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RNS Number : 2038O
Murray International Trust PLC
17 August 2017
 

MURRAY INTERNATIONAL TRUST PLC (the "Company")

Legal Entity Identifier (LEI):  549300BP77JO5Y8LM553

 

HALF YEARLY REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2017

 

The Directors of Murray International Trust PLC report the unaudited results of the Company for the six months ended 30 June 2017.

 

INTERIM BOARD REPORT

 

Background

Politics and economics continued to exert significant influence over financial markets during the period under review.  Heightened anxiety surrounding Presidential change in the United States dissipated as many pre-election promises have failed to materialise, though political turmoil elsewhere continued to fuel uncertainty.  Bond markets, equities and currencies endured periods of volatility as asset prices negotiated fractious general elections in Holland, France and the UK. With the political landscape in constant flux, overall economic activity generally disappointed.  Subdued consumer confidence constrained personal consumption whilst business investment remained well below expectations.  In developed countries, rising inflation from higher food and energy prices further squeezed consumer purchasing power resulting in, for the most part, an uninspiring economic backdrop.  The consequential policy inertia was viewed positively by global equity markets with the majority moving higher over the period.

 

Performance and Dividends

The net asset value ("NAV") total return, with net income reinvested, for the six months to 30 June 2017 increased by 9.4% compared with a total return of 5.6% for the Company's benchmark (40% FTSE World UK and 60% FTSE World ex UK).  Over the six month period, the share price total return increased by 6.4% reflecting a slight reduction in the premium to NAV on which the shares traded.

 

Two interim dividends of 11.0p (2016: 10.5p) have been declared in respect of the period to 30 June 2017. The first interim dividend is payable on 17 August 2017 to shareholders on the register on 7 July 2017 and the second interim dividend will be paid on 17 November 2017 to shareholders on the register on 6 October 2017.  As I have stated in previous Statements, the Company's revenue is substantially derived from overseas companies, which pay dividends in local currencies that are then translated into Sterling upon receipt.  Therefore the Company's revenue streams are highly susceptible to the strength or weakness of Sterling and the earnings per share figures can demonstrate volatility from year to year.  However, the Board intends to maintain a progressive dividend policy given the Company's investment objective. This means that in some years revenue will be added to reserves, while in others revenue may be taken from reserves to supplement earned revenue for that year, to pay the annual dividend.  Shareholders should not be surprised or concerned by either outcome as over time the Company will aim to pay out what the underlying portfolio earns.

 

Following significant capital appreciation throughout the fiscal year 2016, the overall portfolio continued to deliver positive gains over the six month period.  By far the largest contributing factor to absolute overall returns was the Trust's material exposure to Emerging Markets.  Latin America proved the standout performer, where, despite mediocre index returns, solid stock selection delivered close to 20% total return in Sterling terms. Large overweight exposures throughout Asia ex Japan also significantly enhanced returns with high-conviction positions in Taiwan Semiconductor, Unilever Indonesia and MTR Corp all delivering strong capital and income growth.  Whilst Sterling's marginal strength against most portfolio currencies proved slightly negative for overall capital performance, this was more than offset within the Emerging Market Bond portfolio which continued to record positive gains.  A combination of improving fundamentals, continued yield compression and low expectations for this asset class provides a compelling case for maintaining current levels of exposure.  On a regional basis, within Developed market equity exposure, contributions were mixed and varied, but essentially cancelled each other out to the point of overall neutrality.  Underweight exposures plus strong stock selection in North America and the UK were positive over the period, but underweight exposures and indifferent stock selection in Europe and Japan essentially negated those gains.  Overall, diversification proved effective, resilient and ultimately profitable, and this strategy will be maintained going forward.

 

Management of Premium and Discount

The Board continues to believe that it is appropriate to seek to address temporary imbalances of supply and demand for the Company's shares which might otherwise result in a recurring material discount or premium. Subject to existing shareholder permissions (given at the last AGM) and prevailing market conditions, the Board intends to continue to buy back shares and issue new shares (or sell shares from Treasury) if shares trade at a persistent significant discount to NAV (excluding income) or premium to NAV (including income). The Board believes that this process is in all shareholders' interests as it seeks to reduce volatility in the premium or discount to underlying NAV whilst also making a small positive contribution to the NAV.  During the period under review, this has resulted in the sale from Treasury of 57,500 new Ordinary shares at a premium to the prevailing NAV (including income) per Ordinary share. No shares were purchased for Treasury during the period or subsequently. As at the close of business on 15 August 2017, the NAV per share was 1225.98p (exclusive of income) and the share price was 1257.0p equating to a premium of 2.5% per Ordinary share.

 

Gearing and Proposed Redemption and Cancellation of Debenture Stock

The Company recently agreed a new £60 million loan facility with The Royal Bank of Scotland plc ("RBS") to replace an expiring facility of the same amount. The new facility was drawn in full on 2 June 2017 and fixed for five years at an all-in rate of 1.714%. At the period end the Company had net gearing of 10.8%.

 

The Board has resolved to redeem the very small amount of Debenture Stock that now remains outstanding and will shortly be writing to Debenture holders to explain the process and next steps.  The Debenture Trust Deeds provide for the Company to redeem the Debenture Stock at any time subject to three months' notice and payment of a premium of 1% above the nominal outstanding and all interest will stop accruing following the redemption date. The costs of the proposed redemption are de minimis and the redemption serves to further simplify the structure of the Company.

 

Aberdeen

Your Board notes the completion of the merger between Aberdeen and Standard Life. Aberdeen has reiterated to the Board that the existing investment management and client servicing team will remain in place and we shall continue to remain vigilant to ensure that the management team are focussed upon looking after the interests of the Company and its Shareholders during the integration of the two businesses.

 

Outlook

I have previously observed that the distortions in the global financial landscape stretching out in front of us would prove extremely challenging for savers and investors alike.  Artificially low bond yields and historically extended equity valuations continue to prevail, compounded further by escalating political disquiet.  There can be little doubt that the impact of political uncertainty on the future path of interest rates and fragile economic growth will become an increasingly powerful influence on financial markets.  Unfortunately its magnitude, geography and consequences are virtually impossible to predict.

 

Beyond these uncertainties, the reality of investment management must focus on more tangible possibilities.  Compelling evidence suggests the developing world still possesses powerful, wealth-creating forces from rising incomes, favourable demographics, improving economic fundamentals and numerous businesses favourably positioned to capitalise on opportunities that arise.  Sadly, for the debt-laden developed world the outlook is essentially the exact opposite, but the flexibility of the Company's mandate allows positive practical choices to be made.  Portfolio emphasis will continue to focus on capital and income growth at the most attractive valuations possible, utilising the Company's wide geographic remit. This approach is serving shareholders well at present, and will continue to underpin the management of the Company's portfolio.

 

 

Kevin Carter

Chairman

16 August 2017

 

 

 

DIRECTORS' DISCLOSURES

 

Principal Risks and Uncertainties

The Board has adopted a matrix of the key risks that affect the business. The major financial risks associated with the Company are detailed in note 18 to the Annual Report and Financial Statements for the year ended 31 December 2016 ("2016 Annual Report") and the other principal risks are summarised below.  These risks represent the principal risks for the remaining six months of the year.

 

Details of the management of the risks and the Company's internal controls are disclosed on pages 8 and 9 of the 2016 Annual Report. They can be summarised as follows:

 

                Investment strategy and objectives;

                Investment portfolio, investment management;

                Financial obligations;

                Financial and Regulatory; and

                Operational.

 

Related Party Transactions

AFML acts as Alternative Investment Fund Manager, AAM acts as Investment Manager and Aberdeen Asset Management PLC acts as Company Secretary to the Company; details of the service and fee arrangements can be found in the 2016 Annual Report, a copy of which is available on the Company's website. Details of the transactions with the Manager including the fees payable to Aberdeen group companies are disclosed in note 11 of this Half Yearly Report.

 

Going Concern

In accordance with the Financial Reporting Council's Guidance on Risk Management, Internal Control and Related Financial and Business Reporting, the Directors have undertaken a rigorous review and consider both that there are no material uncertainties and that the adoption of the going concern basis of accounting is appropriate. The Company's assets consist of a diverse portfolio of listed equities and bonds which in most circumstances are realisable within a very short timescale. The Directors believe that the Company has adequate financial resources to continue its operational existence for the foreseeable future and at least 12 months from the date of this Half Yearly Report. Accordingly, the Directors continue to adopt the going concern basis in preparing these financial statements.

 

Directors' Responsibility Statement

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 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 30 June 2017 comprises the Half-Yearly Board Report, the Directors' Responsibility Statement and a condensed set of Financial Statements.

 

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

 

Kevin Carter

Chairman

16 August 2017

 

 

 

HIGHLIGHTS

 


30 June 2017

31 December 2016

% change

Total assets{A} (£'000)

1,735,372

1,633,029

+6.3

Equity shareholders' funds (£'000)

1,550,517

1,447,879

+7.1

Share price - Ordinary share

1,236.00

1,188.00

+4.0

Net asset value per Ordinary share

1,215.69

1,135.73

+7.0

Premium to net asset value per Ordinary share

1.7%

4.6%


{A} Represents total assets less current liabilities (excluding bank loans).

 

 

PERFORMANCE (TOTAL RETURN)

 


30 June 2017

31 December 2016

Share price{A}

+6.4%

+50.5%

Net asset value per Ordinary share

+9.4%

+40.3%

Benchmark

+5.6%

+25.8%

{A} Mid to mid.



Total return represents the capital return plus dividends reinvested.



Source: Aberdeen Asset Management, Morningstar & Lipper



 

 



CONDENSED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

 



Six months ended

Six months ended



30 June 2017

30 June 2016



Revenue

Capital

Total

Revenue

Capital

Total


Note

£'000

£'000

£'000

£'000

£'000

£'000

Gains on investments


-

104,018

104,018

-

283,687

283,687

Income

2

42,578

-

42,578

45,056

-

45,056

Investment management fees

11

(1,153)

(2,690)

(3,843)

(1,029)

(2,402)

(3,431)

Other expenses


(1,041)

-

(1,041)

(1,004)

-

(1,004)

Currency losses


-

(320)

(320)

-

(171)

(171)



_______

_______

_______

_______

_______

_______

Net return before finance costs and tax


40,384

101,008

141,392

43,023

281,114

324,137









Finance costs


(642)

(1,498)

(2,140)

(683)

(1,593)

(2,276)



_______

_______

_______

_______

_______

_______

Return on ordinary activities before tax


39,742

99,510

139,252

42,340

279,521

321,861









Tax on ordinary activities

3

(4,327)

789

(3,538)

(3,582)

357

(3,225)



_______

_______

_______

_______

_______

_______

Return attributable to equity shareholders


35,415

100,299

135,714

38,758

279,878

318,636



_______

_______

_______

_______

_______

_______









Return per Ordinary share (pence)

5

27.78

78.66

106.44

30.27

218.60

248.87



_______

_______

_______

_______

_______

_______









The total column of the Condensed Statement of Comprehensive Income is the profit and loss account of the Company.

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

 

 



CONDENSED STATEMENT OF FINANCIAL POSITION (UNAUDITED)

 



As at

As at



30 June 2017

31 December 2016


Notes

£'000

£'000

Non-current assets




Investments at fair value through profit or loss


1,704,744

1,618,893



_______

_______

Current assets




Debtors


16,408

12,842

Cash and short-term deposits


17,680

3,897



_______

_______



34,088

16,739



_______

_______

Creditors: amounts falling due within one year




Bank loans


(60,000)

(60,000)

Other creditors


(3,460)

(2,603)



_______

_______



(63,460)

(62,603)



_______

_______

Net current liabilities


(29,372)

(45,864)



_______

_______

Total assets less current liabilities


1,675,372

1,573,029





Creditors: amounts falling due after more than one year




Bank loans and debentures


(124,855)

(125,150)



_______

_______

Net assets


1,550,517

1,447,879



_______

_______

Capital and reserves




Called-up share capital


32,137

32,137

Share premium account


349,763

349,581

Capital redemption reserve


8,230

8,230

Capital reserve

6

1,087,792

986,968

Revenue reserve


72,595

70,963



_______

_______

Equity shareholders' funds


1,550,517

1,447,879



_______

_______





Net asset value per Ordinary share (pence)

7

1,215.69

1,135.73



_______

_______

 

 



CONDENSED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

 

Six months ended 30 June 2017









Share

Capital





Share

premium

redemption

Capital

Revenue



capital

account

reserve

reserve

reserve

Total


£'000

£'000

£'000

£'000

£'000

£'000

Balance at 31 December 2016

32,137

349,581

8,230

986,968

70,963

1,447,879

Return on ordinary activities after tax

-

-

-

100,299

35,415

135,714

Dividends paid (see note 4)

-

-

-

-

(33,783)

(33,783)

Issue of shares from Treasury

-

182

-

525

-

707


_______

_______

_______

_______

_______

_______

Balance at 30 June 2017

32,137

349,763

8,230

1,087,792

72,595

1,550,517


_______

_______

_______

_______

_______

_______








Six months ended 30 June 2016









Share

Capital





Share

premium

redemption

Capital

Revenue



capital

account

reserve

reserve

reserve

Total


£'000

£'000

£'000

£'000

£'000

£'000

Balance at 31 December 2015

32,128

349,338

8,230

636,556

64,767

1,091,019

Return on ordinary activities after tax

-

-

-

279,878

38,758

318,636

Dividends paid (see note 4)

-

-

-

-

(32,436)

(32,436)

Buyback of shares for Treasury

-

-

-

(6,224)

-

(6,224)

Issue of shares from Treasury

7

203

-

1,116

-

1,326


_______

_______

_______

_______

_______

_______

Balance at 30 June 2016

32,135

349,541

8,230

911,326

71,089

1,372,321


_______

_______

_______

_______

_______

_______

 

 



CONDENSED STATEMENT OF CASH FLOWS (UNAUDITED)

 

 


Six months ended

Six months ended


30 June 2017

30 June 2016


£'000

£'000

Net return before finance costs and taxation

141,392

324,137

Increase/(decrease) in accrued expenses

195

(12)

Overseas withholding tax

(3,032)

(3,414)

Interest income

-

(1)

Dividend income

(30,980)

(35,454)

Fixed interest income

(11,598)

(9,601)

Realised losses on foreign exchange transactions

-

1,536

Fixed interest income received

9,754

8,989

Dividends received

29,488

30,291

Interest received

-

1

Interest paid

(2,467)

(2,384)

Gains on investments

(104,018)

(283,687)

Amortisation of fixed income book cost

3,385

(416)

(Increase)/decrease in other debtors

(4)

19


_______

_______

Net cash flow from operating activities

32,115

30,004




Investing activities



Purchases of investments

(114,348)

(118,437)

Sales of investments

129,092

140,923


_______

_______

Net cash from investing activities

14,744

22,486




Financing activities



Equity dividends paid

(33,783)

(32,436)

Issue of shares from Treasury

707

1,326

Buyback of Ordinary shares

-

(6,224)

Loan repayment

(60,000)

(10,209)

Loan drawdown

60,000

-


_______

_______

Net cash used in financing activities

(33,076)

(47,543)


_______

_______

Increase in cash

13,783

4,947


_______

_______

Analysis of changes in cash during the period



Opening balance

3,897

4,648

Increase in cash as above

13,783

4,947


_______

_______

Closing balances

17,680

9,595


_______

_______

 

 



NOTES TO THE FINANCIAL STATEMENTS

 

1.

Accounting policies - Basis of preparation


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




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

 



Six months ended

Six months ended



30 June 2017

30 June 2016

2.

Income

£'000

£'000


Income from investments




UK dividends

5,716

4,107


Overseas dividends

25,264

31,347


Overseas interest

11,598

9,601



_______

_______



42,578

45,055



_______

_______


Interest




Deposit interest

-

1



_______

_______


Total income

42,578

45,056



_______

_______

 

3.

Taxation


The taxation expense 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 31 December 2017 is an effective rate of 19.25%. This is above the current corporation tax rate of 19% because prior to 1 April 2017 the prevailing corporation tax rate was 20%.




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 profit 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.

 



Six months ended

Six months ended



30 June 2017

30 June 2016

 4.

Ordinary dividends on equity shares

£'000

£'000


Third interim dividend 2016 of 10.50p (2015 - 10.50p)

13,386

13,398


Final dividend 2016 of 16.00p (2015 - 15.00p)

20,397

19,038



_______

_______



33,783

32,436



_______

_______



 

 

A first interim dividend for 2017 of 11.00p (2016 - 10.50p) will be paid on 17 August 2017 to shareholders on the register on 7 July 2017. The ex-dividend date was 6 July 2017.


A second interim dividend for 2017 of 11.00p (2016 - 10.50p) will be paid on 17 November 2017 to shareholders on the register on 6 October 2017. The ex-dividend date is 5 October 2017.

 



Six months ended

Six months ended



30 June 2017

30 June 2016

 5.

Returns per share

£'000

£'000


Based on the following figures:




Revenue return

35,415

38,758


Capital return

100,299

279,878



_______

_______


Total return

135,714

318,636



_______

_______


Weighted average number of Ordinary shares

127,502,083

127,110,700


Weighted average number of B Ordinary shares

-

923,100



___________

___________


Weighted average number of Ordinary shares{A}

127,502,083

128,033,800



___________

___________






{A} Assumes full conversion of B Ordinary shares to Ordinary shares on a one for one basis.

 

6.

Capital reserves


The capital reserve reflected in the Condensed Statement of Financial Position at 30 June 2017 includes gains of £537,621,000 (31 December 2016 - gains of £486,113,000) which relate to the revaluation of investments held at the reporting date.

 

7.

Net asset value


The net asset value per share and the net asset value attributable to the Ordinary shares at the period end calculated in accordance with the Articles of Association were as follows:







As at

As at



30 June 2017

31 December 2016


Attributable net assets (£'000)

1,550,517

1,447,879



___________

___________


Number of Ordinary shares in issue

127,541,738

127,484,238



___________

___________


Net asset value per share (pence)

1,215.69

1,135.73



___________

___________

 

8.

Transaction costs


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







Six months ended

Six months ended



30 June 2017

30 June 2016



£'000

£'000


Purchases

59

91


Sales

42

112



_______

_______



101

203



_______

_______

 

9.

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 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 within 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 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 30 June 2017

Note

£'000

£'000

£'000

£'000


Financial assets at fair value through profit or loss







Quoted equities

a)

1,405,521

-

-

1,405,521


Quoted preference shares

b)

-

7,881

-

7,881


Quoted bonds

b)

-

291,342

-

291,342




_______

_______

_______

_______


Total


1,405,521

299,223

-

1,704,744




_______

_______

_______

_______


Net fair value


1,405,521

299,223

-

1,704,744




_______

_______

_______

_______











Level 1

Level 2

Level 3

Total


As at 31 December 2016

Note

£'000

£'000

£'000

£'000


Financial assets at fair value through profit or loss







Quoted equities

a)

1,351,027

-

-

1,351,027


Quoted preference shares

b)

-

7,191

-

7,191


Quoted bonds

b)

-

260,675

-

260,675




_______

_______

_______

_______


Total


1,351,027

267,866

-

1,618,893




_______

_______

_______

_______


Net fair value


1,351,027

267,866

-

1,618,893




_______

_______

_______

_______




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.

 

10.

Share capital


As at 30 June 2017 there were 127,541,738 (31 December 2016 - 127,484,238) Ordinary shares of 25p each in issue excluding those held in Treasury.

 

11.

Transactions with the Manager


The Company has agreements with Aberdeen Fund Managers Limited ('AFML' or the 'Manager') for the provision of investment management, secretarial, accounting and administration and promotional activity services.




The management fee is charged on net assets (i.e. excluding borrowings for investment purposes) averaged over the six previous quarters ('Net Assets'), on a tiered basis. The annual management fee is charged at 0.575% of Net Assets up to £1,200 million, 0.5% of Net Assets between £1,200 million and £1,400 million, and 0.425% of Net Assets above £1,400 million. A fee of 1.5% per annum remains 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 period £3,843,000 (30 June 2016 - £3,431,000) of investment management fees was payable to the Manager, with a balance of £1,980,000 (30 June 2016 - £1,696,000) being payable to AFML at the period end.




Included within the management fee arrangements is a secretarial fee of £100,000 per annum which is chargeable 100% to revenue. During the period £50,000 (30 June 2016 - £50,000) of secretarial fees was payable to the Manager, with a balance of £25,000 (30 June 2016 - £25,000) being payable to AFML at the period end.




No fees are charged in the case of investments managed or advised by the Aberdeen Asset Management Group. The management agreement may be terminated by either party on the expiry of six month's written notice. On termination the Manager is entitled to receive fees which would otherwise have been due up to that date.




The promotional activities fee is based on a current annual amount of £425,000 (30 June 2016 - £425,000), payable quarterly in arrears. During the period £214,000 (30 June 2016 - £214,000) of fees was payable, with a balance of £105,000 (30 June 2016 - £105,000) being payable to AFML at the period end.

 

12.

Segmental information


The Company is engaged in a single segment of business, which is to invest in equity securities and debt instruments. All of the Company's activities are interrelated, and each activity is dependent on the others. Accordingly, all significant operating decisions are based on the Company as one segment.

 

13.

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 31 December 2016 has been extracted from published accounts that have been delivered to the Registrar of Companies and on which the report of the Company's auditor was unqualified and contained no statement under Section 498 (2), (3) or (4) of the Companies Act 2006. The condensed interim financial statements have been prepared using the same accounting policies as contained within the preceding annual financial statements.




The financial information for the six months ended 30 June 2017 and 30 June 2016 has not been audited or reviewed by the Company's auditor.

 

14.

This Half-Yearly Financial Report was approved by the Board on 16 August 2017.

 

 

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

 

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

 

 

By order of the Board

 

ABERDEEN ASSET MANAGEMENT PLC, SECRETARY

16 August 2017

 

 



SUMMARY OF INVESTMENT CHANGES

 


Valuation

Appreciation/


Valuation


30 June 2017

(depreciation)

Transactions

31 December 2016


£'000

%

£'000

£'000

£'000

%

Equities







United Kingdom

210,713

12.1

7,354

3,977

199,382

12.2

North America

238,818

13.8

6,250

(16,226)

248,794

15.2

Europe ex UK

166,659

9.6

10,560

(11,830)

167,929

10.3

Japan

65,472

3.8

(570)

-

66,042

4.1

Asia Pacific ex Japan

432,599

24.9

38,244

5,309

389,046

23.8

Latin America

276,525

15.9

36,671

(23,558)

263,412

16.1

Africa

14,735

0.9

(1,687)

-

16,422

1.0


_______

_______

_______

_______

_______

_______


1,405,521

81.0

96,822

(42,328)

1,351,027

82.7


_______

_______

_______

_______

_______

_______

Fixed income







United Kingdom

7,881

0.4

690

-

7,191

0.4

Europe ex UK

30,757

1.8

869

29,888

-

-

Asia Pacific ex Japan

84,612

4.9

1,323

3,773

79,516

4.9

Latin America

156,751

9.0

4,500

(9,566)

161,817

9.9

Africa

19,222

1.1

(174)

54

19,342

1.2


_______

_______

_______

_______

_______

_______


299,223

17.2

7,208

24,149

267,866

16.4


_______

_______

_______

_______

_______

_______

Other net assets

30,628

1.8

16,492

-

14,136

0.9


_______

_______

_______

_______

_______

_______

Total assets{A}

1,735,372

100.0

120,522

(18,179)

1,633,029

100.0


_______

_______

_______

_______

_______

_______








{A}            Figure for 30 June 2017 excludes bank loan of £60,000,000 (31 December 2016 - £60,000,000) which is shown as a current liability in the Condensed Statement of Financial Position.

 

 

SUMMARY OF NET ASSETS

 


Valuation

Valuation


30 June 2017

31 December 2016


£'000

%

£'000

%

Equities

1,405,521

90.6

1,351,027

93.3

Fixed income

299,223

19.3

267,866

18.5

Other net assets{A}

30,628

2.0

14,136

1.0

Bank loans and Debentures

(184,855)

(11.9)

(185,150)

(12.8)


_______

_______

_______

_______


1,550,517

100.0

1,447,879

100.0


_______

_______

_______

_______

{A} Excluding short-term bank loans.





 

 



INVESTMENT PORTFOLIO

AS AT 30 JUNE 2017

 



Valuation

Total assets

Security

Country

£'000

%

Aeroportuario del Sureste ADS

Mexico

89,125

5.1

Taiwan Semiconductor Manufacturing

Taiwan

84,223

4.8

British American Tobacco{A}

UK & Malaysia

74,693

4.3

Philip Morris International

USA

70,533

4.1

Taiwan Mobile

Taiwan

60,586

3.5

Unilever Indonesia

Indonesia

56,378

3.2

Daito Trust Construction

Japan

47,907

2.8

Sociedad Quimica Y Minera De Chile

Chile

44,486

2.6

Singapore Telecommunications

Singapore

41,325

2.4

Telus

Canada

39,809

2.3

Top ten investments


609,065

35.1

Roche Holdings

Switzerland

39,246

2.3

Total

France

38,008

2.2

Verizon Communications

USA

36,315

2.1

Vale do Rio Doce{B}

Brazil & USA

36,068

2.1

CME Group

USA

30,848

1.8

HSBC

UK

29,180

1.7

Royal Dutch Shell

UK

28,050

1.6

Banco Bradesco

Brazil

26,798

1.5

Pepsico

USA

26,675

1.5

Standard Chartered

UK

25,981

1.5

Top twenty investments


926,234

53.4

Public Bank

Malaysia

25,434

1.5

Kimberly Clark de Mexico

Mexico

25,303

1.5

Telefonica Brasil

Brazil

23,557

1.4

Siam Commercial Bank

Thailand

21,144

1.2

Johnson & Johnson

USA

20,372

1.2

Auckland International Airport

New Zealand

20,095

1.2

Atlas Copco

Sweden

19,941

1.1

Swire Pacific 'B'

Hong Kong

19,872

1.1

Fomento Economico Mexicano

Mexico

19,680

1.1

Vodafone Group

UK

19,598

1.1

Top thirty investments


1,141,230

65.8

MTR

Hong Kong

19,482

1.1

Novartis

Switzerland

19,245

1.1

Inmarsat

UK

19,238

1.1

Republic of South Africa 7% 28/02/31

South Africa

19,222

1.1

BHP Billiton

Australia

18,816

1.1

Casino

France

18,211

1.1

Oversea-Chinese Bank

Singapore

18,099

1.0

Japan Tobacco

Japan

17,565

1.0

Bayer

Germany

17,387

1.0

Indocement Tunggal Prakarsa

Indonesia

16,983

1.0

Top forty investments


1,325,478

76.4

Tenaris ADR

Mexico

16,776

0.9

Republic of Indonesia 6.125% 15/05/28

Indonesia

16,089

0.9

United Mexican States 5.75% 05/03/26

Mexico

15,869

0.9

Petroleos Mexicanos 6.75% 21/09/47

Mexico

15,549

0.9

Republic of Turkey 8.0% 12/03/25

Turkey

15,399

0.9

Republic of Turkey 9.0% 24/07/24

Turkey

15,358

0.9

Coca-Cola Amatil

Australia

15,241

0.9

Republic of Indonesia 7.0% 15/05/22

Indonesia

15,214

0.9

Tesco Lotus Retail Growth

Thailand

15,048

0.9

MTN

South Africa

14,736

0.8

Top fifty investments


1,480,757

85.3

Other investments


223,987

12.9

Total investments


1,704,744

98.2

Net current assets excluding bank loans


30,628

1.8

Total assets


1,735,372

100.0


{A}           Holding comprises equity holdings in both UK and Malaysia, split £56,004,000 and £18,689,000 respectively.

{B}           Holding comprises equity and fixed income securities, split £17,904,000 and £18,164,000 respectively.

 


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