murray-intl.co.uk
Murray International Trust PLC
A high conviction global portfolio designed to deliver
a strong and rising income and to grow capital
Annual Report
31 December 2024
Glasgow’s Finnieston Crane, a symbol of the city’s
industrial heritage. The Company’s roots can be
traced back to Glasgow’s thriving industrial and
shipbuilding-based economy
Murray International Trust PLC 1
“Our global portfolio, diversified by geography and
sector remains focused on companies exhibiting
robust earnings, strong balance sheets, and positive,
growing cash flows which are expected to deliver
an attractive combination of long-term growth in
revenue to support our dividend as well as capital
growth ahead of inflation”
Virginia Holmes,
Chair
“Over the full financial year, the Company’s NAV
total return was 8.1%, delivering real growth ahead
of the UK Retail Price Index (“RPI”) rate of 3.5%,
which continued to moderate”
Martin Connaghan
and Samantha Fitzpatrick,
abrdn Investments Limited
2 Murray International Trust PLC
Net asset value total return
AB
– 2024 Share price total return
AB
– 2024
+8.1% +4.5%
2023 +8.6% 2023 +1.1%
Retail Price Index
B
– 2024 Reference Index total return
BC
– 2024
3.5% +19.8%
2023 5.2% 2023 +15.7%
Dividends per share
BE
– 2024 Revenue return per share
B
– 2024
11.8
p
11.6
p
2023 11.5p 2023 12.1p
Dividend yield
AD
– 2024 Net gearing
AD
– 2024
4.6% 6.1%
2023 4.5% 2023 8.0%
Ongoing charges ratio
AD
– 2024
Discount to net asset value
AD
– 2024
0.52%
–7.5%
2023 0.53% 2023 –4.0%
A
Alternative Performance Measure (see pages 118 to 120).
B
For the year to 31 December.
C
Reference Index is FTSE All World TR Index.
D
As at 31 December.
E
Dividends declared for the year to which they relate and assuming shareholder approval of final dividend.
Performance Hi
g
hli
g
hts
Murray International Trust PLC 3
THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR
IMMEDIATE ATTENTION
. If you are in any doubt about the
action you should take, you are recommended to seek
your own independent financial advice from your
stockbroker, bank manager, solicitor, accountant or other
independent financial adviser authorised under the
Financial Services and Markets Act 2000 if you are in the
United Kingdom or, if not, from another appropriately
authorised financial adviser. If you have sold or otherwise
transferred all your Ordinary shares in Murray
International Trust PLC, please forward this document,
together with the accompanying documents immediately
to the purchaser or transferee, or to the stockbroker, bank
or agent through whom the sale or transfer was effected
for transmission to the purchaser or transferee.
Overview
Financial Calendar 4
Financial Highlights 5
Strategic Report
Chair’s Statement 8
Investment Manager's Review 11
The Manager’s Investment Process 19
Investment Case Studies 22
Key Performance Indicators (KPIs) 29
Performance Track Record 30
Investment Objective and Investment Policy 33
Promoting Your Company’s Success 34
Risk Management and Viability 40
Portfolio
Ten Largest Investments 46
List of Investments 47
Summary of Net Assets 49
Sector/Geographical Analysis 50
Governance
Board of Directors 56
Directors’ Report 59
Directors’ Remuneration Report 67
Report of Audit and Risk Committee 71
Statement of Directors’ Responsibilities 74
Independent Auditor’s Report to the Members of Murray
International Trust PLC 75
Financial Statements
Statement of Comprehensive Income 86
Statement of Financial Position 87
Statement of Changes in Equity 88
Statement of Cash Flows 89
Notes to the Financial Statements 90
Securities Financing Transactions Disclosure 115
Alternative Performance Measures 118
Corporate Information
ESG and Climate Related Factors 122
Investor Information 124
Glossary of Terms 127
General
Notice of Annual General Meeting 131
Shareholder Information 136
Contact Addresses 137
Contents
4 Murray International Trust PLC
Payment dates of future quarterly dividends
19 May 2025
15 August 2025
18 November 2025
17 February 2026
Financial year end
31 December
Online Shareholder Presentation
Monday 31 March at 11.00 a.m.
Annual General Meeting (London)
Thursday 24 April 2025 at 12:30 p.m.
Dividends
Rate Ex-dividend date Record date Payment date
1st interim 2.5p 4 July 2024 5 July 2024 16 August 2024
2nd interim 2.5p 3 October 2024 4 October 2024 18 November 2024
3rd interim 2.5p 2 January 2025 3 January 2025 17 February 2025
Proposed final 4.3p 3 April 2025 4 April 2025 19 May 2025
Total dividends 11.8p
Financial Calendar
Murray International Trust PLC 5
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
31 December 2024 31 December 2023 % change
Total assets
A
£1,788.8m £1,808.8m –1.1
Net assets £1,678.8m £1,668.9m +0.6
Market capitalisation £1,553.1m £1,601.8m –3.0
Net Asset Value per Ordinary share
B
278.4p 268.8p +3.6
Share price per Ordinary share (mid market)
B
257.5p 258.0p –0.2
Discount to Net Asset Value per Ordinary share
C
–7.5% –4.0%
Net gearing
C
6.1% 8.0%
Revenue return per share 11.6p 12.1p –4.1
Dividends per share
D
11.8p 11.5p +2.6
Dividend cover (including proposed final dividend)
C
0.98x 1.05x
Dividend yield
C
4.6% 4.5%
Revenue reserves
E
£74.2m £75.1m
Ongoing charges ratio
C
0.52% 0.53%
A
See definition on page 129.
B
Capital values.
C
Considered to be an Alternative Performance Measure as defined on pages 118 and 119.
D
The figure for dividends per share reflects the years to which their declaration relates (see note 8 on page 96) and assuming approval of the final dividend of 4.3p (2023 – final
dividend of 4.3p).
E
The revenue reserve figure does not take account of the third interim and final dividends amounting to £15,078,000 and £25,590,000 respectively (2023 – third interim dividend of
£14,890,000 and final dividend of £26,592,000).
Net asset value per share Dividends per share Mid-Market price per share
At 31 December – pence Year ended 31 December – pence At 31 December – pence
228
248
259
269
278
20 21 22 23 24
10.9
11.0
11.2
11
.5
11.8
20 21 22 23 24
226
231
267
258
258
20 21 22 23 24
Financial Hi
g
hli
g
hts
6 Murray International Trust PLC
Strategic
Report
Murray International Trust PLC 7
Murray International Trust PLC is an
investment company listed on the
main market of the London Stock
Exchange. The Company is an
approved investment trust and aims
to achieve an above average
dividend yield, with long-term growth
in dividends and capital ahead of
inflation, by investing principally in
global equities
8 Murray International Trust PLC
I am pleased to present this Annual Report for the year
ended 31 December 2024.
Background
Capital markets continued to highlight the complex
relationship between economic fundamentals, politics
and financial market performance in 2024. As the year
began, consensus expectations were for easing inflation
and numerous rate cuts in the coming 12 months. As the
year progressed, whilst cautiously optimistic about the
easing inflationary pressures, central banks remained
vigilant and announced fewer rate cuts than
commentators had been predicting. It was also one of the
most significant global election years in history, with
around half of the world's population heading to the polls
and key elections taking place in countries including the
United States, the UK, across Europe and India.
Financial markets once again demonstrated their ability to
defy conventional market theory. Despite the challenging
economic backdrop and political noise, overall equity
markets experienced a notable rally during 2024. This
surge was driven mainly by continued excitement around
the potential for Artificial Intelligence (“AI”) and a
momentum-driven desire to own the "Magnificent Seven"
US technology stocks. A short-lived market correction in
early August was the result of the combination of an
interest rate hike in Japan and a concerning jobs report in
the United States. This triggered widespread declines
across major indices yet ultimately did little to dampen
investors' spirits. Equity markets quickly dusted themselves
down, and by the time of the election in the United States
and the resulting re-election of President Trump to a
second term, investors, buoyed by the prospect of lower
taxes and potential fiscal stimulus measures, propelled the
markets to new highs. Ultimately, 2024 was another strong
year for global equity market returns.
Performance
Against this background, the Company's net asset value
per share ("NAV") posted a total return for the year (i.e.
with dividends reinvested) of +8.1% and a share price total
return of +4.5%. In comparison over the same period the
UK Retail Price Index rose by 3.5% and the total return of
the Reference Index, the FTSE All World Index, was 19.8%.
More details on this and the significant contributors and
detractors from performance during the year are given in
the Investment Manager’s Review on pages 13 and 14.
Dividends
The revenue return per share for the year (after tax and
expenses) amounted to 11.6p per share, which compares
to 12.1p for the previous financial year. This was largely
due to the revenue generated by the portfolio being down
5.2% to £84.2m, (2023: £88.8m).
Three interim dividends of 2.5p per share (2023: three
interims of 2.4p) have been declared during the year. The
Board is recommending a final dividend of 4.3p, per
Ordinary share (2023: 4.3p). This proposed final dividend
together with the interim dividends already paid makes a
total dividend for the year of 11.8p per share (2023:11.5p),
an increase of 2.6% over the previous financial year. If
approved at the Annual General Meeting on 24 April 2025,
this final dividend will be paid on 19 May 2025 to
Shareholders on the register on 4 April 2025
(ex-dividend 3 April 2025).
Assuming the final dividend is approved, this will represent
the 20th consecutive year in which the Company has
grown its dividend and as a result, the Board expects the
Company will be included in the Association of Investment
Company’s (AIC) list of ‘Dividend Heroes’.
The dividend will be funded from revenue received during
the year together with a small movement of £0.7m (0.2p
per share) from the Company’s revenue reserves. This
represents a dividend cover of 0.98x (2023: 1.05x). The
Company has the benefit of over £74m, or 12.3p per
share, of revenue reserves on its balance sheet at year
end which have been accumulated over many years from
retained earnings. These reserves are available to support
dividend distributions where the Board considers this to be
appropriate. In some years revenues are added to
reserves, while in others as is the case this year, an amount
may be taken from reserves to supplement revenue
earned during that year. Over time, the Company will aim
to pay out what the underlying portfolio earns in sterling
terms. The Board intends to maintain the Company’s
progressive dividend policy.
Chair’s Statement
Murray International Trust PLC 9
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Management of Discount and Share Capital
In line with its peer group, and most of the investment trust
sector, the Company’s shares have traded during the year
at a discount to the NAV that has been wider than the
historic average. Consequently, in order to reduce any
volatility as well as enhance the NAV for ongoing
shareholders, the Company has been more active in
buying back its shares in 2024 with 17.74m (2023: 5.25m)
Ordinary shares, purchased for Treasury, during the year
at a total cost of £54.1m (2023: £12.4m). These shares
were acquired at a weighted average discount of 9.6%
and represented 2.8% of the Company’s issued share
capital at the start of the year (2023: 0.8%). The buybacks
increased the NAV per share by 0.26%. Since the year end,
the Company has regularly bought back Ordinary shares
and a further 8.0m shares have been acquired.
At the latest practicable date, the cum income NAV with
debt at par was 288.23p per share and the share price
was 267.0p, equating to a discount of 7.4% per Ordinary
share compared to a discount of 7.5% per Ordinary share
at the year end.
As in previous years, the Board will be seeking approval
from shareholders at the Annual General Meeting (“AGM”)
on 24 April 2025 to renew the buyback authority together
with the authority to allot new shares or sell shares from
Treasury. New or Treasury shares will only be issued or
sold at a premium to NAV and shares will only be bought
back at a discount to NAV. Resolutions to this effect will be
proposed at the AGM and the Directors strongly
encourage shareholders to support these proposals.
Gearing
At the year end, total borrowings amounted to £110m
(2023: £140m), representing net gearing (calculated by
dividing the total borrowings less cash by shareholders’
funds) of 6.1% (2023: 8.0%), all of which is drawn in sterling.
In May 2024, the Company repaid its maturing £30m five-
year fixed-rate loan with The Royal Bank of Scotland
International. Following the repayment of this loan, the
Company’s borrowings consist of £110m in unsecured
loan notes which are fully drawn and will not be repayable
until 2031 at the earliest. The weighted cost of borrowing
of these fixed-rate loan notes is 2.56%. The Board
considered options to replace the £30m loan that
matured in May 2024 but concluded that the proposed
terms were not commercially attractive at present. The
Board will continue to keep the position under review.
Ongoing Charges Ratio (“OCR”)
The Board remains focused on controlling costs and on
delivering value to shareholders. The OCR for 2024 was
0.52% (2023: 0.53%). This is the second lowest in the AIC
global equity income sector.
Board of Directors
As part of ongoing succession planning, Mrs Alexandra
Mackesy will be retiring from the Board at the conclusion
of the AGM in April, having joined the Board in 2016. On
behalf of the Board, I would like to take this opportunity to
thank Mrs Mackesy for her insight, expertise and wise
counsel over the last nine years, as a Director, as Chair of
the Remuneration Committee and, latterly, as Senior
Independent Director. The Board is in the process of
concluding a search for a new Non-Executive Director
using the services of an independent recruitment firm and
will update shareholders in due course.
Online Investor Presentation, AGM and
Shareholder Voting
Following the success of similar events over the last few
years, the Board has decided to hold another online
investor presentation this year, at 11.00 a.m. on 31 March
2025. This is in addition to the in-person AGM. During the
online presentation, shareholders and investors will
receive updates from me, as Chair, and the investment
management team on our portfolio positioning, outlook
and recent progress and there will be an interactive
question and answer session. We see this as an
opportunity for shareholders, many of whom may be
unable to attend the AGM, to hear directly from the Board
and the investment team and to pose any questions that
they may have. Full details on how to join the online
shareholder presentation can be found on the Company’s
website at murray-intl.co.uk.
Following the online presentation, shareholders will still
have plenty of time to submit their proxy votes prior to the
AGM. I would encourage all shareholders (whether or not
they intend to attend the AGM in person) to lodge their
votes in advance in this manner. Shareholders on the main
register can do this by completing and returning the proxy
form which has been sent to them. If you hold your shares
on a platform via a nominee, please note that the AIC has
provided helpful information on how to vote investment
company shares held on some of the major platforms.
This information can be found at:
theaic.co.uk/how-to-vote-your-shares.
10 Murray International Trust PLC
The AGM has been convened for 12:30 p.m. on 24 April
2025, at Wallacespace Spitalfields, 15 Artillery Lane,
London E1 7HA. This will be followed by a buffet lunch and
an opportunity to meet the Board and the investment
management team.
Ahead of the online presentation and AGM, I would
encourage shareholders to send in any questions that
they may have for either forum to: murray-intl@abrdn.com.
Your Board greatly values shareholder comments and I
encourage you to email me with your views at:
VirginiaHolmes.Chair@abrdn.com
Outlook
Negotiating financial market remains as challenging as
ever. As we look forward, the geopolitical environment
remains polarised and uncertain, bringing opportunities
and risks. Notwithstanding the recent interest rate cut in
the UK, we still expect that rates may be higher for longer
than many market participants had expected, leaving
governments counting the costs of existing debt levels and
expanding fiscal deficits. These macro economic and
geopolitical uncertainties will continue to dominate the
headlines and impact investor sentiment and, at times, the
direction of capital markets. This year reminds us that
shifting technological trends and corporate fundamentals
will also play a central role in shaping future equity
market returns.
The Board believes that the current market conditions
favour the “bottom-up” investment approach employed
by your Investment Managers to identify the companies
that can successfully navigate the challenges they will
face. Their experience, acquired over a number of market
cycles, will continue to be deployed to maintain a truly
global portfolio, diversified by region and sector, in
companies exhibiting robust earnings, strong balance
sheets, and positive, growing cash flows which are
expected to deliver a combination of long-term growth in
revenue and capital ahead of inflation.
Virginia Holmes
Chair
5 March 2025
Chair’s Statement
Continued
Murray International Trust PLC 11
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Background
Global equity markets performed strongly in 2024. The
FTSE All World Index returned an impressive 19.8% in
Sterling terms over the year, particularly as this followed
the 15.7% it delivered the year before. 2024 was supposed
to be a year of easing inflation and swiftly falling interest
rates, which would justify and support the already lofty
equity market levels that were apparent as the year
began. A more robust than expected economy in the US
and stickier than anticipated inflation in many quarters put
paid to those expectations as the year progressed. Ever
keen to seek the positives and disregard or replace what
was previously believed to be "in the price", many
developed equity markets continued to hit fresh highs
throughout the year. The expected technological shifts
with the dawn of AI and its potential growth were evident
in strong corporate earnings within the few major
technology players in this field. Financial companies also
performed well in the higher for longer interest rate
environment. Beyond those industries, however, earnings
growth and share price performance were generally
less buoyant.
It was also a year of significant national elections, with
eight of the ten most populous nations holding elections.
Almost half of the world's population was eligible to vote in
one of the most significant election years in history.
Sadly, there was little change in the world's geopolitical
issues. Conflicts in the Middle East and Ukraine continued
and the future state of relations between East and West
remained unclear. Other risks, such as the world's
gargantuan debt pile and the potential perils in the
combination of highly concentrated markets, potentially
expensive valuations and the scale and likely future
growth in passive investing, were mentioned in places on
occasion. However, nothing would deter global equity
markets from edging higher.
Global Review
The US experienced significant political and economic
developments throughout the period. The year was
marked by a highly contentious presidential election
campaign, culminating in President Donald Trump's
victory. This win made President Trump the second
president in US history to serve two non-consecutive
terms. The Republican Party's taking control of both the
House and the Senate gives it significant control over the
policy agenda in the US. The election underscored deep
ideological divides within both major parties, mirrored in
the increasingly polarised population.
The US economy demonstrated resilience, with robust
GDP growth, inflation appearing sticky in places and
ticking upwards as the year ended, and unemployment
remaining low. While these economic indicators are
generally positive, they raise serious doubts, previously
anticipated, about the scale and cadence of interest rate
cuts. The expected interest rate easing cycle was a
considerable contributor to strong equity market returns
in the early part of the year, however the eventual
cadence and scale of rate cuts that came through was far
less than initially expected. Other concerns remain: the
budget deficit and national debt continue to increase at
significant rates, and both presidential candidates
proposed substantial spending plans on the campaign
trail, showing that there is minimal, if any, political will even
to have a debate on such matters. When political debates
instead focus more on the size of campaign rally
attendance, one cannot help but have serious concerns
about long-term fiscal resilience. Equity markets in the US
focused solely on the positives and were driven by strong
corporate earnings, albeit from a quite narrow yet
sizeable market area; subsequently indices finished the
year towards all-time highs.
Investment Mana
g
er’s Review
12 Murray International Trust PLC
In the UK, the Labour Party, led by Prime Minister Sir Keir
Starmer, secured a decisive victory in the July general
election, ending over a decade of Conservative
government. Economic performance was tepid, with GDP
growing by only 0.1% in November, missing forecasts and
indicating stagnation. The Bank of England responded to
the sluggish growth by cutting interest rates, with
policymakers suggesting the need for more aggressive
reductions to counteract economic weakness. The UK's
capital markets faced their own additional challenges,
notably the decline of the Alternative Investment Market
(“AIM”), which saw an accelerated exit of companies due
to falling valuations and tax policy changes. Despite
government efforts to revitalise these markets through
listing reforms and the establishment of pension "mega
funds" to boost investment in UK equities, the anticipated
resurgence in equity and mergers and acquisitions
(“M&A”) activity remained subdued. Despite this, the equity
market still posted reasonable returns primarily driven
by financials.
The European Parliament elections in June 2024 marked a
rightward shift across the continent. Parties on the political
right gained ground in countries such as France, Portugal,
Belgium and Austria, influencing the composition and
policy direction of the European Parliament. Economically,
the European Union faced a period of sluggish growth. The
Autumn 2024 Economic Forecast projected downward
revisions from earlier forecasts. Germany, Europe's largest
economy, experienced its second consecutive annual
GDP contraction. This downturn has led analysts to refer
to Germany as the "sick man of Europe“ again. Meanwhile,
European equity markets posted positive returns but were
admittedly more subdued than other regions. Strong
equity market performance in countries including
Germany, Italy and Spain was offset, but not undone, by
weakness in Switzerland, France and The Netherlands.
In Asia, the Chinese government unveiled a
comprehensive economic stimulus package to
counteract the nation's economic slowdown. These
measures reflect Beijing's strategic efforts to stabilise the
property market and stimulate domestic demand. The
equity market rallied strongly off this news before giving
back some of those gains as market participants waited
for further measures. In India, sentiment and growth
remained positive. The incumbent Bharatiya Janata Party
(BJP), led by Prime Minister Narendra Modi, secured a
victory but lost its outright majority in the Lok Sabha.
However, the BJP-led National Democratic Alliance (NDA)
enabled Modi to secure a third consecutive term as Prime
Minister. Not wishing to be left out, Japan experienced
notable political and economic developments. In March,
the Bank of Japan (“BoJ”) raised its benchmark interest
rate for the first time in seventeen years, ending its
negative rate policy. The BoJ raised rates for a second
time in early August; this, coupled with a weak jobs report
in the US, sent markets into a brief tailspin with the Yen
strengthening and the Nikkei having its worst day since the
"Black Monday" of 1987. As if that were not enough, in
October, the ruling Liberal Democratic Party (LDP), led by
Prime Minister Shigeru Ishiba, lost its parliamentary
majority in a snap election, resulting in a hung parliament
and political uncertainty. Despite all this, Japan’s equity
market recovered relatively quickly and finished the year
in positive territory.
In Latin America, Mexico also held a general election, and
Claudia Sheinbaum of the Morena party was elected the
first female President, securing a landslide victory. The
scale of the majority and the prospect of constitutional
changes raised concerns over fiscal management and
policy direction. This, followed by the election in the US,
resulted in the weakening of Mexico’s equity market and
the weakening of the currency during the year's
second half.
Investment Mana
g
er’s Review
Continued
Murray International Trust PLC 13
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Attribution Analysis
The attribution analysis below details the various influences on portfolio performance. In summary, of the 930 basis
points (before expenses) of performance below the Reference Index, asset allocation detracted 840 basis points and
stock selection detracted 100 basis points. Structural effects, relating to the fixed income portfolio, cash and foreign
exchange and gearing net of borrowing costs, had no net impact on relative performance.
Company
Reference Index
A
Contribution from:
Asset Stock
Weight Return Weight Return Allocation Selection Total
% % % % % % %
Africa & Middle East
– – 1.3 11.0 0.1 – 0.1
Asia Pacific ex Japan
24.9 13.7 11.3 12.2 –0.9 0.4 –0.5
Europe ex UK
25.5 –1.4 10.8 3.0 –2.1 –1.3 –3.3
Japan
– – 5.7 10.1 0.5 – 0.5
Latin America
8.6 –26.3 0.8 –21.3 –4.0 –0.8 –4.7
North America
34.2 28.1 67.1 26.9 –2.0 0.5 –1.5
UK
6.7 17.1 3.1 11.9 –0.3 0.2 –0.1
Gross equity portfolio return
100.0 8.7 100.0 19.8 –8.4 –1.0 –9.3
Fixed Interest
–0.2
Gearing, cash and foreign
exchange
0.2
Gross portfolio return
8.7
Management fees and administrative
expenses
–0.6
Tax charge
–0.2
Technical differences
0.2
Total return 8.1 19.8
A
Reference Index – FTSE All World TR Index
Notes to Performance Analysis
Asset Allocation effect – measures the impact of over or underweighting each asset category, relative to the benchmark weights.
Stock Selection effect – measures the effect of security selection within each category.
Technical differences – the impact of different return calculation methods used for NAV and portfolio performance
Source: aberdeen Group. Figures may appear not to add up due to rounding.
Performance
Over the full financial year, the Company’s NAV total
return was 8.1%, delivering real growth ahead of the UK
Retail Price Index (“RPI”) rate of 3.5%, which continued to
moderate. It is important to note that this is one of the
Company's investment objectives and key performance
indicators. The Reference Index (FTSE All World) total
return was 19.8%.
In 2024, global equity index performance was significantly
driven by the US and technology stocks, and this was also
reflected in the portfolio's positive absolute performance
in total return terms. North America delivered the
strongest regional index returns, mirrored in the portfolio
returns with a 28% contribution to overall total return.
Broadcom was the portfolio's best performing investment
over the year, rising by 114%, on top of the 93% return the
14 Murray International Trust PLC
stock generated in the previous year. Broadcom's growth
this year was driven by its products focused on AI
infrastructure and connectivity, which are designed to
support scalable AI infrastructure and the growing
demands of AI applications. Cisco Systems also enjoyed a
strong year within the technology sector. It wasn't simply
technology that performed well in North America; Philip
Morris International and Canadian based Enbridge, the
midstream pipeline business, also had a strong year. The
UK was the next best-performing country in terms of
absolute portfolio performance, delivering a 17% total
return thanks to strong share price performance from
consumer staples exposures in British American Tobacco
and Unilever.
Asia was another region that witnessed strong equity
market returns, driven by solid returns from Taiwan,
Singapore, Thailand and Hong Kong. The area achieved a
14% total return for the portfolio during the year. Ping An
Insurance, the Hong Kong listed financial services group,
performed well, with the Chinese market more positive
after a challenging couple of years on expectations that
recent stimulus measures would continue and revive the
country's economy. Thai-based bank SCB X generated
strong total returns over the period. In Singapore, the
banking group Oversea-Chinese Banking Corporation and
Singtel, one of Asia's leading communication providers,
appeared among the portfolio’s best performing
investments. The fortunes of Taiwan Semiconductor
largely dictate the fortunes of Taiwan's equity market.
Fortunately, the world's leading semiconductor foundry
operator had a very strong year driven by strong demand
for high-end chips. This also benefitted the portfolio, as did
the position in the contract manufacturing specialist, Hon
Hai Precision Industries. The portfolio’s Asian exposure was
not all positive. Global Wafers, again in Taiwan, had a
challenging 2024 due to the sluggish demand in the silicon
wafer market. South Korean technology giant Samsung
Electronics was disappointing as it struggled to keep pace
with competitors supplying semiconductor chips for AI
applications.
European equity market returns were also more subdued,
which was reflected in frustrating stock performance in
the portfolio. Weak refining margins and lower oil prices
dented the earnings of French energy company
TotalEnergies, which weighed on performance. BE
Semiconductor in the Netherlands had a more challenging
year after being the portfolio's strongest performer
in 2023.
Latin America delivered the poorest absolute returns
during the year. Mining exposures to iron ore and lithium,
with Vale in Brazil and SQM in Chile, were disappointing as
those commodity prices fell. In Mexico, Walmart de Mexico,
Grupo ASUR and the currency came under pressure as the
outcome of the general election in June raised uncertainty
over future economic policies and changes to the fiscal
and regulatory environment.
Finally, the residual Emerging Market Bond exposures
witnessed the full brunt of Sterling's strength but still
managed a positive +6% return for the year. With a current
running yield of 8.6% and many holdings still priced below
par, current exposures are expected to be maintained
and it is unlikely that they will be added to.
The top five and bottom five stock contributors are
detailed below:
Top Five Stock Contributors %* Bottom Five Stock Contributors %*
Broadcom Inc. 2.75 Globalwafers Co. -1.10
Taiwan Semiconductor Manufacturing Co. 1.55 Wal-Mart De Mexico -1.09
Hon Hai Precision Industry Inc. 0.99 Samsung Electronics -1.09
Philip Morris International Inc. 0.45 Grupo Aeroportuario Del Sureste -0.96
Overseas China Banking Corporation 0.37 Vale -0.95
* % relates to the percentage contribution to return relative to the Reference Index (FTSE All World TR Index)
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Revenue Generation
Turning to income generated during the year, dividend
increases generally matched conservative estimates, with
over 70% of portfolio holdings increasing their dividends.
Stocks including Taiwan Semiconductor, Singtel and Atlas
Copco delivered dividend growth of over 20%. Cuts were
expected in the more cyclical areas of the portfolio, where
yields and payouts had been high, but where easing
commodity prices would have impacted available free
cash flow. The 11% cut at Vale, 14% cut at BHP and 42%
cut at Woodside Energy were in line with forecasts, and
these stocks remain high-yielding opportunities. Unilever’s
inexplicable dividend cut and Walmart de Mexico's
election not to pay a special dividend again this year were
unexpected but were not material for the portfolio. More
meaningful disappointments came from the scale of the
cuts at SQM and Telefonica Brasil, which exceeded
expectations.
A major swing factor for the portfolio’s revenue generation
is currency fluctuations. The Company has over ninety
percent of its assets invested in overseas assets, which are
denominated in, and pay dividend income in, various
currencies other than Sterling. Emerging market currency
and commodity currency weakness relative to Sterling
during the year resulted in a headwind to the income
generated from companies domiciled in these markets.
Although the dividend for 2024 will not therefore be
covered, this must be seen in the context of the significant
long-term positive dividend trend and the Company’s
significant revenue reserves, both of which are referred to
in the Chair’s Statement on page 8.
Portfolio Activity
Portfolio turnover of 13% of gross assets over the period
was an increase from the prior year. However, it remained
broadly consistent with the strategy of keeping turnover
reasonably low unless the market environment presents
opportunities. In a year when extended price distortions
seldom prevailed, the general lack of volatility in global
markets limited new investments to a handful of
opportunities. A significant driver of portfolio activity was
the strength of portfolio positions in Taiwan Semiconductor
and Broadcom. These businesses enjoyed exceptionally
strong share price performance and kept pushing up
against the Company’s 5% maximum investment
guideline for any one position. Choosing to repay the
£30m fixed rate loan that matured on 16 May 2024 also
accounted for some portfolio turnover and reduced the
overall level of outstanding loans to £110m.
In the first half of the year, the Swedish industrial Epiroc AB,
which manufactures construction and mining machinery,
was sold. The stock performed well since Atlas Copco,
another Swedish industrial in the portfolio, spun off the
business in 2018. Roche AG, the Swiss-listed developer and
manufacturer of pharmaceuticals and diagnostic
products, was also divested. Roche AG remains a solid
business; there was simply higher conviction in the other
healthcare names in the portfolio. Chinese property
developer China Vanke proved to be a disappointment,
with the investment thesis not playing out as intended;
therefore, it was another low-conviction holding and an
easy candidate to exit in order to reduce gearing. The
portfolio exposure to North American midstream
companies was consolidated into one position. TC Energy
was sold, and the capital was recycled into Enbridge. The
belief is that Enbridge carries less balance sheet and
execution risk than its Canadian peer.
The only new addition to the portfolio in the first half of the
year was the German luxury car brand Mercedes Benz
Group. The company is looking to structurally improve its
profitability by increasing the proportion of higher priced
vehicles it sells, thereby improving margins and
shareholder returns via dividends and share buybacks.
In the second half of the year, a reasonable portion of
portfolio activity was reflected in the marginal reduction of
existing positions in both Broadcom and Taiwan
Semiconductor due to share price strength. Profits were
also taken in Mexican airport operator Grupo Asur and Hon
Hai Precision Industries in Taiwan. The capital raised from
these trades was spread across existing portfolio
positions, including Walmart de Mexico, Diageo, and Hong
Kong Exchange & Clearing, which had been relatively
weaker regarding share price performance but where the
longer-term thesis is still perceived to be valid.
In September a position was initiated in Taylor Wimpey,
one of the largest residential developers in the UK. The
structural undersupply of UK housing should support the
business's long-term growth in what is expected to be a
more encouraging planning environment. The company is
in a strong position given its healthy land bank and robust
balance sheet, while its well supported and attractive
dividend yield is amongst the highest in th
e sector.
16 Murray International Trust PLC
Capital was rebalanced around the portfolio's consumer
staples exposure in the fourth quarter. The catalyst for this
was Unilever's strong share price performance in the UK,
and the same was true of France's Danone. Both
companies still offer an attractive opportunity; however,
the question was about sizing. The decision was made to
reduce both at the margin and to increase the exposure
to French wine and spirits giant Pernod Ricard and to
initiate a new holding in Coca-Cola, both of which had
been relatively weak. Coca-Cola enjoys an exceptional
brand and distribution network and a strong and diverse
product portfolio with a strategic focus on healthier
beverage options. This should position it well for continued
long-term growth.
As the year drew to a close, continued strength in
Broadcom meant that this position temporarily exceeded
the 5% maximum investment guideline for any one
position. When this position was reduced, the capital was
put towards a new position in Medtronic, a US-based
developer of therapeutic and diagnostic medical
products. An ageing global population and increasing
prevalence of chronic diseases, along with the company's
innovative product pipeline in diabetes management and
cardiac care, should support its growth potential.
From an overall investment perspective, the emphasis
continues to favour diversified asset exposures in
companies deemed beneficiaries of the evolving
backdrop, maintaining a "barbell" strategy of owning
growth, value and cyclical stocks. Selective growth
companies, where yields tend to be lower, should continue
to benefit from accelerating trends in artificial intelligence
and industrial automation. With the stated objective of
covering the dividend from the underlying dividends of the
portfolio holdings, this exposure must be balanced
alongside opportunities that offer higher yields.
Summary of Investment Changes During the Year
Valuation Appreciation/ Valuation
31 December 2023 (depreciation) Transactions 31 December 2024
£’000 % £’000 £’000 £’000 %
Equities
UK 56,605 3.2 3,827 34,019 94,451 5.3
Europe ex UK 496,419 27.8 (21,443) (35,845) 439,131 24.9
North America 470,606 26.3 107,006 (11,685) 565,927 32.1
Asia Pacific ex Japan 426,426 23.8 38,363 (52,011) 412,778 23.4
Latin America 224,091 12.5 (62,602) (19,006) 142,483 8.1
1,674,147 93.6 65,151 (84,528) 1,654,770 93.8
Preference shares
UK 6,417 0.4 490 - 6,907 0.4
6,417 0.4 490 - 6,907 0.4
Bonds
Europe ex UK 3,292 0.2 174 (1,763) 1,703 0.1
Asia Pacific ex Japan 44,799 2.5 (1,780) 218 43,237 2.4
Latin America 44,839 2.5 (1,515) 18 43,342 2.5
Africa & Middle East 14,369 0.8 533 133 15,035 0.8
107,299 6.0 (2,588) (1,394) 103,317 5.8
Total Investments 1,787,863 100.0 63,053 (85,922) 1,764,994 100.0
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Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Outlook
As we enter 2025, the global economic landscape
remains fraught with potential challenges and
uncertainties. While some economies are showing real
signs of resilience, structural vulnerabilities and
geopolitical tensions suggest that, as always, alongside
measured optimism, caution should also be warranted.
Geopolitical tensions, including ongoing conflicts and
trade disputes, remain headwinds. The conflict in Ukraine
continues to impact energy markets, while political
instability in the Middle East and a potential escalation of
tensions in the Indo-Pacific region further complicates the
trade outlook. Colossal debt levels, exacerbated by
pandemic-related spending and years of abnormally low
interest rates, should remain a critical concern, as should
the fact that nobody seems willing to acknowledge,
debate, let alone attempt to address the issue.
While the long-awaited outcome of the US presidential
election is now known, the full implications are still unclear.
Capital markets have thus far focused on the reflationary
aspects of President Trump's agenda; whether these
moves are sustainable will depend on the new
administration's economic priorities. The unified
Republican government will almost certainly extend the
expiring and expired provisions from the Tax Cuts and
Jobs Act and pursue further tax cuts. However, the scale
and composition of these measures are uncertain. The
Federal Reserve is likely to cut rates more slowly than it
otherwise would have done, which, combined with higher
debt issuance and inflation, risks putting further upward
pressure on US and global bond yields.
President Trump has clearly stated that he considers
tariffs an effective means of rectifying perceived trade
imbalances and unfair trading practices. However, there
remains uncertainty over how tariffs play into President
Trump's broader trade strategy. His first term saw tariffs
threatened and used to seek concessions from trade
partners. If he pursues this approach in his second term,
tariff threats would likely be used more frequently than
their actual application.
On balance, President Trump's policy agenda is likely to
result in higher nominal GDP growth, with the bulk of the
increase coming through higher inflation due to potentially
looser fiscal policy, higher tariffs and lower immigration.
This policy means interest rates are likely to fall more
slowly than they otherwise would have done. Over the
medium term, the Fed could face rhetorical pressure from
President Trump if rates and the US Dollar do not evolve as
the administration would like. At the same time, the new
President is likely to change some of the personnel at the
Fed when he gets the chance in 2026. There is a risk that
heavy-handed interference in the Fed prompts disquiet in
markets around the central bank's independence.
The UK economy has slowed sharply, with activity surveys
consistent with only modest expansion at best. The
package of measures contained in the budget should
support near-term growth. However, increasing evidence
shows that firms are responding to the upcoming cost
shock from a higher minimum wage and the increase in
national insurance by slashing hiring plans. The
combination of higher gilt yields and lower growth means
that the headroom against the government's fiscal rules
has been wiped out, and the Office for Budget
Responsibility is likely to confirm this in March. Tighter
spending plans and tax increases are indeed likely,
therefore. In Europe, weak activity data, including a
disappointing retail sales outturn over November,
confirmed that the Eurozone recovery is fragile.
Uncertainty arising from President Trump's trade
measures will pose a further headwind to growth. With the
restrictiveness of European Central Bank policy being
reduced, the Eurozone's economy is likely to avoid a
recession, though risks remain. The portfolio's broad
exposure to a balance of global and more domestically
focused businesses in the UK and Europe remains as
dividend yields and relative valuations remain attractive.
In China, economic indicators in December added to the
picture of a strong end to 2024. While there may have
been a moderation within manufacturing, services
finished the year on a high note. Amid the "lowflationary"
gloom there are at least a couple of tentative signs that
the policy pivot in September may be gaining traction on
the inflation side. We may have to wait until the "Two
Sessions" in March to get details on the anticipated fiscal
support package for households and businesses.
18 Murray International Trust PLC
Elsewhere in Asia, growth in India is expected to continue
at a robust pace. There was a downside surprise to
growth in the third quarter, which raised questions over
the economy's trajectory, but recent data points to
resilience in key areas. Inflation is likely to continue to ease,
driven by food inflation, bringing the level closer to the
Reserve Bank of India's midpoint target. This would give
the central bank the room to cut rates. The portfolio
remains reasonably exposed to companies and
economies across Asia. Growth levels still seem more
attractive, debt levels are less concerning, and
fundamentally sound businesses across various sectors
remain attractive investment opportunities.
Emerging markets in Latin America could continue to face
headwinds. Brazil's economy slowed in the second half of
2024 due to a contraction in exports, while domestic
demand remained strong with support from fiscal policy.
Concerns regarding fiscal sustainability and the economy
overheating have weighed on Brazilian assets. In Mexico,
economic growth accelerated in the second half of last
year. However, there are question marks over the
sustainability of this going forward. Muted momentum for
domestic demand alongside policy uncertainty on both
sides of the US and Mexico border had contributed to
worsening private sector growth expectations in the short
term. The portfolio maintains a significant exposure to
companies listed in this part of the world, albeit it is
concentrated in just six holdings. While it is an exposure
that has delivered attractive returns over the long term for
shareholders, it does, as always, require considerable and
constant monitoring to ensure allocations are justified.
Given the many uncertainties and challenges ahead, our
outlook remains cautious. As always, our focus is on the
longer term and on finding individual stocks, which
together, should deliver the specific investment mandate
of the Company. We aim to make full use of the flexible
remit, ensuring the portfolio is well diversified across
regions and sectors and resilient enough to generate
income and capital growth whilst endeavouring to
preserve capital during periods of market weakness.
Martin Connaghan,
Senior Investment Director
Joined aberdeen in 1998
and has been involved in
the management of global
equity portfolios for over 20
years and directly involved
with managing the
Company since 201
7
Samantha Fitzpatrick,
Senior Investment Director
Joined aberdeen in 1998
and has been involved in
the management of global
equity portfolios for over 20
years
and directly involved
with managing the
Company since 201
9
abrdn Investments Limited
5 March 2025
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Core Investment Beliefs
As an active equity investor, the Investment Manager’s
approach to equity investing is underpinned by three core
investment beliefs:
· Fundamental research is the key to delivering insights
that can be used to exploit situations where the
Investment Manager believes the market is not correctly
valuing a company and so identify the best investment
opportunities. Such market inefficiencies can arise from
mispricing, information asymmetry or behavioural
biases amongst investors who often have very different
investment time horizons.
· By including constructive engagement and
environmental, social and governance (ESG)
considerations at the heart of its company research, the
Investment Manager believes that risks can be
mitigated, and returns for clients enhanced, as
companies with robust ESG practices tend to enjoy
long-term financial benefits.
· That disciplined, active investment with the aim of
using stock specific insights to build high conviction
portfolios and provide access to the Investment
Manager’s best investment ideas can deliver superior
outcomes for clients.
Idea Generation
The Company’s portfolio managers are Martin
Connaghan and Samantha Fitzpatrick, who form part of
aberdeen’s equity division. When searching for
investments for the Company's portfolio, the portfolio
managers benefit from insights and ideas from the
Investment Manager's c.110-strong active equity division,
which is spread over 12 cities across the globe. Cross-
asset class and macro economic insights are also gained
from conversations held between the portfolio managers
and other teams such as Credit, Real Estate and the
aberdeen Research Institute. Analyst recommendations
on every stock under coverage are quantitively measured,
recognising that company insights are a critical
component of alpha generation in portfolios over time.
The Investment Manager's reputation as a responsible
long-term investor means the investment management
team has first-rate access to the companies under
research. Through structured meetings and regular
conversations, the Investment Manager gathers insights
from both executive management teams and non-
executive directors.
Research
The Investment Manager has developed a proprietary
research platform used by all its equity, credit and ESG
teams, giving instant access to research globally. The
research is focused on four key areas:
Foundations – the Investment Manager analyses how a
company makes money, the attractiveness and
characteristics of its industry, and the strength and
sustainability of the economic competitive advantage or
'moat'. This includes a thorough evaluation of the
company's ESG risks and opportunities. Face-to-face
meetings help confirm the Investment Manager’s
understanding and challenge the key elements of a
company's fundamentals including:
· The evolution and growth of the business.
· The sustainable competitive advantage.
· Management's track record of execution and
managing risk.
· The balance sheet and financials.
· ESG risks and opportunities.
Dynamics – shorter and longer-term business dynamics
are one of the critical determinants of a company’s
corporate value over time. In addition, the Investment
Manager looks for changes in the factors driving the
market price of a stock, identifying the drivers that the
broader market may not be pricing in. Understanding the
dynamics behind these drivers allows the Investment
Manager to focus on the factors that will drive shareholder
returns from a particular stock.
Financials and Valuation - the Investment Manager
examines the strengths and weaknesses of a company's
financials, including a detailed analysis of the balance
sheet, cash flow and accounting practices, the market's
perception of the company's future prospects and value,
and its own forecasts of future financials and how the
stock should be priced. This includes significant focus on
the dividend paying capability of each business and the
potential for dividend growth.
Investment Insight and Risk - the Investment Manager
articulates its investment thesis, explaining how it views a
stock differently from the market consensus and how it
expects to crystallise value from the holding over time,
while also flagging any key risks.
The Mana
g
er’s Investment Process
20 Murray International Trust PLC
Peer Review
Having a common investment language internally
facilitates effective communication and comparison of
investment ideas through peer review which is a critical
part of the investment process. All investment ideas are
subject to rigorous peer review, both at regular meetings
and on an ad-hoc basis.
Martin Connaghan and Samantha Fitzpatrick form part of
a dedicated equity income group consisting of senior
team members with clear accountability for various
income strategies. This group debates stock holdings,
portfolio structure and risk profiles.
Portfolio Construction/Risk Controls
The Company’s portfolio is built from the bottom up by
Martin Connaghan and Samantha Fitzpatrick, who
prioritise high conviction stock ideas, once they have been
debated, in a risk aware framework. The portfolio risk
tolerance is derived from the Company’s investment
objective and required outcomes.
As an active equity investor, the Investment Manager has
adopted a disciplined portfolio construction process which
takes appropriate and intentional risk to drive returns. Risk
systems monitor and analyse risk exposures across
multiple perspectives breaking down the risk within the
portfolio by industry and country factors, by currency and
macro factors, and by other fundamental factors (quality,
momentum, etc). Consideration of risk starts at the stock
level with rigorous company research helping the
management team to avoid stock specific errors. Martin
Connaghan and Samantha Fitzpatrick ensure that any
sector or country risk is appropriately sized and managed
relative to the overall objectives of Company. Portfolios
built by the Investment Manager’s management teams
are formally reviewed on a regular basis with the
Investment Manager’s Global Head of Equities and its
Investment Governance and Risk teams. This oversight
monitors portfolio risk and oversees operational risk to
ensure client objectives are met.
The Mana
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Integrated ESG and Climate Change
Analysis
Whilst ESG factors are not the over-riding criteria in
relation to the investment decisions taken by the
management team for the Company, significant attention
is given to ESG and climate related factors throughout the
investment process. By embedding ESG analysis into the
active equity investment process, the Investment
Manager aims to enhance potential value for
shareholders, reducing risk and investing in companies
that can contribute positively to the world. In the
Investment Manager’s view, companies that successfully
manage climate change risks will perform better in the
long term. It is important that the Investment Manager
assesses the financial implications of material climate
change risks across all asset classes, including real assets,
to make portfolios more resilient to climate risk. Further
details of the Manager’s embedded ESG process are
contained on page 21.
abrdn Investments Limited
5 March 2025
22 Murray International Trust PLC
The Manager takes into consideration many factors when deciding whether to invest in or divest from a company.
These factors have been described in the previous sections covering The Manager’s Investment Process and are further
illustrated by the case studies below:
In which year did the Company first invest? 2023
% Holding: 1.5%
Where is its head office? Mexico city, Mexico
What is its web address? walmartmexico.com
Business Fundamentals
Walmex's operations consist of over 3,700 stores in over
700 cities in Mexico and Central America, as well as 30
distribution centres. Mexico accounts for over 80% of the
company's total revenues, with the remainder split across
Guatemala, Honduras, Nicaragua, Costa Rica and El
Salvador. The store portfolio consists of four formats:
Bodegas Aurrera, offering basic general merchandise,
food and household items; Walmart hypermarkets;
Supermarkets offering fresh produce; and Sam's Club
membership warehouses focused on businesses and
households. The company also has an e-commerce
offering across several websites and apps. Walmex has
expanded its offering beyond retail to include low-cost
mobile telephony services (Bait), digital financial solutions
(Cashi) and advertising solutions both in-store and online
(Walmart Connect). The company is primarily owned by
Walmart Inc, the US based multination retail corporation,
which owns 70% of the shares.
What’s Changing?
Walmex has faced challenges during the last couple of
years. Mexico's antitrust watchdog, Cofece, announced
that the company would face an antitrust panel on
allegations of imposing terms on its suppliers or
distributors. The company has always denied any
wrongdoing, highlighting that, in their view, it simply
negotiates better discounts, which is a market practice
and that its presence in the Mexican market has led to
reduced consumer prices, primarily benefitting low-
income families and those in remote areas of Mexico. The
investigation, after four years eventually found that
Walmex had used its market power to impose unfair
terms on some suppliers, which harmed competition and
fined the company approximately £3.6m. For a business
which generates annual profits after tax of over £2bn this
is not a material amount and in spite of the amount,
Walmex believes the decision to be incorrect and intends
to appeal.
The outcome of the Mexican general election in June and
Claudia Sheinbaum's landslide victory in the presidential
election have undoubtedly shifted the political landscape,
and the country's perceived risk premium has increased
as a result. A second Trump presidency could have several
impacts on Mexico and companies such as Walmex;
affecting trade or immigration policies, triggering
renegotiation of the US Mexico-Canada Agreement and
leading to closer monitoring of Mexico’s economic
relations with China. All of this remains to be seen and will
require monitoring, however Walmex’s strong market
position should help it navigate these potential impacts.
The company's strategy remains consistent:
· 'Win in Discount' by maintaining price leadership and
unique positioning around self-service stores and
emphasising Bodega Aurrera store expansion.
· ‘Omnichannel Leadership', leveraging the store network
that 85% of the Mexican population can reach within ten
minutes and to grow the e-commerce opportunity.
· ‘Grow the ecosystem' by introducing value-added
services, including Bait on the mobile communications
side and Cashi on the fintech side, which could tap into
the sizeable unbanked population.
Investment Case Studies
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Valuation & Investment Insight
As the price leader and largest operator in the formal
market, Walmex enjoys the benefits of scale compared
with other staples retailers in the country. Demand in food
retail is highly elastic at the company level; consumers
consistently make their choices based on price and
location, which enables lasting advantages for operators
that can use scale to benefit consumers through lower
prices.
Walmex is trading on 17.4x 2025’s forecast earnings, a
25% discount to the 20-year average and only marginally
above the historical lows of 2008. The business has
consistently generated a return on invested capital of over
30% during the last two decades, and the Manager
believes that the right strategy remains in place to deliver
attractive returns in the future.
A more cautious Mexican consumer, particularly after the
presidential elections, and increasing competition are risks
that will require monitoring. Scale and demographics
matter in retail and Mexico remains attractive on both
fronts. It has a large population, is close to the US and has a
high rate of informality in the economy (activities that are
neither taxed nor monitored by the government).
Inequality is high also, with c60% of the population earning
less than twice the minimum wage.
ESG
Recent engagement with the company has focused on
the Cofece investigation, where, as mentioned, the
company stresses its innocence. The Manager has also
engaged with local antitrust lawyers to gain insights into
the case. Its parent, Wal-Mart Inc has significant influence
over the company. This can have positives, including
leveraging know-how, innovation and better purchasing
terms with global suppliers. One clear risk is the conflict of
interest in paying Wal-Mart Inc. royalties. On the
environmental side the company has credible
commitments around waste and carbon emissions, as
much of this will be done in collaboration with the parent.
These matters are discussed with the company on an
ongoing basis. Walmex has a number of positive social
initiatives including Tierra Fertil, or Fertile Land through
which it supports local sourcing and supporting small and
medium sized farmers by ensuring their access to the
formal market through secure payment, direct purchases
and training. They also engage in community support
programmes focused on food security and disaster
recovery via volunteer activities and product donations.
24 Murray International Trust PLC
In which year did the Company first invest? 2020
% Holding: 4.0%
Where is its head office? Palo Alto, USA
What is its web address? broadcom.com
Business Fundamentals
Broadcom Inc. is a global technology company that
designs, develops, and supplies semiconductor and
infrastructure software solutions. Its products serve
various sectors, including data centres, networking,
broadband, wireless communications, and industrial
applications. Key offerings include chips for broadband,
Wi-Fi, Bluetooth connectivity, and hardware for storage
and networking infrastructure. Broadcom also provides
enterprise software focused on cybersecurity, mainframe
and server systems, and automation tools. Broadcom
acquires companies that sell market-leading products
with sticky customers, recurring revenue, and high
margins but have excessive operating expenses and
generate below potential profits and cash flows. This
started within semiconductors and has since broadened
into enterprise software, focusing on buying mission-
critical franchises.
What’s Changing?
The critical moving parts are the AI-related businesses,
which generated US$4bn of revenues in 2023 but which
reported a 220% increase in sales in 2024 reaching
US$12.2bn. This has been offset by moderating growth
within its more significant, for now, legacy semiconductor
business, which generates around US$23bn in revenues.
The semiconductor market is largely cyclical, impacted by
the demand for networking, data centre, and mobile
hardware, which ebbs and flows. Broadcom is emerging
from a down-cycle in its non-AI related business, which is
expected to have troughed this year.
Meanwhile, Broadcom has seen tremendous growth in its
AI semiconductor business over the last year, thanks to
large AI cluster buildouts by ‘hyperscalers’ (large scale
data centres that offer scaleable compute, storage and
network resources such as Amazon’s AWS, Google Cloud
or Microsoft Azure) driving demand for its ethernet
networking business and massive growth in its custom
chip business. Over the previous year, Broadcom’s
switching chips, network interface cards, interconnects,
Serialiser/Deserialiser circuits, and optical solutions have
all seen an uptick in demand as Original Equipment
Manufacturers and Communication Service Providers
get their hardware systems ready for the expected
AI revolution.
The M&A strategy has shifted with the last three significant
deals of CA Tech, Symantec and VMware focusing on
software. The shift toward software makes strategic
sense; it reduces earnings volatility as the business
transitions to more Software as a Service (SaaS) based
revenues, negating the cyclical nature of semiconductor
revenues to an extent. There is execution risk as the
entrance into software is relatively recent. However,
results over the last few years show that its integration
model of aggressive cost cutting has continued to lead to
value creation.
Investment Case Studies
Continued
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Valuation & Investment Insight
The Company first acquired a position in Broadcom amid
the volatility due to the COVID-19 outbreak in 2020. The
stock was trading below US$20 and yielding around 7%,
but this is not the case today. The stock is currently trading
on 37x earnings for 2025 and while the dividend growth
remains attractive at 14% annualised over the last five
years, the yield has contracted to 1%. The rerating of the
stock over the last few years is justified. Broadcom's mix of
software revenue has nearly doubled with the addition of
VMware, as software typically garners a higher multiple
because of its more predictable and repeatable
characteristics and the structurally higher gross margins
of the software business. In addition, across its
semiconductor markets, the company is seeing strong
growth in its custom chip business and tailwinds to its core
networking and mobile businesses from AI. These growth
catalysts layer on top of Broadcom's strong history of
execution on synergies and deleveraging post
acquisitions. Free cash flow generation continues to be
strong, and it continues to be redeployed into shareholder
returns and M&A. The company has also maintained its
discipline on the cost front, supporting solid earnings
expansion. All of these factors lead to the view that there is
still the opportunity for attractive upside in the stock.
ESG
Many of Broadcom's products focus on energy efficiency
as a key selling point, with many chips finding their way into
products driving the energy transition. A second Trump
presidency may well raise uncertainty around clean energy
initiatives and regulations aimed at promoting cleaner
energy, however, longer term the belief remains that the
shift towards renewable energy is ultimately unstoppable.
President Trump famously blocked the proposed
acquisition of Qualcomm by Broadcom in 2018 on national
security concerns and the politicisation of the
semiconductor and AI industries is expected to continue.
Broadcom came under review for anti-competitive
practices focused primarily on its set-top box business in
2020. Outstanding issues have now been settled, and
engagement with the company has been encouraging,
suggesting a more vigorous effort around compliance
training and ethics. The company has, in a US context,
above average Board independence and diversity and is
generally regarded as having best-in-class talent
management practices, evidenced by its solid M&A
execution over the years. Human capital development will
remain a significant risk from an ESG perspective as M&A
and associated cost-cutting are an established pillar of the
company's strategy. However, the company is making solid
efforts to integrate 'acquired' employees and has been
proactive with engagement surveys to flag any issues.
26 Murray International Trust PLC
In which year did the Company first invest? 2009
% Holding: 1.0%
Where is its head office? Rio de Janeiro, Brazil
What is its web address? vale.com
This case study on Vale seeks to update shareholders on a
stock that has been held on their behalf for a number of
years which has faced considerable issues. In it we detail
the significant engagement that the management team
has had with the company in over fifty meetings.
Business Fundamentals
Vale is one of the world's largest metals and mining
companies and one of the world's largest producers of
iron ore, nickel and copper. With greenfield mineral
exploration operations in six countries, the company
operates an extensive logistics system integrating its
mines with railroads, ports, and ships. Additionally, it has
hydroelectric plants in Brazil, Canada, and Indonesia and
pursues investments in energy business directly and
through associates and joint ventures.
ESG
Vale has, unfortunately, had a chequered history
concerning its health and safety record and
environmental impact, having had two tragic accidents at
two separate tailings dams.
Dam Incidents
On 5 November 2015, the Fundão tailings dam collapsed
at the Germano iron ore mine, operated by Samarco, a
joint venture between Vale and BHP Billiton. This disaster
released approximately 43.7m cubic meters of toxic mud,
devastating the villages of Bento Rodrigues and Paracatu
de Baixo, killing 19 people, and contaminating the Doce
River. The environmental impact was immense, affecting
water supplies and ecosystems along a 668-kilometre
stretch to the Atlantic Ocean.
On January 25, 2019, a tailings dam failed at the Córrego
do Feijão iron ore mine, owned by Vale. This disaster
released a massive mudflow that engulfed the mine's
headquarters, nearby houses, and farms, resulting in 270
deaths. The dam had been classified as low risk, but
monitoring and structural integrity issues were
later revealed.
Why remain invested?
As investors, we can take differing courses of action when
something of such a tragic nature happens with any
investment. The first would be to disinvest the holding and
possibly exclude the company from being investable.
Another is to continue and hold the investment and to try
and ensure, as much as is possible, that the company
make good on their responsibilities to compensate the
individuals involved, to try and repair the damage done
to the local environment and to work with and lobby
for improvements to health and safety and
environmental practices.
Tailings Dam Operations
Vale quickly announced a commitment to eliminate all
upstream tailings dams in Brazil, ensuring they no longer
store mining waste and removing their potential hazard to
nearby communities and the environment. As of 2024,
Vale has completed 16 out of 30 planned dam de-
characterisations and aims to remove all dams from the
"high risk" label by 2025 and complete all works by 2035.
This has taken some considerable time and cost over
US$1bn to date, as the process involves draining and
safely removing tailings, often using remote-controlled
equipment to reduce risks. Vale also constructs backup
containment structures to mitigate the impact of potential
failures during the process.
The International Council on Mining and Metals (ICMM),
the United Nations Environment Programme (UNEP) and
the Principles for Responsible Investment (PRI) co-
convened the Global Tailings Review in light of these
accidents to establish an international standard for the
safer management of tailings storage facilities. The Global
Industry Standard on Tailings Management (GISTM) was
the outcome, and Vale aims to implement this in all tailing
storage facilities by 2025.
Investment Case Studies
Continued
Murray International Trust PLC 27
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Corporate Governance Changes
Since the catastrophic tailings dam failures, following
discussions with and pressure from investors, Vale has
implemented significant changes to its corporate
governance to enhance safety, accountability, and
transparency. Vale's Board of Directors now includes a
minimum of seven independent members, ensuring a
majority of the board is independent. The election of
board members is now conducted by individual vote, and
the chairman and vice-chairman are elected by all
shareholders, not just the board. This promotes greater
shareholder involvement and transparency. Vale
introduced the role of a Lead Independent Director to
provide additional oversight and leadership among the
independent directors. The company also established a
new Safety Committee responsible for overseeing and
advising on all safety-related matters, including
developing and implementing safety policies, monitoring
compliance with safety regulations, and ensuring that
safety practices are integrated into the company's overall
strategy. The committee comprises independent
members of the Board of Directors, which helps ensure
unbiased oversight and accountability
28 Murray International Trust PLC
What’s Changing?
The initial thesis for Vale centred around the China
economic expansion story of the late 1990s and early
2000s. This theme involved rapid urbanisation,
industrialisation, rising incomes, and government policies
encouraging home ownership and property investment.
The Chinese government invested heavily in building
roads, railways, airports, and other infrastructure projects
to support economic development and improve
connectivity. This demand for steel led to a very supportive
environment, and Vale, one of the lowest-cost producers
of high-quality iron ore, benefitted as a result. Despite
more recent uncertainties related to the Chinese macro-
outlook and iron ore demand, recent signals from Chinese
policymakers suggest there is room for policy adjustments
to mitigate potential risks. While the company itself
expects demand contraction in China, steel demand is
expected to grow by around 9% out to 2030, supported by
emerging markets such as India, Africa and South East
Asia, driven by urbanisation, onshoring of global value
chains and energy transition trends.
As the business has faced operational and regulatory
constraints due to the accidents and its required response,
the production bottlenecks and licensing challenges have
forced the company to focus on quality. The company has
made clear its intention to be one of the leading suppliers
of high-grade iron ore and to focus on a value over
volume strategy. Higher grade iron ore contains a greater
percentage of iron and fewer impurities such as silica and
phosphorus. This means it requires less processing, less
energy, and fewer raw materials to make the same
amount of steel, aiding steelmakers in becoming more
efficient and reducing their emissions. The
decarbonisation of the steel industry will increase
demand for and premium paid for this higher grade
iron ore product.
In addition to its ferrous metal operations, the supply of
minerals used in clean energy technologies such as solar
and wind farms and electric and hybrid vehicles should
continue to support the demand for nickel and copper.
In October 2024, Vale, along with Samarco and BHP
Billiton, reached a definitive settlement with Brazilian
authorities for the full reparation of the Fundão dam
collapse. The settlement is valued at approximately
R$170bn, or around US$30bn. The settlement includes
R$100bn in instalment payments over twenty years to
fund compensatory programs, R$32bn for individual
indemnification, resettlement and environmental
recovery, and R$38bn already invested in remediation and
compensation measures
Valuation & Investment Insight
Vale has a strong market position and one of the lowest
production costs in the industry. The stock generates
robust and significant cashflows supporting its 12%
dividend yield. It trades below its peers on around 3.2x of
forecast 2025 EV/EBITDA and is in line with its historical
average. It should offer attractive upside in the future,
assuming production growth in line with guidance and a
slight recovery in base metal prices.
Investment Case Studies
Continued
Murray International Trust PLC 29
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
The Board uses a number of financial and operating performance measures to assess the Company’s success in
achieving its investment objective and to determine the progress of the Company in pursuing its investment policy. The
Board has identified the Company’s main KPIs (refer to Glossary on pages 127 to 129 for definitions) which it considers at
each Board meeting. These KPIs are as follows:
KPI
Description
Dividend
Absolute Growth: The Board’s aim is to seek to increase the Company’s revenues over time in order to
maintain an above average dividend yield. The Board measures average yield against the rate of RPI and
against other investment options including the average of the Peer Group (the AIC Global Equity Income
sector excluding market capitalisations below £100m). Dividends paid over the past 10 years are set out
on page 32 together with a chart showing the Peer Group and Reference Index long-term yields. There is
also a graph showing dividend growth compared to inflation on page 31.
Relative Yield: The Board also monitors the yield level against the Reference Index, the rate of RPI and other
investment trusts’ yields within the Company’s Peer Group over a range of time periods, taking into
consideration the differing investment policies and objectives employed by those companies.
NAV Performance
Absolute Performance: The Board considers the Company’s NAV total return figures to be the best
indicators of performance over time and these are the main indicators of performance used by the Board.
Relative Performance: The Board also measures NAV total return performance against the Reference
Index.
A graph showing the NAV and Reference Index total returns is shown on page 31.
Share Price
Performance
Absolute Performance: The Board monitors the share price absolute return over time.
Relative Performance: The Board also monitors the price at which the Company’s shares trade relative to
the Reference Index on a total return basis over time and a graph showing absolute and relative share
price performance is shown on page 31. In addition, there is further commentary on the performance in
the Chair’s Statement and Investment Manager’s Review.
Share Price
Discount/Premium
to NAV
The discount/premium relative to the NAV per share represented by the share price is closely monitored
by the Board. The objective is to avoid large fluctuations in the discount/premium by the use of share
buybacks and the issuance of new shares or the sale of Treasury shares, subject to market conditions. A
graph showing the share price premium/(discount) relative to the NAV and investment trust sector
(excluding VCTs) is shown on page 31.
Gearing The Board’s aim is to ensure that gearing as a percentage of NAV is kept within the Board’s guidelines
issued to the Manager as disclosed on page 33.
Ongoing Charges
Ratio
Absolute Performance: The Board monitors the level and longer-term trend of the Company’s OCR in
absolute terms.
Relative Performance: The Board also monitors the level and relative trend of the OCR versus the
Company’s Peer Group, taking into consideration the differing investment policies and objectives
employed by those companies.
A key element of the OCR is the management fee which is reviewed regularly to ensure that it remains
competitive against the peer group. Details of the annual OCR trend are disclosed on page 30 and there is
a chart showing published OCR data for the Peer Group on page 32.
Key Performance Indicators
(
KPIs
)
30 Murray International Trust PLC
Total Return
% Return 1 year 3 year 5 year 10 year
Share price
AB
+4.5 +27.5 +29.5 +99.1
Net asset value per Ordinary share
A
+8.1 +27.7 +47.0 +126.7
UK RPI +3.5 +23.4 +34.3 +52.3
Reference Index
C
+19.8 +28.5 +65.0 +175.5
A
Considered to be an Alternative Performance Measure (see page 120 for more details).
B
Mid to mid.
C
Reference Index comprising 60% FTSE World ex UK Index/40% FTSE World UK Index up to April 2020 and 100% FTSE All World TR Index from May 2020.
Source: aberdeen Group, Morningstar & Lipper
Ten Year Financial Record
Year end
A
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Total revenue (£’000) 67,020 77,333 79,471 77,105 82,417 68,918 78,737 88,745 88,833 84,216
Per Ordinary share (p):
Net asset value 169.8 227.1 250.3 221.6 238.0 227.6 248.1 258.7 268.8 278.4
Share price 165.9 237.6 253.6 226.4 252.0 226.0 231.2 266.8 258.0 257.5
Net revenue return
B
9.1 10.2 10.4 9.9 10.8 9.3 10.3 12.0 12.1 11.6
Dividends
C
9.3 9.5 10.0 10.3 10.7 10.9 11.0 11.2 11.5 11.8
Dividend cover 0.99x 1.08x 1.04x 0.96x 1.01x 0.86x 0.94x 1.07x 1.05x 0.98x
Revenue reserves (£’000) 64,767 70,963 75,252 73,563 75,747 66,764 62,967 69,239 75,132 74,182
Shareholders’ funds (£’bn) 1.091 1.448 1.599 1.420 1.539 1.462 1.561 1.617 1.669 1.679
Ongoing charges ratio(%)
D
0.75 0.68 0.64 0.69 0.65 0.68 0.59 0.52 0.53 0.52
A
Figures for 2015-2022 have been restated to reflect the 5:1 sub-division on 24 April 2023.
B
Net revenue return per Ordinary share has been based on the average Ordinary share capital during each year (see note 9 on page 97).
C
The figure for dividends per share reflects the years to which their declaration relates and not the years they were paid.
D
Considered to be an Alternative Performance Measure as defined on page 119.
Performance Track Record
Murray International Trust PLC 31
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Share Price (Discount)/Premium to NAV (%)
Ten years to 31 December 2024
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
10
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
MINT Discount Inv Trust ex VCTs Sector Average Discount
Net Asset Value and Share Price Total Return
(with net dividends reinvested) rebased to 100
Ten years to 31 December 2024
50
100
150
200
250
300
31/12/2014 31/12/2016 31/12/2018 31/12/2020 31/12/2022 31/12/2024
NAV
Share Price
UK RPI
Reference Index
Comparison of Net Asset Value Total Return and Dividend Growth
to Inflation rebased to 100
Ten years to 31 December 2024
80
100
120
140
160
180
200
220
240
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
MINT NAV total return
(CAGR 8.5%)
MINT dividend growth
(CAGR 3.0%)
UK RPI (CAGR 4.3%)
32 Murray International Trust PLC
Ten Year Dividend Yield Comparison at 31 December
0
1
2
3
4
5
6
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Dividend yield (%)
Murray Intl. - Dividend Yield Peer Group (ex MYI) Average Yield FTSE All-World Dividend Yield
Dividend per Share
0
2
4
6
8
10
12
14
1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015 2018 2021 2024
Dividend per share (restated for share
split in April 2023)
Dividend funded from revenue earnings Dividend partially funded from reserves
Peer Group Ongoing Charges Ratios (OCR)
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
- 500 1,000 1,500 2,000 2,500 3,000 3,500
Reported Ongoing Charges Ratio
Market Capitalisation (£m)
MYI
Source: LSEG Datastream & Annual Reports February 2025
Performance Track Record
Continued
Long Term
Dividend Growth
3.0% p.a.
Long Term
NAV Return
+8.5% p.a.
Long Term
UK RPI
+4.3% p.a.
Murray International Trust PLC 33
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Investment trusts, such as the Company, are long-term
investment vehicles. Typically, investment trusts are
externally managed, have no employees, and are
overseen by an independent non-executive board of
directors. Your Company’s Board of Directors sets the
investment mandate, monitors the performance of all
service providers (including the Manager) and is
responsible for reviewing strategy on a regular basis. All of
this is done with the aim of preserving and enhancing
shareholder value over the longer term.
Reference Index
The Company does not have a Benchmark. However,
performance is considered against a number of measures
including a Reference Index, the FTSE All World TR Index,
which was adopted in April 2020. Given the composition
of the portfolio and the Manager’s investment process, it is
likely that the Company’s investment performance may
diverge, possibly significantly, from this Reference Index.
Longer term performance is measured against a blend of
the old composite Benchmark (40% of the FTSE World UK
Index and 60% of the FTSE World ex-UK Index) up to 27
April 2020 and the FTSE All World TR Index thereafter.
Investment Objective
The aim of the Company is to achieve an above average
dividend yield, with long-term growth in dividends and
capital ahead of inflation, by investing principally in global
equities.
Investment Policy
There are a number of elements set out in the investment
policy delegated to the Manager which are set out below:
Asset Allocation
The Company’s assets are currently invested in a
diversified portfolio of international equities and fixed
income securities spread across a range of industries and
economies. The Company’s investment policy is flexible
and it may, from time to time, hold other securities
including (but not limited to) index-linked securities,
convertible securities, preference shares, unlisted
securities, depositary receipts and other equity-related
securities. The Company may invest in derivatives for the
purposes of efficient portfolio management in the
furtherance of its investment objective.
The Company’s investment policy does not impose any
geographical, sectoral or industrial constraints upon the
Manager. The Board has set guidelines which the
Manager is required to work within. It is the investment
policy of the Company to invest no more than 15% of its
gross assets in other listed investment companies
(including listed investment trusts), at the time of
purchase. The Company currently does not have any
investments in other investment companies. The
Manager is authorised to enter into stocklending contracts
and the Company undertakes limited stocklending
activity.
Risk Diversification
The Manager actively monitors the Company’s portfolio
and attempts to mitigate risk primarily through
diversification. The Company is permitted to invest up to
15% of its investments by value in any single holding (at the
time of purchase) although, typically, individual
investments do not exceed 5% of the total portfolio.
Gearing
The Board considers that returns to shareholders can be
enhanced by the judicious use of borrowing. The Board is
responsible for the level of gearing in the Company and
reviews the position on a regular basis. Any borrowing,
except for short-term liquidity purposes, is used for
investment purposes or to fund the purchase of the
Company’s own shares.
Total gearing will not in normal circumstances exceed
30% of net assets with cash deposits netted against the
level of borrowings. At the year end, there was net gearing
of 6.1% (calculated in accordance with Association of
Investment Companies guidance). Particular care is
taken to ensure that any bank covenants permit
maximum flexibility in investment policy.
Changes to Investment Policy
Any material change to the investment policy will require
the approval of the shareholders by way of an ordinary
resolution at a general meeting.
Investment Objective and Investment Policy
34 Murray International Trust PLC
Introduction
The purpose of the Company, which is in its 119
th
year, is to
act as a vehicle to provide, over time, financial returns
(both income and capital) to its shareholders. The
Company’s investment objective is disclosed on page 33.
The activities of the Company are overseen by the Board
of Directors of the Company.
The Board is required to describe to the Company’s
shareholders how the Directors have discharged their
duties and responsibilities over the course of the financial
year under section 172 (1) of the Companies Act 2006
(the “s172 Statement”). This s172 Statement, from
‘Introduction’ on page 34 up to and including ‘The Work of
the Board and its Principal Decisions for the Year’ on page
38, provides an explanation of how the Directors have
promoted the success of the Company for the benefit of
its members as a whole, taking into account the likely
long-term consequences of decisions, the need to foster
relationships with all stakeholders and the impact of the
Company’s operations on the environment.
Our Culture
The Board seeks to ensure that the Company and the
Board operate with a transparent culture where all parties
are treated with respect and are provided with the
opportunity to offer practical challenge and participate in
constructive debate which is focused on achieving the
expectations of shareholders and other stakeholders. The
Board reviews the culture and manner in which the
Manager operates at its regular meetings and receives
regular reporting and feedback from the other key
service providers.
Our Business Model
The mechanics of how the Company operates are set out below. These mechanics, which have evolved over time, are
designed to protect stakeholders’ interests:
Promotin
g
Your Company’s Success
Murray International Trust PLC 35
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Company Policies
Environmental, Community, Social and Human Rights Issues
The Company has no employees as the Board has
delegated day-to-day management and administrative
functions to abrdn Fund Managers Limited. There are,
therefore, no disclosures to be made in respect of
employees. The Company’s socially responsible
investment policy is outlined below.
Due to the nature of the Company’s business, being a
Company that does not offer goods and services to
customers, the Board considers that it is not within the
scope of the Modern Slavery Act 2015 because it has no
turnover. 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 Company,
therefore, is not required to make a slavery and human
trafficking statement.
Marketing and Promotional Policy
The Board recognises the importance of communicating
the long-term attractions of your Company to current and
prospective investors both for improving liquidity and for
enhancing the value and rating of the Company’s shares.
The Board believes an 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 companies under its
management. The Company also supports the Manager’s
investor relations programme which involves regional
roadshows, promotional and public relations campaigns.
The Company’s financial contribution to these
programmes is matched by the Manager. The Manager
reports at least quarterly to the Board providing an
analysis of the promotional activities as well as updates on
the shareholder register and any changes in the make-up
of that register.
Global Greenhouse Gas Emissions and Streamlined Energy
and Carbon Reporting (“SECR”)
All of the Company’s principal 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 (<40MWH/year) and exempt from
Streamlined Energy and Carbon Reporting obligations.
Socially Responsible Investment Policy
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
which has sub-delegated that authority to the
Investment Manager.
aberdeen 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. 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 at each meeting on
stewardship (including voting) issues.
Board Diversity Policy
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 the Board to
fulfil its obligations. The Board also recognises the benefits
and is supportive of, the principle of diversity in its
recruitment of new Board members. The Board will not
display any bias for age, gender, race, sexual orientation,
religion, ethnic or national origins, or disability in
considering the appointment of its Directors. However, the
Board will continue to ensure that all appointments are
made on the basis of merit against the specification
prepared for each appointment and, therefore, the
Company does not consider it appropriate to set diversity
targets. At 31 December 2024, there were four female
Directors and two male Directors on the Board. Further
information on Board diversity may be found in the
Directors’ Report on page 60.
36 Murray International Trust PLC
Our Engagement with Stakeholders
The diagram below illustrates the relationship with the Company and its key stakeholders.
Shareholders
Shareholders are key stakeholders in the Company – they look to the Manager to achieve the investment objective over
time and to deliver a regular growing income together with capital growth. Therefore the Directors place a great deal of
importance on communication with shareholders and the table overleaf provides further details on the various methods
of interaction. The Board’s policy is to communicate directly with shareholders and their representative bodies without
the involvement of the aberdeen Group (either the Company Secretary or the Manager) in situations where direct
communication is required and the Directors are available to meet major shareholders on an annual basis.
Promotin
g
Your Company’s Success
Continued
Murray International Trust PLC 37
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
The following table describes some of the ways we engage with our shareholders:
AGM The AGM provides an opportunity for the Directors to engage with shareholders,
answer their questions and meet them informally. The next AGM is scheduled for 24
April 2025 in London. The Board looks forward to seeing shareholders in-person at
the AGM which will be followed by refreshments and an opportunity for
shareholders to meet the Directors and the investment management team.
Online Shareholder Presentation Following the success of previous online shareholder presentations, the Board has
decided to hold another Online Shareholder Presentation at 11.00 a.m. on 31 March
2025 and shareholders are encouraged to register and attend, whether they are
planning to attend the AGM or not. Further details are provided in the Chair’s
Statement on pages 9 and 10.
Annual and Half Yearly Reports We publish a full Annual Report in March/April each year that contains a strategic
report, governance section, financial statements and additional information; we also
publish a Half Yearly Report each August/September. The reports are available on
the Company’s website and in paper format and are widely distributed to parties
who have an interest in the Company’s performance.
Company Announcements We release a full set of financial results at the half year and full year stage. We also
issue announcements for all substantive news relating to the Company.
Shareholders can find these announcements on the Company’s website. Updated
net asset value figures are announced on a daily basis.
Monthly Factsheets The Manager publishes monthly factsheets on the Company’s website including
commentary on portfolio and market performance.
Website Our website contains a range of information on the Company and includes up to
date performance information as well as a full monthly portfolio listing of our
investments. Details of financial results and the investment process together with
Company announcements and contact details can be found here:
murray-intl.co.uk.
Social Media Shareholders can access up to date news on the Company and management team
by following the dedicated Murray International page on LinkedIn.
Other Shareholder Engagement We seek regular engagement with the Company’s major shareholders and also
prospective shareholders through annual and interim roadshow meetings
undertaken in conjunction with the Manager and Broker. Such regular meetings may
take the form of joint presentations with the Investment Manager or meetings
directly with a Director where any matters of concern may be raised directly in
order to understand their views on governance and performance. In addition, the
management team present at brokers’ conferences and regularly conduct
webcasts and webinars, some of which are available on the Company’s website.
Shareholders who wish to be kept updated on the Company can also register for
email updates on the website. The Board supports the Manager’s proactive
marketing which also seeks to keep existing shareholders up to date and also to
attract new shareholders over time.
Correspondence The Board welcomes queries from shareholders and responds to letters and emails
from shareholders on a range of issues. Refer to page 124 for contact details.
38 Murray International Trust PLC
The Manager
The key service provider for the Company is the Manager.
The performance of the Manager is reviewed in detail at
each Board meeting. The Manager’s investment process
is outlined on pages 19 to 21; further information on the
Board’s oversight of, and engagement with, the Manager
is provided below and on page 62.
Other Service Providers
The other key stakeholder group is that of the Company’s
other third party service providers. The Board is
responsible for selecting the most appropriate outsourced
service providers and monitoring the relationships with
these suppliers regularly in order to review their
performance and ensure a constructive working
relationship. Our service providers look to the Company to
provide them with a clear understanding of the
Company’s needs in order that those requirements can
be delivered efficiently and fairly. The Board, in
conjunction with the Management Engagement
Committee, ensures that the arrangements with service
providers are reviewed at least annually in detail including
consideration of complaints. The aim is to ensure that
contractual arrangements are good value for money,
remain in line with best practice, services being offered
meet the requirements and needs of the Company and
performance is in line with the expectations of the Board,
Manager and other relevant stakeholders. Reviews
include those of the Company’s depositary and custodian,
share registrar and broker. The Audit and Risk Committee
reviews the terms of engagement of the auditor.
The Work of the Board and its Principal Decisions for the Year
Pursuant to the Board’s aim of promoting the long-term success of the Company, the Directors have undertaken the
following work and taken the following principal decisions during the year:
Background to Decision Action
Continuing Appointment of the Manager - It is the
Board’s duty to shareholders to ensure that the
Manager delivers on the investment objective
The Board, through the Management Engagement
Committee (MEC), annually carries out a formal review of,
amongst other things, the Manager’s investment
performance and process, and the appropriateness of the
management fee. The continuing appointment of the
Manager was confirmed by the MEC as described further on
page 62.
Portfolio Manager Succession - The Board had
been working with the Manager for some time to
ensure appropriate succession plans for the
named portfolio manager
The Board has supported the orderly transition of
management responsibilities to Martin Connaghan and
Samantha Fitzpatrick as Co-Managers following the
retirement of Bruce Stout in June 2024.
Premium and Discount Management - The Board
has continued to review the trading in the
Company’s shares with the aim of reducing share
price volatility in normal market conditions so that
the discount or premium to NAV does not
become excessive
During the year, 17.7m shares were purchased into Treasury
at a weighted average discount of 9.6% as the Company’s
share price continued to trade at a discount to NAV. Further
details are provided in the Chair’s Statement on page 9.
Promotin
g
Your Company’s Success
Continued
Murray International Trust PLC 39
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Increased and Fully Covered Dividends - The Board
is conscious of the importance to shareholders of
the dividend and of the need to marry this with a
prudent approach to the management of the
Company’s distributable reserves
The Company’s aim is to continue to pay a progressive and
rising dividend, supported in so far as possible by sufficient
income being received each year from portfolio companies.
The Board is recommending a final dividend of 4.3p per
share (2023: 4.3p). If this is approved, the total dividend for
the year, including the three increased interim dividends of
2.4p per share, would therefore be 11.8p, an increase of 2.6%
over the prior year. This year’s dividend is not fully covered
from earnings, however the Board decided that it was
appropriate to recommend an increased dividend funded
by a small transfer from revenue reserves. The chart on
page 32 shows that over the long term the trend is for the
dividend to be covered. Further information is included on
page 8 of the Chair’s Statement.
Board Composition and Responsibilities -
Shareholders’ interests are best served by
ensuring a smooth and orderly refreshment of the
Board over time and the Board has a long-term
succession programme in place
Mrs Mackesy will retire from the Board at the AGM in April
2025, having completed nine-years as a Director. The Board
has prepared a detailed specification and initiated a
comprehensive search using the services of an independent
recruitment consultant. The result of the search will be
confirmed to shareholders in due course. In addition the
Board has considered the role of Senior Independent
Director (“SID”) and Ms Colquhoun will become SID from the
conclusion of the AGM in April 2025. Ms Colquhoun has also
been appointed Chair of the Management Engagement
Committee from 1 January 2025.
Gearing - The use of gearing is a distinguishing
feature of investment trusts and allows the
Company to use borrowings to enhance
shareholder returns over the longer term
The Board monitors the effectiveness of gearing in
conjunction with advice from the Manager. In May 2024, the
Company repaid a £30m revolving credit facility which
matured with RBSI as interest rates at that time were not
competitive. The Manager continues to review the
commercial terms available and the Board will consider
increasing the level of gearing in the future if it is in
shareholders’ interests to do so.
Third Party Supplier Oversight – As an investment
trust with a non-executive Board the Company
relies heavily on services provided by external
parties and the Board conducts an annual review
of all third party service providers
As part of its annual review, the Board has reviewed in detail
the Manager’s planning and delivery of sales, investor
relations and marketing plans. For 2025 the Board has
negotiated a revised, lower more focused promotional
budget with amended key targets. In addition the Board has
appointed a PR advisor, Burson Buchanan, to assist in
promoting the Company. Furthermore, following a
comprehensive tender process the Board decided to
appoint JPMorgan Cazenove as the Company’s corporate
broker with effect from July 2024.
40 Murray International Trust PLC
The Board is responsible for setting and monitoring
policies designed to manage risk and to ensure the
long-term viability of the Company.
Risk Management
There are a number of risks which, if realised, could have a
material adverse effect on the Company and its financial
condition, performance and prospects. A summary of the
principal risks is set out below, together with a description
of the mitigating actions taken by the Board. The principal
risks associated with an investment in the Company’s
shares are published monthly on the Company’s fact
sheet and can also be found in the pre-investment
disclosure document (“PIDD”) published by the Manager,
both of which are available on the Company’s website.
The Board regularly undertakes a robust review of the
principal risks and material uncertainties facing the
Company, including those that would threaten its business
model, future performance, solvency or liquidity. The
Board has prepared its own risk register which identifies
potential risks relating to (i) Investment Strategy and
Objectives; (ii) Investment Portfolio and Performance; (iii)
Operations and Governance; (iv) Financial; and (v) Macro
Economic and Geo-Political. The Board considers the
potential cause and possible impact of these risks as well
as reviewing the controls in place to mitigate these
potential risks. A risk is rated by having a likelihood and an
impact rating and the residual risk is plotted on a “heat
map” and is reviewed at least twice a year.
The Board discusses with the Manager areas where there
may be risks emerging and maintains a register of these.
In the event that an emerging risk has gained significant
weight or importance, that risk is categorised and added
to the Company’s risk register and is monitored
accordingly as has happened with AI during the year,
previously considered to be an emerging risk, it is now
incorporated within the macro economic risks.
The Board notes the Manager’s robust and disciplined
investment process, which continues to focus on long-
term company fundamentals including balance sheet
strength and deliverability of sustainable earnings growth,
as further described in the Investment Manager’s Review
on pages 11 to 18 and on pages 19 to 21.
The design, implementation and maintenance of controls
and procedures to safeguard the assets of the Company
and to manage its affairs properly extends to operational
and compliance controls and risk management. Further
information about the Company’s internal controls is
included in the Directors’ Report on pages 64 and 65.
Significant matters relating to the work of the Audit and
Risk Committee are discussed in the Report of the Audit
and Risk Committee on page 72 and further detail on
financial risks and risk management is disclosed in note 18
to the financial statements. In all other respects, the
Company’s principal risks and uncertainties have not
changed materially since 31 December 2024.
Risk Mana
g
ement and Viability
Murray International Trust PLC 41
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Principal Risks Trend Mitigating Action
Investment strategy and objectives – if the
Company’s investment objective becomes
unattractive and the Company fails to
adapt to changes in investor demand
(including in relation to ESG and climate
change) the Company may become
unattractive to investors, leading to
decreased demand for its shares and a
widening discount.
The Board keeps the level of discount and/or premium at
which the Company’s shares trade as well as the investment
objective and policy under review. The Board holds an annual
strategy meeting where it reviews updates from the Manager
and investor relations reports, and the Broker reports on the
market. In addition, the Board is updated at each Board
meeting on the makeup of and any movements in the
shareholder register. The Directors attend meetings with, and
respond to correspondence from, shareholders to keep
abreast of investor opinion. In addition, the Board has
carefully reviewed the Company’s promotional and
marketing plans.
Investment Portfolio Performance Risk – if
the longer-term performance of the
investment portfolio does not deliver
income and/or capital returns in line with
the investment objective and/or
consistently underperforms market
expectations, the Company may become
unattractive to investors leading to
decreased demand for its shares and a
widening discount.
The Board reviews the investment portfolio performance at
each Board meeting and, amongst other things, seeks
explanations from the Manager where performance deviates
from expectations on either an absolute or relative basis. In
addition, the Directors attend meetings with, and respond to
correspondence from, shareholders to keep abreast of
investor opinion. The Board considers the Manager’s
appointment annually at the Management Engagement
Committee meeting where performance is comprehensively
reviewed alongside other metrics relevant to reappointment.
Operational and Governance Risks – the
Company is dependent on third parties
(and the aberdeen Group in particular) for
the provision of all services and systems.
Any fraud, control failures, cyber threats,
business continuity issues at, or poor service
from, these third parties could result in
financial loss or reputational damage to
the Company.
The Board receives reports from the Manager on internal
controls and risk management at each Board meeting. It
receives assurances from all its significant service providers,
including the depositary, as well as back to back assurance
from the Manager at least annually. Further details of the
internal controls which are in place are set out on pages 64
and 65.
42 Murray International Trust PLC
Principal Risks Trend Mitigating Action
Financial Risks – the level of the Company’s
gearing, if inappropriate, and the financial
risks associated with the portfolio, including
the impact of movements in foreign
currency exchange rates, could result in
capital losses and/or reduced income for
the Company.
The Board sets a gearing limit and receives regular updates
on the actual gearing levels the Company has reached from
the Manager together with the assets and liabilities of the
Company and reviews these at each Board meeting. In
addition, aFML, as Alternative Investment Fund Manager, in
conjunction with the Board, has set an overall leverage limit of
2.0x on a commitment basis (2.5x on a gross notional basis)
and provides regular updates to the Board (see page 124).
The financial risks associated with the Company include
market risk, liquidity risk and credit risk, all of which are
mitigated in conjunction with the Manager. Further details of
the steps taken to mitigate the financial risks associated with
the portfolio are set out in note 18 to the financial statements.
The Board is cognisant of the risks associated with the impact
of currency on revenue streams and, given the cost and
imperfect nature of attempting to hedge foreign dividend
income, has resolved not to implement any hedging.
Macro Economic and Geo-Political Risks – the
macro economic and geo-political
environment including the risk of regional
conflicts, supply chain interruptions,
deglobalisation and future pandemics,
within which the Company operates is
inherently uncertain and therefore could
affect the Company’s performance or
operations in unforeseen ways
The Board discusses macro economic and geo-political issues
with the Manager at each Board meeting and the steps being
taken to limit their impact on the Company, its operations and
portfolio.
The global geo-political environment is increasingly
destabilised by conflicts, tensions and other uncertainties
which include, amongst other things, the ramifications on the
accepted global alliances following the election of President
Trump in the US. The global macro-economic outlook remains
cautious and is further influenced by the evolution and
adoption of AI amongst other things.
Risk Mana
g
ement and Viability
Continued
Murray International Trust PLC 43
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Viability Statement
The Company does not have a fixed period strategic plan
but the Board formally considers risks and strategy at
least annually. The Board considers the Company, with no
fixed life, to be a long-term investment vehicle but, for the
purposes of this viability statement, has decided that a
period of five years is an appropriate period over which to
report. The Board considers that this period reflects a
balance between looking out over a long-term horizon
and the inherent uncertainties of looking out further than
five years.
In assessing the viability of the Company over the review
period, the Directors have considered the operational
resilience of the Company including the regular updates
and reporting received from the Manager and have
focused upon the following factors:
· The principal and emerging risks detailed in the
Strategic Report on pages 40 to 42;
· The ongoing relevance of the Company’s investment
objective in the current environment;
· The demand for the Company’s shares evidenced by
the historical level of premium and/or discount;
· The level of income generated by the Company and
level of revenue reserves;
· The need to ensure that the Manager and the
Company’s other third party service providers have
suitable processes and controls in place to enable them
to continue to provide their services to the Company;
· The liquidity of the Company’s portfolio - over 93.8% of
the investments are categorised as level 1, held within
active markets and realisable within seven days; and
· The profile of the Company’s £110m gearing provided
by the Loan Notes which do not mature until May 2031
and May 2037.
Accordingly, taking into account the Company’s current
position, the liquidity of the Company’s investments 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 to
meet its liabilities as they fall due for a period of five years
from the date of this Report. In making this assessment,
the Board has considered scenario modelling prepared by
the Manager which analysed the impact of matters such
as significant economic and stock market volatility which
could result in a substantial reduction in the liquidity of the
portfolio, changes in investor sentiment or a significant
reduction in earnings which could all have an impact on
the assessment of the Company’s prospects and viability
in the future.
Virginia Holmes
Chair
5 March 2024
44 Murray International Trust PLC
Portfolio
Murray International Trust PLC 45
The Company maintains a diversified
portfolio of investments. At the year end,
the Company’s portfolio consisted of 49
equity and 13 bond holdings. The Manager
is authorised by the Board to hold between
45 and 150 investments in the portfolio.
46 Murray International Trust PLC
As at 31 December 2024
Taiwan Semiconductor Manufacturing
Broadcom Corporation
Holding: 4.1% Holding: 4.0%
Taiwan Semiconductor Manufacturing is one
of the largest integrated circuit manufacturers
in the world. The company is involved in
component design, manufacturing,
assembly, testing and mass production of
integrated circuits.
Broadcom designs, develops and markets
digital and analogue semiconductors
worldwide. The company offers wireless
components, storage adaptors, networking
processors, switches, fibre optic modules and
optical sensors.
Philip Morris International
Oversea-Chinese Bank
Holding: 3.8% Holding: 3.3%
Philip Morris International is one of the world’s
leading global tobacco companies. It
manufactures and sells leading recognisable
brands such as Marlboro, Parliament and
Virginia Slims. Smoke-free products now
account for c40% of sales and include heat-
not-burn, vapour and oral nicotine products.
Oversea-Chinese Banking Corporation offers
a comprehensive range of financial services
spread across four main business segments.
These include Global Consumer/Private
Banking; Global Wholesale Banking; Global
Treasury & Markets; plus Insurance.
CME Group
Aeroporto del Sureste
Holding: 3.1% Holding: 3.0%
Based in Chicago, USA CME Group operates a
derivatives exchange that trades futures
contracts and options, interest rates, stock
indexes, foreign exchange and commodities.
Grupo Aeroporto del Sureste operates
airports in Mexico. The company holds long-
term concessions to manage airports in
leading tourist resorts and major cities.
AbbVie
Enbridge
Holding: 2.9% Holding: 2.8%
AbbVie Inc is a global pharmaceutical
company, producing a broad range of drugs
for use in speciality therapeutic areas such as
immunology, chronic kidney disease,
oncology and neuroscience.
Enbridge is an energy infrastructure company
that owns and operates extensive pipeline
networks throughout Canada and the US,
transporting crude oil, natural gas, and natural
gas liquids. The company is also involved in
renewable energy projects, including wind
and solar power.
BE Semiconductor
Zurich Insurance
Holding: 2.7% Holding: 2.7%
BE Semiconductor Industries N.V
produces integrated semiconductor
assembly equipment. The business designs,
develops, builds, markets and services
machines that manufacture semiconductor
packages. BE also produces automated
moulding and plating machines and
manufactures leadframes.
Zurich Insurance Group offers a wide range of
insurance products and services, including
general insurance, life insurance, and asset
management services. It serves individuals, as
well as large and small businesses, in over 200
countries worldwide.
© owned by each of the corporate entities in the respective logos
Ten Lar
g
est Investments
Murray International Trust PLC 47
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Valuation Total Valuation
2024 assets
A
2023
B
Company Country £’000 % £’000
Taiwan Semiconductor Manufacturing Taiwan 73,309 4.1 68,091
Broadcom Corporation USA 72,177 4.0 87,573
Philip Morris International USA 67,244 3.8 51,665
Oversea-Chinese Bank Singapore 58,576 3.3 46,314
CME Group USA 55,628 3.1 49,563
Aeroporto del Sureste Mexico 53,274 3.0 83,062
AbbVie USA 51,389 2.9 54,711
Enbridge Canada 50,758 2.8 21,283
BE Semiconductor Netherlands 49,223 2.7 73,070
Zurich Insurance Switzerland 47,454 2.7 40,962
Top ten investments 579,032 32.4
Cisco Systems USA 44,647 2.5 31,704
TotalEnergies France 44,109 2.4 53,377
Telus Canada 41,076 2.3 28,008
Verizon Communications USA 40,902 2.3 29,565
Siemens Germany 39,020 2.2 40,703
Unilever
C
UK & Netherlands 36,302 2.0 43,698
Singapore Telecommunications Singapore 36,054 2.0 26,333
Merck USA 35,748 2.0 38,484
Hong Kong Exchanges Hong Kong 34,242 1.9 24,194
Johnson & Johnson USA 33,836 1.9 30,369
Top twenty investments 964,968 53.9
Shell Netherlands 33,674 1.9 34,945
Enel Italy 33,187 1.9 33,978
Tryg Denmark 32,776 1.8 33,264
Hon Hai Precision Industry Taiwan 32,714 1.8 31,898
British American Tobacco UK 31,669 1.8 25,240
Samsung Electronics Korea 29,696 1.7 44,818
Bristol-Myers Squibb USA 29,370 1.7 26,152
Pernod-Ricard France 28,799 1.6 16,606
BHP Group Australia 27,328 1.5 37,653
Sanofi France 27,016 1.5 27,207
Top thirty investments 1,271,197 71.1
List of Investments
48 Murray International Trust PLC
List of Investments
Continued
Valuation Total Valuation
2024 assets
A
2023
B
Company Country £’000 % £’000
Danone France 26,763 1.5 33,743
Mercedes-Benz Germany 26,585 1.5 –
Walmart de Mexico Mexico 26,132 1.5 36,376
Coca-Cola USA 25,610 1.4 –
Diageo UK 25,370 1.4 8,568
SCB X Thailand 24,660 1.4 21,822
Ping An Insurance China 23,667 1.3 12,766
GlobalWafers Taiwan 23,198 1.3 37,509
Vale do Rio Doce Brazil 18,857 1.0 33,103
Taylor Wimpey UK 18,315 1.0 –
Top forty investments 1,510,354 84.4
Medtronic USA 17,542 1.0 –
Sociedad Quimica Y Minera de Chile Chile 17,410 1.0 28,334
Telenor Norway 17,174 1.0 13,504
Woodside Energy Australia 17,012 1.0 23,268
China Resources Land China 16,189 0.9 19,655
Atlas Copco Sweden 16,146 0.9 26,675
Telkom Indonesia Indonesia 16,133 0.9 24,149
Republic of South Africa 7% 28/02/31
D
South Africa 15,035 0.8 14,369
United Mexican States 5.75% 05/03/26
D
Mexico 14,653 0.8 17,084
Republic of Indonesia 6.125% 15/05/28
D
Indonesia 14,485 0.8 15,078
Top fifty investments 1,672,133 93.5
Telefonica Brasil Brazil 13,685 0.8 19,463
Banco Bradesco Brazil 13,125 0.7 23,753
Republic of Dominica 6.85% 27/01/45
D
Dominican Republic 11,755 0.7 11,702
Petroleos Mexicanos 6.75% 21/09/47
D
Mexico 10,979 0.6 10,264
Republic of Indonesia 8.375% 15/03/34
D
Indonesia 10,770 0.6 11,374
HDFC Bank 7.95% 21/09/26
D
India 6,983 0.4 7,053
Power Finance Corp 7.63% 14/08/26
D
India 6,973 0.4 7,020
Petroleos Mexicanos 5.5% 27/06/44
D
Mexico 5,955 0.3 5,789
Republic of Indonesia 10% 15/02/28
D
Indonesia 4,026 0.2 4,274
Santander 10.375% Non Cum Pref
D
UK 3,547 0.2 3,197
Top sixty investments 1,759,931 98.4