REG - Murray Inc Trust PLC - Annual Financial Report
12/09/2025 07:00
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RNS Number : 0253Z Murray Income Trust PLC 12 September 2025
Murray Income Trust PLC
Annual Report 30 June 2025
Performance Highlights
Net asset value total return(ABC) Share price total return(AB)
+2.7% +4.3%
2024: +9.9% 2024: +7.6%
Benchmark total return(AD) Ongoing charges(B)
+11.2% 0.48%
2024: +13.0% 2024: 0.50%
Earnings per share (revenue) Dividend per share
38.6p 40.00p
2024: 37.4p 2024: 38.50p
Discount to net asset value(BC) Dividend yield(B)
9.6% 4.7%
2024: 10.5% 2024: 4.5%
(A) Total return.
(B) Considered to be an Alternative Performance Measure.
(C) With debt at fair value.
(D) The Company's benchmark is the FTSE All-Share Index.
Chair's Statement
Highlights
· Announcement by the Board in early July of a strategic review in the
pursuit of delivering improved performance and returns for shareholders, with
an outcome expected by the end of 2025
· Annual dividend increased by 3.9%, the 52(nd) consecutive annual increase
· Net Asset Value ("NAV") total return (AB) of 2.7% for the year
· Share price total return (A) of 4.3%
· Both performance numbers disappointing against the 11.2% total return of
the FTSE All-Share Index
· Discount reduced modestly from 10.5% to 9.6% over the year
(A) Considered to be an Alternative Performance Measure.
(B) With debt at fair value.
In my previous annual statement, I highlighted the turbulence experienced by
equity markets in the year ending 30 June 2024. I can report that the
subsequent year ending 30 June 2025 has been equally - if not more -volatile.
Persistent global geopolitical tensions, ongoing trade disputes, and regional
conflicts have continued to fuel significant uncertainty and volatility
globally.
This environment of instability has not been helped by the new Government's
first Budget, announced last October, which introduced substantial increases
in National Insurance contributions for employers, along with other fiscal
measures aimed at addressing the budget deficit. These domestic policy shifts,
combined with the broader international climate, have contributed to periodic
fluctuations and instability in both UK and global financial markets.
Despite the backdrop, however, both international and domestic equity markets
have remained remarkably sanguine overall, with the MSCI Developed World Index
(sterling) rising by 7.7% and the UK FTSE All-Share Index (the "Benchmark")
rising by 11.2% over the Year. The Board recognises and shares shareholders'
disappointment that, against this backdrop, the Company's NAV and share price
returns over the year were only 2.7% and 4.3%, once again lagging behind the
Benchmark. In fact, the Company is now trailing the Benchmark over one, three,
five and ten years.
Investment Performance
Shareholders will find a detailed review of the Manager's strategy and full
details of performance over the period in the Investment Manager's Report.
Headline performance figures may be found in the below table.
From 30 June 2025 to 8 September 2025, being the latest practicable date prior
to approval of this Report, the NAV per share (with debt at fair value)
returned 2.8% as compared to 5.3% for the FTSE All-Share Index (both figures
on a total return basis). The share price total return was 5.9%, reflecting
the discount narrowing from 9.6% to 6.9% since the announcement by the Company
of a strategic review (see below).
One year ended 30 June 2025 3 years ended 5 years ended 10 years ended
30 June 2025 (annualised) 30 June 2025 (annualised) 30 June 2025
(annualised)
Performance (total return) % % % %
Share price (A)(,B) 4.3 5.6 6.7 6.5
Net asset value per Ordinary share (A)(,B,C) 2.7 7.1 7.5 6.5
FTSE All-Share 11.2 10.7 10.8 6.8
Source: Aberdeen & Morningstar
(A) Total return.
(B) Considered to be an Alternative Performance Measure.
(C) With debt at fair value.
Strategic Review
The Board has been actively assessing the Manager's performance over an
extended period, including a comprehensive review of the portfolio's holdings
and a deep analysis of the underlying causes of the underperformance. The
Board has engaged with senior leadership at Aberdeen on multiple occasions and
undertook a comprehensive review, in early 2025, of the Manager's investment
process including engaging with the investment manager, in order to better
understand the factors behind the portfolio performance. The Chair and the
Senior Independent Director also recently met with several of the Company's
major shareholders to hear their views given the underperformance of the
Company.
Despite the Board's continued efforts and the implementation of initiatives
aimed at improving performance and shareholder value, there has been little
sign of improved performance. The Board, which has a duty to act independently
in the best interests of shareholders, therefore concluded that it was
appropriate to undertake a review of the Company's strategic options.
As part of the review announced in July 2025, which remains ongoing, the Board
is considering proposals regarding the Company's future and its management
arrangements from a range of candidates, including third party investment
managers, other investment companies, and the incumbent Manager. The Board is
taking into account factors including historic record, portfolio construction,
investment philosophy, investment management structure, income generation,
risk controls and commitment to investment trusts. The objective of the
strategic review is to evaluate all aspects of the Company in the pursuit of
delivering improved performance and returns for its shareholders, while
continuing to provide an attractive dividend yield from a portfolio
predominantly focused on UK equities.
The Board will update shareholders on the progress of the strategic review as
appropriate and expects that the review will be concluded during the fourth
quarter of 2025.
Dividend
On 31 July 2025, the Company announced its 52(nd) consecutive year of growing
dividends. For the year ended 30 June 2025, the dividend increased from 38.5p
to 40.0p per share, a rise of 3.9%. Revenue per share for the year was 38.6p,
a 3.2% increase on last year's 37.4p. As a result of the dividend payment
exceeding the revenue per share for the year, total revenue reserves fell
modestly from 55% to 54% of the current annual dividend. The Board is
committed to the continuation of a progressive dividend. The Fourth Interim
Dividend of 11.5p per share was paid, on 11 September 2025, to shareholders on
the register on 15 August 2025; the ex-dividend date is 14 August 2025.
Discount and Share Buybacks
Across the industry, investment trusts continue to undertake share buybacks to
help reduce the volatility and level of discounts to net asset value in the
sector. In the six months to end June 2025, the level of buybacks across the
sector reached £4.8 billion compared to £3.6 billion in the first half of
2024.
Despite the level of buybacks, discounts across the investment trust sector
continue to trade at above average levels, although these discounts have
narrowed somewhat during 2025, falling from a sector average (excluding 3i) of
about 15% at the beginning of 2025 to about 12.8% as we go to press. The
average figure includes the discounts attributable to some of the less liquid
investment trusts such as private equity trusts and trusts in the alternative
sector. Discounts in the quoted equity sector are, however, still higher than
average, except where strong performance has driven demand for the underlying
trusts' shares.
The Company bought back 6.8 million shares over the Year, representing 6.5%
(2024: 6.4%) of the shares outstanding at the beginning of July 2024. These
shares were bought at an weighted average discount of 10.9%, with a
corresponding positive impact on the NAV total return of 0.7% over the Year.
The shares bought back are kept in Treasury, meaning there is the potential
for them to be reissued should the Company return to a sustained premium to
NAV in the future.
As at 30 June 2025, there were 97,912,184 (2024: 104,685,001) Ordinary 25p
shares in issue with voting rights and 21,617,348 (2024: 14,844,531) shares
held in Treasury.
The Board monitors the discount level closely and will again be requesting
shareholders' approval at the AGM to renew the Company's buyback and issuance
powers.
Gearing
The Company's net gearing was 11.1% at 30 June 2025 (2024: 9.1%) and the
Board's policy towards gearing remained unchanged during the Year.
The Company has in place £100 million of long-term borrowings made up of
£40m loan notes redeemable at par in November 2027 and £60 million loan
notes redeemable at par in May 2029. These combined have a weighted interest
cost of 3.6%.
As reported at the interim stage, the Company refinanced its £30 million of
bank borrowings in October 2024 by entering into a new three-year
multi-currency revolving credit facility of £30 million with the Royal Bank
of Scotland International, London Branch (the "Facility"). At the year end the
Company had drawn down £6.1 million from the Facility.
Board Composition
Alan Giles retired from the Board at the conclusion of the AGM in November
2024 and was succeeded as Senior Independent Director by Stephanie Eastment.
Nandita Sahgal Tully replaced Stephanie as Chair of the Audit Committee.
Andrew Page was appointed a Director on 17 January 2025. All directors are
non-executive and are independent of the Manager.
Investment Process and People
Our Manager's investment process continues to be focused on the search for
good quality companies at attractive valuations, with the potential for
sustainable dividend growth.
As part of the process of reviewing the performance of the Company, Ian Hewett
was added to the team during the course of the Year to bring additional
breadth to the research process, working alongside Charles Luke, who has been
our lead portfolio manager since 2006 and Rhona Millar.
Looking to the Future
Normally, in this section of the Report, I would look ahead to the prospects
for UK equities, considering the various issues likely to impact the portfolio
and share price. These include geo-political events, the global appetite for
UK equities, and how costs are calculated and published for the investment
trust sector as a whole. However, given that the Board has recently announced
a strategic review, I thought I would share some thoughts about why we have
embarked upon such a review.
Investing requires a long-term perspective, and our manager, Charlie Luke, has
been managing the fund since 2006. During that time there have been periods of
both outperformance and underperformance. There have also been numerous cycles
in the market, ranging from 'fear and greed' during and after the credit
crisis in 2007-2009, through the Euro crisis in 2011, the Brexit referendum in
2016 and, more recently, the impact felt by the Covid outbreak and the
invasion of Ukraine. There have been thematic market cycles, with Value
investing and Quality or Growth investing going in and out of fashion, often
for a number of years at a time. The investment trust sector itself has also
been going through a period of turmoil recently, and we are seeing an
increasing amount of activity as Boards explore ways of delivering
consistently good returns for shareholders.
Throughout all of this, your Board has focused on shutting out short-term
noise to maintain a long-term investment perspective. The Manager adopts a
quality income growth strategy and the Board understands that this can go in
and out of fashion. Since the end of the credit crisis in 2009, for example,
there have been four discernible cycles in the five-year relative return
profile of the Murray Income portfolio. There have been two periods where the
relative return was positive; 2009 - mid 2014 and 2018 - late 2021. There have
also been two periods of underperformance; mid 2014 - mid 2018 and since late
2021.
Whilst the Board acknowledges and appreciates the dedication of the Manager
and the longstanding tenure of Charlie Luke, this current period of
underperformance has already lasted for approaching five years and has been
significant in its scale, impacting both the five year and the 10-year
relative performance numbers against the Benchmark and also against the UK
equity indices with a quality focus. The persistent underperformance has led
to the Company trading at a sustained discount to NAV in recent years, despite
a significant level of share buybacks. In the light of these challenges, the
strategic review was launched. The Board has received a large number of high
quality proposals as part of the review process and we look forward to
providing a further update to shareholders in due course.
Online Shareholder Presentation
The Company expects to hold a shareholder webinar after the conclusion of the
strategic review.
Annual General Meeting
The Company is holding its AGM at 12.30 pm on Tuesday 4 November 2025 at
Wallacespace Spitalfields, 15 Artillery Lane, London E1 7HA.
I always welcome questions from our shareholders at the AGM. Alternatively,
shareholders may submit questions prior to the AGM by sending an email to:
murray.income@aberdeenplc.com.
Shareholders will find enclosed with this Annual Report an Invitation Card and
Form of Proxy for use in relation to the AGM. Whether or not you are attending
the AGM, shareholders are encouraged to complete the Form of Proxy, for which
the latest date of receipt by the registrar, MUFG Corporate Markets, is
12.30pm on 31 October 2025. Completion of a Form of Proxy does not prevent a
shareholder from attending and voting in person at
the AGM.
Shareholders who wish to attend and/or vote at the AGM and hold their shares
via a platform will need to make arrangements with the administrator of their
platform. Further details on how to attend and vote at company meetings for
holders of shares via platforms can be found at:
www.theaic.co.uk/aic/how-to-vote-your-shares.
Shareholders wishing to attend the AGM and who are unsure how to register, are
invited to send an email to: murray.income@aberdeenplc.com.
Peter Tait
Chair
11 September 2025
Investment Manager's Report
Dear Shareholders
To begin with, I should like to express my disappointment and apologise for
the relative performance of the portfolio over recent years. I have managed
the portfolio for almost 19 years now and it has been the honour and privilege
of my career to help look after your investments. Underperformance is painful
for me both emotionally and financially (given the majority of my family's
savings are invested in the shares of the Company) but I have continued to buy
more shares as I firmly believe that we are on the right path for continued
long term success which I hope the comments and explanation below will make
clear.
This review is structured around the following three questions that I think
our shareholders care about most, together with additional sections on
Performance, Portfolio Changes, Income and finishing with an Outlook.
1. Despite a period of lacklustre performance, is there a clear and
sensible investment strategy?
2. Are we doing "what we say on the tin"?
3. Is there any reason to think that the portfolio cannot outperform in
future?
1. A clear and sensible investment strategy?
At the time of the merger with Perpetual Income & Growth Trust, almost
five years ago, we set out our investment proposition based on being
'Dependable, Diversified and Differentiated'. Dependable referenced a focus on
high-quality companies, the North Star for the portfolio, together with a
patient buy and hold investment approach characterised by turnover typically
below 20% on an underlying basis (excluding sales to fund the buyback of the
Company's shares). Our company and sector exposure for both capital and income
was to be sensibly diversified together with a healthy exposure to Mid Cap
companies and some overseas companies to access industries not available to
UK-only investors. We believed that compared to other UK equity income funds,
these attributes coupled with investing through an ESG lens all provided
differentiation. We arrived at these characteristics many years before because
academic studies (see for example Asness, Frazzini and Pederson (2019),
Dimson, Marsh and Staunton (2021), Barberis and Huang (2008) and Whelan, Atz,
Van Holt and Clark (2020)) and empirical validation suggested that this
combination provided a high likelihood of long-term success and supported the
Company's excellent track record of dividend growth. In short, the strategy
aims to provide a diversified portfolio of 'Leaders in their field' benefiting
from long term structural growth potential while providing capital resilience
in challenging markets. In rising markets the portfolio would be expected to
perform less well on a relative basis (as demonstrated by its low beta) but
preserving wealth is a key function of the focus on Quality for which the
entire arc of the portfolio is focused: there is a significant value in this
consistency, but it only becomes apparent when markets perform less strongly
than they have done over the past five years or so.
It is worth providing a little more detail on the way we think about potential
investments. There are three factors that matter to us. Firstly, and most
importantly the quality of a business. We ask ourselves questions such as does
the business have a sustainable competitive advantage (probably the most
important question), does it have a high return on capital, are the financial
characteristics strong and can we trust management based on their track
record? (in its equity research, the Manager ranks each company's quality
characteristics with 1 being the best and 5 being the worst and have made
clear that we won't invest in companies that are scored a 4 or 5.) The second
factor is valuation and as Warren Buffett famously suggested 'Price is what
you pay, value is what you get'. Realistically, price paid is our only
controllable and we aim to buy high-quality businesses below their intrinsic
value helping to provide a margin of safety. Thirdly, given that we have an
income mandate, we think about income which in itself is a good thing. Whoever
said 'dividend investing is like watching paint dry - until you realise the
wall is worth a fortune' was on the right track. Dividends provide a valuation
backstop, reduce agency risk and are the main driver of long-term returns.
As we will discuss, although the period since the merger has not been
conducive to investing in high-quality companies, this is a relatively short
timeframe compared to the Company's 52 years of dividend growth, and we remain
highly confident that this is an attractive and sensible investment
approach. Indeed, if we extend the aperture by a couple of years the share
price performance has been ahead of the Benchmark.
2. Are we doing what we say on the tin?
Are we investing in high-quality businesses? This can be resoundingly answered
with 'yes', from both a qualitative and quantitative perspective. We believe
the holdings in the portfolio are all 'Leaders in their field'.
Quality comes in various shapes and sizes. The characteristics of a
high-quality business tend to share patterns. Examples of these patterns
within portfolio holdings are included in the table below:
Patterns of quality
Recurring revenues Convatec, Relx
R&D AstraZeneca, Genus
Brand strength Coca-Cola EuroPacific, L'Oreal
Mission critical products Bunzl, Rotork
Capital light compounders Experian, London Stock Exchange
Founder-influenced businesses Dunelm, Telecom Plus
Pricing power Haleon, Games Workshop
Giants in niches ASML, Moonpig
Network effects Kone, Mastercard
Furthermore, much of the portfolio is aligned with attractive long term growth
opportunities and, in particular, four enduring long-term trends as
highlighted in the table below:
Enduring long term trends
Ageing populations AstraZeneca, Convatec, Haleon, Reckitt Benckiser
Energy transition Air Liquide, Genuit, National Grid, Oxford Instruments, Rotork, SSE, Total
Energies
Digital transformation ASML, Experian, Mastercard, Microsoft, Relx, Sage
Emerging global wealth Coca-Cola EuroPacific, DBS, Inchcape, Kone, L'Oreal, Unilever
We believe that the high-quality nature of the companies, with the tailwinds
of these significant trends, should provide the earnings growth to maintain
the portfolio's exceptional long term dividend growth track record. The unique
benefits of the investment trust structure afford the ability to think in
terms of decades and our focus on companies with enduring long-term trends
plays to the benefits of this theme.
Quantitatively, the quality characteristics shine through as well. Typical
measures of portfolio quality such as profitability and capital efficiency
measures, and earnings stability are high in absolute terms and considerably
more attractive than the Benchmark as a whole (for example, in aggregate, the
return on equity and return on assets of the portfolio holdings was 21.4% and
7.1% respectively, compared to the Benchmark at 11.6% and 5.5%, respectively,
as at 30 June 2025).
The ingredients on the 'tin' also include diversification with shareholders'
capital sensibly diversified across different sectors of the market and also
individual companies helping to reduce risk. We have maintained a healthy Mid
Cap exposure on the basis that this aids growth, diversification, and these
companies are more likely to be the recipients of corporate activity. 18% of
the portfolio is invested in overseas-listed companies increasing the
opportunity set and providing access to attractive industries such as
elevators (Kone), cosmetics (L'Oreal), artificial intelligence (Microsoft and
Accton Technology) and industrial gases (Air Liquide) not available in the UK
and helping to diversify the portfolio. Whilst the Company does not have a
sustainability objective, ESG is integrated into the investment process. Our
ESG focus is independently acknowledged through the 'AA' MSCI rating, one of
the highest ratings across the wider sector. This focus informs our view on
tobacco: research suggests that over half of all smokers will die from
tobacco-related diseases. As such, it would seem to be incongruous to invest
in these companies.
3. Is there any reason to think that the portfolio cannot outperform in
future?
We believe the portfolio is populated by high-quality companies that are
'Leaders in their field' however we are cognisant that an expensive portfolio
of high-quality companies is not necessarily a recipe for outperformance. We
do not believe this applies to the portfolio and think the portfolio is
currently excellent value. At 30 June 2025, the portfolio traded on a P/E
multiple of 14.5x compared to the Benchmark on 13.5x: in simple terms
marginally more expensive than the Benchmark but it should be remembered that
companies with high returns can either grow faster or return more cash to
shareholders than average companies and should therefore trade on a higher P/E
multiple. The attractive valuation of the portfolio is supported by our
intrinsic value analysis of the holdings which suggests that the portfolio is
trading in aggregate on around a 20% discount to its intrinsic value (using an
8% discount rate). Or in other words, if the portfolio value increased by 20%,
we would then expect an eight percent total return per year (marginally above
the annualised UK market return over the past 40 years). If we reduced the
required return to seven percent (marginally above the annualised UK market
return over the past 30 years) then we think the portfolio is around forty
percent undervalued. This value differential does not take into account the
discount between the net asset value of the company and the share price which
provides additional upside. Furthermore, the value inherent in the portfolio
is not just based on our views but also confirmed by comments in meetings in
recent months with the Chairs of some of our holdings who have described their
companies as 'catastrophically undervalued', 'immensely underpriced' and
'worth 2-2.5x the current share price'. A broader indication of the value
inherent in the portfolio is reflected by the share buyback activity of the
holdings with over half the holdings buying back their shares during the year.
As we look forward, we think the portfolio has attractive quality
characteristics, is cheap and exposed to long term enduring growth trends. We
have been through a period where Value has performed exceptionally well
relative to Quality (as a proxy for this the MSCI UK Value Index has
outperformed the MSCI UK Quality Index by 40% on a total return basis over the
five years to 30 June 2025). In those Value sectors, particularly financials,
multiples now look stretched, and downside risks seemingly ignored. Of
course, one would want to point to a catalyst for the outperformance of
Quality: it could well be a fall in bond yields, an unknown crisis where
Quality preserves wealth, corporate activity in the form of external capital
or just from companies continuing to buy back their own shares but the yield
on the Company's shares provides a very useful return for those shareholders
prepared to be patient.
Explaining Performance
The Company generated a Net Asset Value ("NAV") per share (with debt at fair
value) total return of 2.7% for the year ended 30 June 2025 (the "Year"). This
was a disappointing return being behind the Company's Benchmark (the FTSE
All-Share Index) total return of 11.2%. The share price total return was 4.3%,
reflecting the discount modestly narrowing from 10.5% to 9.6%.
We have carried out a very detailed analysis on the underperformance of the
portfolio relative to the Benchmark over the medium term. Our findings are
clear that the underperformance has been nearly all due to factor and style
issues. The most important factor has been the performance of Quality which
has been influenced by volatility in the macro environment. As nominal, and in
particular, US real yields fell from the autumn of 2018 to the end of 2020,
Quality significantly outperformed. US real yields remained at around -1% for
a year before then spiking to above 2% (a level considerably above the
long-term average) where they have remained for the last year or so. As real
yields increased Quality significantly underperformed as a higher risk-free
rate heightened the discount rate and reduced the present value of cashflows
for longer duration quality growth companies, while conversely, Value stocks
became more attractive. The outperformance of Value has been particularly
noticeable in the financial sector where rising interest rates combined with
low starting valuations have led to strong performance. In addition, the
avoidance of tobacco stocks in the portfolio has been unhelpful for
performance. Furthermore, the overweight exposure to Mid Cap companies has
also provided a meaningful headwind to performance. Over the medium term
(over the five years to 30 June 2025 the FTSE 100 Index outperformed the Mid
Cap FTSE 250 Index by 25% on a total return basis). We firmly believe that
over the long term a focus on appealing ESG characteristics and a healthy
exposure to Mid Cap companies will benefit performance, but this has not been
evident over recent years.
A simple way of explaining performance and to demonstrate that the portfolio
has broadly performed as expected, is to show the correlation between the
Company's share price and a proxy for high-quality UK companies for which the
MSCI UK Quality Index is the most appropriate (albeit unlike the portfolio
there are no ESG considerations and so tobacco is included which has recently
benefited the performance of this index). The first chart (see the published
Annual Report) begins at the start of July 2018 and ends at 31 December 2021 -
the timeframe during which time real yields fell and Quality outperformed
Value. The second chart (see the published Annual Report) shows the period
from the start of January 2022 to 30 June 2025 when real yields rose sharply
and Value outperformed Quality. Both charts also show the MSCI UK Value Index
for comparison purposes.
As one would expect there is a very strong correlation between the Company's
share price performance and that of the MSCI UK Quality Index. It is also
worth noting that the Company's share price outperformed the Benchmark over
this combined period.
Even if performance can broadly be explained by style issues, we are always
looking at ways to improve our process, and we have recently identified one
issue, exit timing, which has been suboptimal. We have enhanced our approach
to try to ensure we act in a timelier manner when it comes to selling
holdings. In addition, we have enhanced our valuation approach to make
doubly sure that we avoid overpaying and are cognisant of investment timelines
and milestones for each investment thesis. Furthermore, we have also been
responsive to a variety of helpful enhancements recently requested by the
Board.
Performance Attribution for the year ended 30 June 2025
%
Net Asset Value total return for year per Ordinary share +2.7
(fair value)
FTSE All Share Index total return +11.2
Relative return -8.5
Relative return
Stock selection
Energy -0.2
Basic Materials +0.6
Industrials -4.4
Health Care +0.8
Consumer Staples -1.6
Consumer Discretionary -0.7
Telecommunications -0.1
Utilities -0.1
Technology -0.4
Financials -1.5
Total stock selection (equities) -7.6
Asset allocation (equities)
Energy +0.7
Basic Materials +0.1
Industrials +0.4
Health Care -0.2
Consumer Staples -0.1
Consumer Discretionary +0.1
Telecommunications +0.2
Utilities +0.2
Technology -0.1
Financials -1.4
Total asset allocation (equities) -0.1
Management fees -0.4
Administrative expenses -0.1
Cash and Options +0.6
Gearing - finance costs -0.3
Gearing - difference between fair value and par value returns -0.4
Share buybacks +0.7
Residual effect -0.9
Total -8.5
Notes: Stock Selection - measures the effect of equity selection relative to
the benchmark. Asset allocation - measures the impact of over or
underweighting each industry basket in the equity portfolio, relative to the
benchmark weights. Cash & options effect - measures the impact on relative
returns of these categories. Gearing - measures the impact on relative returns
of net borrowings. Management fees, administrative expenses and tax - these
reduce total assets and therefore reduce performance. Source - Aberdeen.
Relative portfolio performance for the Year
Top five contributors relative to the Benchmark during the Year:
1. Shell (+1.2%)
2. Glencore (+1.0%)
3. AstraZeneca (+0.6%)
4. DBS (+0.5%)
5. Games Workshop (+0.4%)
The portfolio benefited from an underweight position in large index weight
Shell with the company underperforming over the period as oil prices declined.
Glencore does not meet our quality threshold, but the shares performed poorly
during the year due to commodity price weakness particularly in thermal and
metallurgical coal. DBS performed well over the period following strong
results and the announcement of a special dividend and share buyback
programme. We hold AstraZeneca in the portfolio but with exposure below the
large weight in the Index. Over the period, the share price of the company
declined in value broadly reflecting industry challenges around potential
tariff risk and pricing pressure in North America. For Games Workshop,
continued strong demand for the company's Warhammer models together with
licence revenue from Space Marine 2 resulted in upgrades during the Year and a
strong share performance.
Top five detractors relative to the Benchmark during the Year:
1. Rolls Royce (-1.5%)
2. British American Tobacco (-0.8%)
3. HSBC (-0.8%)
4. TotalEnergies (-0.7%)
5. Diageo (-0.7%)
The underperformance during the Year has been more to do with the underweights
and non-holdings in the portfolio than the overweights. Rolls Royce's share
price has made a spectacular recovery from the time of its near-death
experience during Covid and its rights issue in November 2020. The Company
does not own these shares as the business failed to pass our quality threshold
and only returned to paying a very modest dividend in June. We do not buy
tobacco companies, including British American Tobacco, on the basis that
caring about ESG and investing in a company where around 60% of its customers
will die from using the product as intended are not compatible with each
other. The sector weights are informed by the focus on high-quality companies
and as such the portfolio is underweight the Financials and Energy sectors.
Within the Banks sector the holdings have been focused on the highest quality
names characterised by returns on equity above the cost of equity with
holdings in HSBC, Nordea and DBS (rather than Barclays or Lloyds). Although we
have exposure to HSBC which performed strongly over the year, the underweight
position relative to the Benchmark resulted in underperformance. We prefer DBS
which we think is an even higher quality bank than HSBC but are aware of our
income exposure to both banks. TotalEnergies is our preferred Oil and Gas
major given its alignment with the energy transition, attractive dividend
yield and low cashflow break-even oil price. Weaker oil prices during the
year resulted in the shares underperforming. The share price performance of
Diageo has been disappointing and reflects the continued downgrades the
company has endured following the post-Covid boom that raised expectations for
long term revenue growth. At the start of calendar 2022 Diageo was the largest
holding in the portfolio and it was a mistake not to have recognised this
elevated level of profits and significantly reduced the holding accordingly.
However, the share price has now halved from its peak as has the P/E multiple
on which the shares trade. From here the outlook is much brighter with a soon
to be reinvigorated management team, a modest valuation and a company where
shorter term earnings downgrades have drowned out the strong long term quality
characteristics of the business.
It is also worth mentioning a couple of additional companies that have been a
headwind to performance over the medium term. Firstly, Close Brothers, which
has been severely impacted by the uncertainty around the FCA's investigation
into motor finance and the potential for remediation. It is extremely
disappointing that this issue has now taken over 18 months to resolve but we
believe the market is factoring in an unnecessarily harsh impact. Indeed,
after the Year end, a helpful Supreme Court judgement in August 2025 has seen
a recovery in the company's share price. Secondly, Rentokil where the Terminix
acquisition was not well thought through. Our experience suggests that the
sunlit uplands of corporate activity presented enthusiastically by a company's
external advisors is more reflective of the fees likely to be earned by them
than the benefit to long term shareholders. However, our dialogue with
Rentokil's existing and former directors and non-executives, and industry
participants suggests that over time the integration will be successful and
that there is significant upside in the shares.
Portfolio Changes
Changes made to the portfolio during the Year reflect the evergreen desire to
improve the quality of the portfolio and to concentrate assets in areas where
we see the most attractive valuations, as well as the need to raise funds for
the Company's buyback of shares.
The purchases are all companies that to our minds are 'Leaders in their field'
with on occasion issues that we believe to be temporary that have provided an
opportunity (in some cases having been on our 'watchlist' for years) to add to
the portfolio. Of note is the appealing valuations of high-quality UK Mid Cap
companies which we believe are being mistakenly overlooked by the market.
New Holdings Sold Holdings
ASML BHP
Bunzl BP
DBS Coca-Cola Hellenic
Dunelm Direct Line
Gamma Communications GSK
LondonMetric LVMH
Reckitt Benckiser Novo Nordisk
Rio Tinto OCBC
Shell OSB
Telecom Plus VAT
In the Mid Cap area, UK home-furnishings retailer Dunelm was purchased for the
portfolio. Dunelm's strong market position and new stores and formats should
allow the company to continue to take market share. The company has a robust
balance sheet and strong cash generation which provides for likely special
dividends to enhance income. The new holding was part funded by a sale of
Direct Line where the approach from Aviva provided the catalyst to fully exit
the holding. We added a new position in Telecom Plus which offers utility
services to customers in the UK, combining a low price with great service and
simplicity of a single bill which can cover energy, broadband, mobile and
insurance. Generating strong returns given limited capital requirements the
company has demonstrated attractive growth which we are confident will
continue. The dividend yield and the dividend growth potential are
particularly attractive for the portfolio. We also purchased a holding in
Gamma Communications which provides essential communication services to small
businesses in the UK and Europe. During the spring the company moved from the
AIM market to the main market which provided the opportunity to take advantage
of forced selling to add the company to the portfolio. The significant growth
potential in Germany and high teens return on capital is under-appreciated by
reference to the very modest valuation. The holding in OSB was exited
following a number of disappointing trading updates and a deteriorating view
of the company's sustainable competitive advantage in its Precise Mortgages
division.
For the overseas-listed holdings we purchased a new position in ASML, the
Dutch listed global leader in semiconductor lithography equipment. The
company's extremely strong leadership position provides pricing power, high
returns on capital employed and good long-term growth visibility, benefiting
from the development of Artificial Intelligence (AI). The initial purchase was
poorly timed at the start of the Year but we subsequently added to the holding
at a lower share price. We added a new holding in Singapore-listed DBS, the
largest bank in South East Asia. We see the bank's wealth management
division and the high return on equity derived from its fee income and funding
advantages as attractive quality characteristics. The holding in
Oversea-Chinese Banking Corp was sold to fund DBS. Oversea-Chinese Banking
Corp had performed strongly during our period of ownership, but we felt that
DBS had stronger quality characteristics and would be more likely to
outperform in future. The small holding in LVMH was sold from the portfolio
given concerns over potential earnings downgrades due to struggling brand
popularity, a weaker consumer and the inability to push prices higher. Having
lost confidence in Novo Nordisk's position in the GLP1 (weight loss) space we
sold the modest holding. This followed a series of negative efficacy updates
for new products such as CagriSema as well as falling prescription numbers.
Furthermore, Eli Lilly's data for competitor product Orforglipron had the
potential to extend Eli Lilly's lead over Wegovy (Novo Nordisk's weight loss
produce). Moreover, likely pricing pressure given the difference in pricing
for Wegovy in the US and in Europe had the potential to impact profitability.
Finally, the small holding in VAT, the Swiss vacuum valve manufacturer, was
sold on concerns around a weaker demand backdrop, and in particular, the
potential impact of export restrictions on sales to China.
In the FTSE 100, we repurchased LondonMetric, the UK-focused property business
whose portfolio offers a high degree of exposure to urban logistics. The stock
has been held in the portfolio previously, with the position sold at a more
expensive valuation around three years' ago. We now see the valuation and
dividend yield as being at attractive levels and are positive on the outlook
for the urban logistics sector given limited new supply and strong rental
growth potential. Rio Tinto, the global metals and mining company, replaced
the portfolio's position in peer BHP given its stronger medium term growth
prospects and more attractive valuation, including a higher dividend yield.
Reckitt Benckiser, the consumer health and hygiene company, was added to the
portfolio. The company is progressing through a period of change with the
divestment of non-core businesses. In future, the company will focus in on
self-care, germ protection and household care products which have strong
brands and market positions, and attractive growth prospects. Also, during the
year, the holding in Coca-Cola Hellenic was sold following a period of strong
performance and due to concerns, regarding the level of profits derived from
its Russian operations. Following a profit warning in April we purchased a
holding in Bunzl. The company has long been on our list of potential
holdings, and we took the opportunity presented by the announcement of weaker
trading in the United States. We believe the weaker trading to be transitory
and more than reflected in the valuation with the share trading considerably
below our estimate of intrinsic value. Our investment in BP had been due to
the company's alignment with the energy transition, particularly compared to
its peer Shell. However, following a Capital Markets Day in February when the
company stepped back from its transition and decarbonisation aspirations, we
decided to sell the holding and reinvest most of the proceeds in Shell. We
view Shell as being more defensive in a likely volatile oil price environment
particularly given its strong balance sheet which provides confidence in the
level of buybacks and low breakeven oil price for the dividend. We sold the
holding in GSK reflecting the very modest prospects for longer term earnings
progression given the company's weak product pipeline and the increasing risks
around pricing pressure in the North American market.
Other transactions related to existing holdings were made to take advantage of
attractive valuation opportunities or to reduce holdings following strong
share price performances and/or to manage large weights allowed for the
recycling of capital. We took advantage of share price weakness to add to
Coca-Cola EuroPacific Partners, Haleon, Rotork, Kone, Safestore and Convatec,
amongst other holdings. Conversely, there were reductions to holdings
including to Accton Technology, AstraZeneca, Howden Joinery, Intermediate
Capital, London Stock Exchange Group, Microsoft, RS and Unilever.
We continued our measured option-writing programme which is based on our
fundamental analysis of holdings in the portfolio. We believe that the
option-writing strategy is of benefit to the Company by diversifying and
modestly increasing the level of income generated and providing headroom to
invest in companies with lower starting yields but better dividend and capital
growth prospects.
Income
For the Year, the Company's earnings per share increased by 3.2% from 37.4p to
38.6p. Income from investments of £38.8m was £1.3m lower than the prior
year. This was influenced by a number of factors including: the strength of
sterling particularly relative to the US dollar (given the importance of
income derived from companies paying US dollar-denominated dividends); the
Company buying back its own shares which has shrunk the asset base; the impact
of normal trading within the portfolio; and the continued trend towards
companies in the portfolio buying back their own shares rather than paying
special dividends or delivering higher levels of ordinary dividend growth.
During the Year, over half the constituents of the portfolio bought back their
own shares corresponding to an additional level of income of £12.6m. This is
positive in the sense that it indicates that those company directors believe
that their shares are attractively valued but clearly unhelpful from an income
perspective.
The benefit of a reduced annual investment management fee, which took effect
from 1 July 2024, was partially offset by an increase in administrative
expenses. Finance costs were broadly unchanged compared to the prior year.
Earnings per share further benefitted from the average number of shares in
issue, excluding treasury shares, falling from 108.1 million to 101.1 million
during the Year.
Paying a full year dividend of 40.00p per share will result in £770,000 being
drawn from the Company's revenue reserves. Revenue reserves carried forward
thus represent 54% of the full year dividend based on the latest available
number of ordinary shares in issue (excluding treasury shares). The ability
to call on revenue reserves is a clear benefit of the investment trust
structure.
Notwithstanding the market trend towards greater buybacks, we view the
portfolio's exposure to attractive and enduring earnings trends as providing
the potential for appealing income growth over the long term.
Outlook
Over halfway through calendar 2025, with UK markets up 12%, the annualised
return would be very high in a historical context. Extrapolating this kind of
market growth into the medium term looks, to us, unrealistic.
Retail activity in the likes of Bitcoin Treasury Companies and more
speculative "investments" such as 'meme stocks' in the United States point to
elevated animal spirits. It might seem counterintuitive that equity markets
are higher than they were just before 'Liberation Day' despite likely lower
corporate earnings. At times like this, markets often overlook established,
high-quality businesses that can steadily compound value over time. The siren
call of investors who by taking a 'pragmatic approach' claim to be able to
confidently know where we are in 'the cycle' or to predict well in advance the
onset of the next Covid sounds compelling, but of course, is just not
realistic. Nearly 40 years on, the reasons behind the Black Monday stock
market crash are still being debated which demonstrates the difficulty in
market timing. However, maintaining a consistent approach focused on
high-quality businesses with strong competitive advantages and being ready for
those bumps in the road (or worse) can be invaluable, even at the cost of
lagging the excitement.
Indeed, as we scan the market, we believe we can identify particularly
attractive valuations in high-quality Mid Cap companies and some relatively
'steady' larger companies, and both have been the focus of our recent
activity. On the other hand, we struggle to find opportunities across
Aerospace & Defence and Banks, areas of the market that have performed
particularly strongly, where it seems that downside risks are being ignored
despite full valuations.
As discussed above, rising nominal and real yields have been a salient
headwind for Quality investing over the past four or so years. The Manager's
latest forecasts based on different scenarios for US 10 year real yields
highlight that in almost all scenarios real yields are likely to fall from
their current level becoming a tailwind for Quality investing.
If there are shifts of capital out of the US (and we have started to see a
sharp slowdown in international purchases of US equities), which has
monopolised global market returns in the last decade, and towards an
under-appreciated UK market, this could add further support.
The portfolio is populated by a diversified collection of high-quality
'Leaders in the field' generating an attractive income stream and trading at
an appealing valuation, currently considerably below our intrinsic value
estimates. The portfolio has been constructed to deliver long term structural
growth while providing capital preservation in challenging markets. With the
tailwind of a more benign environment for Quality investing we have every
reason to believe that the portfolio can deliver significant long-term
outperformance and maintain its exceptional track record of dividend growth.
Thank you for your support.
Charles Luke
Senior Investment Director
abrdn Investments Limited
11 September 2025
Performance
Performance (total return, including reinvested dividends)
1 year return 3 year return 5 year return 10 year return
% % % %
Share price(A) +4.3 +17.7 +38.5 +88.4
Net asset value per Ordinary share (debt at fair value)(A) +2.7 +22.9 +43.3 +88.0
Net asset value per Ordinary share (debt at par value)(A) +3.1 +22.8 +42.2 +86.6
Benchmark(B) +11.2 +35.5 +67.3 +92.7
(A) Considered to be an Alternative Performance Measure.
(B) FTSE All-Share Index.
Source: Aberdeen & Morningstar
Ten Year Financial Record
Year end 30 June 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Income (£'000) 24,838 26,667 25,987 25,597 22,804 35,979 51,018 48,879 43,899 42,224
Shareholders' funds (£'000) 515,036 576,462 570,929 587,150 534,361 1,093,859 1,009,255 999,184 990,282 916,738
Per Ordinary share (p)
Net revenue return 32.0 34.9 33.6 34.9 30.5 33.7 40.5 38.7 37.4 38.6
Dividends(A) 32.25 32.75 33.25 34.00 34.25 34.50 36.00 37.50 38.50 40.00
Net asset value (capital only) 766.5 860.1 856.3 888.1 808.3 934.6 864.9 894.4 946.0 936.3
(A) The figures for dividends per share reflect the years to which their
declaration relates and not the years they were paid.
Financial Highlights and Dividends
Financial Highlights
30 June 2025 30 June 2024 % change
Shareholders' funds (£'000) 916,738 990,282 -7.4
Net asset value ("NAV") per Ordinary share - debt at fair value(A) 944.8p 957.9p -1.4
Net asset value per Ordinary share - debt at par 936.3p 946.0p -1.0
Market capitalisation (£'000) 836,170 897,150 -6.8
Share price of Ordinary share 854.0p 857.0p -0.4
Discount to net asset value on Ordinary shares - debt at fair value(A) 9.6% 10.5%
Discount to net asset value on Ordinary shares - debt at par(A) 8.8% 9.4%
Gearing (ratio of borrowing to shareholders' funds)
Net gearing with debt at fair value(A) 11.0% 9.0%
Dividends and earnings
Revenue return per share 38.6p 37.4p +3.2
Dividends per share(B) 40.00p 38.50p +3.9
Dividend cover(A) 0.97 times 0.97 times
Dividend yield(A) 4.7% 4.5%
Revenue reserves (£'000)
Prior to payment of fourth interim dividend(C) 32,464 32,403
After payment of fourth interim dividend 21,206 21,975
Operating costs
Ongoing charges ratio(A) 0.48% 0.50%
(A) Considered to be an Alternative Performance Measure.
(B) The figures for dividends per share reflect the years in which they were
earned (see note 7).
(C) Per the Statement of Financial Position.
Dividends
Rate XD date Record date Payment date
First interim 9.50p 14 Nov 2024 15 Nov 2024 12 Dec 2024
Second interim 9.50p 13 Feb 2025 14 Feb 2025 13 Mar 2025
Third interim 9.50p 15 May 2025 16 May 2025 12 Jun 2025
Fourth interim 11.50p 14 Aug 2025 15 Aug 2025 11 Sep 2025
Total dividends 40.00p
Overview of Strategy
Business Model
Murray Income Trust PLC (the "Company") is an investment trust whose Ordinary
shares are listed on the London Stock Exchange. The Company is limited by
shares.
The Company is governed by a Board of Directors (the "Board"), all of whom are
non-executive, and has no employees. The Board is responsible for determining
the Company's investment objective and investment policy. Like other
investment companies, the day-to-day investment management and administration
of the Company is outsourced by the Board to an investment management group,
Aberdeen, and other third party providers. The Company has appointed abrdn
Fund Managers Limited (the "Manager") as its alternative investment fund
manager, which has in turn delegated certain functions, including
administration of the investment policy, to abrdn Investments Limited. The
Manager has delegated the company secretarial function to abrdn Holdings
Limited.
The Company complies with Section 1158 of the Corporation Tax Act 2010 which
permits the Company to operate as an investment trust.
Investment Objective
The Company aims for a high and growing income combined with capital growth
through investment in a portfolio principally of UK equities.
Investment Policy
In pursuit of the Company's investment objective, the Company's investment
policy is to invest in the shares of companies that have potential for real
earnings and dividend growth, while at the same time providing an
above-average portfolio yield. The emphasis is on the management of risk and
on the absolute return and yield from the portfolio as a whole rather than the
individual companies which the Company invests in, which is achieved by
ensuring an appropriate diversification of stocks and sectors within the
portfolio, with a high proportion of assets in strong, well-researched
companies. The Company makes use of borrowing facilities to enhance
shareholder returns when appropriate.
Delivering the Investment Policy
The Company maintains a diversified portfolio of the equity securities of UK
and overseas companies with an emphasis on investing in quality companies with
good management, strong cash flow, a sound balance sheet and which are
generating a reliable earnings stream.
The Investment Manager follows a bottom-up investment process based on a
disciplined evaluation of companies, including through direct visits by its
fund managers. Top-down investment factors are secondary in the Investment
Manager's portfolio construction with diversification rather than formal
controls guiding stock and sector weights.
Board Investment Limits
The Board sets additional investment guidelines within which the Investment
Manager must operate :
· the portfolio typically comprises between 40 and 70 holdings (but without
restricting the Company from holding a more or less concentrated portfolio
from time to time);
· the Company may invest up to 100% of its gross assets in UK-listed
equities and other securities and is permitted to invest up to 20% of its
gross assets in other overseas-listed equities and securities;
· the Investment Manager may invest in any market sector, however, the top
five holdings may not exceed 40% of the total value of the portfolio and the
top three sectors represented in the portfolio may not exceed 50%; and
· the Company may invest no more than 15% of its gross assets in other
listed investment companies (including investment trusts).
The Company may use derivatives for the purpose of enhancing portfolio returns
and for hedging purposes in a manner consistent with the Company's broader
investment policy. The Investment Manager is permitted to invest in options
and in structured products, provided that any structured product issued in the
form of a note or bond has a minimum credit rating of "A".
Gearing
The Board is responsible for setting the gearing policy of the Company and for
the limits on gearing. The Manager is responsible for gearing within the
limits set by the Board. The Board has set its gearing limit at a maximum of
25% of NAV at the time of draw down. Gearing - borrowing money - is used
selectively to leverage the Company's portfolio in order to enhance returns
where this is considered appropriate. Particular care is taken to ensure that
any financial covenants permit maximum flexibility of investment policy.
Significant changes to gearing levels are communicated to shareholders.
Key Performance Indicators
At each Board meeting, the Directors consider a number of Key Performance
Indicators ("KPIs") to assess the Company's success in achieving its
objectives. These KPIs are described below, with those also categorised as
Alternative Performance Measures marked with an asterisk and noting that NAV
is calculated with debt at fair value:
KPI Description
NAV (total return) * relative to the Company's benchmark The Board considers the Company's NAV (total return), relative to the FTSE
All-Share Index, to be the best indicator of performance over different time
periods. A graph showing NAV total return over the past five years. as
compared to the FTSE All-Share Index is shown in the published Annual Report.
Share price (total return) * The Board monitors share price performance relative to open-ended and
closed-ended competitor products, taking account of differing investment
objectives and policies pursued by those products.
The figures for share price (total return) for the Year and for the past
three, five and ten years, as well as for the NAV (total return) per share,
are shown in the published Annual Report. A graph showing share price total
return performance against the FTSE All-Share Index over the past five years
is shown in the published Annual Report.
Discount/premium to NAV * The discount/premium at which the Company's share price trades relative to the
NAV per share is closely monitored by the Board. A graph showing the
discount/premium over the last five years is shown in the published Annual
Report.
Earnings and dividends The Board aims to meet the 'high and growing' element of the Company's
per share investment objective by developing revenue reserves sufficient to support the
payment of a growing dividend; figures may be found in Financial Highlights
and Dividends in respect of earnings and dividends per share, together with
the level of revenue reserves, for the Year and previous year.
Ongoing charges* The Board monitors the Company's operating costs and their composition with a
view to limiting increases wherever possible. Ongoing charges are disclosed
for the Year and the previous year and include look through costs.
Principal Risks and Uncertainties
There are a number of risks and uncertainties which, if realised, could have a
material adverse effect on the Company's business model, future performance
and solvency. The Board, through the Audit Committee, has put in place a
robust process to identify, assess and monitor these by means of a risk
assessment and internal controls system. This system was reviewed during the
year, as explained in the Audit Committee Report. As noted therein, the Audit
Committee has a risk register and uses a post-mitigation heat risk map to
identify principal, and emerging, risks.
Macroeconomic and geopolitical uncertainty continues as a significant risk.
However, factors creating this uncertainty have changed, both during the Year
and subsequently. For example, the uncertainty created by the increase in
global armed conflict and tariff disputes initiated by the US Trump
administration, versus the de-risking from lower inflation and interest rates.
Accordingly, the Board considers that the risk ratings arising from these
factors remain at a heightened level, consistent with the last three years.
The Board does not consider that, overall, the principal risks and
uncertainties identified have changed materially during the Year. The Audit
Committee and the Board both consider emerging risks as part of their normal
review of factors which could affect the Company, both in the short and longer
term.
These principal risks are set out as follows with a high level summary of
their management through mitigation and an indication of any change in
assessment during the Year. The risks faced by the Company have been
categorised under five headings as follows: Strategic and Market; Investment
Management; Marketing ; Operational; and Regulatory.
Principal Risk Mitigating Action
STRATEGIC AND MARKET
The Company's investment objective and policy are no longer meeting investors' The Company's investment objective and policy ("IOP") are reviewed regularly
requirements (unchanged) by the Board to ensure they remain appropriate and effective. The Board has
announced a strategic review which will include consideration of the Company's
Lack of a robust strategic review, failure to understand the market/investor IOP.
demand. Failure to analyse and react to changes or uncertainty, unclear
dividend policy.
Discount control risk (unchanged) The Board monitors the discount at which the Company's shares trade, including
comparison with peer group discounts, and will buyback or issue shares to try
Investment trust shares tend to trade at discounts to their underlying NAVs, to minimise the impact of any discount or premium volatility. Whilst these
although they can also trade at premium. Discounts and premiums can fluctuate measures seek to reduce volatility, they are not guaranteed to do this.
considerably leading to more volatile returns for shareholders.
During the Year the Company bought back 6.8 million shares (2024: 7.0 million)
representing 6.5% (2024: 6.4%) of the shares outstanding at the beginning of
July 2024.
Significant share buybacks could lead to the shrinkage of the Company, with
implications for the liquidity of its shares and potentially reduced
attractiveness for investors.
Market risk (increased) The Company's investment policy and its approach to risk diversification may
be found above, both of which serve to mitigate the effect of market risk on
Market risk arises from the volatility in prices of the Company's investments the portfolio. The Board considers the diversification of the portfolio,
and the potential loss the Company could suffer through realising investments asset allocation, stock selection and levels of gearing on a regular basis.
following negative market movements. The Board also monitors the Company's relative performance as compared to
peers and the Company's benchmark.
Changes in general economic or market conditions (such as interest rates,
exchange rates and inflation rates ) as well as global political events and The Board assesses climate change as an emerging risk in terms of how it
trends, could substantially and adversely affect the prices of securities and, develops, including how investor sentiment is evolving towards climate change
as a consequence, the value of the Company's investment portfolio, its within investment portfolios, and will consider how the Company may mitigate
prospects and share price. this risk and any other emerging risks. The Board engages with the Manager, at
each Board meeting, to understand how climate change and environmental factors
Current heightened risks arise from factors such as the increase in global are being assessed . Both are key considerations within the Manager's
armed conflict and the slowing of interest rate cuts by central banks. The investment process.
longer term emergence of the effects on investee companies of climate change,
and the regulatory environment around this, presents a further risk. The Board also considers sensitivity of the Company to market prices and
changing economic conditions and how the portfolio would perform during a
market crisis. In light of the material effect that geopolitical events (such
as global armed conflicts and heightened tariff negotiations) have had on the
Company's operating environment during the Year, the Board has increased the
market risk rating.
Gearing risk (unchanged) Gearing is monitored and strict restrictions on borrowings are imposed:
gearing continues to operate within pre-agreed limits so as not to exceed 25%
The Company uses both long term and short term borrowings to increase the of NAV at the time of draw down.
funds available for investment. These arrangements increase the funds
available for investment. While this has the potential to enhance investment
returns
in rising markets, in falling markets the impact could
be detrimental.
INVESTMENT MANAGEMENT
Underperformance risk (increased) The Board evaluates performance at each board meeting on both an absolute and
relative basis, against the Company's benchmark and peers, and across various
Consistent underperformance by the Investment Manager over short, medium and periods: short, medium and long term. Performance is also reviewed at the
long term. annual strategy meeting.
The Investment Manager's style may result in the portfolio being significantly The Company has a set of investment limits and Board guidelines which ensure
over or under weight positions in stocks and sectors compared to the benchmark diversification of the portfolio.
and the Company's performance may deviate significantly from that of the
benchmark and peers, possibly for extended periods. During the Year, the Board evaluated the risk of underperformance as elevated
due to the NAV total return falling behind the return of the Benchmark for
one, three, five and ten years.
Risk of loss of key staff (unchanged) Charles Luke has been the lead portfolio manager for the Company since 2006,
working alongside Ian Hewett and Rhona Millar as part of the Manager's
Loss of key staff though natural loss, or Manager reorganisation and/or Developed Markets Equities team.
redundancy. Loss of investor confidence if lead
manager lost.
MARKETING
General marketing risk (unchanged) The Manager's investor relations team works closely with the Board on
institutional shareholder contact. In addition, quarterly updates are provided
Failure to implement the Board's marketing policy or failure to address to the Board by the broker. All correspondence addressed to the Board is
shareholder concerns or complaints. circulated to the Chair for response.
Issues could arise from poor procedures around preparation of marketing
materials, a failure to appropriately manage their distribution or correct
handling of concerns or complaints raised by investors. The Board is working
with the Manager to optimise the effectiveness of marketing undertaken on
behalf of the Company.
OPERATIONAL
Service provider risk (unchanged) Contracts with third party providers are entered into after appropriate due
diligence. Thereafter the performance of each provider is subject to an annual
In common with most other investment companies, the Company relies on the review by the Audit Committee. The Depositary reports to the Audit Committee
services provided by third parties and is dependent on the control systems of at least
the Manager (who acts as investment manager, company secretary and maintains
annually, including on the Company's compliance with AIFMD.
the Company's assets, dealing procedures and accounting records); BNP Paribas
The Manager also regularly reviews the performance of the Depositary
SA, London Branch (which acts as Depositary and Custodian; the "Depositary");
and the registrar. The security of the Company's assets, dealing procedures, Global assurance reports are obtained from the Manager, BNP Paribas SA, London
accounting records and adherence to regulatory and legal requirements depend Branch, and the registrar (MUFG Corporate Markets). These are reviewed by the
on the effective operation of the systems of these third party service Audit Committee. The reports include an independent assessment of the
providers. effectiveness of risks and internal controls at the service providers
including their planning for business continuity and disaster recovery
scenarios, together with their policies and procedures designed to address the
risks posed to the Company's operations by cyber-crime.
Failure by any service provider to carry out its obligations could have a
material adverse effect on the Company's performance. Disruption, including The Company's assets are subject to a strict liability regime and, in the
that caused by information technology breakdown or a cyber-related issue, event of a loss of assets, the Depositary must return assets of an identical
could prevent, for example, the functioning of the Company; accurate reporting type or the corresponding amount, unless able to demonstrate the loss was a
to the Board or shareholders; or payment of dividends in accordance with the result of an event beyond its reasonable control.
announced timetable.
The Board has assessed the risk posed by cyber-crime as elevated, despite the
available mitigation, reflecting the potential disruption which might be
caused to the Company's operations by a cyber-attack.
REGULATORY
Regulatory risk (including change of existing rules and regulation) The Manager provides investment, company secretarial, administration and
(unchanged) accounting services through qualified third
The Company is required to comply with relevant rules and regulations. Failure party professional providers.
to do so could result in loss of investment trust status, fines, suspension of
the Company's shares, criminal proceedings or financial or reputational The Board receives regular reports from its Manager and briefings from its
damage. broker, auditor and the industry trade body (the Association of Investment
Companies ("AIC")) on changes to regulations which could impact the Company
and its industry.
The risk was unchanged during the Year, further to an increased risk assessed
in the prior year due to obligations associated with the introduction of new
consumer duty regulations.
The following are other risks identified by the Board which could have a major
impact on the Company but due to mitigation are not deemed to be principal
risks:
Other Risks Mitigating Action
Dividend risk (unchanged) The Board reviews estimates of revenue income and expenditure prepared by the
Manager, which look forward up to five years.
There is a risk that the Company fails to generate sufficient income from its
investment portfolio to meet the Company's dividend requirements. The Company's level of revenue reserves is monitored and can be added to in
years of surplus, or used to support the dividend in years where there is a
A cut in the dividend of the Company would likely cause a revenue deficit. Dividends can also be paid from capital, though use of
drop in the share price and would end the Company's capital reserves for dividends is expected to be rare.
"Dividend Hero" status.
Financial risk (unchanged) Details of these risks and the policies and procedures for their monitoring
and mitigation are disclosed earlier in this section and in note 18.
The Company's investment activities expose it to a variety of financial risks
which include market risk (which is identified as a principal risk and is
covered earlier in this section), liquidity risk and credit risk (including
counterparty risk).
Emerging risk (unchanged) The Board regularly reviews all risks to the Company, including emerging
risks, which are identified by a variety of means, including advice from AIC,
Failure to have in place procedures that assist in identifying emerging the Company's professional advisors, Directors' knowledge of markets, changes
risks. This may cause reactive actions rather than being pro-active and, in and events.
the worst case, could cause the Company to become unviable or otherwise fail.
The principal risks associated with an investment in the Company's shares can
be found in the pre-investment disclosure document ("PIDD") published by the
Manager, which is available from the Company's website: murray-income.co.uk.
Promotional Activities
The Board recognises the importance of promoting the Company to existing and
prospective investors both for improving liquidity and enhancing the rating of
the Company's shares. The Board believes one effective way to achieve this is
through subscription to, and participation in, the promotional programme run
by the Manager on behalf of a number of investment trusts under its
management. The Company also supports the Manager's investor relations
programme which involves regional roadshows, promotional and public relations
campaigns. The Manager's promotional and investor relations teams report to
the Board on a quarterly basis giving analysis of their activities as well as
updates on the shareholder register and any changes in the make-up of that
register.
Communicating the long-term attractions of the Company is key. The promotional
programme includes commissioning independent paid for research on the Company,
most recently from Edison Investment Research Limited; a copy may be found on
the Company's website.
The UK Stewardship Code and Proxy Voting
The Company supports the UK Stewardship Code 2020, and seeks to play its role
in supporting good stewardship of the companies in which it invests.
Responsibility for actively monitoring the activities of portfolio companies
has been delegated by the Board to the Manager.
The Manager is a tier 1 signatory of the UK Stewardship Code 2020 which aims
to enhance the quality of engagement by investors with investee companies in
order to improve their socially responsible performance and the long term
investment return to shareholders. The Manager's Annual Stewardship Report for
2024 may be found at
www.aberdeeninvestments.com/en-gb/intermediary/sustainable-investing/our-approach.
While delivery of stewardship activities has been delegated to the Manager,
the Board acknowledges its role in setting the tone for the effective delivery
of stewardship on the Company's behalf.
The Board has also given discretionary powers to the Manager to exercise
voting rights on resolutions proposed by the investee companies within the
Company's portfolio. The Manager reports to the Board on a six monthly basis
on stewardship (including voting) issues and additional information may be
found in the published Annual Report.
Global Greenhouse Gas Emissions and Streamlined Energy and Carbon Reporting ("SECR")
All of the Company's activities are outsourced to third parties. The Company
therefore has no greenhouse gas emissions to report from the operations of its
business, nor does it have responsibility for any other emissions producing
sources under the Companies Act 2006 (Strategic Report and Directors' Reports)
Regulations 2013. For the same reason as set out above, the Company
considers itself to be a low energy user under the SECR regulations and
therefore is not required to disclose energy and carbon information. Further
information on the Manager's obligatory disclosures under the Taskforce on
Climate-related Financial Disclosures ("TCFD") may be found on the Company's
website as the "TCFD Product Report".
Viability Statement
The Company does not have a fixed strategic plan but the Board does formally
consider risks and strategy on at least an annual basis. As explained in the
Chair's Statement the Board is undertaking a strategic review of the Company,
and the following statement does not take account of any changes that may (or
may not) arise for the Company as a result of that review given they are
presently unknown.
The Board regards the Company, with no fixed life, as a long term investment
vehicle but for the purposes of this viability statement has decided that a
period of five years (the "Review Period") is an appropriate timeframe over
which to report.
In assessing the viability of the Company over the Review Period the Directors
have focused upon the following factors:
· the Company's principal risks and uncertainties as set out in the
Strategic Report;
· the relevance of the Company's investment objective;
· the demand for the Company's shares as indicated by the level of premium
and/or discount;
· the level of income generated by the Company's portfolio as compared to
its expenses;
· the overall liquidity of the Company's investment portfolio;
· the £40m senior loan notes and £60m senior loan notes, which are
repayable in 2027 and in 2029, respectively, and any likelihood of them
breaching their covenants; and
· the requirement for the Company to repay its three year £30 million bank
loan facility at its maturity in October 2027.
In making this assessment, the Board has considered in particular a large
economic shock, such as another global pandemic, a period of increased stock
market volatility and/or markets at depressed levels, a significant reduction
in the liquidity of the portfolio, or persistent inflationary pressures, or
changes in investor sentiment or regulation, and how these factors might
affect the Company's prospects and viability in the future. The Board
undertook scenario analysis, incorporating income forecasting, in reaching its
conclusions, but recognising that the Company's expenses are significantly
lower than its total income.
Taking into account the Company's current position and the potential impact of
its principal risks and uncertainties, the Directors have a reasonable
expectation that the Company will be able to continue in operation and meet
its liabilities as they fall due for a period of five years from the date of
this Report.
Performance, Financial Position and Outlook
A review of the Company's activities and performance during the Year,
including future developments, is set out in the Chair's Statement and in the
Investment Manager's Report. These cover market background, investment
activity, portfolio strategy, dividend policy, gearing and investment
outlook. A comprehensive analysis of the portfolio is provided above while
the full portfolio of investments is published monthly on the Company's
website. The Company's Statement of Financial Position shows the assets and
liabilities at the year end. Borrowing facilities at the year end comprised a
mix of fixed and floating debt: a three year £30 million bank loan, £40
million of senior loan notes due for repayment in 2027 and £60 million of
senior loan notes due for repayment in 2029. Details of these are shown in
notes 13 and 14 to the financial statements, respectively.
The future strategic direction and development of the Company is regularly
discussed as part of Board meeting agendas. As a result of these discussions,
the Board decided to initiate a formal strategic review, which was announced
on 3 July 2025. This review, which remains ongoing, is focused on evaluating
the options available to the Company in the pursuit of delivering improved
performance and returns for its shareholders, whilst continuing to provide an
attractive yield from a portfolio predominantly focused on UK equities. The
first round of the process is now complete, with the Board having received a
significant number of high quality proposals from a wide range of parties.
Shortlisted parties invited through to the second stage have been asked to
provide more detailed proposals and will present to the Board thereafter. The
Board expects to be able to provide an update to shareholders during the
fourth quarter of 2025.
Board Diversity
The Board supports the principle of boardroom diversity, of which diversity of
skills, gender and ethnicity are all important aspects. Further information
on Board diversity may be found in the Directors' Report.
Environmental, Social and Environmental ("ESG") and Human Rights Issues
The Board delegates the management of the portfolio, including assessment of
ESG and human rights issues, to the Investment Manager.
Whilst the Company does not have a sustainability objective and its investment
policy does not have specific sustainability characteristics, ESG analysis is
integrated into the Manager's investment process and portfolio construction.
ESG factors are not the over-riding criteria in relation to investment
portfolio decisions but the Manager aims to enhance potential value for
shareholders, reduce risk and contribute positively by embedding ESG
throughout the investment process.
The Company has no employees and, accordingly, there are no disclosures to be
made in respect of employees.
Modern Slavery Act
Due to the nature of its business, being a company that does not offer goods
and services to customers, the Board considers that the Company is not within
the scope of the Modern Slavery Act 2015 because it has no turnover. The
Company is therefore not required to make a slavery and human trafficking
statement. The Board considers the Company's supply chains, dealing
predominantly with professional advisers and service providers in the
financial services industry, to be low risk in relation to this matter.
The Strategic Report was approved by the Board and signed on its behalf by:
Peter Tait
Chair
11 September 2025
Promoting the Success of the Company
The Board is required to report how it has discharged its duties and
responsibilities under section 172 of the Companies Act 2006 during the Year.
Under this requirement, the Directors have a duty to promote the success of
the Company for the benefit of its members (shareholders) as a whole, taking
into account the likely long term consequences of decisions, the need to
foster relationships with the Company's stakeholders, and the impact of the
Company's operations on the environment. In addition the Directors must act
fairly between shareholders and be cognisant of maintaining the reputation of
the Company.
The Purpose of the Company and Role of the Board
The Company has been established as an investment vehicle for the purpose of
delivering its investment objective which is set out in Overview of Strategy.
Investment trusts, such as the Company, are long-term investment vehicles that
are typically externally-managed, have no employees, and are overseen by an
independent non-executive board of directors.
The Board is responsible for all decisions relating to the Company's
investment objective and policy, gearing, corporate governance and strategy,
and for monitoring the performance of the Company's third party service
providers, including the Manager.
The Board's philosophy is that the Company should foster a culture where all
parties are treated with respect. The Directors provide mutual support
combined with constructive challenge. Integrity, openness and diligence are
defining characteristics of the Board's culture. The Company has a number of
policies and procedures in place to aid a culture of good governance, such as
those relating to Director's conflicts of interests and dealings in the
Company's shares, annual evaluation of Directors, anti-bribery and anti-tax
evasion. At its regular meetings, the Board engages with the Manager to
understand its culture and receives regular reporting and feedback from the
other key service providers.
The Company's primary stakeholders have been identified as its shareholders,
the Manager, other key third party service providers, investee companies and
lenders. The following table sets out details of the Company's engagement.
Shareholders The Directors place great importance on communication with shareholders.
Further details on the Company's relations with Shareholders, including its
approach to the Annual General Meeting, and investor relations can be found in
the Directors' Report.
Manager The Investment Manager's Report details the key investment decisions taken
during
the Year. The Board engages with the Investment Manager at every Board meeting
and receives presentations from the Investment Manager to help it to exercise
effective oversight of the Investment Manager and delivery of the Company's
strategy. The Board also receives regular updates from the Manager outside of
these meetings.
The Management Engagement Committee monitors the performance of the Manager
over the Year, as set out in the Directors' Report. In addition, the Chair's
Statement includes a description of the background to the announcement by the
Company, on 3 July 2025, of a strategic review.
Other Key Third Party Service Providers The Board ensures that it promotes the success of the Company by engaging
specialist third party suppliers with the resources, controls and performance
records to deliver the service required. The Board seeks to maintain
constructive relationships with its key service providers (the Company's
registrar, depositary and broker) either directly, or through the Manager,
with ongoing dialogue and formal regular meetings. The Audit Committee
conducts an annual assessment of key service providers as set out in the
Committee's report. The Board seeks regular assurance that key third party
service providers have in place appropriate business continuity plans and
which are expected to allow them to maintain service levels in the face of
disruption.
Investee Companies The Board is committed to investing in a responsible manner and actively
monitors the activities of investee companies through its delegation to the
Investment Manager. In order to achieve this, the Investment Manager has
discretionary powers to exercise voting rights on resolutions proposed by the
investee companies and reports quarterly to the Board on stewardship issues,
including voting. The Board monitors investments made and divested and
questions the rationale for exposures taken and voting decisions made.
Information on how the Investment Manager engages with investee companies may
be found in the published Annual Report.
Lenders to the Company On behalf of the Board, the Manager maintains a positive working relationship
with the provider of the Company's multi-currency loan facility and the
holders of the Company's Senior Loan Notes, assuring compliance with lenders'
covenants and providing regular updates on business activity where sought.
Specific Examples of Stakeholder Consideration During the Year
While the importance of giving due consideration to the Company's stakeholders
is not a new requirement, and is considered as part of every Board decision,
the Directors were particularly mindful of stakeholder considerations when
reaching the following decisions during the Year.
Reduction in Management Fee
The Board and the Manager agreed a reduction in the management fee, from 1
July 2024. Full details are included in Note 4 to the Financial Statements.
Detailed review by Board of Investment Performance
The Board engaged with senior management of the Manager to understand the
reasons for the performance. During the Year, the Chair and the SID held
meetings with several of the Company's major shareholders to discuss, amongst
other matters, the performance of the Company.
Appointment of Andrew Page as a Director
Andrew Page (see the website for biographical information) was appointed a
Director on 17 January 2025 following an external search.
Dividends Paid to Shareholders
The level, frequency and timing of dividends paid are key considerations for
the Board, taking into account net earnings for the year and the Company's
objective of providing shareholders with a high and growing income, combined
with the Company's Dividend Hero status.
The total dividend per share for the Year of 40.0p represents an increase of
3.9% on the previous year. Dividends are paid quarterly with the four payments
equalised insofar as is practical.
Share Buybacks
During the Year the Company bought back 6,772,817 (2024 - 7,035,000) Ordinary
shares into treasury, providing a 0.7% accretion to the NAV as well as a
degree of liquidity to the market at times when the discount to the NAV per
share had widened during normal market conditions. These purchases represented
6.5% (2024: 6.4%) of the shares outstanding at the beginning of July 2024. It
is the view of the Board that this policy remains in the best interests of all
shareholders.
Shareholder Communication
The Chair hosted an online event for shareholders on 17 October 2024 to allow
those shareholders who may have been unable to attend the AGM in person to
pose questions to both the Directors and the Investment Manager. As described
in the Chair's Statement, the Company expects to hold an online event after
the conclusion of the strategic review.
Portfolio
Ten Largest Investments
As at 30 June 2025
RELX AstraZeneca
Relx is a global provider of information and analytics for professionals and AstraZeneca researches, develops, produces and markets pharmaceutical
businesses across a number of industries including scientific, technical, products. With a significant focus on oncology and rare diseases, the company
medical and law. The company offers resilient earnings combined with long term offers appealing growth potential over the medium term.
structural growth opportunities.
National Grid Unilever
National Grid is an investor-owned utility company which owns and operates the Unilever is a global consumer goods company supplying food, home and personal
electricity and gas transmission network in Great Britain and the electricity care products. The company has a portfolio of strong brands including: Dove,
transmission networks in the Northeastern United States. The company offers Knorr, Axe and Persil. Over half of the company's sales are to developing and
resilient earnings and an attractive dividend yield. emerging markets.
Diageo TotalEnergies
Diageo produces, distills and markets alcoholic beverages including vodkas, TotalEnergies is a broad energy company that produces and markets fuels,
whiskies, tequilas, gins and beer. The company should benefit from attractive natural gas and electricity. It is a leader in the sector's energy transition
long term drivers such as population and income growth, and premiumisation. with an attractive pipeline of renewable assets
The company has a variety of very strong brands and faces very limited private
label competition.
Convatec Experian
Convatec, is a medical products and technologies company based in the UK, Experian is a market leader in the provision of credit and marketing services.
offering products and services in the areas of advanced wound care, ostomy It maintains one of the largest credit bureaus and offers specialist
care, continence care and infusion care. analytical solutions for credit scoring, risk management and application
processing across a number of different markets including financial services,
health, retail and government.
HSBC DBS
HSBC provides a variety of international banking and financial services, The largest Singapore bank by assets, it is also one of the best managed with
including retail and corporate banking. The diversity of HSBC's businesses and a clear strategy. It is backed by good digital infrastructure, and operates
exposure to faster growing regions should enable it to deliver superior long with focus on efficiency of returns, as shown in the distinctively better
term growth. return on equity than local peers.
Portfolio
As at 30 June 2025
Valuation Total Valuation
2025 investments 2024
Investment FTSE All-Share Sector Country £'000 % £'000
RELX Media UK 48,656 4.8 56,359
AstraZeneca Pharmaceuticals and Biotechnology UK 46,434 4.6 58,253
National Grid Gas, Water and Multi-utilities UK 44,238 4.4 35,502
Unilever Personal Care Drug and Grocery Stores UK 43,141 4.3 57,626
Diageo Beverages UK 32,970 3.2 41,515
TotalEnergies Oil, Gas and Coal France 32,125 3.2 38,041
Convatec Medical Equipment and Services UK 31,830 3.1 21,336
Experian Industrial Support Services UK 31,291 3.1 33,099
HSBC Banks UK 29,193 2.9 18,661
DBS Banks Singapore 27,368 2.7 -
Top ten investments 367,246 36.3
Sage Group Software and Computer Services UK 26,945 2.7 32,402
Haleon Pharmaceuticals and Biotechnology UK 23,787 2.3 13,662
SSE Electricity UK 23,030 2.3 22,031
LondonMetric Real Estate Investment Trusts UK 22,044 2.2 -
Safestore Real Estate Investment Trusts UK 21,810 2.1 18,574
Nordea Bank Banks Sweden 20,979 2.1 18,454
Shell Oil, Gas and Coal UK 20,939 2.1 -
Dunelm Retailers UK 20,915 2.1 -
Reckitt Benckiser Group Personal Care Drug and Grocery Stores UK 20,860 2.1 -
Kone Industrial Engineering Finland 20,628 2.0 12,953
Top twenty investments 589,183 58.3
London Stock Exchange Finance and Credit Services UK 20,313 2.0 43,837
Inchcape Industrial Support Services UK 20,031 2.0 23,243
M&G Investment Banking and Brokerage Services UK 19,956 2.0 15,840
Bunzl General Industrials UK 19,337 1.9 -
Rentokil Initial Industrial Support Services UK 19,131 1.9 25,060
Anglo American Industrial Metals and Mining UK 17,820 1.8 26,436
Howden Joinery Retailers UK 17,571 1.7 19,553
Coca-Cola EuroPacific Partners Beverages UK 17,359 1.7 11,172
Genus Pharmaceuticals and Biotechnology UK 15,365 1.5 12,427
Intermediate Capital Investment Banking and Brokerage Services UK 14,101 1.4 31,190
Top thirty investments 770,167 76.2
Rio Tinto Industrial Metals and Mining UK 14,008 1.4 -
Games Workshop Leisure Goods UK 13,943 1.4 16,150
Oxford Instruments Electronic and Electrical Equipment UK 13,720 1.4 19,052
Rotork Electronic and Electrical Equipment UK 13,470 1.3 11,589
Telenor Telecommunications Service Providers Norway 13,137 1.3 10,535
Air Liquide Chemicals France 11,815 1.2 10,770
Smurfit Kappa General Industrials UK 11,471 1.1 13,096
Genuit Construction and Materials UK 11,407 1.1 12,524
Hiscox Non-life Insurance UK 11,144 1.1 11,271
Berkeley Household Goods and Home Construction UK 10,962 1.1 10,901
Top forty investments 895,244 88.6
RS Group Industrial Support Services UK 10,492 1.0 18,480
Gamma Communications Telecommunications Service Providers UK 10,466 1.0 -
Mastercard Industrial Support Services United States 10,082 1.0 8,582
L'Oréal Personal Goods France 10,076 1.0 11,282
Close Brothers Banks UK 9,938 1.0 11,402
Accton Technology Telecommunications Equipment Taiwan 9,652 1.0 10,827
ASML Technology Hardware and Equipment Netherlands 9,633 0.9 -
Telecom Plus Telecommunications Service Providers UK 9,570 0.9 -
Microsoft Software and Computer Services United States 9,284 0.9 20,316
Moonpig Retailers UK 8,899 0.9 7,538
Top fifty investments 993,336 98.2
Chesnara Life Insurance UK 7,891 0.8 6,505
Mercedes-Benz Automobiles and Parts Germany 7,686 0.8 9,855
Valterra Industrial Metals and Mining South Africa 2,135 0.2 -
Total investments 1,011,048 100.0
Ordinary shares unless otherwise stated.
Summary of Investment Changes During the Year
Valuation Valuation
30 June 2024 Transactions Gains / (losses) 30 June 2025
£'000 % £'000 £'000 £'000 %
Equities
UK 865,068 80.6 (31,573) (7,047) 826,448 81.6
Denmark 9,923 0.9 (4,611) (5,312) - -
Finland 12,953 1.3 4,794 2,881 20,628 2.0
France 70,161 6.5 (7,330) (8,815) 54,016 5.4
Germany 9,855 0.9 - (2,169) 7,686 0.8
Netherlands - - 12,098 (2,465) 9,633 1.0
Norway 10,535 1.0 - 2,602 13,137 1.3
Singapore 27,374 2.5 (5,970) 5,964 27,368 2.7
South Africa - - 3,221 (1,086) 2,135 0.2
Switzerland 9,486 0.9 (5,558) (3,928) - -
Sweden 18,454 1.7 - 2,525 20,979 2.1
Taiwan 10,827 1.0 (4,787) 3,612 9,652 1.0
United States 28,898 2.7 (10,275) 743 19,366 1.9
Total investments 1,073,534 100.0 (49,991) (12,495) 1,011,048 100.0
Directors' Report
The Directors present their report and the audited financial statements for
the year ended 30 June 2025.
Results and Dividend Policy
The financial statements for the Year indicate a total return attributable to
equity shareholders for the year of £22,880,000 (2024 - £94,779,000) and an
explanation for the Company's financial performance may be found in the
Chair's Statement.
On 6 November 2024, the Company declared first, second and third interim
dividends, each of 9.50p per share, to be paid on 14 December 2024, 13 March
2025 and 12 June 2025.
The Company further announced, on 31 July 2025, the payment to shareholders on
11 September 2025 of a fourth interim dividend for the year of 11.50p per
share (2024 - 10.00p) with an ex-dividend date of 14 August 2025 and a record
date of 15 August 2025. This resulted in total dividends of 40.00p per share
for the year ended 30 June 2025, an increase of 3.9% on the 38.50p per share
paid for the prior year, which represented the 52(nd) year of consecutive
growth in the Company's annual dividend.
The Board is proposing to maintain the dividend policy of paying four
quarterly interim dividends each year. In line with good corporate governance,
the Board therefore proposes to put the Company's dividend policy to
Shareholders for approval at the forthcoming AGM, as resolution 3.
Principal Activity and Status
The Company, which was incorporated in 1923, is registered as a public limited
company in Scotland under company number SC012725 and is an investment company
within the meaning of Section 833 of the Companies Act 2006.
The Company has been accepted by HM Revenue & Customs as an investment
trust subject to the Company continuing to meet the relevant eligibility
conditions of Section 1158 of the Corporation Tax Act 2010 and the ongoing
requirements of Part 2 Chapter 3 Statutory Instrument 2011/2999 for all
financial years commencing on or after 1 July 2012. The Directors are of the
opinion that the Company has conducted its affairs during the Year so as to
enable it to comply with the ongoing requirements for investment trust status.
The Company has conducted its affairs so as to satisfy the requirements as a
qualifying security for Individual Savings Accounts. The Directors intend that
the Company will continue to conduct its affairs in this manner.
Capital Structure and Voting Rights
At 30 June 2025, the Company had 97,912,184 (2024 - 104,685,001) fully paid
Ordinary shares of 25p each in issue, with voting rights, and an additional
21,617,348 (2024 - 14,844,531) shares in Treasury. During the Year,
6,772,817 Ordinary shares were bought back into Treasury (2024 - 7,035,000).
Since the year end, the Company has bought back a further 20,000 Ordinary
shares into treasury. Accordingly, as at the date of this Report, the
Company's issued share capital consisted of 97,892,184 Ordinary shares of 25
pence each and 21,637,348 Ordinary shares held in treasury.
Ordinary shareholders are entitled to vote on all resolutions which are
proposed at general meetings of the Company. The Ordinary shares, excluding
shares in Treasury, carry a right to receive dividends. On a winding up,
after meeting the liabilities of the Company, the surplus assets will be paid
to Ordinary shareholders in proportion to their shareholdings. There are no
restrictions on the transfer of Ordinary shares in the Company other than
certain restrictions which may be applied from time to time by law (for
example, laws prohibiting insider trading).
Manager and Company Secretary
The Manager has been appointed by the Company, under a management agreement,
to provide investment management, risk management, administration and company
secretarial services as well as promotional activities. The Company's
portfolio is managed by the Investment Manager by way of a group delegation in
place with the Manager. In addition, the Manager has sub-delegated
promotional activities to the Investment Manager and administrative and
secretarial services to abrdn Holdings Limited.
From 1 July 2024, annual fees payable to the Manager under the management
agreement are 0.35% on up to £1.1 billion of net assets and 0.25% on any net
assets in excess of £1.1 billion.
Until 30 June 2024, annual fees payable to the Manager were charged on the
same basis as above, other than the applicable rate was: 0.55% on the first
£350 million of net assets, 0.45% on net assets between £350 million and
£450 million and 0.25% on any net assets in excess of £450 million.
The value of any investments in unit trusts, open ended and closed ended
investment companies and investment trusts of which the Manager, or another
company within Aberdeen Group plc, is the operator, manager or investment
adviser, is deducted from net assets when calculating the fee.
The management agreement is terminable on not less than three months' notice.
In the event of termination by the Company on less than the agreed notice
period, compensation is payable to the Manager in lieu of the unexpired notice
period.
An annual secretarial fee of £75,000 (plus applicable VAT) is payable to
abrdn Holdings Limited, which is chargeable 100% to revenue. An annual fee
equivalent to up to 0.05% of gross assets (calculated at 30 September each
year, and capped at £400,000, excluding VAT) is paid to the Investment
Manager to cover promotional activities undertaken on behalf of the Company.
The finance costs and investment management fees are charged 70% to capital
and 30% to revenue in line with the Board's expectation of the split of future
investment returns.
The management, secretarial and promotional activity fees paid to subsidiaries
of Aberdeen Group plc, during the Year are shown in notes 4 and 5 to the
financial statements.
External Agencies
The Board has contractually delegated to external agencies, including the
Manager and other service providers, certain services including: the
management of the investment portfolio, the day-to-day accounting and company
secretarial requirements, the depositary services (which include cash
monitoring, the custody and safeguarding of the Company's financial
instruments and monitoring the Company's compliance with investment limits and
leverage requirements) and the share registration services. Each of these
contracts was entered into after full and proper consideration by the Board of
the quality and cost of services offered in so far as they relate to the
affairs of the Company. In addition, ad hoc reports and information are
supplied to the Board as requested.
Directors
The Directors of the Company during the Year and up to the date of signing of
this Report were as follows: Peter Tait, Stephanie Eastment, Nandita Sahgal
Tully and Angus Franklin were Directors throughout the Year. Alan Giles
retired from the Board on 5 November 2024 and was succeeded as Senior
Independent Director by Stephanie Eastment. Andrew Page was appointed as a
Director on 17 January 2025.
The Role of the Chair and Senior Independent Director
The Chair is responsible for providing effective leadership to the Board, by
setting the tone of the Company, demonstrating objective judgement and
promoting a culture of openness and debate. The Chair facilitates the
effective contribution of, and encourages active engagement by, each Director.
In conjunction with the Company Secretary, the Chair ensures that Directors
receive accurate, timely and clear information to assist them with effective
decision-making. The Chair acts upon the results of the Board evaluation
process by recognising strengths and addressing any weaknesses and also
ensures that the Board engages with major shareholders and that all Directors
understand shareholder views.
The SID acts as a sounding board for the Chair and acts as an intermediary for
other directors, when necessary. The SID takes responsibility for an orderly
succession process for the Chair and leads the annual appraisal of the Chair's
performance. The SID is also available to shareholders to discuss any concerns
they may have.
Management of Conflicts of Interest, Anti-Bribery Policy and Tax Evasion Policy
The Board has a procedure in place to deal with a situation where a Director
has a conflict of interest. As part of this process, the Directors prepare a
list of other positions held and all other conflict situations that may need
to be authorised either in relation to the Director concerned or his/her
connected persons. The Board considers each Director's situation and decides
whether to approve any conflict, taking into consideration what is in the best
interests of the Company and whether the Director's ability to act in
accordance with his/her wider duties is affected. Each Director is required to
notify the Company Secretaries of any potential, or actual, conflict
situations which will need authorising by the Board. Authorisations given by
the Board are reviewed at each Board meeting.
The Board takes a zero-tolerance approach to bribery and has adopted
appropriate procedures designed to prevent bribery. Aberdeen also takes a
zero-tolerance approach and has its own detailed policy and procedures in
place to prevent bribery and corruption. It is the Company's policy to conduct
all of its business in an honest and ethical manner. The Company takes a
zero-tolerance approach to facilitation of tax evasion, whether under UK law
or under the law of any foreign country and its full policy on tax evasion may
be found on its website.
Board Diversity
The Board recognises the importance of having a range of skilled, experienced
individuals with the right knowledge represented on the Board in order to
allow it to fulfil its obligations. The Board also recognises the benefits and
is supportive of, and will give due regard to, the principle of diversity in
its recruitment of new Board members. The Board will not display any bias for
age, gender, race, sexual orientation, socio-economic background, religion,
ethnic or national origins or disability in considering the appointment of
Directors.
The Board will continue to ensure that all appointments are made on the basis
of merit against the specification prepared for each appointment. The Board
will take account of the targets set out in the FCA's Listing Rules, which are
set out below.
The Board has resolved that the Company's year end date is the most
appropriate date for disclosure purposes. The following information has been
provided by each Director through the completion of questionnaires.
Table for reporting on sex as at 30 June 2025
Number of board members Percentage of the board Number of senior positions Number in executive management Percentage of executive management
on the board
(CEO, CFO,
Chair and SID)
Men 3 60% n/a n/a n/a
(note 3) (note 3) (note 3)
Women 2 40% (note 1)
Not specified/prefer not to say - -
Table for reporting on ethnic background as at 30 June 2025
Number of board members Percentage of the board Number of senior positions Number in executive management Percentage of executive management
on the board
(CEO, CFO,
Chair and SID)
White British or other White 4 80% n/a n/a n/a
(including minority-white groups)
(note 3) (note 3) (note 3)
Asian/Asian British 1 20%
(note 2)
Not specified/prefer not to say - -
Notes:
1. Meets target that at least 40% of Directors are women as set out in LR
6.6.6R (9)(a)(i).
2. Meets target that at least one Director is from a minority ethnic
background as set out in LR 6.6.6R (9)(a)(iii).
3. This column is not applicable as the Company is externally managed and
does not have any executive staff, specifically it does not have either a CEO
or CFO. The Company considers that the roles of Chair of the Board, Senior
Independent Director and Chair of the Audit Committee are senior board
positions and accordingly that the Company meets the requirement, as set out
in LR 6.6.6R (9)(a)(ii), that at least one of the four senior board positions
is occupied by a woman. Although not applicable to the Company, it is noted
that the target is met.
Directors' Insurance and Indemnities
The Company has indemnified each Director, as permitted under its Articles of
Association, against any liabilities incurred by them as a Director of the
Company in defending proceedings, or in connection with any application to the
Court in which relief is granted. These qualifying indemnity provisions were
in force during the Year. In addition, Directors' and Officers' liability
insurance cover has been maintained throughout the Year at the expense of the
Company.
Corporate Governance
The Company is committed to high standards of corporate governance and its
Statement of Corporate Governance.
Matters Reserved for the Board
The Board sets the Company's objectives and ensures that its obligations to
its shareholders are met. It has formally adopted a schedule of matters which
are required to be brought to it for decision, thus ensuring that it maintains
full and effective control over appropriate strategic, financial, operational
and compliance issues.
These matters include:
· the maintenance of clear investment objectives and risk management
policies;
· the monitoring of the business activities of the Company ranging from
analysis of investment performance through to review of quarterly management
accounts;
· monitoring requirements such as approval of the Half-Yearly Report and
Annual Report and financial statements and approval and recommendation of any
dividends;
· setting the range of gearing in which the Manager may operate;
· major changes relating to the Company's structure including share
buybacks and share issuance;
· Board appointments and removals and the related terms;
· authorisation of Directors' conflicts or possible conflicts of interest;
· terms of reference and membership of Board Committees;
· appointment and removal of the Manager and the terms and conditions of
the Management Agreement relating thereto; and
· London Stock Exchange/Financial Conduct Authority - responsibility for
approval of all circulars, listing particulars and other releases concerning
matters decided by the Board.
Full and timely information is provided to the Board to enable it to function
effectively and to allow the Directors to discharge their responsibilities.
Board Committees
The Board has appointed a number of Committees as set out below. Copies of
their terms of reference, which define the responsibilities and duties of each
Committee, are available on the Company's website.
Audit Committee
The Audit Committee Report may be found below.
Management Engagement Committee
The terms and conditions of the Company's agreement with the Manager, set out
above, are considered by the Management Engagement Committee which comprises
the whole Board and is chaired by Peter Tait. The key responsibilities of the
Management Engagement Committee include:
· monitoring and evaluating the performance of the Manager;
· assessing the Manager's discharge of its responsibilities under Consumer
Duty;
· reviewing, at least annually, the continued retention of the Manager; and
· reviewing, at least annually, the terms of appointment of the Manager
including, but not limited to, the level and methodology of the management
fees as well as the notice period of the Manager.
In monitoring the performance of the Manager, the Committee considers the
investment record of the Company over the short and long term, taking into
account its performance against the Benchmark, peer group investment trusts
and open-ended funds, and against its delivery of the investment objective to
shareholders. The Committee also reviews the management processes, risk
control mechanisms and promotional activities of the Manager.
On 3 July 2025, the Board announced that it was commencing a strategic review
of the options available to the Company in the pursuit of delivering improved
performance and returns for its shareholders, whilst continuing to provide an
attractive yield from a portfolio predominantly focused on UK equities. The
Board is reviewing proposals for the future of the Company from the Manager,
third party investment managers and other investment companies, and expects to
provide an update to shareholders during the fourth quarter of 2025.
Consumer Duty
The FCA's Consumer Duty rules are a fundamental component of the FCA's
consumer protection strategy and aim to improve outcomes for retail customers
across the entire financial services industry through the assessment of
various outcomes, one of which is an assessment of whether a product provides
value. Under the Consumer Duty, the Manager is the product 'manufacturer' of
the Company and therefore the Manager is required to publish an annual
assessment. The Manager uses its proprietary assessment methodology to assess
the Company as 'expected to provide fair value for the reasonably foreseeable
future'. The Committee reviewed the Manager's basis of assessment in June 2025
and no concerns were identified with either the assessment method or the
outcome of the assessment.
Nomination Committee
The Board has established a Nomination Committee, comprising all of the
Directors, chaired by Peter Tait. The Committee is responsible for:
· determining the overall size and composition of the Board (including the
skills, knowledge, experience and diversity);
· undertaking longer term succession planning, including setting a policy
on tenure for Directors;
· undertaking an annual evaluation of the Directors, including establishing
that each Director possesses the capacity to commit sufficient time to
discharge their responsibilities;
· oversight of appointments to the Board, including open advertising or
engagement of independent search consultants, with a view to attracting
candidates from a wide range of backgrounds and with different experience,
with due regard to the benefits of diversity on the Board;
· assessing, annually, the effectiveness and independence of each Director;
and
· making recommendations for the election or re-election of any Director,
having evaluated their individual performance, capacity and contribution.
The Committee's overriding priority in appointing new Directors is to identify
the candidate with the optimal range of skills and experience to complement
the existing Directors. The Board also recognises the benefits, and is
supportive, of the principle of diversity in its recruitment of new Directors.
Cornforth Consulting, an independent recruitment firm with no connection to
the Company, was engaged for the search which resulted in the appointment of
Andrew Page as a Director during the Year.
During the Year, through the work of the Nomination Committee, the Directors
undertook a review of the Board, its Committees and the performance of
individual Directors. The process, which was facilitated by Lintstock Limited,
an independent consultancy involved the completion of questionnaires by each
Director with the results discussed by the Board thereafter, with appropriate
action points agreed. Following the evaluation process, the Board concluded
that it operates effectively to promote the success of the Company and that
each Director makes a significant contribution to the collective Board. The
review of the Chair was undertaken by the Senior Independent Director.
The biographies of each of the Directors seeking re-election are shown on the
Company's website and include their experience, length of service and the
contribution that each Director makes to the Board. Each Director has the
requisite high level and range of business and financial experience which
enables the Board to provide clear and effective leadership and proper
stewardship of the Company.
Policy on Tenure
The Committee has adopted a policy whereby all Directors will stand for
re-election at each AGM. In addition Directors, including the Chair, will not
stand for re-election as a Director of the Company later than the AGM
following the ninth anniversary of their appointment to the Board unless in
relation to exceptional circumstances.
Re-election of Directors
During the Year, each Director attended all meetings for which they were
eligible, as set out in the table. The Board meets more frequently when
business needs require:
Board Meetings Audit Committee Management Remuneration Committee Meetings
(7) Meetings Engagement Nomination Committee Meetings (1)
(3) Committee (2)
Meetings
(1)
Peter Tait(A) 7 - 1 2 1
Stephanie Eastment 7 3 1 2 1
Nandita Sahgal Tully 7 3 1 2 1
Angus Franklin 7 3 1 2 1
Andrew Page (B) 3 2 1 1 1
Alan Giles (C) 3 1 - - -
(A) The Chair of the Board is not a member of the Audit Committee but attended
all of the meetings at the invitation of the Committee Chair.
(B) Appointed as a Director on 17 January 2025 and attended all meetings for
which he was eligible.
(C) Retired as a Director on 5 November 2024; attended all meetings for which
he was eligible.
The Board as a whole believes that Peter Tait, Stephanie Eastment, Nandita
Sahgal Tully, Angus Franklin and Andrew Page each remains independent of the
Manager and free of any relationship which could materially interfere with the
exercise of his or her independent judgement on issues of strategy,
performance, resources and standards of conduct and confirms that, following
formal performance evaluations, the individuals' performance continues to be
effective and demonstrates commitment to the role.
Peter Tait, Stephanie Eastment, Nandita Sahgal Tully and Angus Franklin, each
being eligible, offer themselves for re-election as Directors of the Company
at the AGM on 4 November 2025. Andrew Page, being eligible, offers himself for
election as a Director of the Company.
Remuneration Committee
The Board has established a Remuneration Committee, comprising all of the
Directors, whose Chair was Alan Giles until 5 November 2024, when he was
succeeded by Stephanie Eastment. The Directors' Remuneration Report, below,
sets out the responsibilities of the Committee and work undertaken by the
Committee during the Year.
Accountability and Audit
The responsibilities of the Directors and the auditor in connection with the
financial statements appear below and in the auditor's report in the published
Annual Report.
The Directors who held office at the date of this Report each confirm that, so
far as they are aware, there is no relevant audit information of which the
Company's auditor is unaware and that they have taken all the steps that they
could reasonably be expected to have taken as a Director in order to make
themselves aware of any relevant audit information and to establish that the
Company's auditor is aware of that information. Further, there have been no
important, additional events since the year end which warrant disclosure. The
Directors confirm that no non-audit services were provided by the auditor
during the Year and, after reviewing the auditor's procedures in connection
with the provision of any such services, remain satisfied that the auditor's
objectivity and independence is being safeguarded.
Going Concern
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. This conclusion is consistent with the longer
term Viability Statement.
The Company's assets consist primarily of a diverse portfolio of listed equity
shares nearly all of which, in most circumstances, are realisable within a
short timescale. The Board has set limits for borrowing and regularly reviews
the level of any gearing, cash flow projections and compliance with banking
and loan note covenants.
The Directors are mindful of the principal risks and uncertainties disclosed
and have reviewed forecasts detailing revenue and liabilities. The Directors
are satisfied that the Company has adequate resources to continue in
operational existence for the foreseeable future, being at least 12 months
from the date of approval of this Annual Report.
Relations with Shareholders
The Directors place great importance on communication with shareholders noting
that the Company's shareholder register is retail-dominated. The Manager,
together with the Company's broker, regularly meets with current and
prospective shareholders to discuss performance. The Board receives investor
relations updates from the Manager on at least a quarterly basis. Any changes
in the shareholder register as well as shareholder feedback is discussed by
the Directors at each Board meeting.
Regular updates are provided to shareholders through the Annual Report, Half
Yearly Report, monthly factsheets and company announcements, including daily
net asset values, all of which are available through the Company's website at:
murray-income.co.uk. The Annual Report is also widely distributed to other
parties who have an interest in the Company's performance. Shareholders and
investors may obtain up-to-date information on the Company through its website
or by contacting the Company via email to: murray.income@aberdeenplc.com.
The Board's policy is to communicate directly with shareholders and their
representative bodies without the involvement of the management group (either
the Company Secretary or Aberdeen) in situations where direct communication is
required and representatives from the Board offer to meet with major
shareholders on an annual basis in order to gauge their views. The Company
Secretary acts on behalf of the Board, not the Manager, and there is no
filtering of communication. At each Board meeting the Board receives full
details of any communication from shareholders to which the Chair responds, as
appropriate, on behalf of the Board.
In addition, in relation to institutional shareholders, members of the Board
may be either accompanied by the Manager or conduct meetings in the absence of
the Manager.
The Company's Annual General Meeting ordinarily provides a forum, both formal
and informal, for shareholders to meet and discuss issues with the Directors
and Investment Manager. The Notice of AGM included within the Annual Report is
normally sent out at least 20 working days in advance of the meeting.
Relations with Suppliers, Customers and Others
The Directors have regard to the need to foster the Company's business
relationships with suppliers, customers and others, and the effect of that
regard, including on the principal decisions taken by the Company during the
financial year; further information on the Company's responsibilities under
Section 172 of Companies Act 2006 may be found above.
Independent Auditor
Shareholders approved the re-appointment of PricewaterhouseCoopers LLP as the
Company's auditor at the AGM on 5 November 2024 and resolutions to approve its
re-appointment for the year to 30 June 2026, and to authorise the Audit
Committee to determine its remuneration, will be proposed at the forthcoming
AGM.
Substantial Interests
As at 30 June 2025 the following interests over 3% in the issued Ordinary
share capital of the Company (excluding treasury shares) had been disclosed in
accordance with the requirements of the FCA's Guidance and Transparency
Disclosure Rules:
30 June 2025
Shareholder Number of shares held %
held
Interactive Investor 23,270,676 23.8
(execution only)
Hargreaves Lansdown 14,867,400 15.2
(execution only)
Rathbones 9,160,941 9.4
A J Bell 4,234,445 4.3
(execution only)
Halifax Share Dealing 3,508,715 3.6
(execution only)
The Company had not been notified of any change to the above interests, as at
8 September 2025, being the latest practicable date prior to approval of this
Report.
Future Developments of the Company
Disclosures relating to the future developments of the Company may be found in
the Chair's Statement.
Disclosures Required by FCA Listing Rule 9.8.4
This rule requires listed companies to report certain information in a single
identifiable section of their annual financial reports. None of the prescribed
information is applicable to the Company in the Year.
Financial Instruments
The financial risk management objectives and policies arising from financial
instruments and the exposure of the Company to risk are disclosed in note 18
to the financial statements.
Annual General Meeting ("AGM")
Among the special business being put to the AGM of the Company to be held on 4
November 2025, the following resolutions will be proposed:
Authority to allot shares and disapply pre-emption rights (Resolutions 11 and 12)
Ordinary resolution 11 will renew the authority to allot the unissued share
capital up to an aggregate nominal amount of £1.2m (equivalent to
approximately 4.9m Ordinary shares, or, if less, 5% of the Company's existing
issued share capital (excluding treasury shares) on the date of passing of
this resolution). Such authority will expire on the date of the AGM in 2026 or
on 31 December 2026, whichever is earlier. This means that the authority will
require to be renewed at the next AGM.
When shares are to be allotted for cash, Section 561 of the Companies Act 2006
(the "Act") provides that existing shareholders have pre-emption rights and
that the new shares to be issued, or sold from treasury, must be offered first
to such shareholders in proportion to their existing holding of shares.
However, shareholders can, by special resolution, authorise the Directors to
allot shares or sell from treasury otherwise than by a pro rata issue to
existing shareholders. Special resolution 12 will, if passed, give the
Directors power to allot for cash or sell from treasury equity securities up
to an aggregate nominal amount of £2.4m (equivalent to approximately 9.8m
Ordinary shares, or, if less, 10% of the Company's existing issued share
capital (excluding treasury shares) on the date of passing of this resolution,
as if Section 561 of the Act does not apply). This authority will also expire
on the date of the AGM in 2026 or on 31 December 2026, whichever is earlier.
This authority will not be used in connection with a rights issue by the
Company.
The Directors intend to use the authorities given by resolutions 11 and 12 to
allot shares or sell shares from treasury and disapply pre-emption rights only
in circumstances where this will be clearly beneficial to shareholders as a
whole. The issue proceeds would be available for investment in line with the
Company's investment policy. No issue of shares will be made which would
effectively alter the control of the Company without the prior approval of
shareholders in general meeting. It is the intention of the Board that any
issue of shares or any re-sale of treasury shares would only take place at a
price not less than 0.5% above the NAV per share prevailing at the date of
sale. It is also the intention of the Board that sales from treasury would
only take place when the Board believes that to do so would assist in the
provision of liquidity to the market.
Purchase of the Company's own Ordinary shares (Resolution 13)
At the AGM held on 5 November 2024, shareholders approved the renewal of the
authority permitting the Company to repurchase its Ordinary shares. The
Directors wish to renew the authority given by shareholders at the previous
AGM. A share buyback facility enhances shareholder value by acquiring shares
at a discount to NAV as and when the Directors consider this to be
appropriate. The purchase of shares, when they are trading at a discount to
NAV per share, should result in an increase in the NAV per share for the
remaining shareholders. This authority, if conferred, will only be exercised
if to do so would result in an increase in the NAV per share for the remaining
shareholders and if it is in the best interests of shareholders generally. Any
purchase of shares will be made within guidelines established from time to
time by the Board. It is proposed to seek shareholder authority to renew this
facility for another year at the AGM.
Under the FCA's Listing Rules, the maximum price that may be paid on the
exercise of this authority must not exceed the higher of (i) 105% of the
average of the middle market quotations for the shares over the five business
days immediately preceding the date of purchase and (ii) the higher of the
last independent trade and the highest current independent bid on the trading
venue where the purchase is carried out. The minimum price which may be paid
is 25p per share. Shares which are purchased under this authority will either
be cancelled or held as treasury shares. Special resolution 13 will renew the
authority to purchase in the market a maximum of 14.99% of shares in issue at
the date of passing of the resolution (amounting to approximately 14.7m
Ordinary shares). Such authority will expire on the date of the AGM in 2026,
or on 31 December 2026, whichever is earlier. This means in effect that the
authority will have to be renewed at the next AGM, or earlier, if the
authority has been exhausted. No dividends may be paid on any shares held in
treasury and no voting rights will attach to such shares. The benefit of the
ability to hold treasury shares is that such shares may be sold at short
notice. This should give the Company greater flexibility in managing its share
capital, and improve liquidity in its shares.
Recommendation
The Directors believe that the resolutions to be proposed at the AGM are in
the best interests of the Company and its shareholders as a whole, and
recommend that shareholders vote in favour of the resolutions, as the
Directors intend to do in respect of their own beneficial shareholdings,
amounting to 26,095 Ordinary shares, representing 0.03% of the Company's
issued share capital (excluding treasury shares) at 30 June 2025.
On behalf of the Board
Peter Tait
Chair
11 September 2025
Statement of Corporate Governance
Murray Income Trust PLC (the "Company") is committed to high standards of
corporate governance. The Board is accountable to the Company's shareholders
for good governance and this statement describes how the Company has applied
the principles identified in the UK Corporate Governance Code as published in
July 2018 (the "UK Code"), which is available on the Financial Reporting
Council's (the "FRC") website: frc.org.uk, and is applicable for the Company's
Year.
The Board has also considered the principles and provisions of the AIC Code of
Corporate Governance as published in February 2019 (the "AIC Code"). The AIC
Code addresses the principles and provisions set out in the UK Code, as well
as setting out additional provisions on issues that are of specific relevance
to the Company. The AIC Code is available on the AIC's website: theaic.co.uk.
The Board considers that reporting against the principles and provisions of
the AIC Code, which has been endorsed by the FRC, provides more relevant
information to shareholders.
The Board confirms that, during the Year, the Company has complied with the
principles and provisions of the AIC Code and the relevant provisions of the
UK Code, except for those provisions relating to:
· the role and responsibility of the chief executive;
· executive directors' remuneration; and
· the requirement for an internal audit function.
The Board considers that these provisions are not relevant to the position of
the Company being an externally managed investment company. In particular, all
of the Company's day-to-day management and administrative functions are
outsourced to third parties. As a result, the Company has no executive
directors, employees or internal operations. The Company has therefore not
reported further in respect of these provisions.
Information on how the Company has applied the AIC Code, the UK Code, the
Companies Act 2006 and the FCA's UK Listing Rule 7.2.6 can be found in the
Annual Report as follows:
· the composition and operation of the Board and its Committees are
detailed in the Directors' Report and in the Report of the Audit Committee;
· the Board's policy on diversity, and related information, is in the
Directors' Report;
· the Company's approach to internal control and risk management is
detailed in the Audit Committee Report;
· the contractual arrangements with the Manager and details of the annual
assessment of the Manager may be found in the Audit Committee Report;
· the Company's capital structure and voting rights are summarised in the
Directors' Report;
· the substantial interests disclosed in the Company's shares are listed in
the Directors' Report;
· the rules concerning the appointment and replacement of Directors are
contained in the Company's Articles of Association and are summarised in the
Directors' Remuneration Report. There are no agreements between the Company
and its Directors concerning compensation for loss of office; and
· the powers to issue or buyback the Company's ordinary shares, which are
sought annually, and any amendments to the Company's Articles of Association
require a special resolution (75% majority) to be passed by shareholders and
information on these resolutions may be found in the Directors' Report.
By order of the Board
abrdn Holdings Limited, Secretaries
1 George Street
Edinburgh
EH2 2LL
11 September 2025
Directors' Remuneration Report
The Remuneration Committee, established by the Board, has prepared this
Directors' Remuneration Report which consists of three parts:
a) a Remuneration Policy, which is subject to a binding shareholder vote
every three years, was most recently voted on at the AGM on 7 November 2023
where the result of the poll on the relevant resolution was: For - 33,554,452
votes (99.2%); Against - 277,825 votes (0.8%); and Withheld - 217,548 votes.
The Remuneration Policy will be put to a shareholder vote no later than the
AGM in 2026;
b) an annual Implementation Report, which is subject to an advisory
vote; and
c) an Annual Statement.
The fact that the Remuneration Policy is subject to a binding vote at least
every three years does not imply any change on the part of the Company. The
principles remain the same as for previous years. There has been no change
to the Remuneration Policy during the period of this Report, since the AGM on
5 November 2024.
The law requires the Company's auditor to audit certain of the disclosures
provided in this report. Where disclosures have been audited, they are
indicated as such. The independent auditor's opinion is included in the
published Annual Report.
Remuneration Policy
This part of the Report provides details of the Company's Policy for Directors
of the Company, which takes into consideration corporate governance
principles, and which was approved by shareholders at the AGM in 2023. The
Board considers, where raised, shareholders' views on Directors' remuneration.
Fees for Directors are determined by the Board within the limit stated in the
Company's Articles of Association (the "Articles"). The Articles limit
aggregate fees to £250,000 per annum. The limit can be amended by shareholder
resolution and was last increased at the AGM in 2017.
The remuneration of Directors is reviewed annually, although such review may
not necessarily result in any change. The annual review ensures that
remuneration supports the strategic objectives of the Company, reflects
Directors' duties and responsibilities, expected time commitment, the level of
skills and experience required, and the need for Directors to maintain on an
ongoing basis an appropriate level of knowledge of regulatory and compliance
requirements in an industry environment of increasing complexity. Remuneration
should be fair and comparable to that of similar investment trusts.
The Policy applies to any new Directors who will be paid the appropriate fee
based on the Directors' fees level in place at the date of appointment.
· The Company has no employees and consequently has no policy on the
remuneration of employees.
· All the Directors are non-executive and are appointed under the terms of
letters of appointment.
· Directors do not have service contracts.
· No incentive or introductory fees will be paid to encourage a
directorship.
· Directors' remuneration is not subject to any performance-related fee.
· Directors are not eligible for bonuses, pension benefits, share options,
long term incentive schemes or other benefits.
· Directors are not entitled to exit payments or any compensation for loss
of office.
· Directors are entitled to be reimbursed for any reasonable expenses
properly incurred in the performance of their duties.
· Directors can be paid additional discretionary payments for services
which , in the opinion of the Directors, are outside of the scope of the
ordinary duties of a Director.
· The terms of appointment provide that a Director may be removed subject
to three months' written notice.
· Directors must retire and be subject to re-election at the first AGM
after their appointment; the Company has also determined that every Director
will stand for re-election at each AGM.
· No Director will stand for re-election as a Director of the Company later
than the AGM following the ninth anniversary of their appointment to the Board
unless in relation to exceptional circumstances.
· The Company indemnifies its Directors for all costs, charges, losses
together with certain expenses and liabilities which may be incurred in the
discharge of duties, as a Director of the Company.
Directors' & Officers' liability insurance cover is maintained by the
Company on behalf of the Directors.
Implementation Report
Directors' Fees
The level of fees for the Year and the preceding year are set out in the table
below. There are no further fees to disclose as the Company has no employees,
Chief Executive or Executive Directors.
30 June 2025 30 June 2024 30 June 2023
£
£
£
Chair 44,625 43,125 41,200
Audit Committee Chair 37,200 35,950 34,300
Senior Independent Director 32,725 31,625 30,200
Director 29,750 28,750 27,500
The Remuneration Committee carried out its annual review of Directors' fees
during the Year by reference to inflation, measured by the increase in the
Consumer Prices Index since 1 July 2024, and taking account of peer group
comparisons by sector and by market capitalisation. In addition, the
increasing demands, responsibilities and time commitment required of
directors, both in general and specifically for the Senior Independent
Director ("SID"), audit committee chair and chair of the Board, was noted -
with such things as heightened corporate governance, increasingly complex and
onerous regulatory requirements, and strategic developments. Taking these
factors and others into account, the Committee resolved to effect the
following fee rates from 1 July 2025: Directors' base fee of £31,000 (+4.2%);
SID fee of £35,650 (+ 8.9%); audit committee chair fee of £40,300 (+8.3%);
and chair of the Board fee of £48,050 (+7.7%).
Company Performance
The graph shows the share price total return (assuming all dividends are
reinvested) to Ordinary shareholders compared to the total return from the
FTSE All-Share Index for the ten year period ended 30 June 2025 (rebased to
100 at 30 June 2015). This index was chosen for comparison purposes, as it is
the benchmark used for investment performance measurement purposes.
Statement of Proxy Voting at Annual General Meeting
At the Company's latest AGM, held on 5 November 2024, shareholders approved
the Directors' Remuneration Report (other than the Directors' Remuneration
Policy) in respect of the year ended 30 June 2024, where the result of the
poll on the relevant resolution was: For - 28,352,507 (99.3%); Against -
203,135 votes (0.7%); and Withheld - 85,252 votes.
Audited Information
Directors' Remuneration
The Directors received remuneration in the form of fees and taxable expenses
as set out in the tables below.
The Directors' remuneration excludes any employers' national insurance
contributions, if applicable. All remuneration is fixed in nature and there is
no variable remuneration. Fees are pro-rated where a change takes place during
a financial year. No payments were made to third parties. There are no other
fees to disclose as the Company has no employees, chief executive or executive
directors. Taxable expenses refer to amounts claimed by Directors for
travelling to attend meetings.
Directors' Remuneration Table (audited)
Year ended 30 June 2025 Year ended 30 June 2024
Fees Taxable Expenses Fees Taxable Expenses
£ £ Total £ £ Total
£ £
Peter Tait (appointed Chair on 7 November 2023) 44,625 467 45,092 39,068 573 39,641
Stephanie Eastment (appointed SID on 5 November 2024, previously Chair of the 34,279 263 34,542 35,950 511 36,461
Audit Committee)
Nandita Sahgal Tully (appointed Chair of the Audit Committee on 5 November 34,613 274 34,887 28,750 476 29,226
2024)
Angus Franklin (appointed on 1 January 2024) 29,750 - 29,750 14,375 - 14,375
Andrew Page (appointed on 17 January 2025) 13,595 - 13,595 n/a n/a n/a
Alan Giles( ) (retired on 5 November 2024) 11,363 - 11,363 30,611 371 30,982
Neil Rogan (retired on 7 November 2023) n/a n/a n/a 15,213 1,446 16,659
Merryn Somerset Webb (retired on 7 November 2023) n/a n/a n/a 10,142 - 10,142
Total 168,225 1,004 169,229 174,109 3,377 177,486
Annual Percentage Change in Directors' Remuneration
The table below sets out, for the Directors who served during the Year, the
annual percentage change in Directors' fees for the past five years.
Year ended Year ended 30 June 2024 Year ended 30 June 2023 Year ended Year ended 30 June 2021
30 June 2025 30 June 2022
Fees Fees Fees Fees Fees
% % % % %
Peter Tait (appointed SID on 2 November 2021 and Chair on 7 November 2023) 14.2 29.4 (C) 5.6 12.1 0.0
Stephanie Eastment (4.6) (C) 4.8 2.4 11.7 0.0
Alan Giles (retired on 5 November 2024) See note (A) 11.3 (C) 2.6 68.9 (B) See note (A)
Nandita Sahgal Tully (appointed on 3 November 2021) 20.4 (C) 4.5 55.2 (B) See note (A) n/a
Angus Franklin (appointed on 1 January 2024) 107.0 (A) See note (A) n/a n/a n/a
Andrew Page (appointed on 17 January 2025) See note (A) n/a n/a n/a n/a
Neil Rogan (retired on 7 November 2023) n/a (A) See note (A) 2.5 7.2 0.0
Merryn Somerset Webb (retired on 7 November 2023) n/a (A) See note (A) 2.6 5.1 11.0 (B)
(A) A meaningful percentage change figure cannot be calculated in the year
of appointment nor for a year when a Director resigns/retires.
(B) If the Director had been appointed for the whole of the previous year,
the annual change figure would have been nil for Merryn Somerset Webb, 5.1%
for Alan Giles and 2.6% for Nandita Sahgal Tully.
(C) In a year of change to a more senior role, and in the following year,
the percentage change figures will be distorted to show a higher or lower
figure than the 'real' change of fee levels in the year.
Spend on Pay
As the Company has no employees, the Directors do not consider it appropriate
to present a table comparing remuneration paid to Directors with distributions
to shareholders. However, for ease of reference, the total fees paid to
Directors are shown in the earlier table while dividends paid to shareholders
are set out in note 7 and share buybacks are detailed in note 15.
Directors' Interests in the Company (audited)
The Directors are not required to have a shareholding in the Company. The
Directors (including their persons closely associated) at 30 June 2025, and 30
June 2024, had no interest in the share capital of the Company other than
those interests shown below, all of which are beneficial interests, unless
indicated otherwise:
30 June 2025 30 June 2024
Director Ord. 25p Ord. 25p
Peter Tait 7,528 7,000
Stephanie Eastment 4,500 (A) 4,500 (A)
Nandita Sahgal Tully 560 560
Angus Franklin 11,007 6,044
Andrew Page 2,500 n/a
Alan Giles n/a 5,000
(A) Of which 1,700 shares were held non-beneficially
There have been no changes to the Directors' interests in the share capital of
the Company since the year end up to the date of approval of this Report.
Annual Statement
On behalf of the Board and in accordance with Part 2 of Schedule 8 of the
Large and Medium-sized Companies and Groups (Accounts and Reports) (Amendment)
Regulations 2013, I confirm that the above Report on Remuneration Policy and
Remuneration Implementation summarises, as applicable, for the Year:
· the major decisions on Directors' remuneration;
· any substantial changes relating to Directors' remuneration made during
the Year; and
· the context in which the changes occurred and in which decisions have
been taken.
On behalf of the Board
Stephanie Eastment
Chair of the Remuneration Committee
11 September 2025
Audit Committee Report
The Audit Committee, chaired by Stephanie Eastment until 5 November 2024 and
by Nandita Sahgal Tully thereafter, comprises all of the Directors of the
Company, with the exception of the Chair of the Board. In compliance with the
July 2018 UK Code on Corporate Governance (the "Code"), the Chair of the Board
is not a member of the Committee but attends by invitation of the Chair of the
Committee.
The Directors have satisfied themselves that all four of the Committee's
members have recent and relevant financial experience - Stephanie Eastment and
Nandita Sahgal Tully are both Fellows, while Angus Franklin and Andrew Page
are both Members, of the Institute of Chartered Accountants in England &
Wales - and that, collectively, the Committee possesses competence relevant to
investment trusts.
The Committee meets at least twice each year, in line with the cycle of annual
and half-yearly reports, which is considered by the Directors to be a
frequency appropriate to the size and complexity of the Company.
Role of the Audit Committee
In summary, the Committee's main audit review functions are:
· to review and monitor the internal control systems and risk management
systems (including review of non-financial risks) on which the Company is
reliant (see "Internal Controls and Risk Management", below);
· to consider annually whether there is a need for the Company to have its
own internal audit function;
· to monitor the integrity of the half-yearly and annual financial
statements of the Company by reviewing, and challenging where necessary, the
actions and judgements of the Manager;
· to review, and report to the Board on, the significant financial
reporting issues and judgements made in connection with the preparation of the
Company's financial statements, half-yearly reports, announcements and related
formal statements;
· to review the content of the Annual Report and financial statements and
advise the Board on whether, taken as a whole, it is fair, balanced and
understandable and provides the information necessary for shareholders to
assess the Company's position and performance, business model and strategy;
· to meet with the external auditor to review their proposed audit
programme of work and the findings as auditor;
· to develop and implement a policy on the engagement of the auditor to
supply non-audit services;
· to review a statement from the Manager detailing the arrangements in
place for the Manager's staff, in confidence, to escalate concerns about
possible improprieties in matters of financial reporting or other matters
("whistleblowing");
· to oversee and manage audit tenders and selection processes, to make
recommendations to the Board in relation to the appointment of the auditor and
removal of the auditor and to approve the remuneration and terms of engagement
of the auditor;
· to monitor and review annually the auditor's independence, objectivity,
effectiveness, resources and qualification; and
· to investigate the reasons giving rise to any resignation of the auditor
and consider whether any action is required.
The Committee fulfilled all the above required roles and responsibilities
during the Year.
Internal Controls and Risk Management
Through the Committee, the Board is ultimately responsible for the Company's
system of internal control and risk management and for reviewing its
effectiveness. The Committee confirms that there is a robust process for
identifying, evaluating and managing the Company's significant business and
operational risks, that it has been in place for the Year and up to the date
of approval of the Annual Report and Financial Statements, and that it is
regularly reviewed by the Board and accords with the risk management and
internal control guidance for directors in the Code.
The design, implementation and maintenance of controls and procedures to
safeguard the assets of the Company and to manage its affairs extends to
operational and compliance controls and risk management.
The Directors have delegated the investment management of the Company's assets
to the Manager within overall guidelines and this embraces implementation of
the system of internal control, including financial, operational and
compliance controls and risk management. Internal control systems are
monitored and supported by the Manager's Internal Audit department which
undertakes periodic examination of business processes and ensures that
recommendations to improve controls are implemented.
Risks are identified and documented through a risk management framework by
each function within the Manager's activities. Risk is considered in the
context of the FRC and AIC Code guidance, and includes financial, regulatory,
market, operational and reputational risks. This helps the internal audit risk
assessment model identify those functions for review. Any weaknesses
identified are reported to the Board, and timetables are agreed for
implementing improvements to systems. The implementation of any remedial
action required is monitored and feedback provided to the Board.
The principal risks and uncertainties facing the Company are identified
earlier in this Report.
The key components designed to provide effective internal control are outlined
below:
· the Manager prepares forecasts and management accounts which allow the
Board to assess the Company's activities and review its performance; the
emphasis is on obtaining the relevant degree of assurance and not merely
reporting by exception;
· the Board and Manager have agreed clearly-defined investment criteria,
specified levels of authority and exposure limits. Reports on these, including
performance statistics and investment valuations, are regularly submitted to
the Board and there are meetings with the Manager as appropriate;
· as a matter of course, the Manager's compliance department continually
reviews the Manager's operations;
· written agreements are in place which specifically define the roles and
responsibilities of the Manager and other third-party service providers and
the Committee reviews, where relevant, ISAE3402 Reports, a global assurance
standard for reporting on internal controls for service organisations; in
particular, the Board receives equivalent assurance from MUFG Corporate
Markets (formerly Link Group), the Company's Registrar; and
· at its September 2025 meeting, the Committee carried out its annual
assessment of internal controls for the Year including the internal audit and
compliance functions, and taking account of events since 30 June 2025.
In addition, the Manager ensures that clearly documented contractual
arrangements exist in respect of any activities that have been delegated to
external professional organisations. A senior member of the Manager's Internal
Audit department reports six-monthly to the Committee and has direct access to
the Directors at any time.
Internal control systems are designed to meet the Company's particular needs
and the risks to which it is exposed. Accordingly, the internal control
systems are designed to manage, rather than eliminate, the risk of failure to
achieve business objectives and, by their nature, can only provide reasonable,
and not absolute, assurance against misstatement and loss.
Significant Risks for the Audit Committee
During its review of the Company's financial statements for the Year, the
Committee considered the following significant risks including, in particular,
those communicated by the auditor as key areas of audit emphasis during their
planning and reporting of the year end audit:
Valuation and Existence of Investments
How the risk was addressed
The valuation of investments is undertaken in accordance with the accounting
policies, disclosed in note 2(e) to the financial statements. All investments
are considered liquid and quoted in active markets and have been categorised
as Level 1 within the FRS 102 fair value hierarchy and can be verified against
daily market prices. The portfolio is reviewed and verified by the Manager on
a regular basis and management accounts, including a full portfolio listing,
are prepared each month and circulated to the Board. The Company used the
services of an independent depositary, BNP Paribas SA, London Branch, through
which the assets of the Company were held. The depositary confirmed that the
accounting records correctly reflected all investee holdings and that these
agreed to custodian records.
Income Recognition
How the risk was addressed
The recognition of investment income is undertaken in accordance with
accounting policy note 2(b) to the financial statements. Special dividends are
allocated to the capital or revenue accounts according to the nature of the
payment and the intention of the underlying company. The Directors also
review, at each meeting, the Company's income, including income received,
revenue forecasts and dividend comparisons.
Internal Auditor
The Board has considered the need for an internal audit function but, because
the Company is externally-managed, the Board has decided to place reliance on
the Manager's risk management/internal controls systems and internal audit
procedures.
External Auditor
Review of the Auditor
The Committee has reviewed the effectiveness of the auditor including:
· independence - the auditor discusses with the Committee, at least
annually, the steps it takes to ensure its independence and objectivity,
including the level of non-audit fees it has received from the Company, and
makes the Committee aware of any potential issues, explaining all relevant
safeguards;
· quality of audit work including the ability to resolve issues in a timely
manner - identified issues are satisfactorily and promptly resolved;
· its communications/presentation of outputs - the explanation of the audit
plan, any deviations from it and the subsequent audit findings are
comprehensive and comprehensible, and working relationship with management -
the auditor has a constructive working relationship with the Manager; and
· quality of people and service including continuity and succession plans -
the audit team is made up of sufficient, suitably experienced staff with
provision made for knowledge of the investment trust sector and retention of
that knowledge on rotation of the partner.
For the Year, the Committee was satisfied with the auditor's effectiveness,
independence and the objectivity of the audit process.
Re-appointment of the Auditor
This year's audit of the Company's Annual Report is the sixth performed by
PricewaterhouseCoopers LLP since their appointment following an audit tender
process in 2019. In accordance with professional and regulatory standards, the
individual auditor responsible for the audit is rotated at least every five
years in order to protect the independence and objectivity and to provide
fresh challenge to the business. The year ended 30 June 2025 is the first year
for which Lauren Cooper has served as the senior statutory auditor.
Shareholders will have the opportunity to vote on the re-appointment of
PricewaterhouseCoopers LLP as auditor and to authorise the Committee to
approve the auditor's remuneration, as Ordinary Resolutions 9 and 10, at the
AGM on 4 November 2025.
Provision of Non-Audit Services
The Committee has put in place a policy on the supply of non-audit services
provided by the auditor. Such services are considered on a case-by-case basis
and may only be provided if the service is at a reasonable and competitive
cost and does not constitute a conflict of interest or potential conflict of
interest or prevent the auditor from remaining objective and independent. All
non-audit services require the pre-approval of the Committee. No non-audit
fees were paid to the auditor during the Year (2024 - nil). The Committee
confirms that it has complied with Part 5.1 of the Competitions and Market
Authority's Order 2014.
Nandita Sahgal Tully
Chair of the Audit Committee
11 September 2025
Statement of Directors' Responsibilities
The Directors are responsible for preparing the Annual Report and the
financial statements in accordance with applicable law and regulation.
Company law requires the Directors to prepare financial statements for each
financial year. Under that law the Directors have elected to prepare the
financial statements in accordance with United Kingdom Generally Accepted
Accounting Practice (United Kingdom Accounting Standards and applicable law)
comprising FRS 102 "The Financial Reporting Standard applicable in the UK and
Republic of Ireland".
Under company law, Directors must not approve the financial statements unless
they are satisfied that they give a true and fair view of the state of affairs
of the Company and of the return of the Company for that period. In preparing
these financial statements, the Directors are required to:
· select suitable accounting policies and then apply them consistently;
· state whether applicable UK Accounting Standards, comprising FRS 102 have
been followed, subject to any material departures disclosed and explained in
the financial statements;
· make judgements and accounting estimates that are reasonable and prudent;
and
· prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the Company will continue in business.
The Directors are also responsible for safeguarding the assets of the Company
and hence for taking reasonable steps for the prevention and detection of
fraud and other irregularities
The Directors are also responsible for keeping adequate accounting records
that are sufficient to show and explain the Company's transactions and
disclose with reasonable accuracy at any time the financial position of the
Company and enable them to ensure that the financial statements and Directors'
Remuneration Report comply with the Companies Act 2006.
The Directors are responsible for the maintenance and integrity of the
Company's financial statements published on the Manager's website, but
excluding any other information included on the Manager's website. Legislation
in the United Kingdom governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
Directors' confirmations
Each of the Directors, whose names and functions are listed in the Directors'
Report confirm that, to the best of their knowledge:
· the Directors consider that the Annual Report and accounts, taken as a
whole, is fair, balanced and understandable and provides the information
necessary for shareholders to assess the Company's position and performance,
business model and strategy;
· the Company financial statements, which have prepared in accordance with
United Kingdom Accounting Standards, give a true and fair view of the assets,
liabilities, financial position and return of the Company; and
· the Strategic Report includes a fair review of the development and
performance of the business and
the position of the Company, together with a description of the principal
risks and uncertainties that the Company faces.
For and on behalf of the Board of Murray Income Trust PLC
Peter Tait
Chair
11 September 2025
Statement of Comprehensive Income
Year ended 30 June 2025 Year ended 30 June 2024
Revenue Capital Total Revenue Capital Total
Note £'000 £'000 £'000 £'000 £'000 £'000
(Losses)/gains on investments 10 - (12,495) (12,495) - 58,747 58,747
Currency gains - 460 460 - - -
Income 3 42,224 - 42,224 43,899 - 43,899
Investment management fees 4 (991) (2,313) (3,304) (1,108) (2,584) (3,692)
Administrative expenses 5 (1,424) - (1,424) (1,334) - (1,334)
Net return before finance costs and tax 39,809 (14,348) 25,461 41,457 56,163 97,620
Finance costs 6 (772) (1,802) (2,574) (770) (1,797) (2,567)
Net return before tax 39,037 (16,150) 22,887 40,687 54,366 95,053
Taxation 8 (7) - (7) (274) - (274)
Net return after tax 39,030 (16,150) 22,880 40,413 54,366 94,779
Return per Ordinary share - basic and diluted 9 38.6p (16.0)p 22.6p 37.4p 50.2p 87.6p
The total column of this statement represents the profit and loss account of
the Company prepared in accordance with FRS 102. The 'Revenue' and 'Capital'
columns represent supplementary information prepared under guidance issued by
the Association of Investment Companies.
All revenue and capital items in the above statement derive from continuing
operations.
No operations were acquired or discontinued in the year.
The accompanying notes are an integral part of the financial statements.
Statement of Financial Position
As at As at
30 June 2025 30 June 2024
Note £'000 £'000
Non-current assets
Investments at fair value through profit or loss 10 1,011,048 1,073,534
Current assets
Other debtors and receivables 11 12,106 12,512
Cash and cash equivalents 12 10,426 25,148
22,532 37,660
Creditors: amounts falling due within one year
Other payables (4,695) (7,056)
Bank loans and overdrafts (6,140) (6,282)
13 (10,835) (13,338)
Net current assets 11,697 24,322
Total assets less current liabilities 1,022,745 1,097,856
Non-current liabilities
Creditors: amounts falling due after more than one year
2.51% Senior Loan Notes (39,969) (39,955)
4.37% Senior Loan Notes (66,038) (67,619)
14 (106,007) (107,574)
Net assets 916,738 990,282
Capital and reserves
Share capital 15 29,882 29,882
Share premium account 438,213 438,213
Capital redemption reserve 4,997 4,997
Capital reserve 411,182 484,787
Revenue reserve 32,464 32,403
Total Shareholders' funds 916,738 990,282
Net asset value per Ordinary share - basic and diluted 16
Debt at fair value 944.8p 957.9p
Debt at par value 936.3p 946.0p
The financial statements were approved by the Board of Directors and
authorised for issue on 11 September 2025 and were signed on its behalf by:
Peter Tait
Chair
The accompanying notes are an integral part of the financial statements.
Statement of Changes in Equity
For the year ended 30 June 2025
Share Capital
Share premium redemption Capital Revenue
capital account reserve reserve reserve Total
Note £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 July 2024 29,882 438,213 4,997 484,787 32,403 990,282
Net return after tax - - - (16,150) 39,030 22,880
Buyback of Ordinary shares for treasury 15 - - - (57,455) - (57,455)
Dividends paid 7 - - - - (38,969) (38,969)
Balance at 30 June 2025 29,882 438,213 4,997 411,182 32,464 916,738
For the year ended 30 June 2024
Share Capital
Share premium redemption Capital Revenue
capital account reserve reserve reserve Total
Note £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 July 2023 29,882 438,213 4,997 489,428 36,664 999,184
Net return after tax - - - 54,366 40,413 94,779
Buyback of Ordinary shares for treasury 15 - - - (59,007) - (59,007)
Dividends paid 7 - - - - (44,674) (44,674)
Balance at 30 June 2024 29,882 438,213 4,997 484,787 32,403 990,282
The accompanying notes are an integral part of the financial statements.
Statement of Cash Flows
Year ended Year ended
30 June 2025 30 June 2024
Note £'000 £'000
Operating activities
Net return before finance costs and taxation 25,461 97,620
Decrease in accrued expenses (67) (703)
Overseas withholding tax 101 (1,332)
Increase in dividend income receivable (76) (422)
Decrease in interest income receivable 8 32
Interest paid (2,619) (2,858)
Losses/(gains) on investments 10 12,495 (58,747)
Foreign exchange gains (460) -
Amortisation of loan note expenses 6 14 14
Accretion of loan note book cost 6 (1,581) (1,581)
Increase in other debtors (3) (2)
Stock dividends included in investment income 3 2,198 -
Net cash inflow from operating activities 35,471 32,021
Investing activities
Purchases of investments (239,369) (177,080)
Sales of investments 285,407 259,782
Net cash inflow from investing activities 46,038 82,702
Financing activities
Dividends paid 7 (38,969) (44,674)
Buyback of Ordinary shares for treasury (57,580) (59,920)
Repayment of bank loans (6,118) (6,327)
Draw down of bank loans 6,122 6,270
Net cash outflow from financing activities (96,545) (104,651)
(Decrease)/increase in cash (15,036) 10,072
Analysis of changes in cash during the year
Opening balance 25,148 15,115
Effect of exchange rate fluctuations on cash held 17 314 (39)
(Decrease)/increase in cash as above 17 (15,036) 10,072
Closing balance 10,426 25,148
Represented by:
Cash at bank and in hand 12 3,371 1,045
Money market funds 12 7,055 24,103
10,426 25,148
The accompanying notes are an integral part of these financial statements.
Notes to the Financial Statements
For the year ended 30 June 2025
1. Principal activity
The Company is a closed-end investment company, registered in Scotland No
SC012725, with its Ordinary shares being listed on the London Stock Exchange.
2. Accounting policies
(a) Basis of preparation. The financial statements have been prepared under the
historic cost method modified by revaluation of investments at fair value
through profit and loss and in accordance with Financial Reporting Standard
102, the Companies Act 2006 and with the Statement of Recommended Practice
'Financial Statements of Investment Trust Companies and Venture Capital
Trusts' issued in July 2022. The financial statements are prepared in Sterling
which is the functional currency of the Company and rounded to the nearest
£'000. They have also been prepared on the assumption that approval as an
investment trust will continue to be granted. The accounting policies applied
are unchanged from the prior year and have been applied consistently.
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. This conclusion is consistent with the longer
term Viability Statement.
The Company's assets consist primarily of a diverse portfolio of listed equity
shares nearly all of which, in most circumstances, are realisable within a
very short timescale. The Board has set limits for borrowing and regularly
reviews the level of any gearing, cash flow projections and compliance with
banking and loan note covenants. The Directors are mindful of the principal
risks and uncertainties disclosed and have reviewed forecasts detailing
revenue and liabilities. The Directors are satisfied that the Company has
adequate resources to continue in operational existence for the foreseeable
future being at least 12 months from the date of approval of this Annual
Report.
(b) Income. Dividends receivable on equity shares are treated as revenue for the
year on an ex-dividend basis. Where no ex-dividend date is available dividends
receivable on or before the year end are treated as revenue for the year.
Where the Company has elected to receive dividends in the form of additional
shares rather than cash, the amount of the cash dividend foregone is
recognised as revenue and any residual amount is recognised as capital.
Provision is made for any dividends not expected to be received. Special
dividends are credited to capital or revenue, according to the circumstances.
Dividend revenue is presented gross of any non-recoverable withholding taxes,
which are disclosed separately within the Statement of Comprehensive Income.
Interest receivable from cash and short-term deposits and stock lending income
is recognised on an accruals basis.
(c) Expenses. All expenses are accounted for on an accruals basis. All expenses
are charged through the revenue column of the Statement of Comprehensive
Income except as follows:
- transaction costs on the acquisition or disposal of investments are
recognised as a capital item in the Statement of Comprehensive Income.
- expenses are charged as a capital item in the Statement of Comprehensive
Income where a connection with the maintenance or enhancement of the value of
the investments can be demonstrated. In this respect the investment management
fee has been allocated 30% to revenue and 70% to capital to reflect the
Company's investment policy and prospective income and capital growth.
(d) Taxation. Taxation 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. The Company's liability for current tax is calculated using tax
rates that were applicable at the Statement of Financial Position date.
Deferred taxation is recognised in respect of all timing differences that have
originated but not reversed at the Statement of Financial Position date, where
transactions or events that result in an obligation to pay more tax in the
future or right to pay less tax in the future have occurred at the Statement
of Financial Position date. This is subject to deferred tax assets only being
recognised if it is considered more likely than not that there will be
suitable profits from which the future reversal of the underlying timing
differences can be deducted. Timing differences are differences arising
between the Company's taxable profits and its results as stated in the
financial statements which are capable of reversal in one or more subsequent
periods. Deferred tax is measured on a non-discounted basis at the tax rates
that are expected to apply in the periods in which timing differences are
expected to reverse, based on tax rates and laws enacted or substantively
enacted at the Statement of Financial Position date.
Due to the Company's status as an investment trust company and the intention
to continue meeting the conditions required to obtain approval in the
foreseeable future, the Company has not provided deferred tax on any capital
gains and losses arising on the revaluation or disposal of investments.
The tax effect of different items of income/gain and expenditure/loss is
allocated between capital and revenue within the Statement of Comprehensive
Income on the same basis as the particular item to which it relates using the
Company's effective rate of tax for the year, based on the marginal basis.
(e) Valuation of investments. The Company has chosen to apply the recognition and
measurement provisions of IAS 39 Financial Instruments: Recognition and
Measurement. All investments have been designated upon initial recognition at
fair value through profit or loss. This is done because all investments are
considered to form part of a group of financial assets which is evaluated on a
fair value basis, in accordance with the Company's documented investment
strategy, and information about the grouping is provided internally on that
basis. Investments are recognised and de-recognised at trade date where a
purchase or sale is under a contract whose terms require delivery within the
timeframe established by the market concerned, and are measured initially at
fair value. Subsequent to initial recognition, investments are valued at fair
value through profit or loss. For listed investments, this is deemed to be bid
market prices or closing prices for stocks traded on recognised stock
exchanges. Gains and losses arising from changes in fair value are included in
the net return for the period as a capital item in the Statement of
Comprehensive Income and are ultimately recognised in the capital reserve.
(f) Cash and cash equivalents. Cash comprises cash in hand and demand deposits.
Cash equivalents are short-term, highly liquid investments that are readily
convertible to known amounts of cash and that are subject to insignificant
risk of change in value.
(g) Borrowings and finance costs. Borrowings of interest bearing bank loans and
2.51% Senior Loan Notes are recognised initially at the fair value of the
consideration received, net of any issue expenses, and subsequently at
amortised cost using the effective interest method. Borrowings of 4.37% Senior
Loan Notes, which were novated to the Company on the merger with Perpetual
Income and Growth Investment Trust plc, were recorded initially at their fair
value of £73,344,000 and are amortised over the remaining life of the loan
towards their redemption value of £60,000,000. The amortisation adjustment is
presented as a finance cost. Finance costs accrue using the effective interest
rate over the life of the borrowings and are allocated 30% to revenue and 70%
to capital.
(h) Traded options. The Company may enter into certain derivative contracts (eg
options) to gain exposure to the market. The option contracts are classified
as fair value through profit or loss, held for trading, and accounted for as
separate derivative contracts and are therefore shown in other assets or other
liabilities at their fair value ie market value. The premium on the option (as
with written options generally) is treated as the option's initial fair value
and is recognised over the life of the option in the revenue column of the
Statement of Comprehensive Income along with fair value changes in the open
position which occur due to the movement in underlying securities. Losses
realised on the exercise of the contracts are recorded in the capital column
of the Statement of Comprehensive Income as they arise. Where the Company
enters into derivative contracts to manage market risk, gains or losses
arising on such contracts are recorded in the capital column of the Statement
of Comprehensive Income.
(i) Segmental reporting. The Directors are of the opinion that the Company is
engaged in a single segment of business activity, being investment business.
Consequently, no business segmental analysis is provided.
(j) Nature and purpose of reserves
Share capital. The Ordinary share capital on the Statement of Financial
Position relates to the number of shares in issue and in treasury. Only when
the shares are cancelled, either from treasury or directly, is a transfer made
to the capital redemption reserve. This is a non-distributable reserve.
Share premium account. The balance classified as share premium includes the
premium above nominal value from the proceeds on issue of any equity share
capital comprising Ordinary shares of 25p and includes the premium arising
following the issue of shares on the combination with Perpetual Income and
Growth Investment Trust plc on 17 November 2020. This is a non-distributable
reserve.
Capital redemption reserve. The capital redemption reserve reflects the
cancellation of Ordinary shares, when an amount equal to the par value of the
Ordinary share capital is transferred from the share capital reserve to the
capital redemption reserve. This is a non-distributable reserve.
Capital reserve. This reserve reflects any gains or losses on investments
realised in the period along with any movements in the fair value of
investments held that have been recognised in the Statement of Comprehensive
Income. These include gains and losses from foreign currency exchange
differences. Additionally, expenses, including finance costs, are charged to
this reserve in accordance with (b) and (f) above. When making a distribution
to shareholders, the Directors determine profits available for distribution by
reference to 'Guidance on realised and distributable profits under the
Companies Act 2006' issued by the Institute of Chartered Accountants in
England and Wales and the Institute of Chartered Accountants of Scotland in
April 2017. The availability of distributable reserves in the Company is
dependent on those distributions meeting the definition of qualifying
consideration within the guidance and on available cash resources of the
Company and other accessible sources of funds. The distributable reserves are
therefore subject to any future restrictions or limitations at the time such
distribution is made.
The capital reserve, to the extent it constitutes realised profits, is
distributable. This may include unrealised (losses)/gains on investments where
these are readily convertible to cash. The amount of the capital reserve that
is distributable is complex to determine and is not necessarily the full
amount of the reserve as disclosed within these financial statements of
£411,182,000 as at 30 June 2025 as this is subject to fair value movements
and may not be readily realisable at short notice.
Revenue reserve. This reserve reflects all income and costs which are
recognised in the revenue column of the Statement of Comprehensive Income. The
revenue reserve is distributable by way of dividend.
(k) Treasury shares. When the Company buys back the Company's equity share capital
as treasury shares, the amount of the consideration paid, including directly
attributable costs and any tax effects, is recognised as a deduction from
equity. When these shares are sold or reissued subsequently, the net amount
received is recognised as an increase in equity, and the resulting surplus or
deficit on the transaction is transferred to or from the capital reserve.
(l) Dividends payable. Final dividends are recognised from the date on which they
are approved by Shareholders. Interim dividends are recognised when paid.
Dividends are shown in the Statement of Changes in Equity.
(m) Foreign currency. Transactions in foreign currencies are converted to Sterling
at the exchange rate ruling at the date of the transaction. Monetary assets
and liabilities and non-monetary assets held at fair value denominated in
foreign currencies are translated into Sterling at rates of exchange ruling at
the Statement of Financial Position date. Exchange gains and losses are taken
to the Statement of Comprehensive Income as a capital or revenue item
depending on the nature of the underlying item.
(n) Significant estimates and judgements. The Directors do not believe that any
accounting estimates or judgements have been applied to these financial
statements that have a significant risk of causing material adjustment to the
carrying amount of assets and liabilities.
3. Income
2025 2024
£'000 £'000
Income from investments
UK dividends (all listed):
- ordinary 23,901 27,115
- special 401 -
Property income dividends 1,285 681
Overseas dividends (all listed)
- ordinary 11,007 12,277
- special - -
Stock dividends 2,198 -
38,792 40,073
Other income
Deposit interest 37 64
Money Market interest 606 926
Traded option premiums 2,789 2,836
3,432 3,826
Total income 42,224 43,899
There were special dividends in the year of £401,000 (2024 - £nil) which
were recognised as being revenue in nature.
During the year, the Company received premiums totalling £2,789,000 (2024 -
£2,836,0000) in exchange for entering into derivative transactions. At the
year end there were no open positions (2024 - none).
4. Investment management fees
2025 2024
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Management fee 991 2,313 3,304 1,108 2,584 3,692
The management fee is based on 0.35% per annum for net assets up to £1.1
billion and 0.25% per annum for net assets above £1.1 billion (2024: 0.55%
per annum for net assets up to £350 million, 0.45% per annum on the next
£100 million of net assets and 0.25% per annum for net assets over £450
million), calculated and payable monthly. The fee has been allocated 30% to
revenue and 70% to capital. The management agreement is terminable on three
months' notice. The fee payable to the Manager at the year end was £537,000
(2024 - £622,000).
Under the terms of the management agreement, the value of the Company's
investments in other funds managed by Aberdeen Group is excluded from the
calculation of the management fee. The Company held no such other funds
managed by Aberdeen Group at the year end (2024 - none).
5. Administrative expenses
2025 2024
£'000 £'000
Shareholders' services(A) 400 406
Directors' remuneration(B) 168 174
Secretarial fees(C) 75 75
Registrars fees 68 68
Depositary fees 77 78
Custody fees 64 72
Printing and postage 16 41
Auditors' remuneration:
- fees payable to the Company's auditors for the audit of the Company's annual 55 54
financial statements
Legal and professional fees(D) 169 15
Brokers fees 52 15
Irrecoverable VAT 104 137
Other expenses 176 179
1,424 1,334
(A) Includes savings scheme and other wrapper administration and promotion
expenses, paid to the Manager under a delegation agreement with the Manager to
cover promotional activities during the year. There was £100,000 (2024 -
£98,000) due to the Manager in respect of these promotional activities at the
year end.
(B) Refer to the Directors' Remuneration section of the Directors'
Remuneration Report for further details.
(C) Payable to the Manager, balance outstanding of £19,000 (2024 - £38,000)
at the year end.
(D) Includes directors' search fee of £35,000 (2024-£20,000) and fee to
broker in respect of strategic review £85,000 (2024 - £nil).
6. Finance costs
2025 2024
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Bank loans and overdraft interest 154 361 515 152 356 508
2.51% Senior Loan Note 301 703 1,004 301 703 1,004
4.37% Senior Loan Note 787 1,835 2,622 787 1,835 2,622
Amortisation of 2.51% Senior Loan Note issue expenses 4 10 14 4 10 14
Amortisation of 4.37% Senior Loan Note (474) (1,107) (1,581) (474) (1,107) (1,581)
772 1,802 2,574 770 1,797 2,567
Details of the Loan Notes and their amortisation are set out in note 14.
Finance costs are allocated 30% to revenue and 70% to capital.
7. Ordinary dividends on equity shares
2025 2024
Rate £'000 Rate £'000
Fourth interim dividend previous year 10.00p 10,428 12.75p 14,100
First interim dividend current year 9.50p 9,734 9.50p 10,334
Second interim dividend current year 9.50p 9,496 9.50p 10,208
Third interim dividend current year 9.50p 9,311 9.50p 10,032
38,969 44,674
The fourth interim dividend for 2025 of 10.50p per Ordinary share has not been
included as a liability in these financial statements as it was not paid until
after the reporting date (11 September 2025).
The following table sets out the total dividends paid and proposed in respect
of the financial year, which is the basis on which the requirements of Section
1158-1159 of the Corporation Tax Act 2010 are considered. The revenue
available for distribution by way of dividend for the year is £39,030,000
(2024 - £40,413,000).
2025 2024
Rate £'000 Rate £'000
Three interim dividends of 9.50p each (2024: three interim dividends of 9.50p 28.50p 28,541 28.50p 30,574
each)
Fourth interim dividend 11.50p 11,258 10.00p 10,428
40.00p 39,799 38.50p 41,002
8. Taxation
2025 2024
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
(a) Analysis of charge for the year
Overseas tax incurred 87 - 87 1,104 - 1,104
Overseas tax reclaimable (80) - (80) (830) - (830)
Total tax charge for the year 7 - 7 274 - 274
(b) Factors affecting the tax charge for the year. The UK corporation tax rate is
25% (2024 - 25%). The tax charge for the year is lower than the corporation
tax rate (2024 - lower). The differences are explained below:
2025 2024
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Net return before taxation 39,037 (16,150) 22,887 40,687 54,366 95,053
Net return multiplied by the standard rate of corporation tax of 25% (2024 - 9,759 (4,038) 5,721 10,172 13,592 23,764
25%)
Effects of:
Non-taxable UK dividends (6,636) - (6,636) (6,853) - (6,853)
Non-taxable overseas dividends (2,752) - (2,752) (3,069) - (3,069)
Expenses not deductible for tax purposes 2 - 2 11 - 11
Movement in unutilised management expenses (378) 1,029 651 (261) 1,095 834
Realised and unrealised gains on investments held - 3,124 3,124 - (14,687) (14,687)
Currency movements not taxable - (115) (115) - - -
Overseas tax payable 7 - 7 274 - 274
Total tax charge 2 - 2 274 - 274
(c) Factors that may affect future tax charges. No provision for deferred tax has
been made in the current or prior accounting period.
The Company has not provided for deferred tax on capital gains or losses
arising on the revaluation or disposal of investments as it is exempt from tax
on these items because of its status as an investment trust company.
At the year end, the Company has, for taxation purposes only, accumulated
unrelieved management expenses and loan relationship deficits of £80,363,000
(2024 - £77,761,000). A deferred tax asset at the standard rate of
corporation of 25% (2024 - 25%) of £20,091,000 (2024 - £19,440,000) has not
been recognised and these expenses will only be utilised if the Company has
profits chargeable to corporation tax in the future. It is considered too
uncertain that the Company will generate such profits and therefore no
deferred tax asset has been recognised.
9. Return per Ordinary share - basic and diluted
2025 2024
£'000 p £'000 p
Returns are based on the following figures:
Revenue return 39,030 38.6 40,413 37.4
Capital return (16,150) (16.0) 54,366 50.2
Total return 22,880 22.6 94,779 87.6
Weighted average number of Ordinary shares in issue 101,127,810 108,144,845
During the year ended 30 June 2025 there were no potentially dilutive shares
in issue (2024 - none).
10. Investments at fair value through profit or loss
2025 2024
£'000 £'000
Opening book cost 922,927 989,936
Opening investment holdings gains 150,607 108,375
Opening fair value 1,073,534 1,098,311
Analysis of transactions made during the year
Purchases at cost 235,047 180,045
Sales proceeds received (285,038) (263,569)
(Losses)/gains on investments (12,495) 58,747
Closing fair value 1,011,048 1,073,534
2025 2024
£'000 £'000
Closing book cost 917,729 922,927
Closing investment gains 93,319 150,607
Closing fair value 1,011,048 1,073,534
2025 2024
Gains on investments £'000 £'000
Realised gains on sale of investments at fair value 44,793 16,515
Net movement in investment holdings gains (57,288) 42,232
(12,495) 58,747
The Company received £285,038,000 (2024 - £263,569,000) from investments
sold in the year. The book cost of these investments when they were purchased
was £240,245,000 (2024 - £247,054,000). These investments have been revalued
over time and until they were sold any unrealised gains/(losses) were included
in the fair value of the investments.
The Company may write and purchase both exchange traded and over the counter
derivative contracts as part of its investment policy. The Company pledges
collateral greater than the market value of the traded options in accordance
with standard commercial practice. At 30 June 2025 there were no shares
pledged as part of the option underwriting programme (30 June 2024 - none).
The liability of collateral held at the year end was £nil as no open
positions existed (30 June 2024 - £nil).
Transaction costs. During the year 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 Statement of Comprehensive Income. The total costs were as
follows:
2025 2024
£'000 £'000
Purchases 1,040 842
Sales 169 114
1,209 956
The above transaction costs are calculated in line with the AIC SORP. The
transaction costs in the Company's Key Information Document are calculated on
a different basis and in line with the PRIIPs regulations.
11. Other debtors and receivables
2025 2024
£'000 £'000
Amounts due from brokers 3,418 3,787
Accrued income 3,539 3,471
Taxation recoverable 5,120 5,228
Prepayments 29 26
12,106 12,512
12. Cash and cash equivalents
2025 2024
£'000 £'000
Cash at bank and in hand 3,371 1,045
Money market funds 7,055 24,103
10,426 25,148
The Company holds £7,055,000 (2024 - £24,103,000) in Aberdeen Standard
Liquidity Fund (Lux) - Sterling Fund which is managed and administered by
Aberdeen.
13. Creditors: amounts falling due within one year
2025 2024
£'000 £'000
Other creditors 1,447 1,563
Amounts due to brokers for purchase of investments 3,043 5,167
Amounts due to brokers for Ordinary shares bought back 205 326
4,695 7,056
Bank loans and overdrafts 6,140 6,282
10,835 13,338
The Company has a three year £30 million multi-currency unsecured revolving
bank credit facility with The Royal Bank of Scotland International Limited,
committed until 22 October 2027 (2024: £50 million multi-currency unsecured
revolving bank credit facility with Bank of Nova Scotia Limited, committed
until 27 October 2024). Under the terms of the agreement, the Company has the
option to increase the level of the commitment from £30 million to £50
million at any time, subject to the Lender's credit approval.
As at 30 June 2025, the Company had drawn down the following amounts from the
facility, all with a maturity date of 30 July 2025 (2024 - 29 July 2024):
2025 2024
Currency £'000 Currency £'000
Swiss Franc at an all-in rate of nil (2024: 2.55%) - - 363,000 319
Euro at an all-in rate of 3.38% (2024: 4.79%) 3,500,000 2,998 4,050,000 3,434
Norwegian Krone at an all-in rate of 5.76% (2024: 5.78%) 5,900,000 426 4,275,000 318
Danish Krona at an all-in rate of nil (2024: 4.75%) - - 2,750,000 313
Swedish Krona at an all-in rate of 3.56% (2024: nil) 9,500,000 727 - -
US Dollar at an all-in rate of 5.74% (2024: 6.57%) 2,725,000 1,989 2,400,000 1,898
6,140 6,282
At the date this Report was approved, the Company had drawn down the following
amounts from the facility, all with a maturity date of 2 October 2025:
- Euro 3,500,000 at an all-in rate of 3.309%, equivalent to £3,037,000.
- Norwegian Krone 5,900,000 at an all-in rate of 5.7%, equivalent to
£436,000.
- Swedish Krona 9,500,000 at an all-in rate of 3.544%, equivalent to
£749,000.
- US Dollar 2,725,000 at an all-in rate of 5.82%, equivalent to £2,013,000.
Financial covenants contained within the facility agreement provide, inter
alia, that the ratio of net assets to borrowings must be greater than 3.5:1
and that net assets must exceed £550 million. All financial covenants were
met during the year and also during the period from the year end to the date
of this report.
14. Creditors: amounts falling due after more than one year
2025 2024
£'000 £'000
2.51% Senior Loan Note 40,000 40,000
Unamortised 2.51% Senior Loan Note issue expenses (31) (45)
39,969 39,955
4.37% Senior Loan Note at fair value 73,344 73,344
Amortisation of 4.37% Senior Loan Note (7,306) (5,725)
66,038 67,619
106,007 107,574
On 8 November 2017 the Company issued £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.
As a result of the transaction with Perpetual Income and Growth Investment
Trust plc on 17 November 2020, £60,000,000 of 15 year Senior Loan Notes at a
fixed rate of 4.37% issued on 8 May 2014 were 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 are then
amortised over the remaining life of the loan towards their redemption value
of £60,000,000. The amortisation 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.
Both the Loan Notes are secured by a floating charge over the whole of the
assets of the Company and rank pari passu. The Company has complied with the
Senior Loan Note Purchase Agreements covenants throughout the year that the
ratio of net assets to gross borrowings must be greater than 3.5:1, and that
net assets will not be less than £550,000,000 throughout the year.
15. Share capital
2025 2024
Shares £'000 Shares £'000
Allotted, called-up and fully-paid:
Ordinary shares of 25p each: publicly held 97,912,184 24,478 104,685,001 26,171
Ordinary shares of 25p each: held in treasury 21,617,348 5,404 14,844,531 3,711
119,529,532 29,882 119,529,532 29,882
During the year 6,772,817 Ordinary shares were bought back (2024 - 7,035,000)
to be held in treasury by the Company at a total cost of £57,455,000 (2024 -
£59,007,000) representing 6.5% (2024 - 6.3%) of called-up share capital
excluding Ordinary shares held in treasury at the start of the year.
16. Net asset value per Ordinary share - basic and diluted
The net asset value per Ordinary share and the net asset value attributable to
the Ordinary shares at the year end follow. These were calculated using
97,912,184 (2024 - 104,685,001) Ordinary shares in issue at the year end
(excluding treasury shares). At 30 June 2025 there were no potentially
dilutive shares in issue (2024 - none).
2025 2024
Net Asset Value Attributable Net Asset Value Attributable
£'000 pence £'000 pence
Net asset value - debt at par 916,738 936.3 990,282 946.0
Add: amortised cost of 2.51% Senior Loan Notes 39,969 40.8 39,955 38.2
Less: fair value of 2.51% Senior Loan Notes (38,170) (39.0) (36,530) (34.9)
Add: amortised cost of 4.37% Senior Loan Notes 66,038 67.5 67,619 64.5
Less: fair value of 4.37% Senior Loan Notes (59,550) (60.8) (58,535) (55.9)
Net asset value - debt at fair value 925,025 944.8 1,002,791 957.9
17. Analysis of changes in net debt
At Currency Non-cash At
1 July 2024 differences Cash flows movements 30 June 2025
£'000 £'000 £'000 £'000 £'000
Cash and cash equivalents* 25,148 314 (15,036) - 10,426
Debt due within one year (6,282) 146 (4) - (6,140)
Debt due after more than one year (107,574) - - 1,567 (106,007)
(88,708) 460 (15,040) 1,567 (101,721)
At Currency Non-cash At
1 July 2023 differences Cash flows movements 30 June 2024
£'000 £'000 £'000 £'000 £'000
Cash and cash equivalents* 15,115 (39) 10,072 - 25,148
Debt due within one year (6,378) 39 57 - (6,282)
Debt due after more than one year (109,141) - - 1,567 (107,574)
(100,404) - 10,129 1,567 (88,708)
* An analysis of cash and cash equivalents between cash at bank and in hand
and money market funds is provided in note 12.
A statement reconciling the movement in net funds to the net cash flow has not
been presented as there are no differences from the above analysis.
18. Financial instruments
This note summarises the risks deriving from the financial instruments that
comprise the Company's assets and liabilities.
The Company's investment activities expose it to various types of financial
risk associated with the financial instruments and markets in which it
invests. The Company's financial instruments, other than derivatives, comprise
securities and other investments, cash balances, liquid resources, loans and
debtors and creditors that arise directly from its operations; for example, in
respect of sales and purchases awaiting settlement, and debtors for accrued
income. The Company also has the ability to enter into derivative transactions
in the form of forward foreign currency contracts, futures and options,
subject to Board approval, for the purpose of enhancing portfolio returns and
for hedging purposes in a manner consistent with the Company's broader
investment policy. As at 30 June 2025 there were no open positions in
derivatives transactions (2024 - same).
Risk management framework. The directors of abrdn Fund Managers Limited
collectively assume responsibility for the Manager's obligations under the
AIFMD including reviewing investment performance and monitoring the Company's
risk profile during the year.
The Manager is a wholly owned subsidiary of the Aberdeen Group ("the Group"),
which provides a variety of services and support to the Manager in the conduct
of its business activities, including in the oversight of the risk management
framework for the Company. The Manager has delegated the day to day
administration of the investment policy to abrdn Investments Limited, which is
responsible for ensuring that the Company is managed within the terms of its
investment guidelines and the limits set out in its pre-investment disclosures
to investors (details of which can be found on the Company's website). The
Manager has retained responsibility for monitoring and oversight of investment
performance, product risk and regulatory and operational risk for the Company.
The Manager conducts its risk oversight function through the operation of the
Group's risk management processes and systems which are embedded within the
Group's operations. The Group's Risk Division ("the Division") supports
management in the identification and mitigation of risks and provides
independent monitoring of the business. The Division includes Compliance,
Business Risk, Market Risk, Risk Management and Legal. The team is headed up
by the Group's Chief Risk Officer, who reports to the Chief Executive Officer
("CEO") of the Group. The Risk Division achieves its objective through
embedding the Risk Management Framework throughout the organisation using the
Group's operational risk management system ("SHIELD").
The Group's Internal Audit Department is independent of the Risk Division and
reports directly to the Group CEO and to the Audit Committee of the Group's
Board of Directors. The Internal Audit Department is responsible for providing
an independent assessment of the Group's control environment.
The Group's corporate governance structure is supported by several committees
to assist the board of directors, its subsidiaries and the Company to fulfil
their roles and responsibilities. The Group's Risk Division is represented on
all committees, with the exception of those committees that deal with
investment recommendations. The specific goals and guidelines on the
functioning of those committees are described in the committees' terms of
reference.
Risk management of the financial instruments. The main risks the Company faces
from these financial instruments are (a) market risk (comprising (i) interest
rate, (ii) foreign currency and (iii) other price risk), (b) liquidity risk
and (c) credit risk.
In order to mitigate risk, the investment strategy is to select investments
for their fundamental value. Stock selection is therefore based on disciplined
accounting, market and sector analysis. It is the Board's policy to hold an
appropriate spread of investments in the portfolio in order to reduce the risk
arising from factors specific to a particular sector. The Attribution
Analysis, detailing the allocation of assets and the stock selection, is shown
in the Performance Attribution table in the Investment Manager's Report. The
Investment Manager actively monitors market prices throughout the year and
reports to the Board, which meets regularly in order to consider investment
strategy. The Company's strategy is detailed in the Chair's Statement, in the
Investment Manager's Report and in Overview of Strategy.
The Board has agreed the parameters for net gearing, which was 11.1% of net
assets as at 30 June 2025 (2024 - 9.1%). The Manager's policies for managing
these risks are summarised below and have been applied throughout the current
and previous year. The numerical disclosures in the tables listed below
exclude short-term debtors and creditors.
18 (a) Market risk. The Company's investment portfolio is exposed to market
price fluctuations, which are monitored by the Manager in pursuance of the
investment objective. Adherence to investment guidelines and to investment and
borrowing powers set out in the management agreement mitigates the risk of
exposure to any particular security or issuer. Further information on the
investment portfolio is set out in the Investment Manager's Report.
Market price risk arises mainly from uncertainty about future prices of
financial instruments used in the Company's operations. It represents the
potential loss the Company might suffer through holding market positions as a
consequence of price movements. It is the Board's policy to hold equity
investments in the portfolio in a broad spread of sectors in order to reduce
the risk arising from factors specific to a particular sector. A summary of
investment changes during the year under review and an analysis of the equity
portfolio by sector may be found in the 'Portfolio' section.
18 (a)(i) Interest rate risk. Interest rate movements may affect:
- the level of income receivable on cash deposits;
- interest payable on the Company's variable rate borrowings; and
- the fair value of any investments in fixed interest rate securities.
Management of the risk. The possible effects on fair value and cash flows that
could arise as a result of changes in interest rates are taken into account
when making investment and borrowing decisions. Details of the bank loan and
interest rates applicable can be found in note 13.
The Board imposes borrowing limits to ensure gearing levels are appropriate to
market conditions and reviews these on a regular basis. Interest rate risk is
the risk of movements in the value of financial instruments as a result of
fluctuations in interest rates.
Financial assets. The interest rate risk of the portfolio of financial assets
at the reporting date was as follows:
Floating rate Non-interest bearing
2025 2024 2025 2024
£'000 £'000 £'000 £'000
Danish Krona - - - 9,923
Euro - - 91,964 104,139
Norwegian Krone - - 13,137 10,535
Singapore Dollars - - 27,367 27,374
Sterling 10,382 25,148 828,582 853,898
Swedish Krone - - 20,979 18,454
Swiss Francs - - - 9,486
Taiwan Dollars 44 - 9,652 10,827
US Dollars - - 19,367 28,898
Total 10,426 25,148 1,011,048 1,073,534
The floating rate assets consist of cash at bank and cash held in money market
funds earning interest at prevailing market rates.
The non-interest bearing assets represent the equity element of the portfolio.
Financial liabilities. The Company has floating rate borrowings by way of its
loan facility and fixed rate senior loan note issues, details of which are in
notes 13 and 14.
Interest rate sensitivity. The sensitivity analysis below has been determined
based on the exposure to interest rates for both derivative and non-derivative
instruments at the reporting date and the stipulated change taking place at
the beginning of the financial year and held constant in the case of
instruments that have floating rates.
If interest rates had been 1% higher or lower and all other variables were
held constant, the Company's profit before tax for the year ended 30 June 2025
and net assets would increase/decrease by £47,000 (2024 - £175,000)
respectively. This is mainly attributable to the Company's exposure to
interest rates on its floating rate cash balances and borrowings.
18 (a)(ii) Foreign currency risk. A proportion of the Company's investment
portfolio is invested in overseas securities whose values are subject to
fluctuation due to changes in foreign exchange rates. In addition, the impact
of changes in foreign exchange rates upon the profits of investee companies
can result, indirectly, in changes in their valuations. Consequently, the
Statement of Financial Position can be affected by movements in exchange
rates.
Management of the risk. The revenue account is subject to currency
fluctuations arising on dividends receivable in foreign currencies and,
indirectly, due to the impact of foreign exchange rates upon the profits of
investee companies. It is not the Company's policy to hedge this currency risk
but the Board keeps under review the currency returns in both capital and
income.
Foreign currency risk exposure by currency of denomination falling due within
one year is set out in the table below. Net monetary assets/(liabilities)
comprise cash and loan balances and exclude other debtors and receivables and
other payables (including amounts due to or from brokers).
30 June 2025 30 June 2024
Net Net
monetary Total monetary Total
assets/ currency assets/ currency
Investments (liabilities) exposure Investments (liabilities) exposure
£'000 £'000 £'000 £'000 £'000 £'000
Danish Krona - - - 9,923 (313) 9,610
Euro 91,964 (2,998) 88,966 104,139 (3,434) 100,705
Norwegian Krone 13,137 (426) 12,711 10,535 (318) 10,217
Singapore Dollars 27,367 - 27,367 27,374 - 27,374
Swedish Krone 20,979 (727) 20,252 18,454 - 18,454
Swiss Francs - - - 9,486 (319) 9,167
Taiwan Dollars 9,652 44 9,696 10,827 - 10,827
US Dollars 19,367 482 19,849 28,898 (1,898) 27,000
Total 182,466 (3,625) 178,841 219,636 (6,282) 213,354
Foreign currency sensitivity. The following table details the impact on the
Company's net assets to a 10% decrease (in the context of a 10% increase the
figures below should all be read as negative) in Sterling against the foreign
currencies in which the Company has exposure. The sensitivity analysis
includes foreign currency denominated monetary and non-monetary items and
adjusts their translation at the period end for a 10% change in foreign
currency rates.
2025 2024
£'000 £'000
Danish Krona - 961
Euro 8,897 10,071
Norwegian Krone 1,271 1,022
Singapore Dollars 2,737 2,737
Swedish Krone 2,025 1,845
Swiss Francs - 917
Taiwan Dollars 970 1,083
US Dollars 1,985 2,700
Total 17,885 21,336
18(a)(iii) Other price risk. Other price risks (ie changes in market prices
other than those arising from interest rate or currency risk) may affect the
value of the quoted investments.
Management of the risk. It is the Board's policy to hold an appropriate spread
of investments in the portfolio in order to reduce the risk arising from
factors specific to a particular sector. The allocation of assets to
international markets and the stock selection process, as detailed in the
section "Delivering the Investment Policy", both act to reduce market risk.
The Manager actively monitors market prices throughout the year and reports to
the Board, which meets regularly in order to review investment strategy.
Other price risk sensitivity. If market prices at the reporting date had been
10% higher or lower while all other variables remained constant, the return
attributable to Ordinary shareholders and equity for the year ended 30 June
2025 would have increased/decreased by £101,105,000 (2024 - £107,353,000).
18 (b) Liquidity risk. This is the risk that the Company will encounter
difficulty in meeting obligations associated with financial liabilities as
they fall due in line with the maturity profile analysed as follows:
Within Within Within
1 year 1-3 years 3-5 years Total
At 30 June 2025 £000 £000 £000 £000
Bank loans 6,140 - - 6,140
2.51% Senior Loan Note 8/11/27 - 40,000 - 40,000
4.37% Senior Loan Note 8/5/29 - - 60,000 60,000
Interest cash flows on bank loans 3 - - 3
Interest cash flows on 2.51% Senior Loan Note 1,004 1,506 - 2,510
Interest cash flows 4.37% Senior Loan Note 2,622 5,244 2,622 10,488
Cash flows on other creditors 4,695 - - 4,695
14,464 46,750 62,622 123,836
Within Within Within
1 year 1-3 years 3-5 years Total
At 30 June 2024 £000 £000 £000 £000
Bank loans 6,282 - - 6,282
2.51% Senior Loan Note 8/11/27 - - 40,000 40,000
4.37% Senior Loan Note 8/5/29 - - 60,000 60,000
Interest cash flows on bank loans 10 - - 10
Interest cash flows on 2.51% Senior Loan Note 1,004 2,008 502 3,514
Interest cash flows 4.37% Senior Loan Note 2,622 5,244 5,244 13,110
Cash flows on other creditors 7,056 - - 7,056
16,974 7,252 105,746 129,972
Management of the risk. The Company's assets comprise readily realisable
securities which can be sold to meet funding commitments if necessary.
Short-term flexibility is achieved through the use of committed loan and
overdraft facilities.
As at 30 June 2025 the Company utilised £6,140,000 (2024 - £6,282,000) of a
£30,000,000 (2024 - £50,000,000) multi-currency revolving bank credit
facility, which is committed until 22 October 2027 (2024 - 27 October 2024).
Details of maturity dates and interest charges can be found in note 13. The
aggregate of all future interest payments at the rate ruling at 30 June 2025
and the redemption of the loan amounted to £6,140,000 (2024 - £6,292,000).
18 (c) Credit risk. This is the risk that one party to a financial instrument
will fail to discharge an obligation and cause the other party to incur a
financial loss.
Management of the risk. The risk is mitigated by the Investment Manager
reviewing the credit ratings of counterparties. The risk attached to dividend
flows is mitigated by the Investment Manager's research of potential investee
companies. The Company's custodian bank is responsible for the collection of
income on behalf of the Company and its performance is reviewed by the
Depositary (on an ongoing basis) and by the Board on a regular basis. It is
the Manager's policy to trade only with A- and above (Long Term rated) and
A-1/P-1 (Short Term rated) counterparties. The maximum credit risk at 30 June
2025 is £17,329,000 (2024 - £32,365,000) consisting of £3,485,000 (2024 -
£3,430,000) of dividends receivable from equity shares, £3,418,000 (2024 -
£3,787,000) receivable from brokers and £10,426,000 (2024 - £25,148,000) in
cash and cash equivalents.
None of the Company's financial assets are past due or impaired (2024 - none).
19. Fair value hierarchy
FRS 102 requires an entity to classify fair value measurements using a fair
value hierarchy that reflects the significance of the inputs used in making
the measurements. Categorisation within the hierarchy is determined on the
basis of the lowest level input that is significant to the fair value
measurement of each relevant asset or liability. 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 valuation techniques used by the Company are explained in the accounting
policies note 2(e). The Company's portfolio consists wholly of quoted
equities, all of which are Level 1.
The fair value of both the 2.51% Senior Loan Notes and 4.37% Senior Loan Note
have been calculated by aggregating the expected future cash flows for that
loans discounted at a rate based on UK gilts issued with comparable coupon
rates and maturity dates plus a margin representing the credit risk for
Investment Grade A bonds. The fair value and amortised cost amounts can be
found in note 16.
All other financial assets and liabilities of the Company are included in the
Statement of Financial Position at their book value which in the opinion of
the Directors is not materially different from their fair value.
20. Related party transactions and transactions with the Manager
Fees payable during the year to the Directors and their interests in shares of
the Company are considered to be related party transactions and are disclosed
within the Directors' Remuneration section of the Directors' Remuneration
Report.
The Company has agreements with the Manager for the provision of management,
secretarial, accounting and administration services and promotional
activities. Details of transactions during the year and balances outstanding
at the year end are disclosed in notes 4 and 5.
21. Capital management policies and procedures
The investment objective of the Company is to achieve a high and growing
income combined with capital growth through investment in a portfolio
principally of UK equities.
The capital of the Company consists of debt (comprising loan notes and bank
loans) and equity (comprising issued capital, reserves and retained earnings).
The Company manages its capital to ensure that it will be able to continue as
a going concern while maximising the return to shareholders through the
optimisation of the debt and equity balance.
The Board monitors and reviews the broad structure of the Company's capital on
an ongoing basis. This review includes:
- the level of equity shares in issue;
- the planned level of gearing which takes into account the Investment
Manager's views on the market (net gearing figures can be found in "Financial
Highlights"); and
- the extent to which revenue in excess of that which is required to be
distributed should be retained.
The Company's objectives, policies and processes for managing capital are
unchanged from the preceding accounting period.
Notes 13 and 14 give details of the Company's bank facility agreement and loan
notes respectively.
AIFMD Disclosures (Unaudited)
The Manager and the Company are required to make certain disclosures available
to investors in accordance with the AIFMD. Those disclosures that are required
to be made pre-investment are included within a pre-investment disclosure
document ("PIDD") which may be found on the Company's website
(murray-income.co.uk), maintained by the Manager.
AIFMD or the Directive
The Alternative Investment Fund Managers Directive -
There have been no material changes to the disclosures contained within the
PIDD since its latest publication in September 2025.
The periodic disclosures as required under the AIFMD to investors are made
below:
· information on the investment strategy, geographic and sector investment
focus and principal stock exposures is included in the Strategic Report;
· none of the Company's assets are subject to special arrangements arising
from their illiquid nature;
· the Strategic Report, Note 18 to the financial statements and the PIDD,
together set out the risk profile and risk management systems in place. There
have been no changes to the risk management systems in place in the period
under review and no breaches of any of the risk limits set, with no breach
expected;
· there are no new arrangements for managing the liquidity of the Company
or any material changes to the liquidity management systems and procedures
employed by the Manager;
· all authorised Alternative Investment Fund Managers are required to
comply with the AIFMD Remuneration Code. In accordance with the AIFMD
Remuneration Code, the AIFM's remuneration policy in respect of its reporting
period ended 31 December 2024 is available on the website of abrdn plc at
www.aberdeenplc.com/en-gb/about-us/our-leadership-team/remuneration-disclosure
or on request from the Company Secretaries, abrdn Holdings Limited (see
Additional Shareholder Information in the published Annual Report for contact
details).
Leverage
For the purposes of the Alternative Investment Fund Managers Directive,
leverage is any method which increases the Company's exposure, including the
borrowing of cash and the use of derivatives. It is expressed as a ratio
between the Company's exposure and its net asset value and can be calculated
on a gross and a commitment method. Under the gross method, exposure
represents the sum of the Company's positions after the deduction of Sterling
cash balances, without taking into account any hedging and netting
arrangements. Under the commitment method, exposure is calculated without the
deduction of Sterling cash balances and after certain hedging and netting
positions are offset against each other.
The table below sets out the current maximum permitted limit and actual level
of leverage for the Company:
Gross Method Commitment Method
Maximum level of leverage 2.50:1 2.00:1
Actual level at 30 June 2025 1.23:1 1.24:1
There have been no breaches of the maximum level during the period and no
changes to the maximum level of leverage employed by the Company. There is no
right of re-use of collateral or any guarantees granted under the leveraging
arrangement. Changes to the information contained either within this Annual
Report or the PIDD in relation to any special arrangements in place, the
maximum level of leverage which the AIFM may employ on behalf of the Company;
the right of use of collateral or any guarantee granted under any leveraging
arrangement; or any change to the position in relation to any discharge of
liability by the Depositary will be notified via a regulatory news service
without undue delay in accordance with the AIFMD.
The information above has been approved for the purposes of Section 21 of the
Financial Services and Markets Act 2000 (as amended by the Financial Services
Act 2012) by the Manager which is authorised and regulated by the Financial
Conduct Authority in the United Kingdom.
Alternative Performance Measures
Alternative performance measures are numerical measures of the Company's
current, historical or future performance, financial position or cash flows,
other than financial measures defined or specified in the applicable financial
framework. The Company's applicable financial framework includes FRS 102 and
the AIC SORP. The Directors assess the Company's performance against a range
of criteria which are reviewed as particularly relevant for closed-end
investment companies.
Discount to net asset value per Ordinary share with debt at fair value
The discount is the amount by which the share price is lower than the net
asset value per share with debt at fair value, expressed as a percentage of
the net asset value.
30 June 2025 30 June 2024
NAV per Ordinary share a 944.8p 957.9p
Share price b 854.0p 857.0p
Discount (b-a)/a (9.6)% (10.5)%
Discount to net asset value per Ordinary share with debt at par value
The discount is the amount by which the share price is lower than the net
asset value per share with debt at par value, expressed as a percentage of the
net asset value.
30 June 2025 30 June 2024
NAV per Ordinary share a 936.3p 946.0p
Share price b 854.0p 857.0p
Discount (b-a)/a (8.8)% (9.4)%
Dividend cover
Dividend cover is the revenue return per Ordinary share dividend by dividends
per Ordinary share expressed as a ratio.
30 June 2025 30 June 2024
Revenue return per share a 38.60p 37.40p
Dividends per share b 40.00p 38.50p
Dividend cover a/b 0.97 0.97
Dividend yield
The annual dividend per Ordinary share divided by the share price, expressed
as a percentage.
30 June 2025 30 June 2024
Dividends per share (p) a 40.00p 38.50p
Share price (p) b 854.00p 857.00p
Dividend yield a/b 4.7% 4.5%
Net asset value per Ordinary share with debt at fair value
The calculation of the Company's net asset value per Ordinary share with debt
at fair value is set out in Note 16.
Net gearing with debt at fair value
Net gearing with debt at fair value measures the total borrowings less cash
and cash equivalents dividend by net assets with debt at fair value, 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.
30 June 2025 30 June 2024
Bank loans (£'000) a (6,140) (6,282)
Senior Loan Notes (£'000) b (106,007) (107,574)
Total borrowings (£'000) c=a+b (112,147) (113,856)
Cash (£'000) d 10,426 25,148
Amounts due to brokers (£'000) e (3,043) (5,167)
Amounts due from brokers (£'000) f 3,418 3,787
Net assets with debt at fair value (£'000) g 925,025 1,002,791
Net gearing -(c+d+e+f)/g 11.0% 9.0%
Ongoing charges
The ongoing charges ratio has been calculated based on the total of investment
management fees and administrative expenses less non-recurring charges and
expressed as a percentage of the average daily net asset values with debt at
fair value published throughout the year.
30 June 2025 30 June 2024
Investment management fees (£'000) a 3,304 3,692
Administrative expenses (£'000) b 1,424 1,334
Less: non-recurring charges(A) (£'000) c (143) (25)
Ongoing charges (£'000) a+b+c 4,585 5,001
Average net assets (£'000) d 954,383 991,404
Ongoing charges ratio (a+b+c)/d 0.48% 0.50%
(A) 30 June 2025 comprises £85,000 relating to costs accrued in respect of
the strategic review, £35,000 Directors recruitment fee, £20,000 relating to
legal fees for the new loan facility and £3,000 relating to other
professional services unlikely to recur. 30 June 2024 comprises £20,000
Directors recruitment fee and £5,000 relating to other professional fees
unlikely to recur.
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.
Total return
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 NAV NAV
Year ended 30 June 2025 price (debt at fair value) (debt at par)
Opening at 1 July 2024 a 857.0p 957.9p 946.0p
Closing at 30 June 2025 b 854.0p 944.8p 936.3p
Price movements c=(b/a)-1 (0.4)% (1.4)% (1.0)%
Dividend reinvestment(A) d 4.7% 4.1% 4.1%
Total return c+d 4.3% 2.7% 3.1%
Share NAV NAV
Year ended 30 June 2024 price (debt at fair value) (debt at par)
Opening at 1 July 2023 a 837.0p 911.7p 894.4p
Closing at 30 June 2024 b 857.0p 957.9p 946.0p
Price movements c=(b/a)-1 2.4% 5.1% 5.8%
Dividend reinvestment(A) d 5.2% 4.8% 5.0%
Total return c+d 7.6% 9.9% 10.8%
(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.
The financial information set out above does not constitute the Company's
statutory accounts for the years ended 30 June 2025 or 2024 but is derived
from those accounts. Statutory accounts for 2024 have been delivered to the
Registrar of Companies in Scotland.
The statutory accounts for the year ended 30 June 2025 have been approved by
the Board and audited and will be filed with the Registrar of Companies in
Scotland. The auditor has reported on those accounts; their reports were (i)
unqualified, (ii) did not include a reference to any matters to which the
auditor drew attention by way of emphasis without qualifying their report and
(iii) did not contain a statement under section 498 (2) or (3) of the
Companies Act 2006.
The Company is holding its AGM at 12.30 pm on Tuesday 4 November 2025 at
Wallacespace Spitalfields, 15 Artillery Lane, London E1 7HA.
The Annual Report will be posted to shareholders in October 2025 and will be
available shortly from the Company's website at: www.murray-income.co.uk
(http://www.murray-income.co.uk) .
By Order of the Board
abrdn Holdings Limited
Secretaries
11 September 2025
END
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