Annual Financial Report
Summary by AI BETAClose X
MURRAY INTERNATIONAL TRUST PLC
Legal Entity Identifier (LEI): 549300BP77JO5Y8LM553
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2025
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During the period the Company delivered a NAV total return of +21.9% and a share price total return of +36.0%, this compares to a +4.2% rise in the Retail Price Index and a +12.6% increase in the Benchmark |
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The Discount narrowed steadily and closed completely by December 2025, with the share price finishing the year at a 3.0% premium (2024: 7.5% discount) |
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The portfolio's truly global and diverse composition was the primary driver of returns, demonstrating resilience during the volatile first half of the year, and keeping pace as markets rallied to new highs in the second half |
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Companies outside the US delivered notably strong results, and significant exposures in Latin America and Asia contributed meaningfully to performance |
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The strongest contributors spanned a wide range of geographies and industries, this breadth highlights the value of the portfolio's balanced and diversified positioning. Examples include:
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-Taiwan Semiconductor Manufacturing Company (full year revenue rose 31.6% to NT$3.81 trillion, a record high) -Singapore Telecommunications (9% increase in underlying net profit to S$2.47 billion) - Broadcom (consolidated revenue reached a record US$64 billion), - Philip Morris International (reduced-risk and smoke-free products, which now represent approximately 40% of revenues) and - British American Tobacco (savings expected to exceed £1.2 billion by year-end)
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In 2025 healthcare and alcohol producers were among the weakest performers (Merck, Bristol Myers Squibb, Diageo, Pernod Ricard) |
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The Board is recommending a final dividend of 4.6 pence per Ordinary share (2024 4.3 pence per share). This proposed final dividend, together with the interim dividends already paid, brings the total dividend for the year to 12.8 pence per share (2024: 11.8 pence per share), an increase of over 5% |
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The Company is recognised as an AIC 'Dividend Hero' with 21 consecutive years of dividend increases |
Virginia Holmes, the Company's Chair, commented:
By almost any metric, this has been a strong year for your Company which has delivered robust absolute and relative performance. The Net Asset Value ('NAV') total return was 21.9%, while the share price total return was 36.0%, compared with a Benchmark total return of 12.6%.
Highlights
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Net asset value total returnAB - 2025 |
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Share price total returnAB - 2025 |
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+21.9% |
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+36.0% |
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2024 |
+8.1% |
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2024 |
+4.5% |
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Retail Price IndexB - 2025 |
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Benchmark total returnBC - 2025 |
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4.2% |
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+12.6% |
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2024 |
3.5% |
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2024 |
+19.8% |
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Revenue return per shareB - 2025 |
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Dividends per shareBE - 2025 |
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13.9p |
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12.4p |
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2024 |
11.6p |
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2024 |
11.8p |
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Premium/(discount) to net asset valueAD - 2025 |
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Dividend yieldAD - 2025 |
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3.0% |
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3.7% |
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2024 |
-7.5% |
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2024 |
4.6% |
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Net gearingAD - 2025 |
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Ongoing charges ratioAD - 2025 |
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4.4% |
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0.50% |
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2024 |
6.1% |
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2024 |
0.52% |
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A Alternative Performance Measure (see pages 117 to 119 of the published Annual Report and financial statements for the year ended 31 December 2025). |
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B For the year to 31 December. |
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C From 1 July 2025 the MSCI ACWI High Dividend Yield Index was adopted as the Company's Benchmark Index. Longer term performance is measured against a blend of the Benchmark Index combined with the former composite benchmark (40% of the FTSE World UK Index and 60% of the FTSE World ex-UK Index) for periods up to 27 April 2020 and the former reference index (FTSE All World TR Index) between 28 April 2020 and 30 June 2025. |
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D As at 31 December. |
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E Dividends declared for the year to which they relate and assuming shareholder approval of final dividend. |
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Dividends
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Rate |
Ex-dividend date |
Record date |
Payment date |
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1st interim |
2.6p |
3 July 2025 |
4 July 2025 |
15 August 2025 |
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2nd interim |
2.6p |
2 October 2025 |
3 October 2025 |
18 November 2025 |
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3rd interim |
2.6p |
2 January 2026 |
5 January 2026 |
17 February 2026 |
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Proposed final |
4.6p |
9 April 2026 |
10 April 2026 |
18 May 2026 |
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Total dividends |
12.4p |
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Shareholder Engagement
Online Investor Webinar
9 April 2026
Annual General Meeting
23 April 2026
Half Yearly Results
August 2026
Annual Results
March 2027
Financial Highlights
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31 December 2025 |
31 December 2024 |
% change |
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Total assetsA |
£2,030.9m |
£1,788.8m |
+13.5 |
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Net assets |
£1,921.0m |
£1,678.8m |
+14.4 |
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Market capitalisation |
£1,977.3m |
£1,553.1m |
+27.3 |
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Net Asset Value per Ordinary share |
325.4p |
278.4p |
+16.9 |
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Share price per Ordinary share (mid market) |
335.0p |
257.5p |
+30.1 |
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Premium/(discount) to Net Asset Value per Ordinary shareB |
3.0% |
-7.5% |
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Net gearingB |
4.4% |
6.1% |
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Revenue return per share |
13.9p |
11.6p |
+19.8 |
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Dividends per shareC |
12.4p |
11.8p |
+5.1 |
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Dividend cover (including proposed final dividend)B |
1.12x |
0.98x |
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Dividend yieldB |
3.7% |
4.6% |
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Revenue reservesD |
£85.4m |
£74.2m |
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Ongoing charges ratioB |
0.50% |
0.52% |
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A See definition on page 129 of the published Annual Report and financial statements for the year ended 31 December 2025. |
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B Considered to be an Alternative Performance Measure as defined on pages 117 and 118 of the published Annual Report and financial statements for the year ended 31 December 2025. |
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C The figure for dividends per share reflects the years to which their declaration relates (see note 8 on page 98 of the published Annual Report and financial statements for the year ended 31 December 2025) and assuming approval of the final dividend of 4.6p (2024 - final dividend of 4.6p). |
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D The revenue reserve figure does not take account of the third interim and final dividends amounting to £15,347,000 and £27,222,000 respectively (2024 - third interim dividend of £15,078,000 and final dividend of £25,590,000). |
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STRATEGIC REPORT
Chair's Statement
I am pleased to present this Annual Report for the year ended 31 December 2025.
By almost any metric, this has been a strong year for your Company which has delivered robust absolute and relative performance. The Net Asset Value ('NAV') total return was 21.9%, while the share price total return was 36.0%, compared with a Benchmark total return of 12.6%. Revenue generated by the Company's portfolio was also up significantly on last year.
Background
Global capital markets in 2025 were shaped by a familiar mix of corporate fundamentals, macroeconomic dynamics, monetary policy shifts, geopolitical tensions, technological innovation, and shifting investor sentiment.
Equity markets began the year with strong momentum buoyed by President Trump's return to office in the US and expectations of tax cuts and deregulation there. While optimism initially drove gains across risk orientated stocks, confidence faded quickly. The sharp "Liberation Day" sell-off in April marked a turning point, triggered by renewed tariff uncertainty, mounting fiscal concerns, tensions between the US administration and the Federal Reserve, and a series of unpredictable policy announcements.
Geopolitical developments added further complexity. The conflict between Russia and Ukraine continued, and tensions in the Middle East escalated during the spring, culminating in a brief direct confrontation between Israel and Iran. Markets initially reacted defensively, but a swift ceasefire helped stabilise sentiment.
Despite the noisy market environment, market weakness was relatively short lived. Towards the end of May, risk appetites recovered as global trade tensions eased following a surprise US-China truce, a framework trade agreement with the United Kingdom, and additional bilateral deals elsewhere.
Equity markets rebounded strongly, with major indices reaching new all-time highs. Technology and artificial intelligence (AI)-related stocks led the rally, particularly in US and Asian markets, while gains broadened across sectors. Inflation trends moderated in several developed economies and financial conditions remained generally stable.
By year-end, markets had navigated political uncertainty, geopolitical shocks, and sharp swings in sentiment, ultimately delivering solid outcomes for investors in global equities.
Performance
Against this volatile background, I am pleased to report that the Company's net asset value per share posted a total return (i.e. with dividends reinvested) of 21.9%, and the share price delivered a total return of 36.0%. This compares favourably with the UK Retail Price Index (RPI) increase of 4.2% and the total return of 12.6% from the Company's new Benchmark (see below).
Further detail on portfolio performance, including significant contributors and detractors, can be found in the Investment Manager's Review.
MSCI ACWI High Dividend Yield Index
As I reported at the Half Year, during early 2025, the Board reviewed the appropriateness of using the FTSE All-World Index as the Company's "Reference Index". As a result of this review, the Board concluded that it would be more helpful for shareholders if the index against which the portfolio's performance is measured was more reflective of the Company's investment style. The Board therefore determined that with effect from 1 July 2025, the previous reference index should be changed and the MSCI ACWI High Dividend Yield Index adopted in its place as the Company's Benchmark Index from that date. Longer term performance is measured against a blend of the Benchmark Index combined with the former composite benchmark (40% of the FTSE World UK Index and 60% of the FTSE World ex-UK Index) for periods up to 27 April 2020 and the former reference index (FTSE All World TR Index) between 28 April 2020 and 30 June 2025.
Dividends
Revenue return per share for the year (after tax and expenses) amounted to 13.9 pence per share, compared with 11.6 pence for the previous financial year. This increase primarily reflects the growth in portfolio revenue to £95.9m (2024: £84.2m). Three interim dividends of 2.6 pence per share (2024: 2.5 pence per share), were declared during the year. The Board is recommending a final dividend of 4.6 pence per Ordinary share (2024: 4.3 pence per share). This proposed final dividend, together with the interim dividends already paid, brings the total dividend for the year to 12.4 pence per share (2024: 11.8 pence per share), an increase of 5.1%. If approved at the Annual General Meeting on 23 April 2026, this final dividend will be paid on 18 May 2026 to shareholders on the register as at 10 April 2026 (ex-dividend date 9 April 2026).
The dividend will be fully funded from revenue received during the year, which represents dividend cover of 1.12x (2024: 0.98x), and a significant sum of £11.2m will also be added to the Company's revenue reserves. As a long-established investment trust, the Company has the benefit of over £85.4 million of distributable revenue reserves on its balance sheet at 31 December 2025 which have been accumulated over many years from realised earnings. These reserves are available to support dividend distributions where the Board considers this to be appropriate. This means that, in some years, revenues will be added to reserves while in others an amount may be taken from reserves to supplement revenue earned during that year. Over time, the Company will aim to pay out what the underlying portfolio earns in sterling terms. The Board intends to maintain the Company's progressive dividend policy.
With a globally diversified portfolio focused on delivering attractive and growing income backed by underlying profits from strong businesses, as well as growing capital, Murray International continues to demonstrate the resilience and reliability that we believe income-focused investors value, reinforced by its ongoing recognition as an AIC 'Dividend Hero' with 21 consecutive years of dividend increases.
Management of Discount and Share Capital
For much of the year, the Company's shares traded at a discount to the NAV, in line with the broader investment trust sector. The Board is pleased to report that this discount narrowed steadily and had closed completely by December 2025, with the share price finishing the year at a 3.0% premium (2024: 7.5% discount).
When the shares traded at a discount, the Company acted to reduce volatility and enhance the NAV for ongoing shareholders, buying back 12.9m Ordinary shares (2024: 17.7m Ordinary shares) at a total cost of £35.1m (2024: £54.1m). These shares were purchased at a weighted average discount of 7.9% and represented 2.1% of the Company's issued share capital at the start of the year (2024: 2.8%). This activity increased the NAV per share by 0.16%. Consistent with its disciplined, long-term approach, the Board remains committed to managing temporary supply-demand imbalances in order to reduce volatility around the discount or premium to NAV, in the interests of all shareholders.
Since the year-end, the Company has sold over 1.5m shares from Treasury at a premium to NAV. No shares have been purchased for Treasury. At close of business on 2 March 2026, the latest practicable date prior to publication of this Annual Report, the NAV (including income) per share was 357.9 pence and the share price was 362.5 pence, equating to a premium of 1.3% per Ordinary share.
As in previous years, resolutions to renew the authority to buy back shares (at a discount to the NAV) and to issue or sell shares from Treasury (at a premium to the NAV) will be proposed at the Annual General Meeting ('AGM') on 23 April 2026, and shareholders are encouraged to support these proposals.
Gearing
Total borrowings at year-end were unchanged at £110m (2024: £110m), comprising unsecured fixed rate sterling loan notes, not repayable until 2031 at the earliest. This represents net gearing (calculated by dividing the total borrowings less cash by shareholders' funds) of 4.4% (2024: 6.1%). The weighted cost of borrowing is 2.56%. The Board monitors borrowing costs and will only consider increasing gearing when it is considered commercially attractive to do so.
Ongoing Charges Ratio ("OCR")
The Board remains focused on delivering value to shareholders through disciplined cost control. The OCR for 2025 was 0.50% (2024: 0.52%), remaining one of the lowest in the AIC Global Equity Income sector.
Board of Directors
Following the retirement of Mrs Alexandra Mackesy at the April 2025 AGM, the Directors were pleased to welcome Mr Jeroen Huysinga as an independent Non-Executive Director on 1 May 2025. Jeroen brings over 20 years of global equity and investment trust experience, including as Managing Director, Global Equities at JP Morgan Asset Management.
Online Investor Presentation and AGM
Following the success of previous events, and with 280 investors joining in 2025, the Board will host another online investor presentation at 11.00 a.m. on Thursday 9 April 2026, ahead of and in addition to the in-person AGM. The online presentation will include updates from me, as Chair, and the investment management team, followed by a live question and answer session.
Full details on how to join the online event can be found on the Company's website at murray-intl.co.uk. For those unable to join, a full recording will be made available on the Company's website shortly afterwards.
I would encourage all shareholders to submit proxy votes ahead of the AGM, whether or not they plan to attend in person. Shareholders on the main register can do this by completing and returning the proxy form which has been sent to them. Shareholders holding on a platform via a nominee may find further guidance via the AIC at theaic.co.uk/how-to-vote-your-shares.
The AGM will take place at 12:30 p.m. on 23 April 2026, at Wallacespace Spitalfields, 15 Artillery Lane, London E1 7HA and will be followed by a buffet lunch and an opportunity to meet the Board and the investment management team.
Questions for either event can be submitted via murray-intl@aberdeenplc.com, and shareholders are welcome to email me directly at VirginiaHolmes.Chair@aberdeenplc.com.
Outlook
Looking ahead to 2026, the global investment landscape is likely to continue reflecting the shift toward a more fragmented, multipolar world. Periods of volatility are inevitable, but history shows that patient, long-term investors can continue to find opportunities.
Global growth is expected to continue, though unevenly, constrained by tighter financial conditions and geopolitical uncertainty. Monetary policy in developed markets is likely to remain relatively restrictive compared with the post financial crisis era, even as headline inflation continues to moderate. Central banks are expected to move cautiously, prioritising credibility and financial stability over short-term growth, for the time being. In addition, investor sentiment towards emerging markets appears to be improving, where central banks potentially have more room to cut rates and where earnings growth and relative valuations remain attractive.
Corporate profitability remains broadly positive, although performance may vary significantly across geographies and industries.
Against this backdrop, we believe that a disciplined, diversified, and truly global income-focused strategy, remains well positioned to support long-term wealth creation for shareholders. These principles are at the core of our Manager's distinctive approach.
Virginia Holmes
Chair
3 March 2026
Investment Manager's Review
Summary
2025 was a year of stark contrasts for global markets, revealing both vulnerability to sudden shocks and an underlying resilience amid persistent volatility. Investors contended with political upheaval, economic uncertainty, and ongoing geopolitical tensions, all of which weighed on confidence across asset classes. The year opened on a strong footing, supported by optimism following President Trump's return to office in the US, including expectations of tax reform and deregulation. However, sentiment deteriorated rapidly. April's "Liberation Day" proved a decisive inflection point, with markets unsettled by tariff threats, fiscal instability, strained relations with the Federal Reserve, and inconsistent policy signals from Washington.
Efforts to advance peace in conflict regions, including Russia/Ukraine and the Middle East, offered little respite. Although the market backdrop was volatile, the period of weakness proved brief. By the end of May, sentiment improved, following a surprise trade détente between the US and China, alongside broader framework agreements that eased fears of a deeper global trade rupture. This shift supported a summer rally, with equities reaching new highs, particularly in the US and Asia.
Volatility resurfaced in the second half of the year as inflationary pressures persisted, labour market uncertainty re-emerged, and fiscal and political concerns intensified. Yet markets proved resilient. Strong corporate earnings, accelerating AI adoption, and robust consumer demand helped global equities finish the year near record levels.
Against this backdrop, the benefits of the Company's globally diversified approach remained clear, underpinned by its focus on attractive income and long-term capital growth.
Performance
Performance over the full financial year was strong. The Company's NAV total return was 21.9%, outperforming the Benchmark, which returned 12.6%. This also represented real growth ahead of the UK Retail Price Index ("RPI") rate of 4.2%, aligning with one of the Company's investment objectives and key performance indicators.
In 2025, the portfolio's truly global and diverse composition was the primary driver of returns. Companies outside the US, spanning a broad range of sectors, delivered notably strong results. Significant exposures in Latin America and Asia contributed meaningfully, as did allocations to Telecommunications, Financials, Industrials, Materials and Utilities. Importantly, the portfolio demonstrated resilience during the volatile first half of the year and then kept pace as markets rallied to new highs in the second half.
The attribution analysis overleaf outlines the factors influencing portfolio performance. In summary, of the 8.5% of performance relative to the Benchmark (before expenses), asset allocation added 5.6% and stock selection added 2.7%. Structural effects, relating to the fixed income portfolio, cash, foreign exchange and gearing net of borrowing costs, added a further 0.5% of relative performance.
Attribution Analysis as at 31 December 2025
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Company |
BenchmarkA |
Contribution from: |
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Asset |
Stock |
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Weight |
Return |
Weight |
Return |
Allocation |
Selection |
Total |
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Africa & Middle East |
- |
- |
3.1 |
19.3 |
-0.1 |
- |
-0.1 |
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Asia Pacific ex Japan |
23.7 |
31.8 |
12.6 |
18.2 |
0.7 |
2.7 |
3.4 |
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Europe ex UK |
26.1 |
21.7 |
19.7 |
29.3 |
1.7 |
-1.5 |
0.1 |
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Japan |
- |
- |
7.5 |
20.8 |
-0.5 |
- |
-0.5 |
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Latin America |
8.0 |
36.0 |
0.9 |
48.6 |
2.0 |
-0.7 |
1.3 |
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North America |
32.0 |
16.9 |
51.1 |
7.0 |
1.4 |
2.9 |
4.3 |
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UK |
10.2 |
11.2 |
5.1 |
17.8 |
0.4 |
-0.5 |
-0.1 |
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Gross equity portfolio return |
100.0 |
22.2 |
100.0 |
12.6 |
5.6 |
2.7 |
8.5 |
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Fixed Interest |
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-0.4 |
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Gearing, cash and foreign exchange |
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0.9 |
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Gross portfolio return |
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22.7 |
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Management fees and administrative expenses |
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-0.6 |
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Tax charge |
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-0.4 |
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Technical differences |
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0.2 |
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Total return |
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21.9 |
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12.6 |
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A From 1 July 2025 the MSCI ACWI High Dividend Yield Index was adopted as the Company's Benchmark Index. Longer term performance is measured against a blend of the Benchmark Index combined with the former composite benchmark (40% of the FTSE World UK Index and 60% of the FTSE World ex-UK Index) for periods up to 27 April 2020 and the former reference index (FTSE All World TR Index) between 28 April 2020 and 30 June 2025. |
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Notes to Performance Analysis |
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Asset Allocation effect - measures the impact of over or underweighting each asset category, relative to the benchmark weights. |
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Stock Selection effect - measures the effect of security selection within each category. |
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Technical differences - the impact of different return calculation methods used for NAV and portfolio performance |
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Source: Aberdeen Group plc. Figures may appear not to add up due to rounding. |
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Stocks adding to performance in 2025
The strongest contributors spanned a wide range of geographies and industries, including an Asian technology company, a communications services firm, a US technology business and two international consumer staples companies. This breadth highlights the value of the portfolio's balanced and diversified positioning.
Taiwan Semiconductor Manufacturing Company ("TSMC") TSMC, the world's largest contract chipmaker, specialises in cutting-edge semiconductor fabrication across advanced process nodes, producing smaller, faster, and more power‑efficient chips. The company, which has been held for over twenty years, delivered exceptional performance in 2025, driven primarily by surging demand for artificial intelligence and high-performance computing. Full-year revenue rose 31.6% to NT$3.81 trillion - a record high.
As impressive as TSMC's fundamentals remain, we have been mindful of how strongly the shares have performed. We have used this strength to manage the overall position, trimming both TSMC and other holdings that have been buoyed by the AI‑related rally, ensuring the portfolio maintains balanced exposure.
Singapore Telecommunications ("Singtel")
Singtel is one of Asia's leading communications technology groups, providing fixed and mobile services, broadband, TV and digital solutions. Together with its regional associates - Airtel (India), AIS (Thailand), Globe (Philippines), Optus (Australia), and Telkomsel (Indonesia) - it serves more than 780 million customers across 20 countries in Asia, Australia, and Africa.
Share price strength in 2025 was underpinned by robust financial results, strategic capital management, and continued growth in digital infrastructure. The company delivered a 9% increase in underlying net profit to S$2.47 billion, supported by strong contributions from Optus, NCS (IT services), and regional associates such as Airtel and AIS. Singtel also exceeded its asset recycling target, raising it from S$6 billion to S$9 billion, and launched a S$2 billion share buyback programme, reinforcing investor confidence.
Singtel continued to advance its strategic shift toward high-growth digital segments, expanding its Nxera data centres across Asia and rolling out innovative 5G+ network-slicing capabilities, further strengthening its competitive position.
Broadcom
Broadcom delivered exceptional performance in 2025, driven primarily by the explosive growth in AI-related semiconductor solutions and ongoing momentum across its software portfolio. Consolidated revenue reached a record US$64 billion, with AI revenues alone rising 65% to US$20 billion. This was fuelled by strong demand for custom AI accelerators (ASICs) and advanced AI networking products, including the Tomahawk 5 and Jericho4 Ethernet switches.
The Infrastructure Software segment also made a significant contribution, with revenue increasing 26% to US$27 billion, supported by strong adoption of VMware Cloud Foundation (VCF). Throughout the year, Broadcom benefited from expanding hyperscaler demand, securing major new customers for its custom chips and winning large scale orders tied to leading AI platforms.
As with TSMC, we used periods of share price strength to reduce the overall position, ensuring disciplined portfolio balance.
Philip Morris International
Philip Morris International remained the portfolio's single largest holding at the half year and retained that position at the end of the full year. The company continues to be a formidable business, generating strong earnings growth and substantial free cash flows as it leverages its traditional tobacco operations to support its transition into reduced-risk and smoke-free products, which now represent approximately 40% of revenues. Its defensive and steadily growing earnings stream proved particularly attractive in an environment unsettled by tariff‑related market volatility earlier in the year.
Given the strength of the share price, we continued to trim the position marginally during the period, recycling capital into other holdings that have been less strong performers but remain fundamentally appealing. While we remain confident in the investment outlook for Philip Morris, we are mindful of the growth expectations embedded in its Zyn product (tobacco‑free oral pouches). As such, the company is unlikely to receive additional capital at this stage, following its very strong performance over the last twelve months.
British American Tobacco (BAT)
BAT delivered a notably strong performance in 2025, a year characterised by strategic execution following several years of significant investment. Revenue rose around 2% on a constant currency basis, slightly ahead of expectations. A key highlight was the US business, which returned to both revenue and profit growth for the first time since 2022, supported by stabilising combustible market share and the withdrawal of the proposed menthol ban.
BAT's smokeless portfolio continued to scale, reaching 18.2% of Group revenue. Nicotine pouches, particularly the Velo brand, were standout performers, growing more than 40% in the first half. Strong cash conversion, above 95%, enabled the company to expand its 2025 share buyback to £1.1 billion. Meanwhile, productivity initiatives remained firmly on track, with savings expected to exceed £1.2 billion by year-end, helping to offset inflationary pressures.
Stocks detracting from performance in 2025
Given the year's volatility and the portfolio's diversified positioning, it is inevitable that not all holdings delivered positive returns. What matters is whether periods of weakness challenge the underlying investment thesis or instead create opportunities to add capital at more attractive valuations. In 2025, a clearer pattern emerged: healthcare and alcohol producers were among the weakest performers.
Diageo
Diageo's share price struggled in 2025 as a combination of macroeconomic, category specific, and operational headwinds weighed on performance. Weak consumer confidence in key markets, particularly the US and China, was a significant drag, with stretched household budgets and cautious spending reducing demand for premium spirits. In the US, competitive pressures in tequila, ongoing destocking, and tough comparisons following prior restocking of brands such as Don Julio added further strain. These challenges were compounded by broader premium-spirits weakness linked to the cost of living backdrop, shifting consumer behaviour, and concerns that weight loss drugs may dampen alcohol consumption.
Rising inflation and geopolitical uncertainty contributed to a global slowdown in spirits demand, prompting Diageo to withdraw its medium-term organic growth guidance amid an uncertain recovery trajectory. Tariff related pressures in 2025 added to difficulties, increasing costs and weighing on sentiment as US trade tensions escalated. Currency volatility, elevated inventories, and leadership instability following CEO changes also acted as headwinds.
Despite these challenges, we believe the business continues to exhibit the core characteristics underpinning the investment thesis. We see long-term opportunity in the global scotch whisky market, particularly in the US and China, and continue to value Diageo's broad geographic footprint and the strength of its brand portfolio. We also believe the company is well placed to innovate in response to shifting consumer tastes, particularly through low- and no-alcohol offerings and ready-to-drink formats. While performance has been disappointing and frustrating to date, we have used share price weakness to add selectively to the position, as we believe current levels offer long-term value.
Pernod Ricard
Pernod Ricard faced a challenging 2025, affected by many of the same pressures that weighed on Diageo. Organic net sales declined for the fiscal year, driven by pronounced weakness in the US, China, and Global Travel Retail - three of its four strategic "must win" markets. In the US, softer spirits demand and ongoing distributor inventory adjustments held back performance, while persistent US tariffs under the current administration risked costing the Group €35 million. China proved an even larger drag: sales fell 21% amid weak demand for Scotch and the effective suspension of Martell shipments in the second half.
Despite these headwinds, Pernod Ricard maintained strong cost discipline, expanding organic operating margins and advancing its long term €1 billion efficiency programme. As with Diageo, we do not believe Pernod Ricard's investment thesis is broken. We have therefore added to the position during periods of share price weakness, where we see long-term value emerging despite near-term pressures.
Bristol Myers Squibb
Bristol Myers Squibb faced significant challenges in 2025, as accelerating erosion from non-branded generic competition and continued US regulatory and pricing uncertainty weighed heavily on sentiment. The primary pressure point was the decline of the Legacy Portfolio: cancer therapies such as Revlimid, Pomalyst, Sprycel, and Abraxane experienced ongoing volume and pricing headwinds.
We used the weakness in Bristol Myers Squibb's share price to add to the position, as the company's Growth Portfolio continued to expand. Key products including Opdivo, Reblozyl, Camzyos, Breyanzi and the newly approved schizophrenia medication, Cobenfy, delivered encouraging growth. While these gains were not yet sufficient to offset the mounting losses from legacy products or the regulatory headwinds faced during the year, they provide a credible path toward mitigating patent expiries and rebuilding momentum as the company transitions beyond its ageing oncology blockbusters.
TELUS
TELUS experienced notable share price weakness throughout 2025, emerging as one of the clear laggards within the Canadian telecom sector, particularly in the final third of the year. The primary concern for investors was the company's elevated payout ratio, which suggested that its long-standing dividend-growth commitments were becoming increasingly difficult to sustain. By late 2025, it appeared increasingly likely that dividend outflows could exceed 100% of free cash flow towards the end of the decade, raising questions about whether further dividend increases (or even the dividend itself) would remain financially prudent in the coming years.
At the same time, TELUS faced pressures from rising capital intensity and heightened competition, continued investment in fibre and 5G networks, and slower-than-expected returns from its sizeable expansion into TELUS International. While yield and income remain central to the company's investment objectives, we place strong emphasis on ensuring that dividends from portfolio holdings are both sustainable and capable of growing over time. As our confidence in TELUS' ability to meet this standard diminished, we made the decision to exit the holding towards the end of the year.
Merck
Merck's share price was weak in 2025, weighed down by disappointing guidance, product specific setbacks, and mounting pricing and regulatory uncertainty more broadly across the sector. In early February, the company issued weaker than expected guidance for 2025, projecting revenue of US$64.1-US$65.6 billion, meaningfully below the US$67.36 billion consensus estimate. This guidance surprise triggered an intraday decline of more than 10% - one of the steepest single day drops for Merck in nearly two decades.
Operationally, Merck faced significant product level pressures. Gardasil sales fell 17% due to weaker demand in China, and the company paused shipments to the region until mid-2025, further dampening forward revenue expectations. Market sentiment was also dominated by concerns surrounding the upcoming patent expiry of Keytruda in 2028, prompting investors to question the company's medium term growth trajectory.
We added to the position during the year, as we believe Merck's longer-term valuation case remains compelling. The company is leveraging reformulations to extend the runway for Keytruda, including the rollout of a more convenient subcutaneous injection. It is also actively diversifying its revenue base, supported by strategic pipeline expansion and acquisitions such as Verona Pharma. Additionally, Merck continues to invest heavily in new product launches, underpinned by a multiyear US$3 billion cost optimisation programme designed to redirect resources into higher growth areas.
The top five and bottom five stock contributors are detailed below:
|
Top Five Stock Contributors |
%* |
Bottom Five Stock Contributors |
%* |
|
TSMC |
0.73 |
Diageo |
-0.63 |
|
Singapore Telecommunications |
0.71 |
Pernod Ricard |
-0.55 |
|
Philip Morris |
0.69 |
Bristol Myers Squibb |
-0.31 |
|
Broadcom |
0.60 |
TELUS |
-0.31 |
|
British American Tobacco |
0.59 |
Merck |
-0.28 |
|
* % relates to the percentage contribution to return relative to the Benchmark |
|||
Income Generation
Despite equity market volatility, income generation remained strong. Portfolio income increased by over £11.7 million, or 13.9%, to £95.9 million. This robust income profile is fully aligned with the Company's long-standing commitment to delivering attractive, growing dividends for investors.
Of the 54 income-generating holdings, 42 raised their dividends. Notable contributors included TSMC, Telkom Indonesia, Siemens, Broadcom, Telefónica Brazil, Vale, DBS Group, Hong Kong Exchanges & Clearing, Intesa Sanpaolo, Banorte and OCBC, all of which delivered double-digit dividend increases.
Airport operator Grupo ASUR was the standout, with a 281% increase driven by special dividends. This reflected the return of excess balance-sheet cash. However, the magnitude of this distribution is unlikely to be repeatable in future years.
Ten holdings reduced dividends, largely in line with expectations. Commodity-exposed names such as BHP, Rio Tinto and Woodside Energy cut payouts from the prior year, consistent with our forecasts. China Resources Land, Infosys and Taylor Wimpey reduced dividends by 8%, 9% and 3%, respectively. Walmart de México increased its regular dividend, but reduced the scale of its typical special distribution, resulting in a 22% decline in its combined payout. This outcome was anticipated given the weaker macroeconomic backdrop in Mexico, where GDP growth has been slowing. Mercedes-Benz Group also reduced its dividend by 19% amid tariff-related uncertainty. GlobalWafers cut its payout by 42% after our exit from the stock, as the business navigates subdued demand for non-AI semiconductor materials and an ambitious overseas investment programme. CME Group postponed its annual variable dividend into 2026, aligning it with its first-quarter payment schedule.
We remain acutely aware of the impact currency movements can have on income when investing globally with an unhedged portfolio, where over 90% of assets are denominated in currencies other than Sterling. Currency posed a sizeable headwind in 2024, when Sterling strengthened against most global currencies. In 2025, the picture was more balanced. While the Pound continued to appreciate against the Indian Rupee, Indonesian Rupiah, and US Dollar, it weakened against the Euro, Swedish Krona, Mexican Peso, Swiss Franc, Danish Krone and Brazilian Real, leading to a more neutral overall impact on income.
Changes to the Portfolio
Turnover was 18.7% (2024: 13%) of gross assets, slightly higher than in prior years, reflecting market volatility and valuation-driven adjustments. We trimmed several strong performers including TSMC, Broadcom, Philip Morris, Enbridge, Siemens and Zurich Insurance Group, and added to holdings where share-price weakness created attractive opportunities, such as Medtronic, Merck, Bristol Myers, Pernod Ricard and Diageo.
As noted in the interim report, we exited Atlas Copco due to valuation concerns, and divested Chilean lithium producer SQM and Taiwanese semiconductor silicon producer Global Wafers owing to anticipated dividend declines. Proceeds were redeployed into new positions in Rio Tinto, Italian financial services company Intesa Sanpaolo, and Indian IT services group Infosys. We also exited Banco Bradesco in Brazil and China Resources Land into share-price strength earlier in the year. In the second half, we executed a switch between two Singaporean financial stocks. We sold Oversea-Chinese Banking Corporation (OCBC) and initiated a position in DBS Group. The catalyst was the decline in short-term rates in both the Hong Kong and Singapore dollars during early- to mid-2025. OCBC has greater exposure to floating-rate loans in Hong Kong dollars, and we believed consensus expectations for its net interest income and margins were overly optimistic. DBS, by contrast, appeared less rate-sensitive due to its hedging practices and offered more diversified earnings, including a stronger wealth management franchise. The other major disposal in the second half was Canadian telecom company TELUS, as concerns mounted about an increasingly competitive environment and the sustainability of its dividend growth potential.
A new addition in the second half was Finnish-listed KONE, a global leader in the escalator and elevator industry. The company is seeing strong momentum in its services and modernisation business, supported by digital and AI-enabled predictive maintenance. With elevators and lifts difficult to replace once installed, KONE benefits from a long runway of higher-margin service work as the global installed base ages. The business is geographically diversified and offers a 2.9% yield backed by strong cash generation - an attractive proposition for a high-quality industrials business capable of generating returns on invested capital of around 28%. Spanish‑listed Inditex was another new purchase. Owner of brands such as Zara, Pull&Bear, Massimo Dutti, Bershka and Stradivarius, Inditex remains one of the most consistent operators in the global retail sector-a notoriously difficult industry. Its hybrid sourcing model, with roughly half of garments made in Spain, Portugal, Morocco and Turkey, enables rapid response to fashion trends and reduces inventory risk. High‑volume basics are sourced from Asia, and the company continues to lead in technologies for inventory optimisation, logistics and customer experience. With net cash on its balance sheet and strong free‑cash‑flow generation, Inditex supports a 2.4% dividend yield-modest but up 37% over five years. By funding new positions through reductions in lower‑yielding holdings such as TSMC and Broadcom, the portfolio benefits from disciplined trimming of strong performers, the introduction of high‑quality businesses, and a stronger income profile.
A further lower-yielding addition was US based home improvement retailer Lowe's. Accessing US consumer exposure within an income‑oriented mandate can be challenging, but we believe Lowe's is well positioned for meaningful earnings growth as the home‑improvement cycle strengthens, supported by easing mortgage rates and a rising stock of ageing US homes. The company has been narrowing the margin gap with its main competitor, Home Depot, through digital transformation, supply-chain optimisation and a focus on the "Pro customer" segment, where margins tend to be more resilient. While Lowe's higher exposure to DIY customers introduces some volatility, it also increases sensitivity to improving housing turnover. Its US$1.325 billion acquisition of Artisan Design Group provides a strategic foothold in the homebuilder market - an area where it historically lacked scale. Aside from Verizon, the portfolio has little direct exposure to the US consumer. Reducing Broadcom to initiate a 1.7%‑yielding position in Lowe's improved diversification and enhanced portfolio yield.
We introduced Veolia Environnement, the French multinational and global leader in water, waste and energy management. Around 60% of its revenue comes from Europe, with significant operations in the US and Australia. Veolia's businesses sit at the intersection of major long‑term structural themes: rising demand for water-scarcity solutions, expansion of circular‑economy hazardous‑waste treatment, and growth in energy‑transition services such as bioenergy and efficiency technologies. With contract renewal rates above 90%, we believe Veolia offers defensive characteristics and strong long-term visibility.
Finally, in keeping with the strategy of the last few years, we continued to reduce the fixed income exposure. While having the flexibility to use the asset class to deliver the investment objective is useful, it can bring additional complexity. In the first half, we sold Indonesian and Dominican Republic government bonds, reallocating capital into Mercedes-Benz Group and Intesa Sanpaolo, both offering higher yields. In the second half, we exited Pemex bonds, the Mexican state-owned petroleum company, using proceeds for a new holding in Grupo Financiero Banorte, one of Mexico's largest financial institutions. This switch improved yield potential and offered attractive prospects for capital appreciation, supported by Banorte's strong profitability, capitalisation and asset quality.
These adjustments help maintain a distinctive, globally diversified portfolio with strong income characteristics.
Summary of Investment Changes During the Year
|
|
Valuation |
Appreciation/ |
|
Valuation |
||
|
|
31 December 2024 |
(depreciation) |
Transactions |
31 December 2025 |
||
|
|
£'000 |
% |
£'000 |
£'000 |
£'000 |
% |
|
Equities |
|
|
|
|
|
|
|
UK |
128,125 |
7.2 |
8,791 |
44,330 |
181,246 |
9.1 |
|
Europe ex UK |
405,457 |
23.0 |
61,599 |
56,331 |
523,387 |
26.3 |
|
North America |
565,927 |
32.1 |
74,686 |
(17,846) |
622,767 |
31.2 |
|
Asia Pacific ex Japan |
412,778 |
23.4 |
101,154 |
(54,126) |
459,806 |
23.1 |
|
Latin America |
142,483 |
8.1 |
25,187 |
(11,964) |
155,706 |
7.8 |
|
|
1,654,770 |
93.8 |
271,417 |
16,725 |
1,942,912 |
97.5 |
|
Preference shares |
|
|
|
|
|
|
|
UK |
6,907 |
0.4 |
(236) |
(2,821) |
3,850 |
0.2 |
|
|
6,907 |
0.4 |
(236) |
(2,821) |
3,850 |
0.2 |
|
Bonds |
|
|
|
|
|
|
|
Europe ex UK |
1,703 |
0.1 |
(9) |
(1,694) |
- |
- |
|
Asia Pacific ex Japan |
43,237 |
2.4 |
(3,321) |
(27,467) |
12,449 |
0.6 |
|
Latin America |
43,342 |
2.5 |
2,697 |
(29,557) |
16,482 |
0.8 |
|
Africa & Middle East |
15,035 |
0.8 |
2,253 |
231 |
17,519 |
0.9 |
|
|
103,317 |
5.8 |
1,620 |
(58,487) |
46,450 |
2.3 |
|
Total Investments |
1,764,994 |
100.0 |
272,801 |
(44,583) |
1,993,212 |
100.0 |
Outlook
We expect the challenging backdrop to persist, characterised by economic uncertainty, elevated geopolitical tensions and conflicts. Market performance broadened out towards the end of the year, particularly in the US. However, the significant driver of expected earnings growth remains concentrated in US mega-cap technology stocks, which increases vulnerability to sector-specific shocks or a slowdown, should broader market participation fail to materialise. Although trade-related concerns have eased somewhat, the situation in the Middle East and tensions in regions such as Eastern Europe and between East and West more broadly, continue to present meaningful risks.
The Federal Reserve has initiated rate cuts, but policymakers remain divided on the appropriate path forward. Investors are watching closely for any signs of pressure on the Fed's independence, particularly if inflation or labour market tightness were to re-emerge. Historically, rate cuts in a non-recessionary environment (as we are in today), have tended to be constructive for equities, reducing borrowing costs and supporting growth and cyclical sectors. However, the current environment is complicated by the risk that markets interpret rate reductions as politically motivated, which could blunt their impact and make monetary policy a less effective tool than in the past. At the same time, many companies continue to hold strong cash positions and manageable leverage, providing flexibility to navigate a slower growth backdrop. Corporate earnings also remain resilient across many sectors, reinforcing the value of maintaining a selective approach.
Artificial Intelligence continues to be the defining theme of the current market cycle, driving extraordinary gains and reshaping corporate investment priorities. While its long-term transformative potential is clear, the rally remains highly concentrated, leaving investors to balance powerful structural tailwinds against the risk of speculative excess. Valuations appear to be supported by current growth expectations, but the pace of investment and earnings expansion will inevitably slow at some point. We remain exposed to the AI theme on your behalf, while remaining mindful of the scale of that exposure following recent strong performance. If AI is to be as seismic and transformative as many expect, history reminds us that no major technological revolution has unfolded seamlessly or without periods of dislocation elsewhere in the economy-or without interruptions in monetisation for the companies involved.
It is natural to look back to the late stages of the 1999 Tech Bubble and draw parallels around market concentration and elevated multiples, and to caution against justifying valuations with the phrase "this time is different." Yet we must also recognise that when markets become concentrated and expectations run high, the margin for error narrows and gravity becomes a powerful force. Selectivity will remain critical. Our focus will continue to be on quality, diversification and disciplined risk management as markets navigate these conflicting signals. While recent performance has been encouraging, the broader backdrop is likely to remain noisy.
We will continue to concentrate on the factors we can control - challenging portfolio holdings, scrutinising positioning, maintaining a long-term perspective and using bouts of market weakness to strengthen alignment with our investment objective. Our aim remains unchanged: to deliver attractive, growing income alongside long-term capital growth, supporting shareholders' wealth creation over time.
|
Martin Connaghan, Senior Investment Director Joined Aberdeen in 1998 and has been involved in the management of global equity portfolios for over 20 years and directly involved with managing the Company since 2017 |
Samantha Fitzpatrick, Senior Investment Director Joined Aberdeen in 1998 and has been involved in the management of global equity portfolios for over 20 years and directly involved with managing the Company since 2019 |
abrdn Investments Limited
The Manager's Investment Process
Core Investment Beliefs
As an active equity investor, the Investment Manager's approach to equity investing is underpinned by three core investment beliefs:
- Fundamental research is the key to delivering insights that can be used to exploit situations where the Investment Manager believes the market is not correctly valuing a company and so identify the best investment opportunities. Such market inefficiencies can arise from mispricing, information asymmetry or behavioural biases amongst investors who often have very different investment time horizons.
- By including constructive engagement and environmental, social and governance (ESG) considerations at the heart of its company research, the Investment Manager believes that risks can be mitigated, and returns for clients enhanced, as companies with robust ESG practices tend to enjoy long-term financial benefits.
- That disciplined, active investment with the aim of using stock specific insights to build high conviction portfolios and provide access to the Investment Manager's best investment ideas can deliver superior outcomes for clients.
Idea Generation
The Company's portfolio managers are Martin Connaghan and Samantha Fitzpatrick, who form part of Aberdeen's equity division. When searching for investments for the Company's portfolio, the portfolio managers benefit from insights and ideas from the Investment Manager's c.110-strong active equity division, which is spread over 12 cities across the globe. Cross-asset class and macro-economic insights are also gained from conversations held between the portfolio managers and other teams such as Credit, Real Estate and the Aberdeen Research Institute. Analyst recommendations on every stock under coverage are quantitively measured, recognising that company insights are a critical component of alpha generation in portfolios over time.
The Investment Manager's reputation as a responsible long-term investor means the investment management team has first-rate access to the companies under research. Through structured meetings and regular conversations, the Investment Manager gathers insights from both executive management teams and non-executive directors.
Research
The Investment Manager has developed a proprietary research platform used by all its equity, credit and ESG teams, giving instant access to research globally. The research is focused on four key areas:
Foundations - the Investment Manager analyses how a company makes money, the attractiveness and characteristics of its industry, and the strength and sustainability of the economic competitive advantage or 'moat'. This includes a thorough evaluation of the company's ESG risks and opportunities. Face-to-face meetings help confirm the Investment Manager's understanding and challenge the key elements of a company's fundamentals including:
- The evolution and growth of the business.
- The sustainable competitive advantage.
- Management's track record of execution and managing risk.
- The balance sheet and financials.
- ESG risks and opportunities.
Dynamics - shorter and longer-term business dynamics are one of the critical determinants of a company's corporate value over time. In addition, the Investment Manager looks for changes in the factors driving the market price of a stock, identifying the drivers that the broader market may not be pricing in. Understanding the dynamics behind these drivers allows the Investment Manager to focus on the factors that will drive shareholder returns from a particular stock.
Financials and Valuation - the Investment Manager examines the strengths and weaknesses of a company's financials, including a detailed analysis of the balance sheet, cash flow and accounting practices, the market's perception of the company's future prospects and value, and its own forecasts of future financials and how the stock should be priced. This includes significant focus on the dividend paying capability of each business and the potential for dividend growth.
Investment Insight and Risk - the Investment Manager articulates its investment thesis, explaining how it views a stock differently from the market consensus and how it expects to crystallise value from the holding over time, while also flagging any key risks.
Peer Review
Having a common investment language internally facilitates effective communication and comparison of investment ideas through peer review which is a critical part of the investment process. All investment ideas are subject to rigorous peer review, both at regular meetings and on an ad-hoc basis.
Martin Connaghan and Samantha Fitzpatrick form part of a dedicated equity income group consisting of senior team members with clear accountability for various income strategies. This group debates stock holdings, portfolio structure and risk profiles.
Portfolio Construction/Risk Controls
The Company's portfolio is built from the bottom up by Martin Connaghan and Samantha Fitzpatrick, who prioritise high conviction stock ideas, once they have been debated, in a risk aware framework. The portfolio risk tolerance is derived from the Company's investment objective and required outcomes.
As an active equity investor, the Investment Manager has adopted a disciplined portfolio construction process which takes appropriate and intentional risk to drive returns. Risk systems monitor and analyse risk exposures across multiple perspectives breaking down the risk within the portfolio by industry and country factors, by currency and macro factors, and by other fundamental factors (quality, momentum, etc). Consideration of risk starts at the stock level with rigorous company research helping the management team to avoid stock specific errors. Martin Connaghan and Samantha Fitzpatrick ensure that any sector or country risk is appropriately sized and managed relative to the overall objectives of Company. Portfolios built by the Investment Manager's management teams are formally reviewed on a regular basis with the Investment Manager's Global Head of Equities and its Investment Governance and Risk teams. This oversight monitors portfolio risk and oversees operational risk to ensure client objectives are met.
Integrated ESG and Climate Change Analysis
Whilst ESG factors are not the overriding criteria in relation to the investment decisions taken by the management team for the Company, significant attention is given to ESG and climate related factors throughout the investment process. By embedding ESG analysis into the active equity investment process, the Investment Manager aims to enhance potential value for shareholders, reducing risk and investing in companies that can contribute positively to the world. In the Investment Manager's view, companies that successfully manage climate change risks will perform better in the long term. It is important that the Investment Manager assesses the financial implications of material climate change risks across all asset classes, including real assets, to make portfolios more resilient to climate risk. Further details of the Manager's embedded ESG process are contained on pages 121 and 122 of the published Annual Report and financial statements for the year ended 31 December 2025.
abrdn Investments Limited
3 March 2026
Key Performance Indicators (KPIs)
The Board uses a number of financial and operating performance measures to assess the Company's success in achieving its investment objective and to determine the progress of the Company in pursuing its investment policy. The Board has identified the Company's main KPIs (refer to Glossary on pages 127 to 129 of the published Annual Report and financial statements for the year ended 31 December 2025 for definitions) which it considers at each Board meeting. These KPIs are as follows:
|
KPI |
Description |
|
Dividend |
Absolute Growth: The Board's aim is to seek to increase the Company's revenues over time in order to maintain an above average dividend yield. The Board measures average yield against the rate of RPI and against other investment options including the average of the Peer Group (the AIC Global Equity Income sector excluding market capitalisations below £100m). Dividends paid over the past 10 years are set out on page 37 of the published Annual Report and financial statements for the year ended 31 December 2025 together with a chart showing the Peer Group and Benchmark long-term yields. There is also a graph showing dividend growth compared to inflation on page 36 of the published Annual Report and financial statements for the year ended 31 December 2025. Relative Yield: The Board also monitors the yield level against the Benchmark Index, the rate of RPI and other investment trusts' yields within the Company's Peer Group over a range of time periods, taking into consideration the differing investment policies and objectives employed by those companies. |
|
NAV Performance |
Absolute Performance: The Board considers the Company's NAV total return figures to be the best indicators of performance over time, and these are the main indicators of performance used by the Board. Relative Performance: The Board also measures NAV total return performance against the Benchmark. A graph showing the NAV and Benchmark total returns is shown on page 36 of the published Annual Report and financial statements for the year ended 31 December 2025. |
|
Share Price Performance |
Absolute Performance: The Board monitors the share price absolute return over time. Relative Performance: The Board also monitors the price at which the Company's shares trade relative to the Benchmark on a total return basis over time and a graph showing absolute and relative share price performance is shown on page 36 of the published Annual Report and financial statements for the year ended 31 December 2025. In addition, there is further commentary on the performance in the Chair's Statement and Investment Manager's Review. |
|
Share Price Discount/Premium to NAV |
The discount/premium relative to the NAV per share represented by the share price is closely monitored by the Board. The objective is to avoid large fluctuations in the discount/premium by the use of share buybacks and the issuance of new shares or the sale of Treasury shares, subject to market conditions. A graph showing the share price premium/(discount) relative to the NAV and investment trust sector (excluding VCTs) is shown on page 36 of the published Annual Report and financial statements for the year ended 31 December 2025. |
|
Gearing |
The Board's aim is to ensure that gearing as a percentage of NAV (shareholders' funds) is kept within the Board's guidelines issued to the Manager as disclosed on page 38 of the published Annual Report and financial statements for the year ended 31 December 2025. |
|
Ongoing Charges Ratio (OCR) |
Absolute Performance: The Board monitors the level and longer-term trend of the Company's OCR in absolute terms. Relative Performance: The Board also monitors the level and relative trend of the OCR versus the Company's Peer Group, taking into consideration the differing investment policies and objectives employed by those companies. A key element of the OCR is the management fee which is reviewed regularly to ensure that it remains competitive against the Peer Group. Details of the annual OCR trend are disclosed on page 35 of the published Annual Report and financial statements for the year ended 31 December 2025 and there is a chart showing published OCR data for the Peer Group on page 37 of the published Annual Report and financial statements for the year ended 31 December 2025. |
Performance Track Record
Total Return
|
% Return |
1 year |
3 year |
5 year |
10 year |
|
Share priceAB |
+36.0 |
+43.7 |
+85.8 |
+219.3 |
|
Net asset value per Ordinary shareA |
+21.9 |
+43.1 |
+77.7 |
+199.7 |
|
UK RPI |
+4.2 |
+13.3 |
+38.3 |
+56.8 |
|
BenchmarkC |
+12.6 |
+56.1 |
+73.7 |
+241.7 |
|
A Considered to be an Alternative Performance Measure (see page 119 of the published Annual Report and financial statements for the year ended 31 December 2025 for more details). |
||||
|
B Mid to mid. |
|
|
|
|
|
C From 1 July 2025 the MSCI ACWI High Dividend Yield Index was adopted as the Company's Benchmark Index. Longer term performance is measured against a blend of the Benchmark Index combined with the former composite benchmark (40% of the FTSE World UK Index and 60% of the FTSE World ex-UK Index) for periods up to 27 April 2020 and the former reference index (FTSE All World TR Index) between 28 April 2020 and 30 June 2025. |
||||
|
Source: Aberdeen Group plc, Morningstar & Lipper |
||||
Ten Year Financial Record
|
Year end A |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
2022 |
2023 |
2024 |
2025 |
|
Total revenue (£'000) |
77,333 |
79,471 |
77,105 |
82,417 |
68,918 |
78,737 |
88,745 |
88,833 |
84,216 |
95,942 |
|
Per Ordinary share (p): |
|
|
|
|
|
|
|
|
|
|
|
Net asset value |
227.1 |
250.3 |
221.6 |
238.0 |
227.6 |
248.1 |
258.7 |
268.8 |
278.4 |
325.4 |
|
Share price |
237.6 |
253.6 |
226.4 |
252.0 |
226.0 |
231.2 |
266.8 |
258.0 |
257.5 |
335.0 |
|
Net revenue returnB |
10.2 |
10.4 |
9.9 |
10.8 |
9.3 |
10.3 |
12.0 |
12.1 |
11.6 |
13.9 |
|
DividendsC |
9.5 |
10.0 |
10.3 |
10.7 |
10.9 |
11.0 |
11.2 |
11.5 |
11.8 |
12.4 |
|
Dividend cover |
1.08x |
1.04x |
0.96x |
1.01x |
0.86x |
0.94x |
1.07x |
1.05x |
0.98x |
1.12x |
|
Revenue reserves (£'000) |
70,963 |
75,252 |
73,563 |
75,747 |
66,764 |
62,967 |
69,239 |
75,132 |
74,182 |
85,398 |
|
Shareholders' funds (£'bn) |
1.448 |
1.599 |
1.42 |
1.539 |
1.462 |
1.561 |
1.617 |
1.669 |
1.679 |
1.921 |
|
Ongoing charges ratio(%)D |
0.68 |
0.64 |
0.69 |
0.65 |
0.68 |
0.59 |
0.52 |
0.53 |
0.52 |
0.50 |
|
A Figures for 2016-2022 have been restated to reflect the 5:1 sub-division on 24 April 2023. |
||||||||||
|
B Net revenue return per Ordinary share has been based on the average Ordinary share capital during each year (see note 9 o). |
||||||||||
|
C The figure for dividends per share reflects the years to which their declaration relates and not the years they were paid. |
||||||||||
|
D Considered to be an Alternative Performance Measure as defined on page 118 of the published Annual Report and financial statements for the year ended 31 December 2025. |
||||||||||
Investment Objective and Investment Policy
Investment trusts, such as the Company, are long-term investment vehicles. Typically, investment trusts are externally managed, have no employees, and are overseen by an independent non-executive board of directors. Your Company's Board of Directors sets the investment mandate, monitors the performance of all service providers (including the Manager) and is responsible for reviewing strategy on a regular basis. All of this is done with the aim of preserving and enhancing shareholder value over the longer term.
New Benchmark Index
As reported at the Half Year, the Board reviewed the appropriateness of using the FTSE All-World Index as the Company's "Reference Index". As a result of this review, the Board concluded that it would be more helpful for shareholders if the index against which the portfolio's performance is measured was more reflective of the Company's investment style. The Board therefore determined that with effect from 1 July 2025, the previous reference index should be changed and the MSCI ACWI High Dividend Yield Index adopted in its place as the Company's Benchmark Index from that date
Longer term performance is measured against a blend of the Benchmark Index combined with the former composite benchmark (40% of the FTSE World UK Index and 60% of the FTSE World ex-UK Index) for periods up to 27 April 2020 and the former reference index (FTSE All World TR Index) between 28 April 2020 and 30 June 2025.
Investment Objective
The aim of the Company is to achieve an above average dividend yield, with long-term growth in dividends and capital ahead of inflation, by investing principally in global equities.
Investment Policy
There are a number of elements set out in the investment policy delegated to the Manager which are set out below:
Asset Allocation
The Company's assets are currently invested in a diversified portfolio of international equities and fixed income securities spread across a range of industries and economies. The Company's investment policy is flexible and it may, from time to time, hold other securities including (but not limited to) index-linked securities, convertible securities, preference shares, unlisted securities, depositary receipts and other equity-related securities. The Company may invest in derivatives for the purposes of efficient portfolio management in the furtherance of its investment objective.
The Company's investment policy does not impose any geographical, sectoral or industrial constraints upon the Manager. The Board has set guidelines which the Manager is required to work within. It is the investment policy of the Company to invest no more than 15% of its gross assets in other listed investment companies (including listed investment trusts), at the time of purchase. The Company currently does not have any investments in other investment companies. The Manager is authorised to enter into stocklending contracts and the Company undertakes limited stocklending activity.
Risk Diversification
The Manager actively monitors the Company's portfolio and attempts to mitigate risk primarily through diversification. The Company is permitted to invest up to 15% of its investments by value in any single holding (at the time of purchase) although, typically, individual investments do not exceed 5% of the total portfolio.
Gearing
The Board considers that returns to shareholders can be enhanced by the judicious use of borrowing. The Board is responsible for the level of gearing in the Company and reviews the position on a regular basis. Any borrowing, except for short-term liquidity purposes, is used for investment purposes or to fund the purchase of the Company's own shares.
Total gearing will not in normal circumstances exceed 30% of net assets with cash deposits netted against the level of borrowings. At the year end, there was net gearing of 4.4% (calculated in accordance with Association of Investment Companies guidance). Particular care is taken to ensure that any bank covenants permit maximum flexibility in investment policy.
Changes to Investment Policy
Any material change to the investment policy will require the approval of the shareholders by way of an ordinary resolution at a general meeting.
Ten Largest Investments
As at 31 December 2025
|
Philip Morris International |
|
Grupo Asur |
|
Holding: 3.3% |
|
Holding: 3.1% |
|
Philip Morris International is one of the world's leading global tobacco companies. It manufactures and sells leading recognisable brands such as Marlboro, Parliament and Virginia Slims. Smoke-free products now account for c.40% of sales and include heat-not-burn, vapour and oral nicotine products. |
|
Grupo ASUR, operates airports in Mexico, and other Central and Latin American countries. The company holds long-term concessions to manage airports in leading tourist resorts and major cities. |
|
|
|
|
|
AbbVie |
|
CME Group |
|
Holding: 3.0% |
|
Holding: 3.0% |
|
AbbVie is a global pharmaceutical company, producing a broad range of drugs for use in speciality therapeutic areas such as immunology, chronic kidney disease, oncology and neuroscience. |
|
CME Group is the world's leading derivatives marketplace, operating major exchanges including the Chicago Mercantile Exchange, Chicago Board of Trade and the New York Mercantile Exchange. It offers futures and options across interest rates, equity indices, foreign exchange and commodities. |
|
|
|
|
|
DBS |
|
Merck & Co |
|
Holding: 2.9% |
|
Holding: 2.7% |
|
DBS Group is a Singapore-based financial services group and one of Asia's largest banks. It operates across a wide global network with a strong focus on Asia and major international finance centres. |
|
Merck & Co is a global pharmaceutical company. The company develops prescription medicines, vaccines, biologic therapies and animal health products. Key therapeutic strengths include oncology, vaccines, infectious diseases and immunology. |
|
|
|
|
|
Cisco Systems |
|
Johnson & Johnson |
|
Holding: 2.7% |
|
Holding: 2.6% |
|
Cisco Systems is a technology company specialising in networking equipment, cybersecurity solutions, collaboration tools, and cloud infrastructure. Its portfolio includes switching and routing hardware, security platforms, wireless networking, and the Webex collaboration suite. Cisco serves enterprises, governments, and service providers worldwide. |
|
Johnson & Johnson is a global healthcare company operating across Innovative Medicine and MedTech. Its pharmaceutical division focuses on oncology, immunology, neuroscience, cardiopulmonary and other high need therapeutic areas. Its MedTech division provides medical devices for surgery, orthopaedics, cardiovascular care and vision. |
|
|
|
|
|
Zurich Insurance |
|
Singapore Telecommunications |
|
Holding: 2.6% |
|
Holding: 2.6% |
|
Zurich Insurance Group offers a wide range of insurance products and services, including general insurance, life insurance, and asset management services. It serves individuals, as well as large and small businesses, in over 200 countries worldwide. |
|
Singtel is Asia's leading communications technology group. It provides mobile, broadband, fixed line, digital TV and ICT (information and communication technology) services across Singapore, Australia and other regional markets. It also delivers enterprise ICT, cybersecurity and digital services across 20+ countries. |
List of Investments
|
|
|
Valuation |
Total |
Valuation |
|
|
|
2025 |
assetsA |
2024B |
|
Company |
Country |
£'000 |
% |
£'000 |
|
Philip Morris International |
US |
66,794 |
3.3 |
67,244 |
|
Grupo Asur |
Mexico |
62,025 |
3.1 |
53,274 |
|
AbbVie |
US |
61,497 |
3.0 |
51,389 |
|
CME Group |
US |
60,908 |
3.0 |
55,628 |
|
DBS |
Singapore |
58,649 |
2.9 |
- |
|
Merck & Co |
US |
54,785 |
2.7 |
35,748 |
|
Cisco Systems |
US |
54,126 |
2.7 |
44,647 |
|
Johnson & Johnson |
US |
53,851 |
2.6 |
33,836 |
|
Zurich Insurance |
Switzerland |
53,652 |
2.6 |
47,454 |
|
Singapore Telecommunications |
Singapore |
52,609 |
2.6 |
36,054 |
|
Top ten investments |
|
578,896 |
28.5 |
|
|
Taiwan Semiconductor Manufacturing |
Taiwan |
51,181 |
2.5 |
73,309 |
|
TotalEnergies |
France |
48,531 |
2.4 |
44,109 |
|
Coca-Cola |
US |
46,785 |
2.3 |
25,610 |
|
Enbridge |
Canada |
46,574 |
2.3 |
50,758 |
|
British American Tobacco |
UK |
46,310 |
2.3 |
31,669 |
|
Samsung Electronics |
Korea |
45,454 |
2.2 |
29,696 |
|
Enel |
Italy |
45,153 |
2.2 |
33,187 |
|
Hong Kong Exchanges |
Hong Kong |
43,973 |
2.2 |
34,242 |
|
Mercedes-Benz |
Germany |
42,108 |
2.1 |
26,585 |
|
Hon Hai Precision Industry |
Taiwan |
39,728 |
1.9 |
32,714 |
|
Top twenty investments |
|
1,034,693 |
50.9 |
|
|
Verizon Communications |
US |
38,779 |
1.9 |
40,902 |
|
UnileverC |
UK & Netherlands |
38,021 |
1.9 |
36,302 |
|
Tryg |
Denmark |
38,002 |
1.9 |
32,776 |
|
Medtronic |
US |
37,863 |
1.9 |
17,542 |
|
Bristol-Myers Squibb |
US |
36,099 |
1.8 |
29,370 |
|
Broadcom Corporation |
US |
36,013 |
1.8 |
72,177 |
|
Sanofi |
France |
34,670 |
1.7 |
27,016 |
|
Intesa Sanpaolo |
Italy |
33,605 |
1.7 |
- |
|
Danone |
France |
33,521 |
1.6 |
26,763 |
|
Shell |
UK |
33,422 |
1.6 |
33,674 |
|
Top thirty investments |
|
1,394,688 |
68.7 |
|
|
BHP Group |
Australia |
31,626 |
1.6 |
27,328 |
|
Infosys |
India |
31,392 |
1.5 |
- |
|
Ping An Insurance |
China |
31,115 |
1.5 |
23,667 |
|
Telenor |
Norway |
30,276 |
1.5 |
17,174 |
|
SCB X |
Thailand |
29,522 |
1.5 |
24,660 |
|
Siemens |
Germany |
29,216 |
1.4 |
39,020 |
|
Diageo |
UK |
28,863 |
1.4 |
25,370 |
|
Walmart de Mexico |
Mexico |
28,724 |
1.4 |
26,132 |
|
Pernod-Ricard |
France |
28,715 |
1.4 |
28,799 |
|
Lowe's Companies |
US |
28,693 |
1.4 |
- |
|
Top forty investments |
|
1,692,830 |
83.3 |
|
|
KONE |
Finland |
26,492 |
1.3 |
- |
|
Industria de Diseno Textil |
Spain |
26,073 |
1.3 |
- |
|
Vale do Rio Doce |
Brazil |
25,773 |
1.3 |
18,857 |
|
Taylor Wimpey |
UK |
25,585 |
1.3 |
18,315 |
|
Rio Tinto |
UK |
25,470 |
1.2 |
- |
|
Telkom Indonesia |
Indonesia |
24,825 |
1.2 |
16,133 |
|
Telefonica Brasil |
Brazil |
20,033 |
1.0 |
13,685 |
|
Woodside Energy |
Australia |
19,732 |
1.0 |
17,012 |
|
Veolia Environnement |
France |
19,450 |
1.0 |
- |
|
Grupo Financiero Banorte |
Mexico |
19,151 |
0.9 |
- |
|
Top fifty investments |
|
1,925,414 |
94.8 |
|
|
Republic of South Africa 7% 28/02/31D |
South Africa |
17,519 |
0.9 |
15,035 |
|
BE Semiconductor |
Netherlands |
17,498 |
0.8 |
49,223 |
|
United Mexican States 5.75% 05/03/26D |
Mexico |
16,482 |
0.8 |
14,653 |
|
HDFC Bank 7.95% 21/09/26D |
India |
6,234 |
0.3 |
6,983 |
|
Power Finance Corp 7.63% 14/08/26D |
India |
6,215 |
0.3 |
6,973 |
|
Santander 10.375% Non Cum PrefD |
UK |
3,850 |
0.2 |
3,547 |
|
Total investments |
|
1,993,212 |
98.1 |
|
|
Net current assetsA |
|
37,688 |
1.9 |
|
|
Total assetsE |
|
2,030,900 |
100.0 |
|
|
A Excluding bank loan. |
|
|
|
|
|
B The 2024 column denotes the Company's holding at 31 December 2024. |
||||
|
C The 2025 holding comprises UK and Netherlands securities, split £21,596,000 (2024 - £19,097,000) and £16,425,000 (2024 - £17,205,000) respectively. |
||||
|
D Quoted preference share or bond. |
||||
|
E See definition on page 129 of the published Annual Report and financial statements for the year ended 31 December 2025. |
||||
Summary of Net Assets
|
|
Valuation |
Valuation |
||
|
|
31 December 2025 |
31 December 2024 |
||
|
|
£'000 |
% |
£'000 |
% |
|
Equities |
1,942,912 |
101.1 |
1,654,770 |
98.6 |
|
Preference shares |
3,850 |
0.2 |
6,907 |
0.4 |
|
Bonds |
46,450 |
2.4 |
103,317 |
6.1 |
|
Total investments |
1,993,212 |
103.7 |
1,764,994 |
105.1 |
|
Net current assetsA |
37,688 |
2.0 |
23,771 |
1.4 |
|
Total assetsB |
2,030,900 |
105.7 |
1,788,765 |
106.5 |
|
BorrowingsC |
(109,926) |
(5.7) |
(109,916) |
(6.5) |
|
Net assets |
1,920,974 |
100.0 |
1,678,849 |
100.0 |
|
A Excluding bank loan. |
|
|
|
|
|
B See definition on page 129 of the published Annual Report and financial statements for the year ended 31 December 2025. |
||||
|
C See note 13 on page 102 of the published Annual Report and financial statements for the year ended 31 December 2025. |
||||
Directors' Report
The Directors present their report and the audited financial statements for the year ended 31 December 2025.
Results and Dividends
Details of the Company's results and proposed dividend are shown on pages 6 and 7 of the published Annual Report and financial statements for the year ended 31 December 2025.
Investment Trust Status
The Company is registered as a public limited company (registered in Scotland No. SC006705) and has been accepted by HM Revenue & Customs as an investment trust subject to the Company continuing to meet the relevant eligibility conditions of Section 1158 of the Corporation Tax Act 2010 and the ongoing requirements of Part 2 Chapter 3 Statutory Instrument 2011/2999 for all financial years commencing on or after 1 January 2012. The Directors are of the opinion that the Company has conducted its affairs for the year ended 31 December 2025 so as to enable it to comply with the ongoing requirements for investment trust status.
The Role of the Chair and Senior Independent Director
The Chair of the Company is responsible for providing effective leadership to the Board, by setting the tone of the Company, demonstrating objective judgement and promoting an embedded culture of openness and debate. The Chair facilitates the effective contribution, and encourages active engagement, by each Director. In conjunction with the Company Secretary, the Chair ensures that Directors receive accurate, timely and clear information to assist them with effective decision-making. The Chair leads the review of the performance of the Board and individual Directors and acts upon the results of the review process by recognising strengths and addressing any weaknesses. The Chair also engages with major shareholders and ensures that all Directors understand shareholder views.
The Senior Independent Director acts as a sounding board for the Chair and acts as an intermediary for other Directors, when necessary. Working closely with the Nomination Committee, the Senior Independent Director takes responsibility for an orderly succession process for the Chair and leads the annual appraisal of the Chair's performance. The Senior Independent Director is also available to shareholders to discuss any concerns they may have. Following the retirement of Mrs Mackesy on 24 April 2025, Ms Colquhoun was appointed Senior Independent Director.
Management of Conflicts of Interest
No Director has a service contract with the Company although Directors are issued with letters of appointment. The Directors' interests in contractual arrangements with the Company are as shown in note 21 to the financial statements and the Directors' Remuneration Report. No Directors had any other interest in contracts with the Company during the period or subsequently.
The Board has a procedure in place to deal with a situation where a Director has a conflict of interest, as required by the Companies Act 2006. As part of this process, the Directors are required to disclose other positions held and all other conflict situations that may need to be authorised either in relation to the Director concerned or his or her connected persons. The Board considers each Director's situation and decides whether to approve any conflict, taking into consideration what is in the best interests of the Company and whether the Director's ability to act in accordance with their wider duties is affected. Each Director is required to notify the Company Secretary of any potential or actual conflict situations that will need authorising by the Board. Authorisations given by the Board are reviewed at each Board meeting. All proposed significant external appointments are also required to be approved, in advance, by the Chair and then communicated to other Directors for information.
The Company has a policy of conducting its business in an honest and ethical manner. The Company takes a zero-tolerance approach to bribery and corruption and has procedures in place that are proportionate to the Company's circumstances to prevent them. The Manager also adopts a group-wide zero tolerance approach and has its own detailed policy and procedures in place to prevent bribery and corruption. Copies of the Manager's anti-bribery and corruption policies are available on
its website.
In relation to the corporate offence of failing to prevent tax evasion, it is the Company's policy to conduct all business in an honest and ethical manner. The Company takes a zero-tolerance approach to facilitation of tax evasion whether under UK law or under the law of any foreign country and is committed to acting professionally, fairly and with integrity in all its business dealings
and relationships.
Corporate Governance
The Corporate Governance Statement forms part of the Directors' Report. The Company is committed to high standards of corporate governance. The Board is accountable to the Company's shareholders for good governance, and this statement describes how the Company has applied the principles identified in the UK Corporate Governance Code as published in January 2024 (the "UK Code"), which is available on the Financial Reporting Council's (the "FRC") website: frc.org.uk.
The Board has also considered the principles and provisions of the AIC Code of Corporate Governance as published in August 2024 (the "AIC Code"). It includes an explanation of how the AIC Code adapts the Principles and Provisions set out in the UK Corporate Governance Code (the UK Code) to make them relevant for investment companies. The AIC Code is available on the AIC's website: theaic.co.uk.
The Board considers that reporting against the principles and provisions of the AIC Code, which has been endorsed by the Financial Reporting Council, provides more relevant information to shareholders.
The Board confirms that, during the year, the Company complied with the principles and provisions of the AIC Code and the relevant provisions of the UK Code, except as set out overleaf.
The UK Code includes provisions relating to:
- interaction with the workforce (provisions 2, 5 and 6);
- the role and responsibility of the chief executive (provisions 9 and 14);
- previous experience of the chair of a remuneration committee (provision 32); and
- executive directors' remuneration (provisions 33 and 36 to 40).
The Board considers that these provisions are not relevant to the position of the Company, being an externally managed investment company. In particular, all of the Company's day-to-day management and administrative functions are outsourced to third parties. As a result, the Company has no executive directors, employees or internal operations. The Company has therefore not reported further in respect of these provisions.
The full text of the Company's Corporate Governance Statement can be found on the Company's website, murray-intl.co.uk. The Board is cognisant of the updated provisions in the UK Code (provision 29) and the AIC Code (provision 34), which are effective for accounting periods beginning on or after 1 January 2026. These provisions relate to the reporting on the Board's monitoring and review of the Company's internal control framework and a declaration by the Board of the effectiveness of the material controls at the balance sheet date. It is the Board's intention that the Company will comply with these updated provisions and include the required disclosures in the Annual Report for the year ending 31 December 2026.
The table below details Directors' attendance at scheduled Board and Committee meetings held during the year ended 31 December 2025 (with eligibility to attend the relevant meeting in brackets). In addition, there were a number of other ad hoc Board meetings held during the year.
|
|
Scheduled Board |
Audit & Risk Com |
Nom. Com |
MEC |
Rem. Com |
|
V. Holmes A |
6 (6) |
3 (3) |
1 (1) |
1 (1) |
1 (1) |
|
C. Binyon |
6 (6) |
3 (3) |
1 (1) |
1 (1) |
1 (1) |
|
W. Colquhoun |
6 (6) |
3 (3) |
0 (1) |
1 (1) |
1 (1) |
|
G. Eckersley |
6 (6) |
3 (3) |
1 (1) |
1 (1) |
1 (1) |
|
J. Huysinga B |
4 (4) |
2 (2) |
0 (0) |
0 (0) |
1 (1) |
|
A. Mackesy C |
2 (2) |
1 (1) |
1 (1) |
1 (1) |
0 (0) |
|
N. Melhuish |
6 (6) |
3 (3) |
1 (1) |
1 (1) |
1 (1) |
|
A Ms Holmes attended Audit and Risk Committee meetings during the year by invitation B Mr Huysinga was appointed to the Board on 1 May 2025 C Mrs Mackesy retired from the Board on 24 April 2025 |
|||||
Board Committees
Terms of Reference
The terms of reference of all the Board Committees may be found on the Company's website murray-intl.co.uk and copies are available from the Company Secretary upon request. The terms of reference are reviewed and re-assessed by the Board for their adequacy on an annual basis.
Audit and Risk Committee
The Report of the Audit and Risk Committee is on pages 73 and 74 of the published Annual Report and financial statements for the year ended 31 December 2025.
Management Engagement Committee ("MEC")
The MEC comprises all of the Directors and is chaired by Ms Colquhoun. The Committee reviews the performance of the Manager and its compliance with the terms of the management and secretarial agreement. The terms and conditions of the Manager's appointment, including an evaluation of fees, are reviewed by the Committee on an annual basis. The Committee believes that the continuing appointment of the Manager on the terms that have been agreed is in the interests of shareholders as a whole. The Committee is also responsible for the oversight and annual review of all other key service provider relationships.
Nomination Committee
All appointments to the Board of Directors are considered by the Nomination Committee which comprises the entire Board and is chaired by Ms Holmes. The Board's overriding priority in appointing new Directors to the Board is to identify the candidate with the best range of skills and experience to complement existing Directors. Given the global investment remit of the Company, the Board also recognises the benefits of diversity and its policy on diversity is referred to in the Strategic Report on page 40 of the published Annual Report and financial statements for the year ended 31 December 2025. When Board positions become available as a result of retirement or resignation, the Company ensures that a diverse group of candidates is considered.
The Board's policy on tenure is that continuity and experience are considered to add significantly to the strength of the Board. The Board also takes the view that independence is not necessarily compromised by length of tenure on the Board. However, in compliance with the provisions of the AIC Code, it is expected that Directors will serve in accordance with the time limits laid down by the AIC Code. It is the policy of the Board that the Chair of the Company should retire once he or she has served as a Director for nine years in line with current best practice of the Financial Reporting Council. However, there could be circumstances where it might be appropriate to ask a Chair or another Director to stay on for a limited period and in this case the reasons for the extension would be fully explained to shareholders and a timetable for the departure of the relevant individual clearly set out.
As part of the succession planning in advance of Mrs Mackesy's scheduled retirement as a Director in April 2025, the Board conducted a search for a new independent non-executive Director using the services of an independent external recruitment consultant that has no other connections or conflicts with the Company. This process culminated in the appointment of Mr Huysinga as a Director of the Company with effect from 1 May 2025.
The Committee has put in place the necessary procedures to conduct, on an annual basis, an appraisal of the Chair of the Board, Directors' individual self-evaluation and a performance evaluation of the Board as a whole. An external evaluation has been undertaken in respect of the year ended 31 December 2025 using the services of an independent evaluation consultant. The detailed findings were then considered by the Board and the Chair discussed the responses individually with each Director and the Senior Independent Director provided appraisal feedback to the Chair.
In accordance with Provision 23 of the AIC's Code of Corporate Governance which recommends that all directors of investment companies should be subject to annual re-election by shareholders, all the members of the Board will retire at the forthcoming Annual General Meeting and, with the exception of Mr Huysinga who offers himself for election, having been appointed to the Board during the year, each Director will offer themselves for re-election. The Committee has reviewed each of the proposed reappointments and concluded that each of the Directors has the requisite high level and range of business and financial experience and recommends their re-election at the forthcoming AGM. Details of the contributions provided by each Director during the year are disclosed on pages 58 to 60 of the published Annual Report and financial statements for the year ended 31 December 2025.
Remuneration Committee
The level of fees payable to Directors is considered by the Remuneration Committee which comprises the entire Board excluding the Chair who attends by invitation, and which is chaired by Mr Melhuish.
The Company's remuneration policy is to set remuneration at a level to attract individuals of a calibre appropriate to the Company's future development. Further information on remuneration is disclosed in the Directors' Remuneration Report on pages 69 to 72 of the published Annual Report and financial statements for the year ended 31 December 2025.
Going Concern
The Directors have undertaken a robust review of the Company's viability including scenario and sensitivity analysis (refer to statement on page 48 of the published Annual Report and financial statements for the year ended 31 December 2025) and ability to continue as a going concern and consider that there are no material uncertainties. The Company's assets consist of a diverse portfolio of listed equity shares and bonds. The equities and a majority of the bond portfolio are, in most circumstances, realisable within a very short timescale and the Company itself has a strong balance sheet with considerable levels of distributable reserves.
The Directors are mindful of the principal and emerging risks and uncertainties disclosed on pages 45 to 47 of the published Annual Report and financial statements for the year ended 31 December 2025 and have reviewed forecasts detailing revenue and liabilities. The Directors believe that the Company has adequate financial resources to continue its operational existence for 12 months from the date of this Annual Report. Accordingly, the Directors continue to adopt the going concern basis in preparing these financial statements.
Accountability and Audit
Each Director confirms that, so far as he or she is aware, there is no relevant audit information of which the Company's auditor is unaware, and he or she has taken all the steps that they ought to have taken as a Director in order to make themselves aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
Independent Auditor
BDO LLP was appointed independent auditor to the Company with effect from the AGM on 27 April 2020. BDO LLP has expressed its willingness to continue to be the Company's independent auditor and a Resolution to re-appoint BDO LLP as the Company's auditor will be put to the forthcoming AGM, along with a separate Resolution to authorise the Directors to fix the auditor's remuneration.
Internal Controls and Risk Management
Details of the financial risk management policies and objectives relative to the use of financial instruments by the Company including information on exposure to price risk, credit risk, liquidity risk and cash flow risk are set out in note 18 to the financial statements. The Board of Directors is ultimately responsible for the Company's system of internal control and for reviewing its effectiveness. Following the Financial Reporting Council's publication of "Guidance on Risk Management, Internal Controls and Related Financial and Business Reporting" (the "FRC Guidance"), the Directors confirm that there is an ongoing process for identifying, evaluating and managing the significant risks faced by the Company. This process has been in place for the full year under review and up to the date of approval of the financial statements, and this process is regularly reviewed by the Board and accords with the relevant sections of the FRC Guidance.
The Board has reviewed the effectiveness of the system of internal control and, in particular, it has reviewed the process for identifying and evaluating the significant risks faced by the Company and the policies and procedures by which these risks are managed.
The Directors have delegated the investment management of the Company's assets to aFML within overall guidelines and this embraces implementation of the system of internal control, including financial, operational and compliance controls and risk management. Internal control systems are monitored and supported by aFML's internal audit function which undertakes periodic examination of business processes, including compliance with the terms of the management agreement, and ensures that recommendations to improve controls are implemented.
Risks are identified and documented through a risk management framework by each function within the Manager's activities. Risk is considered in the context of the FRC Guidance and includes financial, regulatory, market, operational and reputational risk. This helps the Manager's internal audit risk assessment model to identify those functions for review. Any relevant weaknesses identified through internal audit's review are reported to the Board and timetables are agreed for implementing improvements to systems, processes and controls. The implementation of any remedial action required is monitored and feedback provided to the Board.
The key components designed to provide effective internal control for the year under review and up to the date of this Report are outlined below:
- the Manager prepares forecasts and management accounts which allow the Board to assess the Company's activities and review its investment performance;
- the Board and Manager have agreed clearly defined investment criteria;
- there are specified levels of authority and exposure limits. Reports on these issues, including performance statistics and investment valuations, are regularly submitted to the Board. The Manager's investment process and financial analysis of the companies concerned include detailed appraisal and due diligence;
- as a matter of course, the internal audit and compliance departments of aFML continually review the Manager's operations;
- written agreements are in place which specifically define the roles and responsibilities of the Manager and other third-party service providers and monitoring reports are received from these providers when required;
- the Board has considered the need for an internal audit function but, because of the compliance and internal control systems in place at the Manager, has decided to place reliance on the Manager's systems and internal audit procedures; and
- twice a year, at its Board meetings, the Board carries out an assessment of the effectiveness of internal controls and risk management by considering documentation from the Manager, including its internal audit and compliance functions and taking account of events since the relevant period end.
In addition, the Manager operates a 'three lines of defence' model over its activities with the Aberdeen business units responsible for adhering to applicable rules and regulations; the compliance team is then responsible for checking that the rules are being followed and then internal audit is responsible for independently reviewing these arrangements.
The Manager ensures that clearly documented contractual arrangements exist in respect of any activities that have been delegated to external professional organisations. The Board meets annually with representatives from BNY Mellon and reviews a control report covering the activities of the depositary and custodian.
Representatives from the Internal Audit Department of the Manager report six monthly to the Audit and Risk Committee of the Company and have direct access to the Directors at any time.
The Board has reviewed the effectiveness of the Manager's system of internal control including its annual internal controls report prepared in accordance with the International Auditing and Assurance Standards Board's International Standard on Assurances Engagements ("ISAE") 3402, "Assurance Reports on Controls at a Service Organisation" for the period to 30 September 2025 together with bridging letter support to 31 December 2025. The Board has also reviewed the Manager's process for identifying and evaluating the significant risks faced by the Company and the policies and procedures by which these risks are managed. The internal control systems are designed to meet the Company's particular needs and the risks to which it is exposed. Accordingly, the internal control systems are designed to manage rather than eliminate the risk of failure to achieve business objectives and, by their nature, can provide reasonable but not absolute assurance against material misstatement or loss.
Future Developments
A detailed outlook for the Company including any likely future developments is provided in the Chair's Statement on page 13 of the published Annual Report and financial statements for the year ended 31 December 2025.
There have been no post balance sheet events to report.
Substantial Interests
The Board is aware of the following shareholders that owned 3% or more of the issued Ordinary share capital of the Company at 31 December 2025:
|
Shareholder |
No. of Ordinary shares held |
% held |
|
Interactive Investor A |
100,442,015 |
17.0 |
|
Hargreaves Lansdown A |
77,703,376 |
13.2 |
|
Rathbones |
59,780,228 |
10.1 |
|
Charles Stanley |
32,958,837 |
5.6 |
|
Evelyn Partners |
31,009,944 |
5.3 |
|
AJ Bell |
28,184,863 |
4.8 |
|
HSDL A |
18,192,320 |
3.0 |
|
A Non-beneficial interest |
|
|
There have been no significant changes notified in respect of the Substantial Interests between 31 December 2025 and 3 March 2026.
The UK Stewardship Code and Proxy Voting
Responsibility for actively monitoring the activities of portfolio companies has been delegated by the Board to the AIFM which has sub-delegated that authority to the Manager.
The Manager is a tier 1 signatory of the UK Stewardship Code which aims to enhance the quality of engagement by investors with investee companies in order to improve their socially responsible performance and the long-term investment return to shareholders.
Business of the Annual General Meeting
Issue of Shares
Pursuant to the Companies Act 2006 (the "Act"), the Directors may not allot shares unless so authorised by the shareholders. Resolution 13 in the Notice of Annual General Meeting which will be proposed as an Ordinary Resolution will, if passed, give the Directors the necessary authority to allot Ordinary shares up to an aggregate nominal amount of £2,958,919 (equivalent to 59,178,387 Ordinary shares of 5p or 10% of the Company's existing issued share capital at 3 March 2026, the latest practicable date prior to the publication of this Annual Report). Such authority will expire on the date of the 2027 Annual General Meeting or on 30 June 2027, whichever is earlier. The Directors currently intend to seek renewal of this authority at the next Annual General Meeting and at each subsequent Annual General Meeting.
When shares are to be allotted for cash, Section 561 of the Act provides that existing shareholders have pre-emption rights and that the new shares must be offered first to such shareholders in proportion to their existing holding of Ordinary shares. However, shareholders can, by special resolution, disapply these pre-emption rights and authorise the Directors to allot shares otherwise than by a pro rata issue to existing shareholders. Accordingly, Special Resolution 14 will, if passed, give the Directors power to allot equity securities for cash up to an aggregate nominal amount of £2,958,919 (equivalent to 59,178,387 Ordinary shares of 5p or 10% of the Company's existing issued share capital at 3 March 2026, the latest practicable date prior to the publication of this Annual Report), as if Section 561 of the Act does not apply. This is the same nominal amount of share capital which the Directors are seeking authority to allot pursuant to Resolution 13. This authority will also expire on the date of the 2027 Annual General Meeting or on 30 June 2027, whichever is earlier. This authority will not be used in connection with a rights issue by the Company.
The Directors intend to use the authority given by Resolutions 13 and 14 to allot shares on a non-pre-emptive basis only in circumstances where this will be clearly beneficial to shareholders as a whole. Accordingly, issues will only be made where shares can be issued at a premium of 0.5% or more to NAV, meaning that there should never be any NAV dilution for existing shareholders. The issue proceeds will be available for investment in line with the Company's investment policy. No issue of shares will be made which would effectively alter the control of the Company without the prior approval of shareholders in general meeting. Resolution 14 will also disapply pre-emption rights on the sale of Ordinary shares from Treasury. Once again, pre-emption rights would only be disapplied where the Treasury shares are sold at a premium to NAV of not less than 0.5%.
Share Buybacks
At the Annual General Meeting held on 24 April 2025, shareholders approved the renewal of the authority permitting the Company to make market purchases of its Ordinary shares. This renewed authority will expire at the conclusion of the upcoming Annual General Meeting. Accordingly, the Directors propose to seek shareholder approval at the Annual General Meeting to renew this authority for another year.
The principal aim of a share buyback facility is to enhance shareholder value by acquiring shares at a discount to NAV, as and when the Directors consider this to be appropriate. The purchase of shares, when they are trading at a discount to NAV per share, should result in an increase in the NAV per share for the remaining shareholders. This authority, if conferred, will only be exercised if to do so would result in an increase in the NAV per share for the remaining shareholders and if it is in the best interests of shareholders generally. Any purchase of shares will be made within guidelines established from time to time by the Board.
Under the FCA's Listing Rules, the maximum price that may be paid on the exercise of this authority must not be more than the higher of (i) an amount equal to 105% of the average of the middle market quotations for a share taken from the London Stock Exchange Daily Official List for the five business days immediately preceding the day on which the share is purchased; and (ii) the higher of the last independent trade and the current highest independent bid on the trading venue where the purchase is carried out. The minimum price which may be paid is the nominal value of the share. It is currently proposed that any purchase of shares by the Company will be made from the capital reserve of the Company. The purchase price will normally be paid out of the cash balances held by the Company from time to time.
Special Resolution 15 will permit the Company to buy back shares and any shares bought back by the Company may be cancelled or held as Treasury shares. The benefit of holding Treasury shares is that such shares may be resold. This should give the Company greater flexibility in managing its share capital and improve liquidity in its shares. The Company would only sell Treasury shares at a premium to NAV. When shares are held in Treasury, all voting rights are suspended and no distribution (either by way of dividend or by way of a winding up) is permitted in respect of such Treasury shares. If the Directors believe that there is no likelihood of re-selling shares that are bought back, such shares would instead be cancelled. During the year to 31 December 2025 the Directors successfully used the share buyback authority to acquire 12,876,886 shares for Treasury.
Special Resolution 15 in the Notice of Annual General Meeting will renew the authority to purchase in the market a maximum of 14.99% of shares in issue at the date of the Annual General Meeting (amounting to 88,708,403 Ordinary shares of 5p as at 3 March 2026). Such authority will expire on the date of the 2027 Annual General Meeting or on 30 June 2027, whichever is earlier. This means in effect that the authority will have to be renewed at the next Annual General Meeting to allow the Directors to continue to buy back shares, or earlier if the authority has been exhausted.
Recommendation
The Directors consider that all the resolutions to be proposed at the Annual General Meeting are in the best interests of the shareholders taken as a whole and recommend that all shareholders vote in favour of the resolutions, as the Directors intend to in respect of their own beneficial holdings of Ordinary shares amounting in aggregate to 72,487 shares, representing approximately 0.01% of the Company's issued share capital as at 3 March 2026.
By order of the Board of Murray International Trust PLC
abrdn Holdings Limited
Secretary
1 George Street, Edinburgh EH2 2LL
3 March 2026
Statement of Directors' Responsibilities
Directors' Responsibilities
The Directors are responsible for preparing the Annual Report and the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice, the requirements of the Companies Act 2006 and applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss for the Company for that period.
In preparing these financial statements, the Directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business; and
- prepare a director's report, a strategic report and director's remuneration report which comply with the requirements of the Companies Act 2006.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006.
They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In accordance with their responsibilities, the Directors confirm that, to the best of their knowledge, the Annual Report and financial statements, taken as a whole, is fair, balanced, and understandable and provides the information necessary for shareholders to assess the position, performance, business model and strategy.
Website Publication
The Directors are responsible for ensuring the Annual Report and the financial statements are made available on a website. Financial statements are published on murray-intl.co.uk, the Company's website, in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the Company's website is the responsibility of the Directors. The Directors' responsibility also extends to the ongoing integrity of the financial statements contained therein.
Directors' Responsibilities Pursuant to DTR4
The Directors confirm to the best of their knowledge:
- The financial statements have been prepared in accordance with the applicable accounting standards and give a true and fair view of the assets, liabilities, financial position and profit of the Company; and
- The Annual Report includes a fair review of the development and performance of the business and the financial position of the Company, together with a description of the principal risks and uncertainties that they face.
For Murray International Trust PLC
Virginia Holmes
Chair
3 March 2026
Statement of Comprehensive Income
|
|
|
Year ended 31 December 2025 |
Year ended 31 December 2024 |
||||
|
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
|
Notes |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Gains on investments |
10 |
- |
272,801 |
272,801 |
- |
63,053 |
63,053 |
|
Income |
3 |
95,942 |
399 |
96,341 |
84,216 |
301 |
84,517 |
|
Investment management fees |
4 |
(2,203) |
(5,139) |
(7,342) |
(2,137) |
(4,985) |
(7,122) |
|
Currency losses |
|
- |
(164) |
(164) |
- |
(1,273) |
(1,273) |
|
Administrative expenses |
5 |
(1,658) |
(34) |
(1,692) |
(1,738) |
(59) |
(1,797) |
|
Net return before finance costs and taxation |
|
92,081 |
267,863 |
359,944 |
80,341 |
57,037 |
137,378 |
|
Finance costs |
6 |
(849) |
(1,980) |
(2,829) |
(928) |
(2,165) |
(3,093) |
|
Return before taxation |
|
91,232 |
265,883 |
357,115 |
79,413 |
54,872 |
134,285 |
|
Taxation |
7 |
(8,640) |
100 |
(8,540) |
(8,438) |
860 |
(7,578) |
|
Return attributable to equity shareholders |
|
82,592 |
265,983 |
348,575 |
70,975 |
55,732 |
126,707 |
|
|
|
|
|
|
|
|
|
|
Return per Ordinary share (pence) |
9 |
13.9 |
44.8 |
58.7 |
11.6 |
9.1 |
20.7 |
|
|
|
|
|
|
|
|
|
|
The "Total" column of this statement represents the profit and loss account of the Company. There is no other comprehensive income and therefore the return after taxation is also the total comprehensive income for the year. The 'Revenue' and 'Capital' columns represent supplementary information prepared under guidance issued by the Association of Investment Companies. |
|||||||
|
All revenue and capital items in the above statement derive from continuing operations. |
|||||||
|
The accompanying notes are an integral part of these financial statements. |
|||||||
Statement of Financial Position
|
|
|
As at |
As at |
|
|
|
31 December 2025 |
31 December 2024 |
|
|
Notes |
£'000 |
£'000 |
|
Fixed assets |
|
|
|
|
Investments at fair value through profit or loss |
10 |
1,993,212 |
1,764,994 |
|
|
|
|
|
|
Current assets |
|
|
|
|
Prepayments and accrued income |
11 |
6,415 |
7,591 |
|
Other debtors |
11 |
10,663 |
10,577 |
|
Cash at bank and in hand |
|
24,966 |
8,732 |
|
|
|
42,044 |
26,900 |
|
|
|
|
|
|
Creditors: amounts falling due within one year |
|
|
|
|
Other creditors |
12 |
(4,356) |
(3,129) |
|
|
|
(4,356) |
(3,129) |
|
Net current assets |
|
37,688 |
23,771 |
|
Total assets less current liabilities |
|
2,030,900 |
1,788,765 |
|
|
|
|
|
|
Creditors: amounts falling due after more than one year |
|
|
|
|
Loan Notes |
12,13 |
(109,926) |
(109,916) |
|
Net assets |
|
1,920,974 |
1,678,849 |
|
|
|
|
|
|
Capital and reserves |
|
|
|
|
Called-up share capital |
14 |
32,353 |
32,353 |
|
Share premium account |
|
363,461 |
363,461 |
|
Capital redemption reserve |
|
8,230 |
8,230 |
|
Capital reserve |
15 |
1,431,532 |
1,200,623 |
|
Revenue reserve |
|
85,398 |
74,182 |
|
Equity shareholders' funds |
|
1,920,974 |
1,678,849 |
|
|
|
|
|
|
Net asset value per Ordinary share (pence) |
16 |
325.4p |
278.4p |
|
|
|
|
|
|
The financial statements were approved and authorised for issue by the Board of Directors on 3 March 2026 and were signed on its behalf by: |
|||
|
Virginia Holmes |
|||
|
Director |
|||
|
Company Number: SC006705 |
|
|
|
|
The accompanying notes are an integral part of these financial statements. |
|||
Statement of Changes in Equity
|
For the year ended 31 December 2025 |
|||||||
|
|
|
|
Share |
Capital |
|
|
|
|
|
|
Share |
premium |
redemption |
Capital |
Revenue |
|
|
|
|
capital |
account |
reserve |
reserve |
reserve |
Total |
|
|
Notes |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Balance at 31 December 2024 |
|
32,353 |
363,461 |
8,230 |
1,200,623 |
74,182 |
1,678,849 |
|
Return after taxation |
|
- |
- |
- |
265,983 |
82,592 |
348,575 |
|
Dividends paid |
8 |
- |
- |
- |
- |
(71,376) |
(71,376) |
|
Buy back of shares to Treasury |
14 |
- |
- |
- |
(35,074) |
- |
(35,074) |
|
Balance at 31 December 2025 |
|
32,353 |
363,461 |
8,230 |
1,431,532 |
85,398 |
1,920,974 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended 31 December 2024 |
|||||||
|
|
|
|
Share |
Capital |
|
|
|
|
|
|
Share |
premium |
redemption |
Capital |
Revenue |
|
|
|
|
capital |
account |
reserve |
reserve |
reserve |
Total |
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Balance at 31 December 2023 |
|
32,353 |
363,461 |
8,230 |
1,189,686 |
75,132 |
1,668,862 |
|
Return after taxation |
|
- |
- |
- |
55,732 |
70,975 |
126,707 |
|
Dividends paid |
8 |
- |
- |
- |
- |
(71,925) |
(71,925) |
|
Buy back of shares to Treasury |
14 |
- |
- |
- |
(44,795) |
- |
(44,795) |
|
Balance at 31 December 2024 |
|
32,353 |
363,461 |
8,230 |
1,200,623 |
74,182 |
1,678,849 |
|
|
|
|
|
|
|
|
|
|
The capital reserve at 31 December 2025 is split between realised gains of £945,567,000 and unrealised gains of £485,965,000 (31 December 2024 - realised gains of £841,238,000 and unrealised gains of £359,385,000). |
|||||||
|
The Company's reserves available to be distributed by way of dividends or buybacks which includes the revenue reserve and the realised element of the capital reserve amount to £1,030,965,000 (31 December 2024 - £915,420,000). |
|||||||
|
The accompanying notes are an integral part of these financial statements. |
|||||||
Statement of Cash Flows
|
|
|
Year ended |
Year ended |
|
|
|
31 December 2025 |
31 December 2024 |
|
|
Notes |
£'000 |
£'000 |
|
Net return before finance costs and taxation |
|
359,944 |
137,378 |
|
Increase/(decrease) in accrued expenses |
|
1,873 |
(459) |
|
Overseas withholding tax |
|
(8,866) |
(7,881) |
|
Decrease in accrued income |
|
3,116 |
150 |
|
Interest paid |
|
(2,818) |
(3,161) |
|
Gains on investments |
|
(272,801) |
(63,053) |
|
Overseas dividends - capital |
|
(399) |
(301) |
|
Currency losses on foreign currency cash |
|
13 |
6 |
|
Decrease/(increase) in other debtors |
|
14 |
(40) |
|
Return of capital included in investment income |
|
399 |
301 |
|
Net cash inflow from operating activities |
|
80,475 |
62,940 |
|
|
|
|
|
|
Investing activities |
|
|
|
|
Purchases of investments |
|
(388,710) |
(227,021) |
|
Sales of investments |
|
431,579 |
313,188 |
|
Net cash from investing activities |
|
42,869 |
86,167 |
|
|
|
|
|
|
Financing activities |
|
|
|
|
Equity dividends paid |
8 |
(71,376) |
(71,925) |
|
Ordinary shares bought back to Treasury |
14 |
(35,721) |
(44,322) |
|
Loan repayment |
|
- |
(30,000) |
|
Net cash used in financing activities |
|
(107,097) |
(146,247) |
|
Increase in cash and cash equivalents |
|
16,247 |
2,860 |
|
|
|
|
|
|
Analysis of changes in cash and cash equivalents during the year |
|
|
|
|
Opening balance |
|
8,732 |
5,878 |
|
Effect of foreign exchange rate movements on cash held |
|
(13) |
(6) |
|
Increase in cash as above |
|
16,247 |
2,860 |
|
Closing cash and cash equivalents |
|
24,966 |
8,732 |
|
|
|
|
|
|
Represented by: |
|
|
|
|
Cash at bank and in hand |
|
24,966 |
8,732 |
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements. |
|||
Notes to the Financial Statements
For the year ended 31 December 2025
|
1. |
Principal activity |
|
|
The Company is a closed-end investment company, registered in Scotland No SC006705, with its Ordinary shares being listed in the premium segment market of the London Stock Exchange. |
|
2. |
Accounting policies |
|
|
|
(a) |
Basis of preparation. The financial statements have been prepared in accordance with Financial Reporting Standard 102 and with the AIC's Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' ("AIC SORP") issued in July 2022. The financial statements are prepared in sterling which is the functional currency of the Company and rounded to the nearest £'000. They have also been prepared on the assumption that approval as an investment trust will continue to be granted. |
|
|
|
The Directors have undertaken a robust review of the Company's viability including scenario and sensitivity analysis (refer to statement on page 48 of the published Annual Report and financial statements for the year ended 31 December 2025) and ability to continue as a going concern and consider that there are no material uncertainties. The Company's assets consist of a diverse portfolio of listed equity shares and bonds. The equities and a majority of the bond portfolio are, in most circumstances, realisable within a very short timescale and the Company itself has a strong balance sheet with considerable levels of distributable reserves. |
|
|
|
The Directors are mindful of the principal risks and uncertainties disclosed on pages 46 and 47 of the published Annual Report and financial statements for the year ended 31 December 2025 and have reviewed forecasts detailing revenue and liabilities. The Directors believe that the Company has adequate financial resources to continue its operational existence for the foreseeable future and meet its liabilities as they fall due for a period of at least twelve months from the date of this Annual Report. Accordingly, the Directors continue to adopt the going concern basis in preparing these financial statements. |
|
|
|
Significant accounting judgements, estimates and assumptions. The preparation of financial statements requires the use of certain significant accounting judgements, estimates and assumptions which requires management to exercise its judgement in the process of applying the accounting policies and are continually evaluated. The areas requiring most significant judgement and assumption in the financial statements are: the determination of the fair value hierarchy classification of quoted preference shares and bonds valued at £50,300,000 (2024 - £110,224,000) which have been assessed as being Level 2 as they are not considered to trade in active markets; and also the determination of whether special dividends received are considered to be revenue or capital in nature on a case by case basis. The Directors do not consider there to be any significant accounting estimates applied that have a significant risk of resulting in a material adjustment to the carrying amount of assets and liabilities within the next financial year. |
|
|
(b) |
Income. Dividends receivable on equity shares are treated as revenue for the year on an ex-dividend basis. Where no ex-dividend date is available dividends are recognised on their due date. Provision is made for any dividends not expected to be received. Special dividends are credited to capital or revenue, according to their circumstances including the payee's source of funding and their intention for investing. |
|
|
|
In some jurisdictions, investment income and capital gains are subject to withholding tax deducted at the source of the income. The Company presents the withholding tax separately from the gross investment income in the Statement of Comprehensive Income under taxation. |
|
|
|
The fixed returns on debt securities are recognised on a time apportionment basis so as to reflect the effective yield on the debt securities. |
|
|
|
Interest receivable from cash at bank and in hand is accrued to the end of the year. |
|
|
(c) |
Expenses. All expenses are accounted for on an accruals basis and are charged to the Statement of Comprehensive Income. Expenses are charged against revenue except as follows: |
|
|
|
- transaction costs on the acquisition or disposal of investments are charged against capital in the Statement of Comprehensive Income; and |
|
|
|
- expenses are treated as a capital item in the Statement of Comprehensive Income and ultimately recognised in the capital reserve where a connection with the maintenance or enhancement of the value of the investments can be demonstrated. In this respect the investment management fee has been allocated 30% to revenue and 70% to the capital reserve to reflect the Board's expected long-term split of returns in the form of revenue and capital gains respectively. |
|
|
(d) |
Taxation. The tax expense represents the sum of tax currently payable and deferred tax. Any tax payable is based on the taxable profit for the year. Taxable profit differs from net return as reported in the Statement of Comprehensive Income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company's liability for current tax is calculated using tax rates that were applicable at the Statement of Financial Position date. |
|
|
|
Deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the Statement of Financial Position date, where transactions or events that result in an obligation to pay more tax in the future or right to pay less tax in the future have occurred at the Statement of Financial Position date. This is subject to deferred tax assets only being recognised if it is considered more likely than not that there will be suitable profits from which the future reversal of the underlying timing differences can be deducted. Timing differences are differences arising between the Company's taxable profits and its results as stated in the financial statements which are capable of reversal in one or more subsequent periods. Deferred tax is measured on a non-discounted basis at the tax rates that are expected to apply in the periods in which timing differences are expected to reverse, based on tax rates and laws enacted or substantively enacted at the Statement of Financial Position date. |
|
|
|
Due to the Company's status as an investment trust company and the intention to continue meeting the conditions required to obtain approval in the foreseeable future, the Company has not provided deferred tax on any capital gains and losses arising on the revaluation or disposal of investments. |
|
|
|
The tax effect of different items of income/gain and expenditure/loss is allocated between capital and revenue within the Statement of Comprehensive Income on the same basis as the particular item to which it relates using the Company's effective rate of tax for the year, based on the marginal basis. |
|
|
(e) |
Investments. As permitted under FRS 102, the Company has chosen to apply the recognition and measurement provisions of IAS 39 Financial Instruments: Recognition and Measurement and investments have been designated upon initial recognition at fair value through profit or loss. This is done because all investments are considered to form part of a group of financial assets which is evaluated on a fair value basis, in accordance with the Company's documented investment strategy, and information about the grouping is provided internally on that basis. |
|
|
|
Investments are recognised and de-recognised at trade date where a purchase or sale is under a contract whose terms require delivery within the timeframe established by the market concerned, and are measured at fair value. For listed investments, the valuation of investments at the year end is deemed to be bid market prices or closing prices on recognised stock exchanges. |
|
|
|
Gains and losses arising from changes in fair value are treated in net profit or loss for the period as a capital item in the Statement of Comprehensive Income and are ultimately recognised in the capital reserve. |
|
|
(f) |
Cash and cash equivalents. Cash comprises cash at bank and in hand and may include demand deposits. Cash equivalents may include short-term, highly liquid investments, that are readily convertible to known amounts of cash and that are subject to an insignificant risk of change in value. |
|
|
(g) |
Short-term debtors and creditors. Both short-term debtors and creditors are measured at amortised cost and not subject to interest charges. |
|
|
(h) |
Borrowings. Borrowings, which comprise interest bearing bank loans and unsecured loan notes are recognised initially at the fair value of the consideration received, net of any issue expenses, and subsequently at amortised cost using the effective interest method. The finance costs of such borrowings are accounted for on an accruals basis using the effective interest rate method and are charged 30% to revenue and 70% to capital in the Statement of Comprehensive Income reflecting the Board's expected long-term split of returns in the form of revenue and capital gains respectively. |
|
|
(i) |
Nature and purpose of reserves |
|
|
|
Called-up share capital. The Ordinary share capital on the Statement of Financial Position relates to the number of shares in issue. This reserve is not distributable. |
|
|
|
Share premium account. The balance classified as share premium includes the premium above nominal value from the proceeds on issue of any equity share capital comprising Ordinary shares of 5p and the proceeds of sales of shares held in Treasury in excess of the weighted average purchase price paid by the Company to repurchase the shares. This reserve is not distributable. |
|
|
|
Capital redemption reserve. The capital redemption reserve arose when Ordinary shares were cancelled, at which point an amount equal to the par value of the Ordinary share capital was transferred from the share capital account to the capital redemption reserve. This reserve is not distributable. |
|
|
|
Capital reserve. This reserve reflects any gains or losses on investments realised in the period along with any movement in the fair value of investments held that have been recognised in the Statement of Comprehensive Income. These include gains and losses from foreign currency exchange differences. Additionally, expenses, including finance costs, are charged to this reserve in accordance with (c) and (h) above. This reserve is distributable for the purpose of funding share buybacks and paying dividends to the extent that gains are deemed realised. |
|
|
|
When the Company purchases its Ordinary shares to be held in Treasury, the amount of the consideration paid, which includes directly attributable costs, is recognised as a deduction from the capital reserve. |
|
|
|
Revenue reserve. This reserve reflects all income and costs which are recognised in the revenue column of the Statement of Comprehensive Income. The revenue reserve represents the amount of the Company's reserves distributable by way of dividend. |
|
|
(j) |
Foreign currency. Assets and liabilities in foreign currencies are translated at the rates of exchange ruling on the Statement of Financial Position date. Transactions involving foreign currencies are converted at the rate ruling on the date of the transaction. The financial statements are presented in sterling, which is the Company's functional and presentation currency. The Company's performance is evaluated and its liquidity is managed in sterling. Therefore sterling is considered as the currency that most fairly represents the economic effects of the underlying transactions, events and conditions. Gains and losses on dividends receivable are recognised in the Statement of Comprehensive Income and are reflected in the revenue reserve. Gains and losses on the realisation of foreign currencies are recognised in the Statement of Comprehensive Income and are then transferred to the capital reserve. |
|
|
(k) |
Segmental reporting. The Directors are of the opinion that the Company is engaged in a single segment of business activity, being investment business. Consequently, no business segmental analysis is provided. |
|
|
(l) |
Dividends payable. Dividends payable to equity shareholders are recognised in the financial statements when they have been approved by shareholders and become a liability of the Company. Interim dividends are recognised in the financial statements in the period in which they are paid. |
|
3. |
Income |
|
|
|
|
|
2025 |
2024 |
|
|
|
£'000 |
£'000 |
|
|
Income from investments (all listed) |
|
|
|
|
UK dividend income |
12,699 |
8,111 |
|
|
Overseas dividends |
76,955 |
66,625 |
|
|
Overseas dividends - capital |
399 |
301 |
|
|
Overseas interest |
5,884 |
8,260 |
|
|
|
95,937 |
83,297 |
|
|
|
|
|
|
|
Other income |
|
|
|
|
Deposit interest |
20 |
92 |
|
|
Stock lending income |
312 |
638 |
|
|
Interest on tax reclaim |
16 |
1 |
|
|
Other incomeA |
56 |
489 |
|
|
Total income |
96,341 |
84,517 |
|
|
A Comprises a voting fee received in relation to the cancellation of General Accident 7.875% Cum Irr Pref of £56,000 (2024 - a compensation payment from Aberdeen of £489,000 in respect of Swiss withholding tax reclaims, which fell outside the time period allowed for submission). |
||
|
4. |
Investment management fees |
||||||||
|
|
|
2025 |
2024 |
||||||
|
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
||
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
||
|
|
Investment management fees |
2,203 |
5,139 |
7,342 |
2,137 |
4,985 |
7,122 |
||
|
|
|
|
|
|
|
|
|
||
|
|
The Company has an agreement with abrdn Fund Managers Limited ("aFML") for the provision of investment management, secretarial, accounting and administration and promotional activity services. |
||||||||
|
|
The management fee is charged on net assets averaged over the six previous quarters at a rate of 0.5% per annum up to £500 million and 0.4% per annum thereafter. A fee of 1.5% per annum is chargeable on the value of any unlisted investments. The investment management fee is chargeable 30% against revenue and 70% against realised capital reserves. During the year £7,342,000 (2024 - £7,122,000) of investment management fees was payable to the Manager, with a balance of £3,713,000 (2024 - £1,796,000) being due at the year end. |
||||||||
|
|
No fees are charged in the case of investments managed or advised by the Aberdeen Group. The management agreement may be terminated by either party on the expiry of six months' written notice. On termination the Manager is entitled to receive fees which would otherwise have been due up to that date. |
||||||||
|
5. |
Administrative expenses |
|
|
|
|
|
2025 |
2024 |
|
|
|
£'000 |
£'000 |
|
|
Promotional activitiesA |
325 |
400 |
|
|
Registrars' fees |
50 |
50 |
|
|
Directors' remuneration |
231 |
220 |
|
|
Bank charges and custody fees |
427 |
523 |
|
|
Depositary fees |
161 |
156 |
|
|
Stock exchange fees |
157 |
143 |
|
|
Printing and postage |
36 |
4 |
|
|
Auditor's fees for: |
|
|
|
|
- Statutory Audit |
53 |
49 |
|
|
Other expenses - capital |
34 |
59 |
|
|
Other expenses |
218 |
193 |
|
|
|
1,692 |
1,797 |
|
|
A In 2025 £277,000 (2024 - £400,000) was payable to aFML to cover promotional activities during the year. At the year end £69,000 (2024 - £100,000) was due to aFML. |
||
|
6. |
Finance costs |
|
|
|
|
|
|
|
|
|
2025 |
2024 |
||||
|
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Bank loans and overdraft interest |
- |
- |
- |
79 |
185 |
264 |
|
|
Interest on Loan Notes |
846 |
1,973 |
2,819 |
844 |
1,970 |
2,814 |
|
|
Amortisation of Loan Notes issue expenses |
3 |
7 |
10 |
5 |
10 |
15 |
|
|
|
849 |
1,980 |
2,829 |
928 |
2,165 |
3,093 |
|
7. |
Taxation |
|||||||
|
|
|
|
|
2025 |
|
|
2024 |
|
|
|
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
(a) |
Total tax charge |
|
|
|
|
|
|
|
|
|
Analysis for the year |
|
|
|
|
|
|
|
|
|
Marginal tax relief |
607 |
(607) |
- |
922 |
(922) |
- |
|
|
|
Overseas tax suffered |
10,638 |
507 |
11,145 |
9,584 |
62 |
9,646 |
|
|
|
Overseas tax reclaimable |
(2,605) |
- |
(2,605) |
(2,068) |
- |
(2,068) |
|
|
|
Total tax charge for the year |
8,640 |
(100) |
8,540 |
8,438 |
(860) |
7,578 |
|
|
|
|
|
|
|
|
|
|
|
|
(b) |
Factors affecting the tax charge for the year. The UK corporation tax rate is 25% (2024 - 25%). The tax assessed for the year is lower than the corporation tax rate. The differences are explained below: |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
|
|
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
|
Return before taxation |
91,232 |
265,883 |
357,115 |
79,413 |
54,872 |
134,285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Return multiplied by the standard rate of corporation tax of 25% (2024 - 25%) |
22,808 |
66,471 |
89,279 |
19,853 |
13,718 |
33,571 |
|
|
|
Effects of: |
|
|
|
|
|
|
|
|
|
Non taxable UK dividend income |
(2,738) |
(100) |
(2,838) |
(2,028) |
(75) |
(2,103) |
|
|
|
Gains on investments not taxable |
- |
(68,200) |
(68,200) |
- |
(15,763) |
(15,763) |
|
|
|
Currency losses not taxable |
- |
41 |
41 |
- |
318 |
318 |
|
|
|
Non taxable overseas dividends |
(19,046) |
- |
(19,046) |
(16,090) |
- |
(16,090) |
|
|
|
Overseas tax suffered |
10,638 |
507 |
11,145 |
9,584 |
62 |
9,646 |
|
|
|
Overseas tax reclaimable |
(2,605) |
- |
(2,605) |
(2,068) |
- |
(2,068) |
|
|
|
Tax effect of expensed double taxation relief |
(104) |
- |
(104) |
(204) |
- |
(204) |
|
|
|
Marginal tax relief |
607 |
(607) |
- |
922 |
(922) |
- |
|
|
|
Expenses not deductible for tax purposes |
(920) |
1,788 |
868 |
(1,531) |
1,802 |
271 |
|
|
|
Total tax charge for the year |
8,640 |
(100) |
8,540 |
8,438 |
(860) |
7,578 |
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company has not provided for deferred tax on chargeable gains or losses arising on the revaluation or disposal of investments as it is exempt from corporation tax on these items because of its status as an investment trust company. |
||||||
|
|
|
The Company has not recognised a deferred tax asset (2024 - same). At the year end, the Company has, for taxation purposes only, accumulated unrelieved management expenses and loan relationship deficits of £4,487,000 (2024 - £1,014,000). A deferred tax asset at the standard rate of corporation of 25% (2024 - 25%) of £1,122,000 (2024 - £254,000) has not been recognised and these expenses will only be utilised if the Company has profits chargeable to corporation tax in the future. It is considered highly unlikely that the Company will generate such profits and therefore no deferred tax asset has been recognised. |
||||||
|
8. |
Ordinary dividends on equity shares |
|
|
|
|
|
2025 |
2024 |
|
|
|
£'000 |
£'000 |
|
|
Amounts recognised as distributions paid during the year: |
|
|
|
|
Third interim for 2024 of 2.5p (2023 - 2.4p) |
15,078 |
14,898 |
|
|
Final dividend for 2024 of 4.3p (2023 - 4.3p) |
25,505 |
26,400 |
|
|
First interim for 2025 of 2.6p (2024 - 2.5p) |
15,407 |
15,337 |
|
|
Second interim for 2025 of 2.6p (2024 - 2.5p) |
15,382 |
15,288 |
|
|
Underpayment of dividends in prior year |
4 |
2 |
|
|
|
71,376 |
71,925 |
|
|
|
|
|
|
|
A third interim dividend was declared on 4 December 2025 with an ex date of 2 January 2026. This dividend of 2.6p was paid on 17 February 2026 and has not been included as a liability in these financial statements. The proposed final dividend for 2025 is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial statements. |
||
|
|
Set out below are the total dividends paid and proposed in respect of the financial year, which is the basis on which the requirements of Sections 1158-1159 of the Corporation Tax Act 2010 are considered. The revenue available for distribution by way of dividend for the year is £82,592,000 (2024 - £70,975,000). |
||
|
|
|
|
|
|
|
|
2025 |
2024 |
|
|
|
£'000 |
£'000 |
|
|
Three interim dividends for 2025 of 2.6p (2024 - 2.5p) |
46,136 |
45,706 |
|
|
Proposed final dividend for 2025 of 4.6p (2024 - 4.3p) |
27,222 |
25,590 |
|
|
|
73,358 |
71,296 |
|
|
|
|
|
|
|
The amount reflected above for the cost of the proposed final dividend for 2025 is based on 591,783,877 Ordinary shares, being the number of Ordinary shares in issue excluding those held in Treasury at the date of this Report. |
||
|
9. |
Return per Ordinary share |
||||
|
|
|
2025 |
2024 |
||
|
|
|
£'000 |
p |
£'000 |
p |
|
|
Returns are based on the following figures: |
|
|
|
|
|
|
Revenue return |
82,592 |
13.9 |
70,975 |
11.6 |
|
|
Capital return |
265,983 |
44.8 |
55,732 |
9.1 |
|
|
Total return |
348,575 |
58.7 |
126,707 |
20.7 |
|
|
|
|
|
|
|
|
|
Weighted average number of Ordinary shares |
|
593,153,296 |
|
613,268,463 |
|
10. |
Investments at fair value through profit or loss |
|
|
|
|
|
2025 |
2024 |
|
|
|
£'000 |
£'000 |
|
|
Opening book cost |
1,405,609 |
1,331,325 |
|
|
Opening investment holdings gains |
359,385 |
456,538 |
|
|
Opening fair value |
1,764,994 |
1,787,863 |
|
|
|
|
|
|
|
Analysis of transactions made during the year |
|
|
|
|
Purchases at cost |
388,710 |
227,021 |
|
|
Sales proceeds received |
(431,579) |
(313,188) |
|
|
Gains on investments |
272,801 |
63,053 |
|
|
Accretion of fixed income book costA |
(1,714) |
245 |
|
|
Closing fair value |
1,993,212 |
1,764,994 |
|
|
A In accordance with the AIC SORP guidance |
|
|
|
|
|
|
|
|
|
Closing book cost |
1,507,247 |
1,405,609 |
|
|
Closing investment gains |
485,965 |
359,385 |
|
|
Closing fair value |
1,993,212 |
1,764,994 |
|
|
|
|
|
|
|
The Company received £431,579,000 (2024 - £313,188,000) from investments sold in the period. The book cost of these investments when they were purchased was £285,358,000 (2024 - £152,982,000). These investments have been revalued over time and until they were sold any unrealised gains/losses were included in the fair value of the investments. |
||
|
|
|
|
|
|
|
|
2025 |
2024 |
|
|
The portfolio valuation |
£'000 |
£'000 |
|
|
Listed on stock exchanges: |
|
|
|
|
United Kingdom: |
|
|
|
|
- equities |
181,246 |
94,451 |
|
|
- preference shares |
3,850 |
6,907 |
|
|
Overseas: |
|
|
|
|
- equities |
1,761,666 |
1,560,319 |
|
|
- fixed income |
46,450 |
103,317 |
|
|
Total |
1,993,212 |
1,764,994 |
|
|
|
|
|
|
|
Transaction costs. During the year 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 Statement of Comprehensive Income. The total costs were as follows: |
||
|
|
|
|
|
|
|
|
2025 |
2024 |
|
|
|
£'000 |
£'000 |
|
|
Purchases |
747 |
408 |
|
|
Sales |
384 |
346 |
|
|
|
1,131 |
754 |
|
|
|
|
|
|
|
The above transaction costs are calculated in line with the AIC SORP. The transaction costs in the Company's Key Information Document are calculated on a different basis and in line with the PRIIPs regulations. |
||
|
|
|
|
|
|
|
|
2025 |
2024 |
|
|
Stock Lending |
£'000 |
£'000 |
|
|
Aggregate value of securities on loan at the year end |
31,862 |
46,790 |
|
|
Maximum aggregate value of securities on loan during the year |
98,202 |
98,370 |
|
|
Fee income from stock lending |
312 |
638 |
|
|
|
|
|
|
|
Stock lending is the temporary transfer of securities by a lender to a borrower, with an agreement by the borrower to return equivalent securities to the lender at an agreed date. Fee income is received for making the investments available to the borrower. The principal risks and rewards of holding the investments, namely the market movements in share prices and dividend income, are retained by the Company. In all cases the securities lent continue to be recognised on the Statement of Financial Position. |
||
|
|
All stocks lent under these arrangements are fully secured by collateral. The value of the collateral held at 31 December 2025 was £33,495,000 (2024 - £49,245,000). |
||
|
11. |
Debtors: amounts falling due within one year |
|
|
|
|
|
2025 |
2024 |
|
|
|
£'000 |
£'000 |
|
|
Overseas withholding tax |
10,630 |
10,523 |
|
|
Prepayments |
54 |
47 |
|
|
Other debtors |
33 |
54 |
|
|
Accrued income |
6,361 |
7,544 |
|
|
|
17,078 |
18,168 |
|
|
|
|
|
|
|
None of the above amounts is overdue or impaired. |
||
|
12. |
Creditors |
|
|
|
|
|
2025 |
2024 |
|
|
|
£'000 |
£'000 |
|
|
Amounts falling due within one year: |
|
|
|
|
Amounts due to brokers |
- |
647 |
|
|
Investment management fees |
3,713 |
1,796 |
|
|
Administrative expenses |
351 |
395 |
|
|
Interest on bank loans and loan notes |
292 |
291 |
|
|
|
4,356 |
3,129 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
2024 |
|
|
|
£'000 |
£'000 |
|
|
Amounts falling due after more than one year: |
|
|
|
|
Loan notes (note 13) |
109,926 |
109,916 |
|
|
|
109,926 |
109,916 |
|
|
|
|
|
|
|
All financial liabilities are measured at amortised cost. |
||
|
13. |
Borrowings |
|
|
|
|
|
|
|
|
2025 |
2024 |
|
|
|
|
|
£'000 |
£'000 |
|
|
|
Unsecured loan notes repayable in more than five years: |
|
|
||
|
|
- |
£50,000,000 at 2.24% - 13 May 2031 |
49,945 |
49,936 |
|
|
|
- |
£60,000,000 at 2.83% - 31 May 2037 |
59,981 |
59,980 |
|
|
|
|
|
109,926 |
109,916 |
|
|
|
|
|
|
|
|
|
|
The terms of these loan notes permit early repayment at the borrower's option which may give rise to additional amounts being either payable or repayable in respect of fluctuations in interest rates since drawdown. Since the Directors currently have no intention of repaying the loan notes early, then no such charges are included in the cash flows used to determine their effective interest rate. |
||||
|
|
At 31 December 2025, the Company had utilised £110 million of its £200 million Shelf Facility. Under the terms of the Loan Note Agreement Shelf Facility, dated May 2021, up to an additional £90 million has also been made available for drawdown by the Company for a five year period, expiring in May 2026. Financial covenants contained within the loan note agreement provide, inter alia, that borrowings shall at no time exceed 35% of net assets, that the Company must hold 40 investments or more and that the net assets must exceed £650 million. At 31 December 2025 the Company held 57 investments, net assets were £1,920,974,000 and borrowings were 5.7% thereof. The Company has complied with all financial covenants throughout the year. |
||||
|
14. |
Share capital |
|
|
|
|
|
|
|
2025 |
2024 |
||
|
|
|
Number |
£'000 |
Number |
£'000 |
|
|
Allotted, called up and fully paid Ordinary shares of 5p |
|
|
|
|
|
|
Balance brought forward |
603,129,219 |
30,156 |
620,866,332 |
31,043 |
|
|
Ordinary shares bought back to Treasury in the year |
(12,876,886) |
(644) |
(17,737,113) |
(887) |
|
|
Balance carried forward |
590,252,333 |
29,512 |
603,129,219 |
30,156 |
|
|
|
|
|
|
|
|
|
Treasury shares: |
|
|
|
|
|
|
Balance brought forward |
43,930,796 |
2,197 |
26,193,683 |
1,310 |
|
|
Ordinary shares bought back to Treasury in the year |
12,876,886 |
644 |
17,737,113 |
887 |
|
|
Balance carried forward |
56,807,682 |
2,841 |
43,930,796 |
2,197 |
|
|
|
|
|
|
|
|
|
At 31 December 2025, shares held in Treasury represented 8.8% (2024 - 6.8%) of the Company's total issued share capital. |
||||
|
|
During the year 12,876,886 Ordinary shares were bought back to Treasury at an average price of 272.88p representing 2.0% of the Company's total issued share capital (2024 - 17,737,113 at an average price of 250.15p representing 2.7% of the Company's total issued share capital) at a total cost of £35,074,000 (2024 - £44,795,000) net of expenses. Subsequent to the year 1,531,544 Ordinary shares have been sold from Treasury for proceeds of £5,526,000. |
||||
|
|
On a winding up of the Company, any surplus assets available after payment of all debts and satisfaction of all liabilities of the Company shall be applied in repaying the Ordinary shareholders the amounts paid up on such shares. Any surplus shall be divided among the holders of Ordinary shares according to the amount paid up on such shares respectively. |
||||
|
|
Voting rights. In accordance with the Articles of Association of the Company, on a show of hands, every member (or duly appointed proxy) present at a general meeting of the Company has one vote; and, on a poll, every member present in person or by proxy shall have one vote for every 5p nominal amount of Ordinary shares held. |
||||
|
15. |
Capital reserve |
|
|
|
|
|
2025 |
2024 |
|
|
|
£'000 |
£'000 |
|
|
At 1 January |
1,200,623 |
1,189,686 |
|
|
Movement in fair value gains |
272,801 |
63,053 |
|
|
Overseas dividends capital |
399 |
301 |
|
|
Capital expenses (including taxation) |
(7,053) |
(6,349) |
|
|
Buy back of shares to Treasury |
(35,074) |
(44,795) |
|
|
Currency losses |
(164) |
(1,273) |
|
|
At 31 December |
1,431,532 |
1,200,623 |
|
|
|
|
|
|
|
Included in the total above are investment holdings gains at the year end of £485,965,000 (2024 - £359,385,000), which is not considered distributable. |
||
|
16. |
Net asset value per share |
|
|
|
|
The net asset value per share and the net asset value attributable to the Ordinary shares at the year end, calculated in accordance with the Articles of Association and FRS 102, were as follows: |
||
|
|
|
|
|
|
|
|
As at |
As at |
|
|
|
31 December 2025 |
31 December 2024 |
|
|
Attributable net assets (£'000) |
1,920,974 |
1,678,849 |
|
|
Number of Ordinary shares in issue (excluding Treasury) |
590,252,333 |
603,129,219 |
|
|
Net asset value per share (pence) |
325.4 |
278.4 |
|
17. |
Analysis of changes in net debt |
|
|
|
|
|
|
|
|
At |
Effects of |
|
|
At |
|
|
|
31 December |
Currency |
Cash |
Non-cash |
31 December |
|
|
|
2024 |
differences |
flows |
movementsA |
2025 |
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Cash at bank and in hand |
8,732 |
(13) |
16,247 |
- |
24,966 |
|
|
Debt due after more than one year |
(109,916) |
- |
- |
(10) |
(109,926) |
|
|
|
(101,184) |
(13) |
16,247 |
(10) |
(84,960) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At |
Effects of |
|
|
At |
|
|
|
31 December |
Currency |
Cash |
Non-cash |
31 December |
|
|
|
2023 |
differences |
flows |
movementsA |
2024 |
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Cash at bank and in hand |
5,878 |
(6) |
2,860 |
- |
8,732 |
|
|
Debt due within one year |
(29,996) |
- |
30,000 |
(4) |
- |
|
|
Debt due after more than one year |
(109,905) |
- |
- |
(11) |
(109,916) |
|
|
|
(134,023) |
(6) |
32,860 |
(15) |
(101,184) |
|
|
A Figures reflect a movement in maturity dates and amortisation of finance costs. |
|||||
|
|
|
|
|
|
|
|
|
|
A statement reconciling the movement in net funds to the net cash flow has not been presented as there are no differences from the above analysis. |
|||||
|
18. |
Financial instruments and risk management |
||||||
|
|
The Company's investment activities expose it to various types of financial risk associated with the financial instruments and markets in which it invests. The Company's financial instruments comprise listed equities and debt securities, cash balances, loans and debtors and creditors that arise directly from its operations; for example, in respect of sales and purchases awaiting settlement, and debtors for accrued income. The Company may enter into derivative transactions for the purpose of managing market risks arising from the Company's activities in the form of swap contracts, forward foreign currency contracts, futures and options. |
||||||
|
|
The Board has delegated the risk management function to abrdn Fund Managers Limited ("aFML") under the terms of its management agreement with aFML (further details of which are included in the Directors' Report). The Board regularly reviews and agrees policies for managing each of the key financial risks identified with the Manager. The types of risk and the Manager's approach to the management of each type of risk, are summarised below. Such approach has been applied throughout the year and has not changed since the previous accounting period. The numerical disclosures exclude short-term debtors and creditors. |
||||||
|
|
Risk management framework. The directors of aFML collectively assume responsibility for aFML's obligations under the AIFMD including reviewing investment performance and monitoring the Company's risk profile during the year. |
||||||
|
|
aFML is a fully integrated member of the Aberdeen Group plc ("the Group"), which provides a variety of services and support to aFML in the conduct of its business activities, including in the oversight of the risk management framework for the Company. The AIFM has delegated the day to day administration of the investment policy to abrdn Investments Limited, which is responsible for ensuring that the Company is managed within the terms of its investment guidelines and the limits set out in its pre-investment disclosures to investors (details of which can be found on the Company's website). The AIFM has retained responsibility for monitoring and oversight of investment performance, product risk and regulatory and operational risk for the Company. |
||||||
|
|
The Manager conducts its risk oversight function through the operation of the Group's risk management processes and systems which are embedded within the Group's operations. The Group's Risk Division supports management in the identification and mitigation of risks and provides independent monitoring of the business. The Division includes Compliance, Business Risk, Market Risk, Risk Management and Legal. The team is headed up by the Group's Chief Risk Officer, who reports to the Chief Executive Officer of the Group. The Risk Division achieves its objective through embedding the Risk Management Framework throughout the organisation using the Group's operational risk management system ("SHIELD"). |
||||||
|
|
The Group's Internal Audit Department is independent of the Risk Division and reports directly to the Group's Chief Executive Officer and to the Audit Committee of the Group's Board of Directors. The Internal Audit Department is responsible for providing an independent assessment of the Group's control environment. |
||||||
|
|
The Group's corporate governance structure is supported by several committees to assist the board of directors of Aberdeen plc, its subsidiaries and the Company to fulfil their roles and responsibilities. The Group's Risk Division is represented on all committees, with the exception of those committees that deal with investment recommendations. The specific goals and guidelines on the functioning of those committees are described on the committees' terms of reference. |
||||||
|
|
Risk management. The main risks the Company faces from its financial instruments are (i) market risk (comprising interest rate risk, foreign currency risk and price risk), (ii) liquidity risk and (iii) credit risk. |
||||||
|
|
(i) |
Market risk. The fair value and future cash flows of a financial instrument held by the Company may fluctuate because of changes in market prices. This market risk comprises three elements - interest rate risk, foreign currency risk and price risk. |
|||||
|
|
(i)(a) |
Interest rate risk. Interest rate risk is the risk that interest rate movements will affect: |
|||||
|
|
|
- the fair value of the investments in fixed interest rate securities; and |
|||||
|
|
|
- the level of income receivable on cash deposits. |
|||||
|
|
|
Management of the risk. The possible effects on fair value and cash flows that could arise as a result of changes in interest rates are taken into account when making investment and borrowing decisions. |
|||||
|
|
|
The Board reviews the values of the fixed interest rate securities on a regular basis. |
|||||
|
|
|
The Board imposes borrowing limits to ensure gearing levels are appropriate to market conditions and reviews these on a regular basis. Borrowings comprise fixed rate facilities, which are used to finance opportunities at low rates. Current bank covenant guidelines are detailed in note 13 on page 102 of the published Annual Report and financial statements for the year ended 31 December 2025. |
|||||
|
|
|
Interest rate risk profile. The interest rate risk profile of the portfolio of financial assets and liabilities at the Statement of Financial Position date was as follows: |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted |
|
|
|
|
|
|
|
|
average |
|
|
|
|
|
|
|
|
period for |
Weighted |
|
|
Non- |
|
|
|
|
which |
average |
Fixed |
Floating |
interest |
|
|
|
|
rate is fixed |
interest rate |
rate |
rate |
bearing |
|
|
|
At 31 December 2025 |
Years |
% |
£'000 |
£'000 |
£'000 |
|
|
|
Assets |
|
|
|
|
|
|
|
|
Sterling |
- |
- |
3,850 |
24,708 |
212,872 |
|
|
|
US Dollar |
- |
- |
- |
5 |
667,453 |
|
|
|
Indian Rupee |
0.67 |
7.79 |
12,449 |
- |
31,392 |
|
|
|
Indonesian Rupiah |
- |
- |
- |
- |
24,825 |
|
|
|
Mexican Peso |
0.18 |
5.75 |
16,482 |
- |
109,900 |
|
|
|
South African Rand |
5.16 |
7.00 |
17,519 |
- |
- |
|
|
|
Other |
- |
- |
- |
253 |
896,470 |
|
|
|
Total assets |
|
|
50,300 |
24,966 |
1,942,912 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Loan Notes |
8.67 |
2.56 |
(109,926) |
- |
- |
|
|
|
Total liabilities |
|
|
(109,926) |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted |
|
|
|
|
|
|
|
|
average |
|
|
|
|
|
|
|
|
period for |
Weighted |
|
|
Non- |
|
|
|
|
which |
average |
Fixed |
Floating |
interest |
|
|
|
|
rate is fixed |
interest rate |
rate |
rate |
bearing |
|
|
|
At 31 December 2024 |
Years |
% |
£'000 |
£'000 |
£'000 |
|
|
|
Assets |
|
|
|
|
|
|
|
|
Sterling |
- |
- |
6,907 |
8,321 |
155,453 |
|
|
|
US Dollar |
20.98 |
6.53 |
28,689 |
371 |
566,866 |
|
|
|
Indian Rupee |
1.67 |
7.79 |
13,956 |
40 |
- |
|
|
|
Indonesian Rupiah |
5.49 |
7.49 |
29,281 |
- |
16,133 |
|
|
|
Mexican Peso |
1.18 |
5.75 |
14,653 |
- |
79,406 |
|
|
|
South African Rand |
6.16 |
7.00 |
15,035 |
- |
- |
|
|
|
Turkish Lira |
0.19 |
8.00 |
1,703 |
- |
- |
|
|
|
Other |
- |
- |
- |
- |
836,912 |
|
|
|
Total assets |
|
|
110,224 |
8,732 |
1,654,770 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Loan Notes |
9.67 |
2.56 |
(109,916) |
- |
- |
|
|
|
Total liabilities |
|
|
(109,916) |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
The weighted average interest rate is based on the current yield of each asset, weighted by its market value. The weighted average interest rate on bank loans and loan notes are based on the interest rate payable, weighted by the total value of the bank loans and loan notes. The maturity dates of the Company's loan notes are shown in note 13 to the financial statements. |
|||||
|
|
|
The fixed rate assets represents quoted preference shares and bonds. |
|||||
|
|
|
The floating rate assets consist of cash deposits on call earning interest at prevailing market rates. |
|||||
|
|
|
The non-interest bearing assets represent the equity element of the portfolio. |
|||||
|
|
|
Short-term debtors and creditors have been excluded from the above tables as they are not considered to be exposed to interest rate risk. |
|||||
|
|
|
Interest rate sensitivity. The sensitivity analyses below have been determined based on the exposure to interest rates for non-derivative instruments at the Statement of Financial Position date and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period in the case of instruments that have floating rates. |
|
|
|
If interest rates had been 100 basis points higher or lower (based on the current parameter used by the Manager's Investment Risk Department on risk assessment) and all other variables were held constant, the Company's revenue return for the year ended 31 December 2025 would increase/decrease by £250,000 (2024 - increase/decrease by £87,000). This is mainly attributable to the Company's exposure to interest rates on its floating rate cash balances. These figures have been calculated based on cash positions at each year end. |
|
|
|
The capital return would decrease/increase by £1,408,000 (2024 - increase/decrease by £3,825,000) using VaR ("Value at Risk") analysis based on 100 observations of weekly VaR computations of fixed interest portfolio positions at each year end. |
|
|
(i)(b) |
Foreign currency risk. A significant proportion of the Company's investment portfolio is invested overseas whose values are subject to fluctuation due to changes in foreign exchange rates. In addition, the impact of changes in foreign exchange rates upon the profits of investment holdings can result, indirectly, in changes in their valuations. Consequently the Statement of Financial Position can be affected by movements in exchange rates. |
|
|
|
Management of the risk. It is not the Company's policy to hedge this risk on a continuing basis but the Company may, from time to time, match specific overseas investment with foreign currency borrowings. The Manager seeks, when deemed appropriate, to manage exposure to currency movements on borrowings by using forward foreign currency contracts as a hedge against potential foreign currency movements. At 31 December 2025 the Company did not have any forward foreign currency contracts (2024 - none). |
|
|
|
The revenue account is subject to currency fluctuation arising on overseas income. The Company does not hedge this currency risk. |
|
|
|
Currency risk exposure. Currency risk exposure (excluding fixed interest securities) by currency of denomination: |
|||||||||
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
31 December 2025 |
31 December 2024 |
|||||||
|
|
|
|
UK and |
|
|
UK and |
|
|
|||
|
|
|
|
overseas |
Net |
Total |
overseas |
Net |
Total |
|||
|
|
|
|
equity |
monetary |
currency |
equity |
monetary |
currency |
|||
|
|
|
|
investments |
assetsA |
exposure |
investments |
assetsA |
exposure |
|||
|
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|||
|
|
|
US Dollar |
667,453 |
5 |
667,458 |
566,866 |
371 |
567,237 |
|||
|
|
|
Euro |
401,457 |
- |
401,457 |
291,907 |
- |
291,907 |
|||
|
|
|
Singapore Dollar |
111,258 |
- |
111,258 |
94,630 |
- |
94,630 |
|||
|
|
|
Mexican Peso |
109,900 |
- |
109,900 |
79,406 |
- |
79,406 |
|||
|
|
|
Taiwan Dollar |
90,909 |
- |
90,909 |
129,221 |
- |
129,221 |
|||
|
|
|
Hong Kong Dollar |
75,088 |
- |
75,088 |
74,098 |
- |
74,098 |
|||
|
|
|
Swiss Franc |
53,652 |
- |
53,652 |
47,454 |
- |
47,454 |
|||
|
|
|
Canadian Dollar |
46,574 |
(7) |
46,567 |
91,834 |
- |
91,834 |
|||
|
|
|
Danish Krone |
38,002 |
260 |
38,262 |
32,776 |
- |
32,776 |
|||
|
|
|
Indian Rupee |
31,392 |
- |
31,392 |
- |
40 |
40 |
|||
|
|
|
Norwegian Krone |
30,276 |
- |
30,276 |
17,174 |
- |
17,174 |
|||
|
|
|
Thailand Baht |
29,522 |
- |
29,522 |
24,660 |
- |
24,660 |
|||
|
|
|
Indonesian Rupiah |
24,825 |
- |
24,825 |
16,133 |
- |
16,133 |
|||
|
|
|
Australian Dollar |
19,732 |
- |
19,732 |
17,012 |
- |
17,012 |
|||
|
|
|
Swedish Krone |
- |
- |
- |
16,146 |
- |
16,146 |
|||
|
|
|
|
1,730,040 |
258 |
1,730,298 |
1,499,317 |
411 |
1,499,728 |
|||
|
|
|
Sterling |
212,872 |
(85,218) |
127,654 |
155,453 |
(101,595) |
53,858 |
|||
|
|
|
Total |
1,942,912 |
(84,960) |
1,857,952 |
1,654,770 |
(101,184) |
1,553,586 |
|||
|
|
|
A Reflects cash, short-term deposits and bank borrowings. |
|||||||||
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
The asset allocation between specific markets can vary from time to time based on the Manager's opinion of the attractiveness of the individual markets. |
|||||||||
|
|
|
Foreign currency sensitivity. The following table details the Company's sensitivity to a 10% decrease (in the context of a 10% increase the figures below should all be read as negative) in sterling against the major foreign currencies in which the Company has exposure (based on exposure >5% of total exposure). The sensitivity analysis includes foreign currency denominated monetary items and adjusts their translation at the year end for a 10% change in foreign currency rates, being a reasonable range of fluctuations for the period. |
|||||||||
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
2025 |
2024 |
|||
|
|
|
|
|
|
|
|
CapitalA |
CapitalA |
|||
|
|
|
|
|
|
|
|
£'000 |
£'000 |
|||
|
|
|
US Dollar |
|
|
|
|
66,746 |
56,724 |
|||
|
|
|
Euro |
|
|
|
|
40,146 |
29,191 |
|||
|
|
|
Singapore Dollar |
|
|
|
|
11,126 |
9,463 |
|||
|
|
|
Mexican Peso |
|
|
|
|
10,990 |
7,941 |
|||
|
|
|
Taiwan Dollar |
|
|
|
|
- |
12,922 |
|||
|
|
|
Canadian Dollar |
|
|
|
|
- |
9,183 |
|||
|
|
|
Total |
|
|
|
|
129,008 |
125,424 |
|||
|
|
|
A Represents equity exposures to the relevant currencies. |
|||||||||
|
|
(i)(c) |
Price risk. Other price risks (ie changes in market prices other than those arising from interest rate or currency risk) may affect the value of the quoted investments. The Company's stated objective is to achieve an above average dividend yield, with long-term growth in dividends and capital ahead of inflation by investing principally in global equities. |
|
|
|
Management of the risk. It is the Board's policy to hold an appropriate spread of investments in the portfolio in order to reduce the risk arising from factors specific to a particular country or sector. The allocation of assets to international markets and the stock selection process, as detailed on pages 24 to 26 of the published Annual Report and financial statements for the year ended 31 December 2025, both act to reduce market risk. The Manager actively monitors market prices throughout the year and reports to the Board, which meets regularly in order to review investment strategy. The investments held by the Company are listed on various stock exchanges worldwide. |
|
|
|
Price risk sensitivity. If market prices at the Statement of Financial Position date had been 10% higher or lower, which is a reasonable range of annual price fluctuations, while all other variables remained constant, the return attributable to Ordinary shareholders for the year ended 31 December 2025 would have increased/decreased by £194,291,000 (2024 - increase/decrease of £165,477,000) and equity would have increased/decreased by the same amount. |
|
|
(ii) |
Liquidity risk. This is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities as they fall due in line with the maturity profile analysed below. |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Within |
Within |
Within |
Within |
Within |
More than |
|
|
|
|
|
1 year |
1-2 years |
2-3 years |
3-4 years |
4-5 years |
5 years |
Total |
|
|
|
At 31 December 2025 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
|
Loan Notes |
- |
- |
- |
- |
- |
110,000 |
110,000 |
|
|
|
Interest cash flows on Loan Notes |
2,818 |
2,818 |
2,818 |
2,818 |
2,818 |
11,597 |
25,687 |
|
|
|
Cash flows on other creditors |
4,064 |
- |
- |
- |
- |
- |
4,064 |
|
|
|
|
6,882 |
2,818 |
2,818 |
2,818 |
2,818 |
121,597 |
139,751 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Within |
Within |
Within |
Within |
Within |
More than |
|
|
|
|
|
1 year |
1-2 years |
2-3 years |
3-4 years |
4-5 years |
5 years |
Total |
|
|
|
At 31 December 2024 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
|
Loan Notes |
- |
- |
- |
- |
- |
110,000 |
110,000 |
|
|
|
Interest cash flows on Loan Notes |
2,818 |
2,818 |
2,818 |
2,818 |
2,818 |
14,415 |
28,505 |
|
|
|
Cash flows on other creditors |
2,838 |
- |
- |
- |
- |
- |
2,838 |
|
|
|
|
5,656 |
2,818 |
2,818 |
2,818 |
2,818 |
124,415 |
141,343 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management of the risk. Liquidity risk is not considered to be significant as the Company's assets comprise mainly readily realisable securities, which can be sold to meet funding commitments if necessary. Short-term flexibility is achieved through the use of loan and overdraft facilities (note 13). |
|||||||
|
|
(iii) |
Credit risk. This is failure of the counterparty to a transaction to discharge its obligations under that transaction that could result in the Company suffering a loss. |
|||||||
|
|
|
Management of the risk |
|||||||
|
|
|
- where the Manager makes an investment in a bond, corporate or otherwise, the credit ratings of the issuer are taken into account so as to manage the risk to the Company of default; |
|||||||
|
|
|
- investments in quoted bonds are made across a variety of industry sectors and geographic markets so as to avoid concentrations of credit risk; |
|||||||
|
|
|
- transactions involving derivatives are entered into only with investment banks, the credit rating of which is taken into account so as to minimise the risk to the Company of default; |
|||||||
|
|
|
- investment transactions are carried out with a number of brokers, whose credit-standing is reviewed periodically by the Manager, and limits are set on the amount that may be due from any one broker; |
|||||||
|
|
|
- the risk of counterparty exposure due to failed trades causing a loss to the Company is mitigated by the daily review of failed trade reports. In addition, both stock and cash reconciliations to the custodian's records are performed daily to ensure discrepancies are investigated in a timely manner. The Manager's Compliance department carries out periodic reviews of the custodian's operations and reports its finding to the Manager's Risk Management Committee; |
|||||||
|
|
|
- cash is held only with reputable banks with acceptable credit quality. It is the Manager's policy to trade only with A- and above (Long-term rated) and A-1/P-1 (Short-term rated) counterparties. |
|||||||
|
|
|
Credit risk exposure. In summary, compared to the amounts in the Statement of Financial Position, the maximum exposure to credit risk at 31 December 2025 and 31 December 2024 was as follows: |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
2024 |
||
|
|
|
|
|
|
|
Balance |
Maximum |
Balance |
Maximum |
|
|
|
|
|
|
|
Sheet |
exposure |
Sheet |
exposure |
|
|
|
|
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
|
|
|
Non-current assets |
|
|
|
|
|
|
|
|
|
|
Quoted preference shares and bonds at fair value through profit or loss |
50,300 |
50,300 |
110,224 |
110,224 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
|
Other debtors |
|
|
|
33 |
33 |
54 |
54 |
|
|
|
Accrued income |
|
|
|
6,361 |
6,361 |
7,544 |
7,544 |
|
|
|
Cash and short-term deposits |
24,966 |
24,966 |
8,732 |
8,732 |
|||
|
|
|
|
|
|
|
81,660 |
81,660 |
126,554 |
126,554 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
None of the Company's financial assets is secured by collateral or other credit enhancements. |
|||||||
|
|
|
Credit ratings. The table below provides a credit rating profile using Moodys credit ratings for the quoted preference shares and bonds at 31 December 2025 and 31 December 2024: |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
2024 |
|
|
|
|
|
|
|
|
|
£'000 |
£'000 |
|
|
|
Ba1 |
|
|
|
|
|
3,850 |
3,547 |
|
|
|
Ba2 |
|
|
|
|
|
17,519 |
15,035 |
|
|
|
Baa2 |
|
|
|
|
|
16,482 |
43,934 |
|
|
|
Ba3 |
|
|
|
|
|
- |
11,755 |
|
|
|
B3 |
|
|
|
|
|
- |
16,934 |
|
|
|
Non-rated |
|
|
|
|
|
12,449 |
19,019 |
|
|
|
|
|
|
|
|
|
50,300 |
110,224 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Whilst a substantial proportion of the fixed interest portfolio does not have a rating provided by Moodys, the Manager undertakes an ongoing review of their suitability for inclusion within the portfolio as set out in "Investment Process" on pages 24 to 26 of the published Annual Report and financial statements for the year ended 31 December 2025. At 31 December 2025 Moodys credit ratings agency did not provide a rating for Indian bonds (2024 - Indian bonds, Turkish bonds and Irredeemable preference shares) held by the Company and were accordingly categorised as non-rated in the table above. (2024 - Fitch credit ratings agency did provide a BB- rating for Turkish bonds with a value of £1,703,000). |
|||||||
|
|
|
Fair values of financial assets and financial liabilities. The fair value of borrowings has been calculated at £88,581,000 as at 31 December 2025 (2024 - £85,097,000) compared to a carrying amount in the financial statements of £109,926,000 (2024 - £109,916,000) (note 13). The fair value of each loan is determined by aggregating the expected future cash flows for that loan discounted at a rate comprising the borrower's margin plus an average of market rates applicable to loans of a similar period of time and currency. The carrying value of all other assets and liabilities is an approximation of fair value. |
|||||||
|
19. |
Fair value hierarchy |
||||||||
|
|
FRS 102 requires an entity to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy shall have the following classifications: |
||||||||
|
|
Level 1: unadjusted quoted prices in an active market for identical assets or liabilities that the entity can access at the measurement date. |
||||||||
|
|
Level 2: inputs other than quoted prices included in Level 1 that are observable (ie developed using market data) for the asset or liability, either directly or indirectly. |
||||||||
|
|
Level 3: inputs are unobservable (ie for which market data is unavailable) for the asset or liability. |
||||||||
|
|
The financial assets and liabilities measured at fair value in the Statement of Financial Position are grouped into the fair value hierarchy at the reporting date as follows: |
||||||||
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
Level 1 |
Level 2 |
Level 3 |
Total |
||
|
|
As at 31 December 2025 |
|
Note |
£'000 |
£'000 |
£'000 |
£'000 |
||
|
|
Financial assets at fair value through profit or loss |
|
|
|
|
|
|
||
|
|
Quoted equities |
|
a) |
1,942,912 |
- |
- |
1,942,912 |
||
|
|
Quoted preference shares |
|
b) |
- |
3,850 |
- |
3,850 |
||
|
|
Quoted bonds |
|
b) |
- |
46,450 |
- |
46,450 |
||
|
|
Total |
|
|
1,942,912 |
50,300 |
- |
1,993,212 |
||
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
Level 1 |
Level 2 |
Level 3 |
Total |
||
|
|
As at 31 December 2024 |
|
Note |
£'000 |
£'000 |
£'000 |
£'000 |
||
|
|
Financial assets at fair value through profit or loss |
|
|
|
|
|
|
||
|
|
Quoted equities |
|
a) |
1,654,770 |
- |
- |
1,654,770 |
||
|
|
Quoted preference shares |
|
b) |
- |
6,907 |
- |
6,907 |
||
|
|
Quoted bonds |
|
b) |
- |
103,317 |
- |
103,317 |
||
|
|
Total |
|
|
1,654,770 |
110,224 |
- |
1,764,994 |
||
|
|
|
|
|
|
|
|
|
||
|
|
a) |
Quoted equities. The fair value of the Company's investments in quoted equities has been determined by reference to their quoted bid prices at the reporting date. Quoted equities included in Fair Value Level 1 are actively traded on recognised stock exchanges. |
|||||||
|
|
b) |
Quoted preference shares and bonds. The fair value of the Company's investments in quoted preference shares and bonds has been determined by reference to their quoted bid prices at the reporting date. Investments categorised as Level 2 are not considered to trade in active markets. |
|||||||
|
20. |
Capital management policies and procedures |
|
|
The investment objective of the Company is to achieve an above average dividend yield, with long-term growth in dividends and capital ahead of inflation by investing principally in global equities. |
|
|
The capital of the Company consists of bank borrowings and equity, comprising issued capital, reserves and retained earnings. The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to shareholders through the optimisation of the debt and equity balance. |
|
|
The Board monitors and reviews the broad structure of the Company's capital on an ongoing basis. This review includes: |
|
|
- the planned level of gearing which takes into account the Investment Manager's views on the market; |
|
|
- the level of equity shares in issue; and |
|
|
- the extent to which revenue in excess of that which is required to be distributed should be retained. |
|
|
The Company's objectives, policies and processes for managing capital are unchanged from the preceding accounting period. |
|
|
Details of the Company's gearing facilities and financial covenants are detailed in note 13 of the financial statements. The Company does not have any other externally imposed capital requirements. |
|
21. |
Related party transactions |
|
|
Directors' fees and interests. Fees payable during the year to the Directors and their interests in shares of the Company are disclosed within the Directors' Remuneration Report on pages 71 and 72 of the published Annual Report and financial statements for the year ended 31 December 2025. |
|
|
In the opinion of the Directors on the basis of shareholdings advised to them, the Company has no immediate or ultimate controlling party. |
|
22. |
Transactions with the Manager |
|
|
The Company has agreements with aFML for the provision of management, accounting and administration services and promotional activities. Details of transactions during the year and balances outstanding at the year end are disclosed in notes 4 and 5. |
The Annual Financial Report Announcement is not the Company's statutory accounts. The above results for the year ended 31 December 2025 are an abridged version of the Company's full Annual Report and financial statements, which have been approved and audited with an unqualified report. The 2024 and 2025 statutory accounts received unqualified reports from the Company's auditors and did not include any reference to matters to which the auditor drew attention by way of emphasis without qualifying the reports, and did not contain a statement under s.498 of the Companies Act 2006. The financial information for 2024 is derived from the statutory accounts for 2025 which have been delivered to the Registrar of Companies. The 2025 financial statements will be filed with the Registrar of Companies in due course.
The Annual Report will be posted to shareholders in March 2026 and additional copies will be available from the registered office of the Company and on the Company's website, murray-intl.co.uk*
Please note that past performance is not necessarily a guide to the future and that the value of investments and the income from them may fall as well as rise and may be affected by exchange rate movements. Investors may not get back the amount they originally invested.
*Neither the content of the Company's website nor the content of any website accessible from hyperlinks on the Company's website (or any other website) is (or is deemed to be) incorporated into, or forms (or is deemed to form) part of this announcement.
For Murray International Trust PLC
abrdn Holdings Limited, Company Secretary
3 March 2026
Securities Financing Transactions Disclosure (unaudited)
|
The Company engages in Securities Financing Transactions (SFTs) (as defined in Article 3 of Regulation (EU) 2015/2365, SFTs include repurchase transactions, securities or commodities lending and securities or commodities borrowing, buy-sell back transactions or sell-buy back transactions and margin lending transactions). In accordance with Article 13 of the Regulation, the Fund's involvement in and exposures related to securities lending for the accounting period are detailed below: |
|||||||||||||||
|
|
|
|
|
|
|||||||||||
|
|
|
|
% of |
% of |
|||||||||||
|
Absolute value of assets engaged in SFTs |
£'000 |
lendable assets |
net assets |
||||||||||||
|
31 December 2025 |
|
|
|
|
|||||||||||
|
Securities lending |
|
31,862 |
1.60 |
1.66 |
|||||||||||
|
|
|
|
|
|
|||||||||||
|
31 December 2024 |
|
|
|
|
|||||||||||
|
Securities lending |
|
46,790 |
2.65 |
2.79 |
|||||||||||
|
|
|
|
|
|
|||||||||||
|
Top ten collateral issuers and collateral received |
|||||||||||||||
|
Based on market value of collateral received. For all issuers, only equity securities with a main market listing were lent and the custodian was BNY Mellon. |
|||||||||||||||
|
|
|
|
|
|
|||||||||||
|
2025 |
£'000 |
|
2024 |
£'000 |
|||||||||||
|
UK Treasury |
33,495 |
|
US Treasury |
48,615 |
|||||||||||
|
|
|
|
Government of Australia |
630 |
|||||||||||
|
|
33,495 |
|
|
49,245 |
|||||||||||
|
|
|
|
|
|
|||||||||||
|
|
2025 |
2024 |
|||||||||||||
|
|
|
Proportion held |
|
Proportion held |
|||||||||||
|
|
Market value |
in segregated |
Market value |
in segregated |
|||||||||||
|
|
of collateral held |
accounts |
of collateral held |
accounts |
|||||||||||
|
Collateral held per custodian |
£'000 |
% |
£'000 |
% |
|||||||||||
|
BNY Mellon |
33,495 |
100 |
49,245 |
100 |
|||||||||||
|
One custodian is used to hold the collateral, which is in a segregated account. |
|||||||||||||||
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
Market value |
|||||||||||
|
|
|
|
|
of collateral received |
|||||||||||
|
|
|
|
2025 |
2024 |
|||||||||||
|
Collateral analysed by currency |
£'000 |
£'000 |
|||||||||||||
|
Sterling |
|
|
33,495 |
- |
|||||||||||
|
US Dollar |
|
|
- |
48,615 |
|||||||||||
|
Australian Dollar |
|
|
- |
630 |
|||||||||||
|
Total collateral received |
|
|
33,495 |
49,245 |
|||||||||||
|
|
|
|
|
|
|||||||||||
|
|
|
Market value |
Countries of |
|
|||||||||||
|
Securities lending |
|
of securities lending |
counterparty |
Settlement |
|||||||||||
|
Top Ten Counterparties per type of SFTA |
£'000 |
establishment |
and clearing |
||||||||||||
|
31 December 2025 |
|
|
|
|
|||||||||||
|
BNP Paribas |
|
31,862 |
France |
Tri-party |
|||||||||||
|
Total market value of securities lending |
31,862 |
|
|
||||||||||||
|
|
|
|
|
|
|||||||||||
|
31 December 2024 |
|
|
|
|
|||||||||||
|
Goldman Sachs |
|
46,263 |
US |
Tri-party |
|||||||||||
|
UBS |
|
527 |
Switzerland |
Tri-party |
|||||||||||
|
Total market value of securities lending |
46,790 |
|
|
||||||||||||
|
A All counterparties are shown |
|||||||||||||||
|
|
|
|
|
|
|||||||||||
|
Maturity Tenor of SFTs (remaining period to maturity) |
|||||||||||||||
|
31 December 2025 |
|
|
|
|
|||||||||||
|
Securities lending |
|
|
|
|
|||||||||||
|
The lending and collateral transactions are on an open basis and can be recalled on demand. As at 31 December 2025 there was one security on loan (31 December 2024 - three). |
|||||||||||||||
|
The Company does not engage in any re-use of collateral. |
|||||||||||||||
|
|
|
|
|
|
|||||||||||
|
|
2025 |
2024 |
|||||||||||||
|
Return and cost per type of SFT |
£'000 |
% |
£'000 |
% |
|||||||||||
|
Securities lending |
|
|
|
|
|||||||||||
|
Gross return |
367 |
115 |
751 |
115 |
|||||||||||
|
Direct operational costs (securities lending agent costs)B |
(55) |
(15) |
(113) |
(15) |
|||||||||||
|
Total costs |
(55) |
(15) |
(113) |
(15) |
|||||||||||
|
Net return |
312 |
100 |
638 |
100 |
|||||||||||
|
B The unrounded direct operational costs and fees incurred for securities lending for the 12 months to 31 December 2025 is £55,115 (2024 - £112,471). |
|||||||||||||||
Alternative Performance Measures
|
Alternative performance measures are numerical measures of the Company's current, historical or future performance, financial position or cash flows, other than financial measures defined or specified in the applicable financial framework. The Company's applicable financial framework includes FRS 102 and the AIC SORP. The Directors assess the Company's performance against a range of criteria which are viewed as particularly relevant for closed-end investment companies. |
|||
|
|
|
|
|
|
Premium/(discount) to net asset value per Ordinary share |
|||
|
The discount is the amount by which the share price is higher or lower than the net asset value per share at the year end, expressed as a percentage of the net asset value. |
|||
|
|
|
|
|
|
|
|
2025 |
2024 |
|
NAV per Ordinary share (p) |
a |
325.4 |
278.4 |
|
Share price (p) |
b |
335.0 |
257.5 |
|
Premium/(discount) |
(b-a)/a |
3.0% |
-7.5% |
|
|
|
|
|
|
Dividend cover |
|||
|
Dividend cover measures the revenue return per share divided by total dividends per share, expressed as a ratio. |
|||
|
|
|
|
|
|
|
|
2025 |
2024 |
|
Revenue return per share (p) |
a |
13.9 |
11.6 |
|
Dividends per share (p) |
b |
12.4 |
11.8 |
|
Dividend cover |
a/b |
1.12x |
0.98x |
|
|
|
|
|
|
Dividend yield |
|
|
|
|
The annual dividend per Ordinary share divided by the share price at the year end, expressed as a percentage. |
|||
|
|
|
|
|
|
|
|
2025 |
2024 |
|
Dividends per share (p) |
a |
12.4 |
11.8 |
|
Share price (p) |
b |
335.0 |
257.5 |
|
Dividend yield |
a/b |
3.7% |
4.6% |
|
|
|
|
|
|
Net gearing |
|
|
|
|
Net gearing measures the total borrowings less cash and cash equivalents divided by NAV, expressed as a percentage. Under AIC reporting guidance cash and cash equivalents includes amounts due to and from brokers at the year end as well as cash and cash equivalents. |
|||
|
|
|
|
|
|
|
|
2025 |
2024 |
|
Borrowings (£'000) |
a |
109,926 |
109,916 |
|
Cash (£'000) |
b |
24,966 |
8,732 |
|
Amounts due to brokers (£'000) |
c |
- |
647 |
|
Shareholders' funds (£'000) |
d |
1,920,974 |
1,678,849 |
|
Net gearing |
(a-b+c)/d |
4.4% |
6.1% |
|
|
|
|
|
|
Ongoing charges ratio (OCR) |
|
|
|
|
The ongoing charges ratio has been calculated in accordance with guidance issued by the AIC as the total of investment management fees and recurring administrative expenses, expressed as a percentage of the average daily net asset values with debt at fair value published throughout the year. |
|||
|
|
|
|
|
|
|
|
2025 |
2024 |
|
Investment management fees (£'000) |
|
7,342 |
7,122 |
|
Administrative expenses (£'000) |
|
1,692 |
1,798 |
|
Less: non-recurring chargesA (£'000) |
|
(74) |
(106) |
|
Ongoing charges (£'000) |
|
8,960 |
8,814 |
|
Average net assets (£'000) |
|
1,782,658 |
1,694,445 |
|
Ongoing charges ratio |
|
0.50% |
0.52% |
|
A Professional services comprising new Director recruitment costs, legal and advisory fees and costs deducted from return of capital proceeds considered unlikely to recur. |
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The ongoing charges ratio above differs from that provided in the Company's Key Information Document. |
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Total return |
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NAV and share price total returns show how the NAV and share price have performed over a period of time in percentage terms, taking into account both capital returns and dividends paid to shareholders. Share price and NAV returns are monitored against the Benchmark. |
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Share |
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Year ended 31 December 2025 |
|
NAV |
Price |
|
Opening at 1 January 2025 |
a |
278.4p |
257.5p |
|
Closing at 31 December 2025 |
b |
325.4p |
335.0p |
|
Price movements |
c=(b/a)-1 |
16.9% |
30.1% |
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Dividend reinvestmentA |
d |
5.0% |
5.9% |
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Total return |
c+d |
+21.9% |
+36.0% |
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Share |
|
Year ended 31 December 2024 |
|
NAV |
Price |
|
Opening at 1 January 2024 |
a |
268.8p |
258.0p |
|
Closing at 31 December 2024 |
b |
278.4p |
257.5p |
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Price movements |
c=(b/a)-1 |
3.6% |
-0.2% |
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Dividend reinvestmentA |
d |
4.5% |
4.7% |
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Total return |
c+d |
+8.1% |
+4.5% |
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A NAV total return involves investing the net dividend in the NAV of the Company with debt at par value on the date on which that dividend goes ex-dividend. Share price total return involves reinvesting the net dividend in the share price of the Company on the date on which that dividend goes ex-dividend. |
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abrdn Holdings Limited
Company Secretary
3 March 2026
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