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Murray Inc Trust PLC (MUT)

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Thursday 18 February, 2021

Murray Inc Trust PLC

Half Yearly Financial Report

RNS Number : 5000P
Murray Income Trust PLC
18 February 2021
 

Murray Income Trust PLC

LEGAL ENTITY IDENTIFIER (LEI): 549300IRNFGVQIQHUI

 

Half-Yearly Report for the 6 months ended 31 December 2020

 

The Directors of Murray Income Trust PLC report the unaudited results for the six months ended 31 December 2020.

 

Performance Highlights

 

 

Net asset value total return{A}

Share price total return{A}

Benchmark total return

Ongoing charges {A,B}

Six months ended 31 December 2020

+9.2%

Six months ended 31
December 2020

+11.6%

Six months ended 31 December 2020

+9.3%

Six months ended 31 December 2020

0.46%

 

 

 

 

 

 

 

 

 

 

Year ended 30 June 2020

-5.3%

Year ended 30 June 2020

-5.8%

Year ended 30 June 2020

-13.0% 

Year ended 30 June 2020

0.64%

 

Earnings per share

 

Dividend per Ordinary share

 

Dividend yield{A}

 

Discount to net asset value{A}

Six months ended 31 December 2020

13.5p

Year ended 30 June 2020

34.25p

As at 31 December 2020

4.1%

As at 31 December 2020

-3.0%

 

 

 

 

 

 

 

 

Six months ended 31 December 2019

15.4p

Year ended 30 June 2019

34.00p

As at 30 June 2020

4.5%

As at 30 June 2020

-5.0%

                   

 

 

31 December 2020

30 June 2020

Equity shareholders' funds (£'000)

1,003,997

534,361

Net asset value per Ordinary share - debt at par

857.8p

808.3p

Share price of Ordinary share (mid-market)

832.0p

768.0p

 

{A} Considered to be an Alternative Performance Measure.

{B} Lower than would normally be expected due to a management fee waiver in respect of net assets transferred from Perpetual Income and Growth Investment Trust plc in November 2020.

 

Dividends

 

Rate

XD date

Record date

Payment date

First interim

12.55p

29 Oct 2020

30 Oct 2020

17 Dec 2020

Second interim

3.95p

18 Feb 2021

19 Feb 2021

18 Mar 2021

Third interim

8.25p

20 May 2021

21 May 2021

17 Jun 2021

 

Financial Calendar

 

 

Payment dates of quarterly dividends

December, March, June, September

 

Financial year end

30 June

 

 

Expected announcement date of annual results

September

 

 

Annual General Meeting (London)

November

 

 

CHAIRMAN'S STATEMENT

 

First I would like to reiterate my warm welcome to all our new shareholders and to thank them and our existing shareholders for their strong support during the merger with Perpetual Income and Growth Investment Trust ("PLI"). The merger was completed successfully on 17 November 2020 with 80% of PLI and net assets of £427m joining us, representing 43.5% of the enlarged Company. Some of the results can be seen already. Net assets are now over £1bn, trading volumes are higher, and we have seen an approximate halving of the bid-offer spread when trading. Your Company has also been included in the FTSE 250 Index. Once the Manager's six-month management fee subsidy has expired, the Company's blended management fee rate will be 0.36% p.a. as compared to the pre-merger rate of 0.48% p.a.

 

Performance

After an exceptional run of outperformance for nine quarters in a row, we ran into some performance headwinds in the final quarter of 2020 which our Manager Charles Luke explains in more detail in his report. Over the six months ended 31 December 2020, the Company's net asset value ("NAV") per share rose 9.2% in total return terms, slightly behind the FTSE All-Share Index (the "Index") return of 9.3%. The share price total return was 11.6% with the discount narrowing from 5.0% to 3.0%.

 

Looking over longer periods to 31 December 2020, as set out in the table below, performance is significantly ahead of the Index over one, three, five and ten years.

 

At the same time we continue to grow our dividend, with a dividend increase chalked up in every one of the past forty-seven years. This puts us into the top ten (as measured by the number of years of dividend growth) in the AIC's 'Dividend Heroes' list of investment trusts with 20 years or more of consecutive annual dividend growth.

 

 

Performance (total return)

Year ended

3 years ended

5 years ended

10 years ended

 

 

31 December 2020

31 December 2020

31 December 2020

31 December 2020

Net Asset Value per Ordinary share (par){A}

-5.1%

11.5%

44.7%

103.1%

 

Share price per Ordinary share{A}

-2.4%

19.5%

55.1%

105.5%

 

FTSE All-Share Index

-9.8%

-2.7%

28.5%

71.9%

 

       

{A} Considered to be an Alternative Performance Measure.

 

 

 

Source: Aberdeen Standard Investments, Morningstar & Lipper

 

 

 

             

Investment Objective

The Company aims for a high and growing income combined with capital growth through investment in a portfolio principally of UK equities. Plain vanilla if you like, it is a diversified portfolio of quality companies.

 

Investment Process

Our Manager's investment process is best summarised as a search for good quality companies at attractive valuations. The Manager defines a quality company as one capable of strong and predictable cash generation, sustainably high returns on capital and with attractive growth opportunities. These typically result from a sound business model, a robust balance sheet, good management and strong environmental, social and governance characteristics. These qualities have helped avoid the worst of the dividend shocks in 2020.

 

Investment People

Aberdeen Standard Investments is our appointed investment management company. Charles Luke has been our portfolio manager since 2006. His deputy is Iain Pyle and they are members of the now seven-strong UK Equity Income pod which itself is part of the fifteen-strong UK Equity team headed by Andrew Millington.  

 

Annual General Meeting ("AGM")

Due to UK Government restrictions related to Covid-19, we had to hold our AGM on 27 November 2020 as a closed meeting with the minimum legal number of shareholders. The Board hopes that these restrictions will have eased before the next AGM, due to held in London on 2 November 2021, and will make extra efforts to reach out to shareholders as soon as we are able.

 

Dividends

Every October the Company announces its first, second and third interim dividends for the financial year. On 12 October 2020 we announced a first interim dividend of 12.55p per share to be paid on 17 December 2020, a second interim dividend of 3.95p per share to be paid on 18 March 2021 and a third interim dividend of 8.25p per share to be paid on 17 June 2021. The aggregate of the three interim dividends is 24.75p per share which is the same as that paid for the three interim dividends in respect of the previous year ended 30 June 2020. The Board will announce the rate for its fourth interim dividend in August 2021 with payment expected in September 2021.

 

The interim dividend paid on 17 December 2020 was received by those shareholders on the register on 30 October 2020, that is, before the merger with PLI. Shareholders of PLI received a dividend of 13.0p per PLI share on 13 November 2020, representing the payout of the PLI revenue reserves.

 

Covid-19 has led to a sudden, large and unexpected cut in dividend payments from many UK companies. Hit hard by declining revenues, companies have chosen to conserve cash or followed guidance to suspend dividends whilst in receipt of government furlough funding or other assistance. Companies are beginning to restore their dividends but many will not be able to bring them back to anywhere near their previous levels. The latest UK Dividend Monitor published by Link Group found that calendar year 2020 dividends for the UK market as a whole were down 44% on 2019 levels and forecast that it would take until 2025 for them to regain their 2019 levels. Our Manager estimates a 16% reduction in our portfolio income in 2020 and it may take until 2025 for the portfolio income levels to attain new highs.

 

One of the big advantages of investment trusts is that they can use their reserves accumulated over the years to smooth dividend payments in times like these. Revenue reserves are used first in this situation. Shareholders voted in November 2020 to allow the Company to pay dividends from capital if necessary. We do not plan to pay dividends from capital reserves, but having them available is an insurance policy that will give us the confidence to grow the dividend faster in future.

 

In the year ended 30 June 2020 we were able to increase our full year dividend per share to 34.25p which represents a yield of 4.1% on the 31 December 2020 share price of 832p. We did this by paying out 30.50p as last year's revenue supplemented by 3.75p from revenue reserves. This reduced our revenue reserves per share from 27.8p to 24.1p per share, a number which was then diluted to 15.5p upon the issue of new shares to the incoming PLI shareholders. In line with the Company's income objective, continued dividend growth is a key consideration for the Board.

 

Share Capital

The Company did not issue, sell from treasury, or buy back any shares during the six months ended 31 December 2020 other than in connection with the merger with PLI. As at 31 December 2020, there were 117,046,487 Ordinary 25p shares in issue with voting rights and an additional 2,483,045 shares held in treasury.

 

Borrowings and Gearing

As part of the merger, the Company absorbed PLI's £60m 4.37% senior loan notes 2029. Alongside the Company's existing £40m 2.51% senior loan notes 2027 and a new one year £20m floating rate multicurrency bank facility, this provides a mixture of fixed and floating rate debt maturing at different times.

 

With £6.5m drawn down from the Company's multicurrency bank facility, and partially off-set by £17.0m cash on deposit, net borrowings at the period end totalled £102.6m, which is equivalent to 10.2% of net assets. The beta of the investment portfolio is currently running at 0.88, meaning that statistically the portfolio is expected to capture 88% of any market movement, up or down. The Board continues to believe that the appropriate neutral gearing rate is 10%. The annualised cost of the Company's current borrowings is 0.21% of NAV.

 

Environmental, Social and Governance ("ESG")

ESG is one of the key components of Aberdeen Standard Investments' philosophy as it seeks to mitigate risk and enhance returns. The Company benefits from the significant amount of time and resource that the Manager dedicates to focusing on the ESG characteristics of the companies in which they invest.  ESG considerations are deeply embedded in the company analysis carried out by the Manager who is also able to draw on the expertise of more than 30 in-house ESG specialists.  This results in frequent dialogue with investee companies and helps to ensure that the companies in the portfolio are acting in the best long term interests of their shareholders and society at large. The Company has been awarded a Morningstar Sustainability Rating of four out of five.

 

Update

From 31 December 2020 to 15 February 2021, the NAV per share total return and share price total return were 3.2% and 2.6%, respectively, while the discount had widened from 3.0% to 3.6%. The FTSE All-Share Index total return was 4.7%.

 

Outlook

Just about everybody who has expressed a confident view in the past year about what would happen regarding the pandemic, politics or the economic outlook has been made to look foolish at some point, often very quickly. There are still large forces of unusual magnitude interacting with each other. Trying to predict the residual economic or stock market outlook is so difficult that whatever the conclusion, a very low level of confidence should remain. Possible tailwinds include a successful vaccination programme meaning that the UK can move much closer to normal during the summer, the pent-up demand from UK consumers who have more savings but have had fewer opportunities to spend, companies adapting to Brexit faster than many predicted, the stimulation programmes from governments and central banks and overseas investors still being at historically low weightings in the UK. Possible headwinds include further mutations of the Covid-19 virus or a vaccination setback, government policy being unable to lift the economy out of recession, rising interest rates, the massive stimulus leading us into a new era of inflation plus political uncertainty as the US, China, Russia, European Union and the UK spar with each other.

 

The Austrian economist Joseph Schumpeter revised the Marxist concept of "creative destruction". Essentially, he wrote how capitalism continually reinvents itself with new companies or technologies coming along that render old ones obsolete. Typically the process speeds up in times of recession or technological advance, which would aptly describe the last ten years except that super-low interest rates have kept afloat many companies that would not normally have survived. Think high-street retail, airlines or European banks for example. The pandemic has put such a serious hole in the cash flows of many of these zombie companies that it is likely that a large number of these will not be around for the recovery. It has also accelerated trends that were already established, such as Zoom versus business travel and online versus high street shopping. Whatever your view on Brexit, it is going to be different: some companies will be winners, some losers.

 

All in all, it would seem that the next ten years are going to be very different from the last ten. To succeed, companies will first need the balance sheet strength to survive long enough and to be able to invest in the future. They will need well-rehearsed strategies to navigate changing conditions. They will be exposed to future growth areas or if not they will be spinning off cash for their shareholders. They will act responsibly in consideration of their employees, their customers and the environment. In other words, they will need to be quality companies.

 

Happy Vaccinations!

 

Neil Rogan,

Chairman
17 February 2021

 

 

INTERIM BOARD REPORT

 

Principal Risks and Uncertainties

The Board regularly reviews the principal risks and uncertainties which it has identified, together with the delegated controls it has established to manage the risks and address the uncertainties, and these are set out in detail on pages 19 to 22 of the Company's Annual Report for the year ended 30 June 2020 ("Annual Report 2020") which is available on the Company's website. The Annual Report 2020 also contains, in note 17 to the Financial Statements, an explanation of other risks relating to the Company's investment activities, specifically market risk, liquidity risk and credit risk, and a note of how these risks are managed.

 

Related Party Transactions

Under Generally Accepted Accounting Practice (UK Accounting Standards and applicable law), the Company has identified the Directors as related parties. No other related parties have been identified. There have been no related party transactions that have had a material effect on the financial position of the Company.

 

Going Concern

The factors which have an impact on the Company's status as a going concern are set out in the Going Concern section of the Directors' Report on page 42 of the Annual Report 2020. As at 31 December 2020, there had been no significant changes to these factors.

 

The Board has set limits for borrowing and regularly reviews the level of any gearing, cash flow projections and compliance with covenants associated with the Senior Loan Notes and bank facilities. As at 31 December 2020, in addition to the £40m 10 year Senior Loan Notes 2027 and £60m 10 year Senior Loan Notes 2029, £6.5m of the Company's one-year £20m multi-currency revolving bank credit facility (the "Facility") was drawn down. In advance of expiry of the Facility in November 2021, the Company will enter into negotiations with its bankers. If acceptable terms are available from the existing bankers, or any alternative, the Company would expect to continue to access the Facility. However, should these terms not be forthcoming, any outstanding borrowing will be repaid through the proceeds of equity sales.

 

The Directors are mindful of the principal risks and uncertainties disclosed above and, having reviewed forecasts detailing revenue and liabilities, they believe that the Company has adequate financial resources to continue its operational existence for the foreseeable future.  Accordingly, the Directors believe that it is appropriate to continue to adopt the going concern basis of accounting in preparing the Financial Statements.

 

US Executive Order No. 13959

The Board confirms that the Company does not and will not invest in any of the companies designated as "Communist Chinese Military Companies" by the US Executive Order No. 13959.

 

Statement of Directors' Responsibilities

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

 

-  the condensed set of Financial Statements has been prepared in accordance with Financial Reporting Standard 104 (Interim Financial Reporting);

-  the Half-Yearly Board Report includes a fair review of the information required by rule 4.2.7R of the Disclosure Guidance and Transparency Rules (being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of Financial Statements and a description of the principal risks and uncertainties for the remaining six months of the financial year); and

-  the Half-Yearly Board Report includes a fair review of the information required by 4.2.8R (being related party transactions that have taken place during the first six months of the financial year and that have materially affected the financial position of the Company during that period; and any changes in the related party transactions described in the last Annual Report that could do so).

 

The Half-Yearly Financial Report for the six months ended 31 December 2020 comprises the Half-Yearly Board Report, the Directors' Responsibility Statement and the condensed set of Financial Statements.

 

For and on behalf of the Board

 

Neil Rogan,

Chairman
17 February 2021

 

 

MANAGER'S INVESTMENT REPORT

The portfolio performed broadly in line with the benchmark during the six months ended 31 December 2020 with the NAV per Ordinary share rising by 9.2% compared to an increase in the FTSE All-Share Index of 9.3% (both figures calculated on a total return basis).

 

The portfolio outperformed for the first three months of the period as the benchmark index fell. The portfolio's underweight positions in the oil & gas and bank sectors benefited performance. However, in the second half of the period the portfolio underperformed (albeit rising very strongly in absolute terms) as the announcement of successful coronavirus vaccine trials and the election victory of Joe Biden led to a sharp rally and a rotation from good quality companies into poorer quality 'value' companies. Those companies that performed strongly included those whose survivability had been questioned up to this point, as well as companies that were in more economically sensitive areas of the market. This second three month period witnessed a reversal in terms of sector performance with the portfolio underperforming due to its lack of exposure to oil & gas and bank stocks relative to the benchmark and its overall focus on good quality companies.

 

During November the combination of the portfolio with the Perpetual Income and Growth Investment Trust ("PLI") portfolio took place. The PLI portfolio had already been broadly aligned with Murray Income's portfolio hence it was a relatively simple process to aggregate the two portfolios and we did not inherit any unwanted holdings. 

 

We added four new holdings to the portfolio during the period. The first purchase was Safestore, which owns and operates self-storage facilities mostly in the UK and France. The business has attractive defensive attributes and further scope for growth from greater occupancy and better pricing. The second new entrant was Direct Line, the personal and commercial insurance provider. The business benefits from a strong brand and was purchased given its attractive dividend yield and resilient earnings stream. The third purchase was Intermediate Capital Group, the specialist investment firm and asset manager, where we have confidence in future fund raising opportunities, the company's strong balance sheet, and like the visibility of future management fees coupled with a healthy dividend yield. The final new holding was Softcat which is the second largest technology reseller in the UK.  Its culture, customer relationships and broad offering should continue to allow it to outperform a fragmented market.

 

We increased exposure to a number of our existing holdings which we believe have high quality characteristics with attractive growth prospects including: Marshalls, Close Brothers, Croda, Ashmore and Diageo. 

 

We sold three holdings. Firstly, National Express, the bus operator, as we became less confident in the pace of recovery for earnings and the timing of the reinstatement of the dividend. Secondly, the small holding in Diversified Gas & Oil was also sold. Finally, the residual holding in AB Foods was sold given the more challenging trading environment and lack of an online presence for Primark.

 

Profits were taken in a number of holdings that had performed strongly and where the valuation had started to look less attractive such as Aveva and Roche.

 

We continued our measured option-writing programme which is based on our fundamental analysis of holdings in the portfolio.  We strongly believe that the option-writing strategy has been of benefit to the Company by diversifying and increasing the level of income generated, providing headroom to invest in companies with lower starting yields but better dividend and capital growth prospects.

 

Market and Economic Background

The UK equity market rose by 9.3% on a total return basis over the 6 month period. The market gently retreated from the start of July to the end of October as concerns around coronavirus and, in particular the implications of a second wave on the economy, continued to be at the forefront of investors' minds. Brexit discussions also came back into focus ahead of the end of the transition period. However, the market staged a very strong rally from November onwards as it became clear that Joe Biden had won the US presidency, then again due to successful trial results of three major Covid-19 vaccines which pushed sectors hit by pandemic-related disruption higher. Markets also responded positively to the late Brexit deal on Christmas Eve. Despite the recovery in the second half of the calendar year, the market ended 2020 down 9.8% on a total return basis.

 

Over the 6 month period in question at a sector level, the more economically sensitive areas of the market (such as mining and industrials) and particularly those sectors (such as travel & leisure and general retail) that had been most impacted by the coronavirus outperformed. In contrast, the more defensive areas (including healthcare and utilities) underperformed. The Mid Cap Index outperformed the FTSE 100 by around 10% over the period generally reflective of its relatively more economically sensitive constituents.

 

Domestic economic data published across the first half of the period reflected the prior gradual easing of coronavirus restrictions. UK GDP grew month-on-month until November when it fell by 2.6%, the first time GDP had fallen since April.  The initial rounds of emergency fiscal stimulus packages delivered at the peak of the crisis began to expire but these were generally extended. Indeed, the Autumn Budget was cancelled given the need for a nearer term focus on protecting the economy. The Bank of England maintained base rates at 0.1% throughout the period but increased the size of its government bond purchasing program to £875 billion at its November meeting given further lockdowns impacting the recovery.  For 2020, our economists expect a fall of 11.5% in GDP (the worst performance in the G7) followed by a recovery of 6.2% in 2021 and 5.3% in 2022, the recovery being marginally ahead of consensus forecasts given a supportive monetary and fiscal policy backdrop, helping to offset the additional headwinds associated with the Brexit trade agreement.

 

Overseas, recent data has suggested that the global economy continues its recovery but further coronavirus lockdowns have diminished the pace of the upturn to varying degrees. In the Eurozone weak Purchasing Managers' Index data suggests a fall in economic activity during the fourth quarter of 2020. In contrast, the US economy has been relatively resilient and should benefit from further fiscal easing. In Asia, and particularly China, economic activity is returning to normal in a number of countries.

 

Looking forward, the trajectory of economic recovery in the UK continues to be relatively uncertain and on a global basis, in a number of regions, further waves of coronavirus may create near term headwinds. However, with the roll-out of vaccines beginning in earnest, the route out of the pandemic is now clearer.  In addition, the Brexit deal has now been agreed and although there will be assorted ramifications for some time, in many cases businesses' ability to plan for the future has improved. In the United States, the election of Joe Biden removes a further source of uncertainty. Although the picture has become brighter, we retain an air of caution given the likelihood that the scars of the post-Covid-19 environment will be characterised by a period of modest growth, low interest rates, pressure on company profits and high corporate debt. In these circumstances we believe that companies with attractive dividend yields, sound growth prospects and strong balance sheets are likely to be prized more highly. Therefore it seems eminently sensible to maintain our careful and measured approach to investing in high quality companies that should be able to thrive in a challenging environment and provide the potential to grow their earnings and hence their dividends over the long term.

 

Charles Luke and Iain Pyle,

Aberdeen Asset Managers Limited

Investment Manager

17 February 2021

 

 

Investment Case Studies

 

Dechra Pharmaceuticals

Dechra Pharmaceuticals ("Dechra") is a fast growing global specialist veterinary pharmaceuticals company. The business is well positioned in the companion animal segment of the market, with a greater share of its business represented by this segment than any of its major veterinary peers. The companion animal market is enjoying strong fundamentals driven by growing pet ownership,  particularly in emerging markets, and an increasing per capita spend on pets in developed markets.

 

Our expectation is that Dechra will deliver strong earnings growth driven by continued new pipeline product introductions, further geographical expansion and the rapid growth of its US business. Longer-term, Dechra has an expanding pipeline with key products including Tri-Solfen, a local anaesthetic product used with food producing animals and a long-acting veterinary insulin for use in dogs. In addition the company has a strong track record of bolt-on acquisitions using its salesforce to generate increased revenues from acquired products.

 

Safestore

Safestore is the UK's largest self-storage company.  The company also has operations in France with a nascent presence in Holland, Belgium and Spain.  Safestore operates in an attractive industry where supply is constrained (given planning restrictions and the availability of suitable land), the use of the internet as an enquiry channel favours the larger players, there is very low obsolescence risk and the self-storage market is less developed than countries such as the United States and Australia. The relatively low personal consumer awareness of self-storage provides an opportunity for future industry growth while demand from business customers is also increasing driven by the growth of online retailers.

 

Earnings and hence dividend growth should continue to progress as Safestore has the opportunity to increase occupancy and continue to improve pricing which given the relatively fixed nature of the cost base mostly converts to profit. Furthermore, the company has opportunities to open new sites in the UK while the European operations provide a further avenue for growth under the auspices of an entrepreneurial management team that have generated a strong track record.

 

 

 

 

MURRAY INCOME TRUST PLC

CONDENSED STATEMENT OF COMPREHENSIVE INCOME (unaudited)

 

 

 

 

Six months ended

 

 

 

31 December 2020

 

 

Revenue

Capital

Total

 

Notes

£'000

£'000

£'000

Gains on investments

 

-

47,935

47,935

Currency gains

 

-

103

103

Income

2

11,852

-

11,852

Investment management fees

4, 13

(365)

(851)

(1,216)

Administrative expenses

 

(648)

-

(648)

Net return before finance costs and taxation

 

10,839

47,187

58,026

 

 

 

 

 

Finance costs

 

(218)

(509)

(727)

Net return before taxation

 

10,621

46,678

57,299

 

 

 

 

 

Taxation

5

(13)

-

(13)

Net return after taxation

 

10,608

46,678

57,286

 

 

 

 

 

Return per Ordinary share

6

13.5p

59.4p

72.9p

 

 

 

 

 

The total column of this statement is the profit and loss account of the Company. The supplementary revenue and capital columns are both prepared under guidance issued by the Association of Investment Companies.

 

A Statement of Total Recognised Gains and Losses has not been prepared as all gains or losses are recognised in the Condensed Statement of Comprehensive Income.

 

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

 

The accompanying notes are an integral part of the condensed financial statements.

 

 

 

      

 

 

 

 

 

MURRAY INCOME TRUST PLC

CONDENSED STATEMENT OF COMPREHENSIVE INCOME (unaudited) (Cont'd)

 

 

 

Six months ended

 

 

31 December 2019

 

 

Revenue

Capital

Total

 

Notes

£'000

£'000

£'000

Gains on investments

 

-

42,918

42,918

Currency gains

 

-

139

139

Income

2

11,412

-

11,412

Investment management fees

4, 13

(410)

(956)

(1,366)

Administrative expenses

 

(607)

-

(607)

Net return before finance costs and taxation

 

10,395

42,101

52,496

 

 

 

 

 

Finance costs

 

(170)

(396)

(566)

Net return before taxation

 

10,225

41,705

51,930

 

 

 

 

 

Taxation

5

(25)

-

(25)

Net return after taxation

 

10,200

41,705

51,905

 

 

 

 

 

Return per Ordinary share

6

15.4p

63.1p

78.5p

 

 

 

 

 

The total column of this statement is the profit and loss account of the Company. The supplementary revenue and capital columns are both prepared under guidance issued by the Association of Investment Companies.

A Statement of Total Recognised Gains and Losses has not been prepared as all gains or losses are recognised in the Condensed Statement of Comprehensive Income.

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

The accompanying notes are an integral part of the condensed financial statements.

 

 

MURRAY INCOME TRUST PLC

CONDENSED STATEMENT OF FINANCIAL POSITION (unaudited)

 

 

 

As at

As at

 

 

31 December 2020

30 June 2020

 

Notes

£'000

£'000

Non-current assets

 

 

 

Investments at fair value through profit or loss

 

1,104,217

561,207

 

 

 

 

Current assets

 

 

 

Other debtors and receivables

 

6,258

4,854

Cash and cash equivalents

 

16,995

16,365

 

 

23,253

21,219

 

 

 

 

Creditors: amounts falling due within one year

 

 

 

Derivative financial instruments

 

(830)

-

Other payables

 

(3,075)

(1,494)

Bank loans

7

(6,505)

(6,667)

 

 

(10,410)

(8,161)

Net current assets

 

12,843

13,058

Total assets less current liabilities

 

1,117,060

574,265

 

 

 

 

Creditors: amounts falling due after one year

 

 

 

2.51% Senior Loan Notes 2027

7

(39,911)

(39,904)

4.37% Senior Loan Notes 2029

7

(73,152)

  -

Net assets

 

1,003,997

534,361

 

 

 

 

Capital and reserves

 

 

 

Share capital

8

29,882

17,148

Share premium account

 

438,213

24,020

Capital redemption reserve

 

4,997

4,997

Capital reserve

 

512,679

466,001

Revenue reserve

 

18,226

22,195

Total Shareholders' funds

 

1,003,997

534,361

 

 

 

 

Net asset value per Ordinary share

9

 

 

Debt at par value

 

857.8p

808.3p

 

 

 

 

The accompanying notes are an integral part of the condensed financial statements.

 

 

MURRAY INCOME TRUST PLC

CONDENSED STATEMENT OF CHANGES IN EQUITY (unaudited)

 

Six months ended 31 December 2020

 

 

 

 

 

 

Share

Capital

 

 

 

 

Share

premium

redemption

Capital

Revenue

 

 

capital

account

reserve

reserve

reserve

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

Balance at 1 July 2020

17,148

24,020

4,997

466,001

22,195

534,361

Net return after tax

-

-

-

46,678

10,608

57,286

Issue of shares on merger

12,734

414,486

-

-

-

427,220

Cost of shares issued in respect of the merger

-

(293)

-

-

-

(293)

Dividends paid (note 3)

-

-

-

-

(14,577)

(14,577)

Balance at 31 December 2020

29,882

438,213

4,997

512,679

18,226

1,003,997

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended 31 December 2019

 

 

 

 

 

 

Share

Capital

 

 

 

 

Share

premium

redemption

Capital

Revenue

 

 

capital

account

reserve

reserve

reserve

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

Balance at 1 July 2019

17,148

24,020

4,997

515,981

25,004

587,150

Net return after tax

-

-

-

41,705

10,200

51,905

Dividends paid (note 3)

-

-

-

-

(12,065)

(12,065)

Balance at 31 December 2019

17,148

24,020

4,997

557,686

23,139

626,990

 

 

 

 

 

 

 

The accompanying notes are an integral part of the condensed financial statements.

 

 

MURRAY INCOME TRUST PLC

CONDENSED STATEMENT OF CASH FLOWS (unaudited)

 

 

 

Six months ended

Six months ended

 

 

31 December 2020

31 December 2019

 

Notes

£'000

£'000

Operating activities

 

 

 

Net return before finance costs and taxation

 

58,026

52,496

Increase in accrued expenses

 

535

432

Overseas withholding tax

 

(13)

(50)

Dividend income

 

(10,929)

(10,286)

Dividends received

 

9,764

10,384

Interest income

 

-

(79)

Interest received

 

-

81

Interest paid

 

(392)

(571)

Amortisation of Loan Notes

 

(185)

2

Foreign exchange gains

 

(103)

(139)

Gains on investments

 

(47,935)

(42,918)

Increase in other debtors

 

(263)

(168)

Stock dividends included in investment income

 

(245)

(788)

Net cash inflow from operating activities

 

8,260

8,396

 

 

 

 

Investing activities

 

 

 

Purchases of investments

 

(54,759)

(66,822)

Sales of investments

 

24,025

73,800

Costs associated with the merger

 

(635)

-

Net cash (outflow)/inflow from investing activities

 

(31,369)

6,978

 

 

 

 

Financing activities

 

 

 

Dividends paid

3

(14,577)

(12,065)

Cost of shares issued in respect of the merger

 

(293)

-

Net cash acquired following merger

 

38,668

-

Repayment of bank loans

 

(6,582)

(2,051)

Drawdown of bank loans

 

6,568

2,020

Net cash inflow/(outflow) from financing activities

 

23,784

(12,096)

Increase in cash

 

675

3,278

 

 

 

 

Analysis of changes in cash during the period

 

 

 

Opening balance

 

16,365

27,171

Effect of exchange rate fluctuations on cash held

 

(45)

(95)

Increase in cash as above

 

675

3,278

Closing balance

 

16,995

30,354

 

 

 

 

The accompanying notes are an integral part of the condensed financial statements.

 

 

 

Notes to the Financial Statements

 

1.

Accounting policies

 

Basis of preparation. The condensed financial statements have been prepared in accordance with Financial Reporting Standard ("FRS") 104 (Interim Financial Reporting) and with the Statement of Recommended Practice for 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' issued in October 2019 (the AIC SORP). They have also been prepared on a going concern basis and on the assumption that approval as an investment trust will continue to be granted.

 

The condensed financial statements have been prepared using the same accounting policies as the preceding annual financial statements.

 

2.

Income

 

 

 

 

Six months ended

Six months ended

 

 

31 December 2020

31 December 2019

 

 

£'000

£'000

 

Investment income

 

 

 

UK dividends

8,960

8,515

 

Overseas dividends

1,117

403

 

Property income dividends

607

580

 

Stock dividends

245

788

 

 

10,929

10,286

 

Other income

 

 

 

Deposit interest

-

79

 

Stock lending income

-

12

 

Traded option premiums

923

1,035

 

 

923

1,126

 

Total income

11,852

11,412

 

 

 

3.

Dividends. Dividends paid on Ordinary shares deducted from the revenue reserve:

 

 

 

 

 

 

Six months ended

Six months ended

 

 

31 December 2020

31 December 2019

 

 

 '000

 '000

 

2019 final dividend - 10.00p

-

6,611

 

2020 first interim dividend - 8.25p

-

5,454

 

2020 fourth interim dividend - 9.50p

6,280

-

 

2021 first interim dividend - 12.55p

8,297

-

 

 

14,577

12,065

 

 

 

 

 

The first interim dividend for 2021 of 12.55p (2020 - 8.25p) was paid on 17 December 2020 to shareholders on the register on 30 October 2020, before the merger of the Company with Perpetual Income and Growth Investment Trust plc. The ex-dividend date was 29 October 2020.

 

A second interim dividend for 2021 of 3.95p (2020 - 8.25p) will be paid on 18 March 2021 to shareholders on the register on 19 February 2021. The ex-dividend date is 18 February 2021.

 

A third interim dividend for 2021 of 8.25p (2020 - 8.25p) will be paid on 17 June 2021 to shareholders on the register on 21 May 2021. The ex-dividend date is 20 May 2021.

 

4.

Management fee and finance costs. The management fee and finance costs are as reported in the Annual Report 2020 being a tiered fee based on net assets and calculated as follows:

 

 

 

 

 

Fee rate

Net

 

 

per annum

assets

£'million

 

0.55%

less than

350

 

0.45%

within the range

350-450

 

0.25%

greater than

450

 

 

 

 

 

Aberdeen Standard Fund Managers Limited agreed to waive the management fee payable by the Company in respect of the net assets transferred to the Company for a period of 182 days following completion of the merger on 17 November 2020.

 

5.

Taxation. The expense for taxation reflected in the Condensed Statement of Comprehensive Income is based on the estimated annual tax rate expected for the full financial year. The estimated annual corporation tax rate used for the year to 30 June 2021 is an effective rate of 19% (2020 - 19%).

 

During the period the Company suffered withholding tax on overseas dividend income of £13,000 (31 December 2019 - £25,000).

 

6.

Return per Ordinary share

 

 

 

 

 

 

Six months ended

Six months ended

 

 

 

31 December 2020

31 December 2019

 

 

 

 '000

 p

 '000

 p

 

Revenue return

10,608

13.5

10,200

15.4

 

Capital return

46,678

59.4

41,705

63.1

 

Total return

57,286

72.9

51,905

78.5

 

 

 

 

 

 

 

Weighted average number of Ordinary shares in issue

78,567,605

 

66,110,413

         

 

7.

Senior Loan Notes and bank loan. The Company has in issue £40,000,000 of 10 year Senior Loan Notes at a fixed rate of 2.51%. Interest is payable in half yearly instalments in May and November and the Loan Notes are due to be redeemed at par on 8 November 2027. The Loan Notes are secured by a floating charge over the whole of the assets of the Company. The Company has complied with the Note Purchase Agreement that the ratio of net assets to gross borrowings will be greater than 3.5:1 and that net assets will not be less than £275,000,000.

 

 

The fair value of the 2.51% Senior Loan Notes as at 31 December 2020 was £40,175,000 (30 June 2020 - £40,266,000), the value being calculated by aggregating the expected future cash flows discounted at a rate comprising the borrower's margin plus an average of market rates applicable to loans of a similar period of time.

 

 

As a result of the merger with Perpetual Income and Growth Investment Trust plc on 17 November 2020 (as explained in note 14), £60,000,000 of 15 year Senior Loan Notes at a fixed rate of 4.37% issued on 8 May 2014 was novated to the Company. Under FRS 102 the loan notes are required to be recorded initially at their fair value of £73,344,000 in the Company's Financial Statements and will be amortised over the remaining life of the loan. The amortisation of the fair value adjustment is presented as a finance cost, split 70% to capital and 30% to revenue. Interest is payable in half yearly instalments in May and November and the Loan Notes are due to be redeemed at par on 8 May 2029. The Loan Notes are secured by a floating charge over the whole of the assets of the Company. The Company has complied with the Note Purchase Agreement that the ratio of net assets to gross borrowings will be greater than 2:1 and that net assets will not be less than £350,000,000.

 

 

The fair value of the 4.37% Senior Loan Notes as at 31 December 2020 was £74,308,000, the value being based on a comparable quoted debt security.

 

 

The Company's three year £20 million multi-currency unsecured revolving bank credit facility with Scotiabank (Ireland) expired on 6 November 2020. The Company entered into a new one year £20 million multi-currency unsecured revolving bank credit facility with Scotiabank Europe, committed until 3 November 2021. At 31 December 2020 the Company had drawn down £6,505,000 (30 June 2020 - £6,667,000) of the facility.

 

 

 

 

 

 

 

 

 

 

31 December 2020

30 June 2020

 

 

Rate

Currency

£'000

Rate

Currency

£'000

 

Euro

0.95%

1,800,000

1,611

0.85%

1,800,000

1,636

 

Swiss Franc

0.95%

3,000,000

2,483

0.85%

3,000,000

2,562

 

US Dollar

1.10275%

850,000

622

1.03475%

850,000

688

 

Danish Krona

3.40%

6,000,000

721

0.85%

6,000,000

732

 

Norwegian Krone

1.21%

12,500,000

1,068

1.01%

12,500,000

1,049

 

 

 

 

6,505

 

 

6,667

            

 

 

8.

Share capital

 

 

 

 

Six months ended

Year ended

 

 

31 December 2020

30 June 2020

 

Ordinary shares of 25p each: publicly held

 

 

 

Opening balance

66,110,413

66,110,413

 

Issue of shares on merger

50,936,074

-

 

 

117,046,487

66,110,413

 

 

 

 

 

Ordinary shares of 25p each; held in treasury

 

 

 

Opening and closing balance

2,483,045

2,483,045

 

 

 

 

 

Total issued share capital

119,529,532

68,593,458

 

 

 

9.

Net asset value per Ordinary share. The net asset value and the net asset value attributable to the Ordinary shares at the end of the period follow. These were calculated using 117,046,487 (30 June 2020 - 66,110,413) Ordinary shares in issue at the period end (excluding treasury shares).

 

 

 

 

 

 

 

 

31 December 2020

 

 

 

 

Net Asset Value

 

 

 

 

Attributable

 

 

 

£'000

pence

£'000

pence

 

Net asset value - debt at par

1,003,997

857.8

534,361

808.3

 

Add: amortised cost of 2.51% Senior Loan Notes

39,911

34.1

39,904

 

Add: amortised cost of 4.37% Senior Loan Notes

73,152

62.5

-

 

Less: fair value of 2.51% Senior Loan Notes

(40,175)

(34.3)

(40,266)

 

Less: fair value of 4.37% Senior Loan Notes

(74,308)

(63.5)

-

-

 

Net asset value - debt at fair value

1,002,577

856.6

533,999

807.7

 

10.

Transaction costs. During the period, expenses were incurred in acquiring or disposing of investments classified at fair value through profit or loss. These have been expensed through capital and are included within gains on investments in the Condensed Statement of Comprehensive Income. The total costs were as follows:

 

 

 

 

 

 

Six months ended

Six months ended

 

 

31 December 2020

31 December 2019

 

 

£'000

£'000

 

Purchases{A}

224

281

 

Costs associated with the merger{B}

2,519

-

 

Sales{A}

7

26

 

 

2,750

307

 

 

{A} Costs  associated with the purchases and sale of portfolio investments in the normal course of the Company's business comprising stamp duty, financial transaction taxes and brokerage.

 

 

{B} Costs associated with the acquisition of assets from PLI, comprising £1,863,000 relating to stamp duty and financial transaction taxes and £656,000 relating to professional fees.

 

11.

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 has the following levels:

 

 

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 within Level 1 that are observable (ie developed using market data) for the asset or liability, either directly or indirectly; and

 

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 Condensed 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 2020

Note

£'000

£'000

£'000

£'000

 

Financial assets at fair value through profit or loss

 

 

 

 

 

 

Quoted equities

a)

1,104,217

-

-

1,104,217

 

Financial liabilities at fair value through profit or loss

 

 

 

 

 

 

Derivatives

b)

(424)

(406)

-

(830)

 

Net fair value

 

1,103,793

(406)

-

1,103,387

 

 

 

 

 

 

 

 

 

 

 

 

Level 1

Level 2

Level 3

Total

 

As at 30 June 2020

Note

£'000

£'000

£'000

£'000

 

Financial assets at fair value through profit or loss

 

 

 

 

 

 

Quoted equities

a)

561,207

-

-

561,207

 

Net fair value

 

561,207

-

-

561,207

 

 

 

 

 

 

 

 

 

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)

Derivatives. The fair value of the Company's investments in Exchange Traded Options has been determined using observable market inputs on an exchange traded basis and therefore has been included in Fair Value Level 1.

 

 

The fair value of the Company's investments in Over the Counter Options (where the underlying equities are also held) has been determined using observable market inputs other than quoted prices of the underlying equities (which are included within Fair Value level 1) and therefore determined as Fair Value Level 2.

 

 

 

All other financial assets and liabilities of the Company are included in the Condensed Statement of Financial Position at their book value which in the opinion of the Directors is not materially different from their fair value.

         

 

 

12.

Analysis of changes in net debt

 

 

 

 

 

 

 

At

Currency

 

Non-cash

At

 

 

30 June 2020

differences

Cash flows

movements

31 December 2020

 

 

£000

£000

£000

£000

£000

 

Cash and cash equivalents

16,365

(45)

675

-

16,995

 

Debt due within one year

(6,667)

148

14

-

(6,505)

 

Debt due after one year

(39,904)

-

-

(73,159)

(113,063)

 

Total

(30,206)

103

689

(73,159)

(102,573)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At

Currency

 

Non-cash

At

 

 

30 June 2019

differences

Cash flows

movements

31 December 2019

 

 

£000

£000

£000

£000

£000

 

Cash and cash equivalents

27,171

(95)

3,278

-

30,354

 

Debt due within one year

(6,601)

234

31

-

(6,336)

 

Debt due after one year

(39,896)

-

-

(2)

(39,898)

 

Total

(19,326)

139

3,309

(2)

(15,880)

 

 

13.

Transactions with the Manager. The Company has delegated the provision of investment management, secretarial, accounting and administration and promotional services to Aberdeen Standard Fund Managers Limited ("ASFML" or the "Manager").

 

The amounts charged for the period are set out below:

 

 

 

 

 

 

 

 

Six months ended

Six months ended

 

 

31 December 2020

31 December 2019

 

 

£'000

£'000

 

Management fees

1,216

1,366

 

Promotional activities

241

255

 

Secretarial fees

45

45

 

 

1,502

1,666

 

 

 

 

 

The amounts payable at the period end are set out below:

 

 

 

 

 

 

 

Six months ended

Six months ended

 

 

31 December 2020

31 December 2019

 

 

£'000

£'000

 

Management fees

373

462

 

Promotional activities

94

178

 

Secretarial fees

23

45

 

 

490

685

 

 

 

 

 

No fees are charged in the case of investments managed or advised by the Standard Life Aberdeen PLC group. There was one commonly managed fund held in the portfolio during the six months to 31 December 2020 (2019 - one). The management agreement may be terminated by either party on the expiry of three months written notice. On termination the Manager would be entitled to receive fees which would otherwise have been due up to that date.

     

 

 

14.

Transaction with Perpetual Income and Growth plc ("PLI"). On 17 November 2020, the Company announced that it had acquired £427 million of net assets from PLI in consideration for the issue of 50,936,074 new Ordinary shares based on the respective formula asset values of the two entities on 12 November 2020.

 

 

 

 

 

 

Net assets acquired

£'000

 

 

Investments

459,361

 

 

Cash

38,668

 

 

Debtors

2,583

 

 

Current liabilities

(48)

 

 

Long term liabilities - 4.37% senior loan notes 2029

(73,344)

 

 

Net assets

427,220

 

 

 

 

 

 

Satisfied by the value of new Ordinary shares issued

427,220

 

 

 

 

 

 

With the exception of the long term liabilities, which are amortised over the remaining life of the loan as explained in note 7, there were no fair value adjustments on completion of the merger made to the above figures.

 

 

15.

Segmental Information. 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.

 

16.

The financial information in this report does not comprise statutory accounts within the meaning of Section 434 - 436 of the Companies Act 2006. The financial information for the year ended 30 June 2020 has been extracted from published accounts that have been delivered to the Registrar of Companies and on which the report of the auditors was unqualified and contained no statement under Section 498 of the Companies Act 2006.

 

17.

This Half-Yearly Financial Report was approved by the Board on 17 February 2021.

      

 

 

 

 

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 FRS102 and the AIC SORP. The Directors assess the Company's performance against a range of criteria which are reviewed as particularly relevant for closed-end investment companies.

Total return. Total return is considered to be an alternative performance measure. Share price and NAV total returns show how the NAV and share price has performed over a period of time in percentage terms, taking into account both capital returns and dividends paid to shareholders. Share price and NAV total returns are monitored against open-ended and closed-ended competitors, and the FTSE All-Share Index, respectively.

 

 

 

 

 

 

Share price

NAV

Opening at 1 July 2020

a

768.0p

808.3p

Closing at 31 December 2020

b

832.0p

857.8p

Price movements

c=(b/a)-1

8.3%

6.1%

Dividend reinvestment{A}

d

3.3%

3.1%

Total return

c+d

11.6%

9.2%

 

{A} 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. NAV total return involves investing the net dividend in the NAV of the Company with debt at fair value on the date on which that dividend goes ex-dividend.

 

 

 

 

Discount to net asset value per Ordinary share. The discount is the amount by which the share price is lower than the net asset value per share, expressed as a percentage of the net asset value.

 

 

 

 

 

 

31 December 2020

30 June 2020

NAV per Ordinary share (p)

a

857.8p

808.3p

Share price (p)

b

832.0p

768.0p

Discount

(b-a)/a

(3.0%)

(5.0%)

 

 

 

 

Dividend yield. The annual dividend of 34.25p per Ordinary share (30 June 2020 - 34.25p) divided by the share price of 832.00p (30 June 2020 768.00p), expressed as a percentage

 

 

 

 

 

 

31 December 2020

30 June 2020

Dividends per share (p)

a

34.25p

34.25p

Share price (p)

b

832.0p

768.0p

Dividend yield

a/b

4.1%

4.5%

 

 

 

 

Net gearing. Net gearing measures the total borrowings less cash and cash equivalents dividend by shareholders' funds, 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.

 

 

 

 

 

 

31 December 2020

30 June 2020

Borrowings (£'000)

a

119,568

46,571

Cash (£'000)

b

16,995

16,365

Amounts due to brokers (£'000)

c

-

534

Amounts due from brokers (£'000)

d

-

2,610

Shareholders' funds (£'000)

e

1,003,997

534,361

Net gearing

(a-b+c-d)/e

10.2%

5.3%

 

 

 

 

Ongoing charges. The ongoing charges ratio has been calculated in accordance with guidance issued by the AIC as the total of investment management fees and administrative expenses and expressed as a percentage of the average net asset values with debt at fair value throughout the year. The ratio for 31 December 2020 is based on forecast ongoing charges for the year ending 30 June 2021.

 

 

 

 

 

 

31 December 2020

30 June 2020

Investment management fees (£'000)

a

2,478

2,660

Administrative expenses (£'000)

b

1,284

1,105

Less: non-recurring charges{A} (£'000)

c

(8)

(105)

Ongoing charges (£'000)

a+b+c

3,754

3,660

Average net assets (£'000)

d

818,351

570,683

Ongoing charges ratio

(a+b+c)/d

0.46%

0.64%

{A} Includes audit merger costs and professional fees

 

 

 

 

The ongoing charges ratio provided in the Company's Key Information Document is calculated in line with the PRIIPs regulations, which includes financing and transaction costs.

        

 

 

INVESTMENT PORTFOLIO - AS AT 31 DECEMBER 2020

 

As at 31 December 2020

 

 

 

 

 

 

 

 

Total

 

FTSE All-Share

 

Valuation

investments

Investment

Index Sector

Country

£'000

%

Diageo

Beverages

UK

48,552

4.4

Unilever

Personal Care

UK

43,427

3.9

Rio Tinto

Mining

UK

42,482

3.9

BHP Group

Mining

UK

42,051

3.8

AstraZeneca 

Pharmaceuticals & Biotechnology

UK

41,055

3.7

Relx

Media

UK

39,201

3.6

GlaxoSmithKline

Pharmaceuticals & Biotechnology

UK

35,902

3.3

Aveva

Software & Computer Services

UK

33,394

3.0

Close Brothers

Banks

UK

31,920

2.9

National Grid

Gas, Water & Multi-utilities

UK

30,181

2.7

Top ten investments

 

 

388,165

35.2

SSE

Electricity

UK

28,625

2.6

Assura

Real Estate Investment Trusts

UK

25,913

2.3

Prudential 

Life Assurance

UK

25,567

2.3

Total

Oil & Gas Producers

France

25,196

2.3

Croda International

Chemicals

UK

23,969

2.2

Coca-Cola HBC

Beverages

Switzerland

23,720

2.2

Standard Chartered

Banks

UK

23,559

2.1

Inchcape

General Retailers

UK

23,391

2.1

Mondi

Forestry & Paper

UK

23,010

2.1

Euromoney Institutional Investor

Media

UK

22,524

2.0

Top twenty investments

 

 

633,639

57.4

Roche Holdings 

Pharmaceuticals & Biotechnology

Switzerland

22,508

2.0

Ashmore Group

Financial Services

UK

20,704

1.9

Weir Group

Industrial Engineering

UK

19,582

1.8

Rentokil Initial

Support Services

UK

19,261

1.7

Nestle

Food Producers

Switzerland

19,081

1.7

Countryside Properties

Household Goods & Home Construction

UK

18,689

1.7

M&G

Financial Services

UK

18,012

1.6

Direct Line Insurance

Non-life Insurance

UK

17,475

1.6

LondonMetric Property

Real Estate Investment Trusts

UK

16,132

1.5

Telenor

Mobile Telecommunications

Norway

15,821

1.4

Top thirty investments

 

 

820,904

74.3

Smith & Nephew

Health Care Equipment & Services

UK

15,396

1.4

Marshalls

Construction & Materials

UK

15,156

1.4

BP 

Oil & Gas Producers

UK

14,843

1.4

Howden Joinery

Support Services

UK

14,583

1.3

Novo Nordisk

Pharmaceuticals & Biotechnology

Denmark

14,199

1.3

Kone

Industrial Engineering

Finland

13,809

1.3

Telecom Plus

Fixed Line Telecommunications

UK

13,634

1.2

Microsoft

Software & Computer Services

USA

13,586

1.2

VAT Group

Industrial Engineering

Switzerland

13,498

1.2

Polypipe

Construction & Materials

UK

13,312

1.2

Top forty investments

 

 

962,920

87.2

XP Power

Electronic & Electrical Equipment

UK

12,845

1.2

Bodycote

Industrial Engineering

UK

12,403

1.1

British American Tobacco 

Tobacco

UK

12,365

1.1

Sirius Real Estate

Real Estate Investment Services

UK

11,911

1.1

Convatec

Health Care Equipment & Services

UK

11,848

1.1

Fevertree

Beverages

UK

10,793

1.0

Dechra Pharmaceuticals

Pharmaceuticals & Biotechnology

UK

10,444

0.9

Safestore

Real Estate Investment Trusts

UK

9,018

0.8

Unite Group

Real Estate Investment Trusts

UK

7,858

0.7

Chesnara

Life Assurance

UK

7,732

0.7

Top fifty investments

 

 

1,070,137

96.9

Mowi

Food Producers

Norway

6,850

0.6

Standard Life UK Smaller Companies Trust

Equity Investment Instruments

UK

6,470

0.6

John Laing

Financial Services

UK

5,550

0.5

Intermediate Capital

Financial Services

UK

5,531

0.5

Sanne

Financial Services

UK

5,061

0.5

Big Yellow Group

Real Estate Investment Trusts

UK

4,163

0.4

Softcat

Software & Computer Services

UK

455

-

Total investments

 

 

1,104,217

100.0

 

 

END

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