,098,478

1,095,495

1,089,525


5.    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

2008

30 June

2007

31 December 2007

 

Attributable net assets (£'000)

615,812

607,204

646,237

 


___________

___________

___________

 

Number of shares in issue:



 

 

Ordinary shares

86,936,042

86,612,772

86,612,772

 

B Ordinary shares

1,096,568

1,076,598

1,090,350



___________

___________

___________

 

 

88,032,610

87,689,370

87,703,122



___________

___________

___________


6.    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 (losses)/gains on investments in the Income Statement. The total costs were as follows:


 


Six months ended

Six months ended

Year 
ended

 


30 June

2008

30 June

2007

31 December 2007

 


£'000

£'000

£'000

 

Purchases

151

121

318

 

Sales

60

139

257



___________

___________

___________

 

 

211

260

575



___________

___________

___________


7.    Commitments, contingencies and post Balance Sheet events

On 5 November 2007, the European Court of Justice ruled that management fees should be exempt from VAT. HMRC has announced its intention not to appeal against this case to the UK VAT Tribunal and therefore protective claims which have been made in relation to the Company will be processed in due course. The Board is currently in the process of quantifying the potential repayment. Good progress has been made; however, the amount the Company will receive, the period to which it will refer, and the timescale for receipt remain uncertain and hence the Company has made no provision in these financial statements for any such repayment.

8.    The financial information in this report comprises non-statutory accounts as defined in Sections 434-436 of the Companies Act 2006. The financial information for the year ended 31 December 2007 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 of the Companies Act 2006.
 
  9.    The half yearly report was approved by the Board on 7 August 2008.


 

A summary of investment changes for the six months to 30 June 2008, a summary of net assets as at 30 June 2008 and a schedule of the fifty largest investments as at 30 June 2008 are attached.


By order of the Board

ABERDEEN ASSET MANAGEMENT PLC, SECRETARY

7 August 2008


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 StreetEdinburgh EH2 2BY.




  Summary of Investment Changes



 

Valuation

 

Appreciation/

Valuation

 

30 June 2008

Transactions

(depreciation)

31 December 2007

 

£'000

%

£'000

£'000

£'000

%

Equities






 

United Kingdom

77,376

  10.8 

(25,691)

(16,778)

119,845

16.5

North America

56,156

  7.8 

7,539

(6,441)

55,058

7.6

Europe ex UK

130,196

  18.1 

30,369

(11,143)

110,970

15.3

Japan

65,463

  9.1 

3,720

(6,394)

68,137

9.4

Asia Pacific ex Japan

118,875

  16.5 

2,925

(5,863)

121,813

16.8

Latin America

114,367

  15.9 

266

17,332

96,769

13.4

 

562,433

78.2

19,128

(29,287)

572,592

79.0

Fixed income






 

United Kingdom 

49,671

  6.9 

(15,634)

(1,817)

67,122

9.3

North America 

12,088

  1.7 

(8,024)

292

19,820

2.7

Europe ex UK

6,092

  0.8 

14

842

5,236

0.7

Asia Pacific ex Japan 

10,660

  1.5 

1,747

105

8,808

1.2

Latin America

6,252

  0.9 

(61)

314

5,999

0.8

 

84,763

11.8

(21,958)

(264)

106,985

14.7

Other net assets A

71,089

  10.0 

22,520

2,719

45,850

6.3

Total assets

718,285

100.0

19,690

(26,832)

725,427

100.0

A Figure for 2007 excludes bank loan of £18,662,000, which was shown as a current liability in the Balance Sheet.


 




Summary of Net Assets


 

Valuation

Valuation

 

30 June 2008

30 June 2007

 

£'000

%

£'000

%

Equities

562,433

91.3

564,097

92.9

Fixed income

84,763

13.8

109,762

18.1

Other net assets

71,089

11.5

3,275

0.5

Prior charges

(98,913)

(16.0)

(68,011)

(11.2)

Other long term liabilities

(3,560)

(0.6)

(1,919)

(0.3)

Equity Shareholders' funds

615,812

100.0

607,204

100.0



  

Investment Portfolio

As at 30 June 2008



 

 

Valuation

% of total 

Security

Country

£'000

assets

PetrobrasA

Brazil

37,746

5.3

Tenaris ADR

Mexico

29,947

4.2

British American TobaccoA  

UK & Malaysia

16,873

2.3

Souza Cruz 

Brazil

15,432

2.1

E.ON

Germany

14,415

2.0

ENI

Italy

12,638

1.8

Weir Group 

UK

11,725

1.6

Unilever Indonesia 

Indonesia

11,597

1.6

Total Fina

France

11,367

1.6

Telecomunicacoes de Sao Paulo 

Brazil

11,284

1.6



_________

________

Top ten investments

 

173,024

24.1



_________

________

Taiwan Mobile 

Taiwan

10,831

1.5

PTT Exploration

Thailand

10,676

1.5

Wing Hang Bank 

Hong Kong

10,651

1.5

Aeroportuario del Sureste ADS

Mexico

10,351

1.4

Parco 

Japan

9,698

1.3

Taiwan Semiconductor Manufacturing

Taiwan

9,672

1.3

Philip Morris International

USA

9,663

1.3

Swire Pacific B

Hong Kong

9,222

1.3

Mapfre

Spain

9,145

1.3

Portugal Telecom 

Portugal

9,126

1.3



_________

________

Top twenty investments

 

272,059

37.8



_________

________

CLP Holdings 

Hong Kong

9,033

1.3

Centrica 

UK

8,997

1.2

Canon

Japan

8,975

1.2

Zurich Financial Services 

Switzerland

8,901

1.2

Belgacom 

Belgium

8,889

1.2

Bank of Yokohama

Japan

8,674

1.2

QBE Insurance Group

Australia

8,587

1.2

Commerzbank

Germany

8,576

1.2

Vodafone Group 

UK

8,352

1.2

Intesa Sanpaolo

Italy

8,299

1.3



_________

________

Top thirty investments

 

359,342

50.0



_________

________

Kimberly Clark de Mexico

Mexico

8,298

1.2

Johnson & Johnson 

USA

8,074

1.1

Wyeth

USA

7,946

1.1

Kraft Foods 

USA

7,862

1.1

Nordea 

Sweden

7,636

1.1

Oversea-Chinese Bank

Singapore

7,554

1.0

AstraZeneca 

UK

7,283

1.0

Deutsche Post

Germany

7,206

1.0

Public Bank

Malaysia

7,105

1.0

Deutsche Postbank 

Germany

7,057

1.0



_________

________

Top forty investments

 

435,363

60.6



_________

________

UK Treasury 5% 07/03/2012 

UK

6,962

1.0

UK Treasury 4% 07/03/2009

UK

6,950

1.0

UK Treasury 4% 07/09/2016

UK

6,947

1.0

UK Treasury 4.75% 07/09/2015

UK

6,932

1.0

Astellas Pharmaceutical

Japan

6,917

0.9

Takeda Chemical

Japan

6,898

0.9

Reynolds American 

USA

6,798

0.9

BT Group

UK

6,697

0.9

Pemex Project Funding Master 7.75% Perp 29/09/2049

USA

6,565

0.9

UK Treasury 9% Conversion 12/07/2011 

UK

6,403

0.9



_________

________

Top fifty investments

 

503,432

70.0



_________

________

Other investments 

 

143,764

20.0



_________

________

Total investments


647,196

90.0



_________

________

Net current assets

 

71,089

10.0



_________

________

Total assets

 

718,285

100.0



_________

________





A Holdings comprise equity and fixed interest securities or holdings in more than one country.




  Independent Review Report to Murray International Trust PLC


Introduction

We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2008 which comprises the Income Statement, Balance Sheet, Reconciliation of Movements in Shareholders Funds, Cash Flow Statement and the related notes 1 to 9. We have read the other information contained in the half yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.


This report is made solely to the Company in accordance with guidance contained in ISRE 2410 (UK and Ireland) 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our work, for this report, or for the conclusions we have formed.


Directors' Responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.


As disclosed in note 1, the annual financial statements of the Company are prepared in accordance with United Kingdom Generally Accepted Accounting Practice. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with the Accounting Standards Board Statement 'Half-Yearly Financial Reports'.


Our Responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half yearly financial report based on our review.


Scope of Review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.


Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2008 is not prepared, in all material respects, in accordance with the Accounting Standards Board Statement 'Half-Yearly Financial Reports' and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.



Ernst & Young LLP

Edinburgh

7 August 2008


This information is provided by RNS
The company news service from the London Stock Exchange
 
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