TIDMMYI
RNS Number : 9983I
Murray International Trust PLC
11 August 2023
MURRAY INTERNATIONAL TRUST PLC (the "Company")
Legal Entity Identifier (LEI): 549300BP77JO5Y8LM553
HALF-YEARLY REPORT FOR THE SIX MONTHSED 30 JUNE 2023
The Directors of Murray International Trust PLC report the
unaudited results of the Company for the six months ended 30 June
2023.
Performance Highlights
Net asset value total return(A) Share price total return(A)
Six months ended 30 June 2023 Six months ended 30 June 2023
+2.2% -2.5%
Year ended 31 December 2022 +8.8% Year ended 31 December 2022 +20.6%
Reference index total return(B) (Discount)/premium to net asset
value(A)
Six months ended 30 June As at 30 June 2023
2023
+7.9% -1.5%
Year ended 31 December 2022 -7.3% As at 31 December 2022 +3.1%
Ongoing charges ratio(A) Net gearing(A)
As at 30 June 2023 As at 30 June 2023
0.52% 8.3%
As at 31 December 2022 0.52% As at 31 December 2022 11.2%
(A) Alternative Performance Measure (see below)
(B) FTSE All World TR Index.
Financial Calendar and Highlights
Payment dates of quarterly dividends 16 August 2023
17 November 2023
16 February 2024
17 May 2024
===================================== ==================
Financial year end 31 December
===================================== ==================
Expected announcement of results March 2024
for
year ending 31 December 2023
===================================== ==================
Annual General Meeting (London) 19 April 2024
===================================== ==================
Financial Highlights
30 June 2023 31 December % change
2022
========================================= ============= =========== ========
Total assets less current liabilities
(before deducting prior charges) GBP1,754.7m GBP1,816.6m -3.4
========================================= ============= =========== ========
Net assets GBP1,614.8m GBP1,616.8m -0.1
========================================= ============= =========== ========
Share price per Ordinary share (mid
market)(A) 254.0p 266.8p -4.8(B)
========================================= ============= =========== ========
Net Asset Value per Ordinary share(A) 257.9p 258.7p -0.3(B)
========================================= ============= =========== ========
(Discount)/premium to Net Asset Value
per Ordinary share(C) -1.5% 3.1%
========================================= ============= =========== ========
Net gearing(C) 8.3% 11.2%
========================================= ============= =========== ========
Ongoing charges ratio(C) 0.52% 0.52%
----------------------------------------- ------------- ----------- --------
(A) Comparative figures for the year ended 31 December 2022 have been
restated to reflect the sub-division of each existing Ordinary share
of 25p into five Ordinary shares of 5p each on 24 April 2023.
(B) The movement relates to capital only and does not take account
of the reinvestment of dividends.
(C) Considered to be an Alternative Performance Measure. Further details
can be found below.
Interim Board Report - Chairman's Statement
Background
During this review period, there was little respite from the
inflationary concerns and interest rate hikes that have dominated
the financial backdrop for over eighteen months now. Despite energy
and commodity prices significantly declining from this time last
year, most consumer-driven economies in the Developed World
continue to be squeezed by higher food prices, rising mortgage
rates and dwindling disposable incomes. With the impact of higher
bond yields translating into higher debt servicing costs, genuine
fears over future asset quality are beginning to emerge, with all
areas of bank lending attracting scrutiny. For financial markets,
the divergence between the performance of bonds and equities proved
extremely pronounced: the former constantly fretting over wage
inflation and the erosion of real incomes; and the latter
apparently ignoring the reality of rising recession risks and
downward revisions to growth and corporate profitability. For
individual investors and savers, the holy grail remains capital
appreciation and real returns; the quandary - where to find
them.
Performance and Dividends
The net asset value (NAV) total return, with net income
reinvested, for the six months to 30 June 2023 was 2.2% compared
with 7.9% for the Company's Reference Index (the FTSE All World TR
Index). Over the six-month period, the share price total return was
-2.5%, reflecting a move to trading at a small discount to the NAV.
The Manager's Review contains more information about both the
drivers of performance in the period and the portfolio changes
effected.
Two interim dividends of 2.4p (2022: 2.4p - restated for share
sub-division referred to below) have been declared in respect of
the six months to 30 June 2023. The first interim dividend is
payable on 16 August 2023 to shareholders on the register on 7 July
2023 and the second interim dividend will be paid on 17 November
2023 to shareholders on the register on 6 October 2023.
As stated previously, the Board intends to maintain a
progressive dividend policy given the Company's investment
objective. This means that, in some years, revenue will be added to
reserves while, in others, revenue may be taken from reserves to
supplement earned revenue for that year to pay the annual dividend.
Shareholders should not be surprised or concerned by either outcome
as, over time, the Company will aim to pay out what the underlying
portfolio earns. The Board currently intends in 2023 at least to
match the dividend payout of 11.2p (56.0p per share restated for
share sub-division referred to below) in 2022. At the end of June
2023 the Balance Sheet revenue reserves amounted to GBP70.5m.
Manager Succession
As many Shareholders will be aware, Bruce Stout has been the
Company's lead investment manager since 2004. During that time, he
has been assisted by Martin Connaghan and Samantha Fitzpatrick. In
fact, both have worked with Bruce since 2001, when they joined what
was then Aberdeen Asset Management from Murray Johnstone. Over
recent years, Martin and Samantha's input into the management of
the portfolio, and the Company itself, has increased and many of
you may have met or heard from them at meetings or presentations,
including AGMs and online webinars. Bruce has now advised us of his
intention to retire at the end of June 2024. I am delighted to
announce that Martin and Samantha will take on co-managerial
responsibility for the Company's investments alongside Bruce with
immediate effect, thereby ensuring the smoothest of handovers and
no change in abrdn's approach to the investment management of the
Company going forward. It is premature of me to thank Bruce for all
his efforts on behalf of the Company and I am sure that many of you
will have the opportunity to do so personally in the run-up to his
departure in just under a year's time.
Management of Premium and Discount
The Board aims to ensure that neither an excessive discount nor
premium to NAV arises. Subject to existing shareholder permissions
(given at the last AGM) and prevailing market conditions at the
time, the Board intends to continue to buy back shares and issue
new shares (or sell shares from Treasury) if shares trade at a
persistent significant discount to NAV (excluding income) or
premium to NAV (including income). The Board believes that this
process is in the interests of all shareholders.
During the period under review, the Company's share price has
traded at a level that has been close to the NAV per share and no
shares have been purchased for Treasury. However, at times the
share price has traded at a premium to the NAV per share and, as a
result, 1,050,000 shares have been sold from Treasury during the
period raising GBP2.8m for the Company. Subsequent to the period
end 536,157 shares have been purchased for Treasury at a discount
to NAV.
At the latest practicable date, the NAV (excluding income) per
share was 249.47p and the share price was 244.5p equating to a
discount of 2.0% per Ordinary share.
Completion of Share Sub-division
On 24 April 2023, the Company announced the completion of the
sub-division of the Ordinary shares of 25 pence each into five new
Ordinary shares of 5 pence each ("New Ordinary Shares") which had
been approved by shareholders at the Company's Annual General
Meeting held on 21 April 2023. The New Ordinary Shares are listed
and trading on the London Stock Exchange under a new ISIN and
SEDOL, as follows:
-- New ISIN: GB00BQZCCB79
-- New SEDOL: BQZCCB7
The ticker for the New Ordinary Shares remains the same
(MYI).
Migration of abrdn Savings Plans to interactive investor
("ii")
The Company's Manager, abrdn, has been reviewing its current
service provider for its investment trust share plans (abrdn
Savings Plan, Children's Plan and ISA). In May 2022, abrdn
completed the acquisition of ii, the UK's second largest,
award-winning investment platform for self-directing private
investors. Having considered the various options, abrdn has
concluded its review and has decided to migrate its share plan
customers to ii in December 2023, given the strength of the ii
offering, its understanding of and enthusiasm for investment trusts
and the strong representation of investment trusts in its customer
portfolios. Plan participants who have queries in respect of the
migration should raise them directly with abrdn's investor services
team by email at inv.trusts@abrdn.com or by telephone on 0808 500
4000 or 00 44 1268 448 222 (Monday to Friday 9am to 5pm - call
charges will vary).
Gearing
In May 2023, the Company repaid its maturing GBP60 million 5
year fixed rate loan with The Royal Bank of Scotland International
Limited, London Branch. Following the repayment of this loan, the
Company's borrowings are GBP140m which represents a net gearing
level of 8.3% based on the Company's NAV at 30 June 2023 (2022:
11.2%).
The Board considered options to replace this loan but acceptable
commercial terms were not available.
Ongoing Charges Ratio ("OCR")
During the review period, the OCR remained flat, ending the six
months at 0.52% (31 December 2022: 0.52%). The Board remains
focused on controlling costs and delivering value to shareholders.
A full breakdown of the OCR calculation is provided below.
Directorate
As part of the Board's long-term succession planning, the
Directors welcomed Mr Gregory Eckersley to the Board as an
independent non-executive Director on 1 May 2023. Greg is an
experienced equity investor with a professional executive career in
a mix of leadership and asset management roles. Having begun his
investment career at Cigna International Investment Limited, he
gained international experience at Draycott Partners, Alliance
Capital and Alliance Bernstein, managing and overseeing teams
investing in emerging market and global portfolios and, until 2019,
was the global head of internal equities at the Abu Dhabi
Investment Authority.
In addition, the Company has announced the appointment of Ms
Wendy Colquhoun as an independent non-executive Director with
effect from 1 September 2023. Wendy is a qualified solicitor and
was, until May 2020, a partner at international law firm CMS
Cameron McKenna Nabarro Olswang LLP. She has advised investment
trust boards for over 25 years on advisory and transactional
matters and has a thorough understanding of investment trusts and
the regulatory and other challenges they face. She is a
non-executive director of Capital Gearing Trust p.l.c and Schroder
UK Mid Cap Fund plc, and chair of Henderson Opportunities Trust
plc.
As previously announced, I shall be retiring from the Board with
effect from 31 December 2023 at which point Ms Virginia Holmes has
agreed to chair the Company.
Outlook
Despite an increasingly hostile backdrop of higher interest
rates and rising recession risk, our Manager's focus continues to
be on quality and diversification; seeking to deliver the Company's
investment objective through portfolio holdings with robust
corporate profitability, strong free cash flows, low debt-servicing
costs, under-leveraged balance sheets and affordable dividend
distributions and a focus on capital intensive businesses that
offer relative protection from wage hikes which are run by
experienced managements that have negotiated difficult operating
environments in the past. Our Manager avoids discretionary spending
businesses exposed to increasingly financially stretched consumers.
This disciplined and focused approach should enhance longer-term
prospects. The environment of deteriorating credit and asset
quality plus increasing restrictions on debt funding is now a fact
of investment life. Against such a backdrop, great caution is
warranted and is being exercised.
Shareholders' views are very important to the Board and I
encourage you to email me if you have feedback on the Company at
DavidHardie.Chairman@abrdn.com .
David Hardie
Chairman
10 August 2023
Interim Board Report - Manager's Review
Background
Continuation of the sharpest reactionary monetary tightening
witnessed in living memory featured prominently throughout the
first six months of 2023. As interest rates were relentlessly
raised and the cost of borrowing soared, most of the debt-dependent
Developed World teetered on the brink of recession. Yet any
objective assessment of what has actually been achieved by such
draconian policy action remains arguably subjective to say the
least. Identifiable inflationary pressures associated with
commodity price inflation have "behaved" pretty much in textbook
fashion. With oil and gas prices down over 50% from twelve months
ago, most hard commodity prices have succumbed to the free-market
equilibrium associated with lower demand and expanding supply. Yet
inflation in many countries persists. For those familiar with the
economic vandalism inherent in Central Banks printing money and the
consequences of such irresponsible pandering to financial markets,
this will come as no surprise. After all, inflation is an "always
and everywhere" monetary phenomenon. Until such time that bond
markets can accurately price the reality of debt servicing
obligations, deteriorating creditworthiness of sovereign states,
future interest rate volatility and political incompetence, then
inflationary pressures are likely to persist. Against this
backdrop, increasingly ineffectual policymakers are coming under
intense political pressure to "do more" despite the reality of
being "unable to do much", thereby prolonging the economic
uncertainty and negative consequences that unconstrained inflation
has on currencies, wealth and prosperity. For individual savers,
the reality of negative real returns has increasingly become the
all-consuming focus of investment strategies.
North America
The epicentre of the gigantic monetary overhang that presents so
many insurmountable problems for orthodox monetary policy
throughout the so-called Developed World remains firmly rooted in
the United States. With credit quality already creaking under the
weight of higher interest rates, economic fundamentals in North
America continued to deteriorate. The credit boom of the past
extended business cycle stayed well on course to become the credit
bust of the current post-bubble cycle. A significant "run" on
regional bank deposits early in the year was dismissed by the
eternally optimistic consensus as mere localised lending
dislocations. In truth, where the most extensive and problematic
financial skeletons lie after a decade of decadent misallocation of
cheap money is as yet unknown. Undoubtably this issue of asset
quality will remain key for bond and equity markets as the year
progresses, yet year-to-date such realities proved insufficient to
dampen "animal spirits" in the capitalism capital of the western
world. The latest market "distraction" to exercise the minds and
buying behaviour of an equity market devoid of fundamental support
from bond yields, interest rates or policy rhetoric, was a wave of
exuberant enthusiasm towards the perceived exponential growth
possibilities for Artificial Intelligence networks. Embellished by
such sentiment, technology holdings in Broadcom and Cisco Systems
were standout performers but, elsewhere, portfolio returns proved
more modest as the diversified and defensive emphasis for
delivering solid earnings and dividends went largely unrewarded.
Stronger performing sectors from last year, such as Healthcare,
Energy and Basic Materials, fell out of favour given the
prevailing, short-term sentiment. High quality Healthcare holdings,
such as AbbVie , Bristol Myers and Johnson & Johnson , drifted
lower and asset rich Canadian pipeline operators TC Energy and
Enbridge delivered dividend growth but little else. There were no
new portfolio investments nor divestments in the region over the
period in what proved a particularly concerning six months of
unjustified equity price inflation.
Europe and the UK
Clear evidence of weakening credit growth and tighter liquidity
conditions prevailed throughout Europe over the first six months of
the year. Loss of growth momentum inevitably proved more pronounced
in countries exposed to the largest debt burdens but, in general,
most of the continent witnessed an easing of inflationary
pressures. Headline Euro Zone inflation, which peaked at low double
digits towards year end 2022, was trending around mid-single digits
by period end with further improvement possible over the coming
months. Conversely, whilst growth continued to decelerate in the
UK, stubbornly high food and services inflation persisted. Combined
with rising wages and blatant corporate profiteering, the pressure
for further monetary tightening escalated against a backdrop of an
already punitive cost of living crisis. The beleaguered Bank of
England remained impotent to exert much influence on a toxic
cocktail of macroeconomic incompatibilities that threatens to
destabilise a financial system increasingly dependent on foreign
capital for living beyond its means. With lagging mortgage
refinancing about to bite, the most relevant question now
pertaining to the UK economy is for how long and how deep the
inevitable economic recession will be.
Performance from European portfolio holdings was exceptionally
strong over the period, with total exposure up +8.6%.
Diversification continued to deliver superior capital and income
performance, with recently established BE Semiconductor the
standout performer. Well above average positive total returns were
also forthcoming from Industrials such as Atlas Copco and Siemens ,
the Utility company Enel , French Pharmaceutical and Consumer
Staples companies Sanofi and Danone , plus Norwegian Telecoms
provider Telenor . Negative returns were few and far between within
a European portfolio context, with only Roche , TotalEnergies and
Danish Insurance company Tryg deleting any value. The outright sale
of Swedish financial Nordea was the only meaningful transaction in
the region over the period. Whilst UK holdings struggled to
contribute much to performance, the portfolio's historically low
weighting in UK equities (primarily due to more interesting
opportunities elsewhere in the world) resulted in only a marginal
constraint on returns at the overall aggregate level.
Asia and Latin America
Nowhere were the increasingly divergent trends in global
economic growth, interest rates and inflation more pronounced than
in Emerging Markets. Well anchored in fundamental economic
orthodoxy, the rate of price increases throughout most of Asia and
Latin America continued to slow, vindication of prudent, proactive
policy responses enacted long before inflation was allowed to
develop roots. With inflation "behaving" much better in the
Developing World compared to the Developed World, companies
operating in these regions were less restricted by interest rate
uncertainty. Bond yields remained higher than necessary throughout
but, with the next move in interest rates likely to be lower, there
was rational scope for optimism. Widespread global euphoria towards
Artificial Intelligence was reflected in very strong performance
from Asian portfolio holdings in Taiwan Semiconductor ,
GlobalWafers and Samsung Electronics . Elsewhere in the region,
Taiwan Industrial Hon Hai provided strong total returns, as did
telecommunication service providers Telekom Indonesia and Taiwan
Mobile . The only noticeable area of weakness within Asia exposures
continued to be the Chinese holdings, where ongoing economic
weakness, policy inertia and geo-political concerns kept most
international investors sceptical on near term prospects. The
outright sale of Lotus Retail in Thailand was the only notable
transaction in Asia over the period.
Exposure to Latin America remained constant at around 13% of
gross assets in six high quality companies, all of which delivered
robust earnings and dividend growth over the period although this
was not uniformly recognised by the markets. The total aggregate
portfolio return of 6.8% was derived from strong positive
contributions from Grupo Asur and Kimberly Clark in Mexico, and
very strong performance from Bradesco and Telefonica in Brazil.
Strength in Grupo Asur prompted periodic profit taking from the
large position. Exceptionally strong contributors from previous
years, lithium producer Sociedad Quimica Y Minera in Chile and iron
ore giant Vale in Brazil both declined against a global backdrop of
weaker commodity prices but the long-term outlook for these
businesses, and indeed the region as a whole, remains very
attractive indeed.
Outlook
Cracking a nut with a sledgehammer seldom delivers the desired
results. The shell usually breaks but the kernel invariably gets
pulverised in the process. Faced with stubbornly high inflation in
the Developed World, discredited and detached Central Banks
continue to follow a similar Pavlovian practice which, in their
world, involves hiking interest rates until demand subsides. This
is theoretically logical if it is assumed that excessive consumer
demand is the root of all price inflation. However, it is woefully
misguided if rigidity of labour markets, deglobalisation, rising
global protectionism or "doing whatever it takes" through printing
money are structurally influencing the overall cost of living.
Against such a backdrop, religiously following such a
one-dimensional dogma appears at best foolhardy, at worst downright
destructive.
In the meantime, the lagged effects of the monetary tightening
implemented so far are beginning to emerge. For the G7 nations,
drowning in a deluge of self-inflicted debt dynamics, servicing
existing borrowings at higher interest rates has become the daily
priority. The tougher and more politically unpopular conditions
become for the indebted world, the greater the pressure to "bend"
will mount on policymakers accustomed and conditioned to "choosing"
the popular way out. However, the days of bailing out all and
sundry through the public purse and supporting the ill-disciplined
and indebted at the expense of the responsible saver are over. The
re-emergence of inflation, tighter liquidity and acute competition
for available funds has seen to that. For the Developed World's
Monetary Authorities, what they might want to do versus what they
can actually do this time around appears profoundly different.
Against such a backdrop great caution is warranted. Investment
focus will continue to emphasise quality companies, maintain a
diversified portfolio of both income and growth opportunities, and
seek to avoid sectors, businesses and geographical areas where both
secular and cyclical headwinds are deemed to be most hostile. The
medium-term outlook poses numerous unfamiliar challenges for
policymakers, politicians and investors alike, with uncertainty
likely to be a constant companion. For many, the process of getting
comfortable with feeling uncomfortable has only just begun.
Bruce Stout
Senior Investment Director
Martin Connaghan
Investment Director
Samantha Fitzpatrick
Investment Director
abrdn Investments Limited
10 August 2023
Interim Board Report - Directors' Disclosures
Principal Risks and Uncertainties
The Board has approved a matrix of the key risks that, in its
assessment, affect the business. The major financial risks
associated with the Company are detailed in note 18 of the 2022
Annual Report and the other principal risks are summarised below.
These risks represent the principal risks anticipated for the
remaining six months of the year. They can be summarised into the
following categories:
-- Investment Strategy and Objectives;
-- Investment Portfolio Performance Risk;
-- Operational and Governance Risks;
-- Financial Risks; and
-- Macro and Geo-Political Risks.
Details of the management of the risks and the Company's
internal controls are disclosed on pages 35 and 36 of the 2022
Annual Report.
The Board also has a process in place to identify emerging
risks. If any of these are deemed to be significant, these risks
are categorised, rated and added to the Company's risk matrix.
The Board monitors emerging risks and has reviewed the principal
risks and uncertainties including prevailing geo-political
concerns. 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. The Board, aided by the Manager,
closely monitors all third party service arrangements.
Related Party Transactions
Details of the transactions with the Manager including the fees
payable to abrdn plc group companies are disclosed in note 11 of
this Half Yearly Report.
Going Concern
In accordance with the Financial Reporting Council's Guidance on
Risk Management, Internal Control and Related Financial and
Business Reporting, the Directors have undertaken a rigorous review
and consider that there are no material uncertainties and that the
adoption of the going concern basis of accounting is appropriate.
This review included the additional risks relating to geo-political
events such as the on-going war in Ukraine.
The Company's assets consist of a diverse portfolio of listed
equities and bonds and the portfolio in most circumstances is
realisable within a very short timescale. The Directors believe
that the Company has adequate financial resources to continue its
operational existence for the foreseeable future and for 12 months
from the date of this Half Yearly Report. Accordingly, the
Directors continue to adopt the going concern basis in preparing
these financial statements.
Directors' Responsibility Statement
The Directors are responsible for preparing the Half Yearly
Financial Report in accordance with applicable law and regulations.
The Directors confirm that to the best of
their knowledge:
-- the condensed set of Financial Statements has been prepared
in accordance with Financial Reporting Standard 104 (Interim
Financial Reporting);
-- the Half Yearly Board Report includes a fair review of the
information required by rule 4.2.7R of the Disclosure and
Transparency Rules (being an indication of important events that
have occurred during the first six months of the financial year and
their impact on the condensed set of Financial Statements and a
description of the principal risks and uncertainties for the
remaining six months of the financial year); and
-- the Half Yearly Board Report includes a fair review of the
information required by rule 4.2.8R (being related party
transactions that have taken place during the first six months of
the financial year and that have materially affected the financial
position of the Company during that period; and any changes in the
related party transactions described in the last Annual Report that
could do so).
The Half Yearly Financial Report for the six months ended 30
June 2023 comprises the Half Yearly Board Report, the Directors'
Responsibility Statement and the condensed set of Financial
Statements.
For and on behalf of the Board of Murray International Trust
PLC
David Hardie
Chairman
10 August 2023
Condensed Statement of Comprehensive Income (unaudited)
Six months ended Six months ended
30 June 2023 30 June 2022
============================== ==== ========================= =========================
Revenue Capital Total Revenue Capital Total
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
============================== ==== ======= ======= ======= ======= ======= =======
(Losses)/gains on investments - (1,977) (1,977) - 23,162 23,162
============================== ==== ======= ======= ======= ======= ======= =======
Income 2 47,826 145 47,971 45,465 - 45,465
============================== ==== ======= ======= ======= ======= ======= =======
Investment management fees 11 (1,039) (2,425) (3,464) (1,005) (2,346) (3,351)
============================== ==== ======= ======= ======= ======= ======= =======
Other expenses (921) - (921) (888) - (888)
============================== ==== ======= ======= ======= ======= ======= =======
Currency (losses)/gains - (590) (590) - 339 339
------------------------------ ---- ------- ------- ------- ------- ------- -------
Net return before finance
costs and taxation 45,866 (4,847) 41,019 43,572 21,155 64,727
============================== ==== ======= ======= ======= ======= ======= =======
Finance costs (707) (1,650) (2,357) (619) (1,445) (2,064)
------------------------------ ---- ------- ------- ------- ------- ------- -------
Return before taxation 45,159 (6,497) 38,662 42,953 19,710 62,663
============================== ==== ======= ======= ======= ======= ======= =======
Taxation 3 (3,878) 470 (3,408) (3,717) 542 (3,175)
------------------------------ ---- ------- ------- ------- ------- ------- -------
Return attributable to equity
shareholders 41,281 (6,027) 35,254 39,236 20,252 59,488
============================== ==== ======= ======= ======= ======= ======= =======
Return per Ordinary share
(pence)(A) 5 6.60 (0.96) 5.64 6.26 3.23 9.49
------------------------------ ---- ------- ------- ------- ------- ------- -------
(A) Comparative figures for the six months ended 30 June 2022 have
been restated to reflect the sub-division of each existing Ordinary
share of 25p into five Ordinary shares of 5p each on 24 April 2023.
The total column of the Condensed Statement of Comprehensive Income
is the profit and loss account of the Company.
All revenue and capital items in the above statement derive from continuing
operations.
The accompanying notes are an integral part of these financial statements.
Condensed Statement of Financial Position (unaudited)
As at As at
30 June 2023 31 December
2022
Note GBP'000 GBP'000
================================================ ==== ============ ===========
Non-current assets
================================================ ==== ============ ===========
Investments at fair value through profit
or loss 1,730,552 1,784,820
================================================ ==== ============ ===========
Current assets
================================================ ==== ============ ===========
Prepayments and accrued income 9,920 7,195
================================================ ==== ============ ===========
Other debtors 10,934 9,306
================================================ ==== ============ ===========
Cash and short-term deposits 6,043 18,131
------------------------------------------------ ---- ------------ -----------
26,897 34,632
------------------------------------------------ ---- ------------ -----------
Creditors: amounts falling due within
one year
================================================ ==== ============ ===========
Bank loans (29,989) (59,989)
================================================ ==== ============ ===========
Other creditors (2,771) (2,836)
------------------------------------------------ ---- ------------ -----------
(32,760) (62,825)
------------------------------------------------ ---- ------------ -----------
Net current liabilities (5,863) (28,193)
------------------------------------------------ ---- ------------ -----------
Total assets less current liabilities 1,724,689 1,756,627
================================================ ==== ============ ===========
Creditors: amounts falling due after
more than one year
================================================ ==== ============ ===========
Bank loans - (29,982)
================================================ ==== ============ ===========
2.24% Senior Unsecured Loan Note 2031 (49,923) (49,918)
================================================ ==== ============ ===========
2.83% Senior Unsecured Loan Note 2037 (59,977) (59,977)
------------------------------------------------ ---- ------------ -----------
Net assets 1,614,789 1,616,750
------------------------------------------------ ---- ------------ -----------
Capital and reserves
================================================ ==== ============ ===========
Called-up share capital 32,353 32,353
================================================ ==== ============ ===========
Share premium account 363,461 362,967
================================================ ==== ============ ===========
Capital redemption reserve 8,230 8,230
================================================ ==== ============ ===========
Capital reserve 1,140,229 1,143,961
================================================ ==== ============ ===========
Revenue reserve 70,516 69,239
------------------------------------------------ ---- ------------ -----------
Equity shareholders' funds 1,614,789 1,616,750
------------------------------------------------ ---- ------------ -----------
Net asset value per Ordinary share (pence)(A) 6 257.9 258.7
------------------------------------------------ ---- ------------ -----------
(A) Comparative figures for the year ended 31 December 2022 have been
restated to reflect the sub-division of each existing Ordinary share
of 25p into five Ordinary shares of 5p each on 24 April 2023.
The accompanying notes are an integral part of these financial statements.
Condensed Statement of Changes in Equity (unaudited)
Six months ended 30 June 2023
============================================================================================
Share Capital
Share premium redemption Capital Revenue
capital account reserve reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
============================== ======= ======= ========== ========= ======== =========
Balance at 31 December 2022 32,353 362,967 8,230 1,143,961 69,239 1,616,750
============================== ======= ======= ========== ========= ======== =========
Return after taxation - - - (6,027) 41,281 35,254
============================== ======= ======= ========== ========= ======== =========
Dividends paid (see note
4) - - - - (40,004) (40,004)
============================== ======= ======= ========== ========= ======== =========
Sale of Treasury shares - 494 - 2,295 - 2,789
------------------------------ ------- ------- ---------- --------- -------- ---------
Balance at 30 June 2023 32,353 363,461 8,230 1,140,229 70,516 1,614,789
------------------------------ ------- ------- ---------- --------- -------- ---------
Six months ended 30 June
2022
============================== ======= ======= ========== ========= ======== =========
Share Capital
Share premium redemption Capital Revenue
capital account reserve reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
============================== ======= ======= ========== ========= ======== =========
Balance at 31 December 2021 32,353 362,967 8,230 1,094,549 62,967 1,561,066
============================== ======= ======= ========== ========= ======== =========
Return after taxation - - - 20,252 39,236 59,488
============================== ======= ======= ========== ========= ======== =========
Dividends paid (see note
4) - - - - (38,917) (38,917)
============================== ======= ======= ========== ========= ======== =========
Buyback of shares to Treasury - - - (6,225) - (6,225)
------------------------------ ------- ------- ---------- --------- -------- ---------
Balance at 30 June 2022 32,353 362,967 8,230 1,108,576 63,286 1,575,412
------------------------------ ------- ------- ---------- --------- -------- ---------
The accompanying notes are an integral part of these financial statements.
Condensed Statement of Cash Flows
(unaudited)
Six months Six months
ended ended
30 June 2023 30 June 2022
Notes GBP'000 GBP'000
============================================== ===== ============ ============
Net return before finance costs and taxation 41,019 64,727
============================================== ===== ============ ============
Increase in accrued expenses 58 19
============================================== ===== ============ ============
Overseas withholding tax (4,852) (6,064)
============================================== ===== ============ ============
Increase in accrued income (3,233) (869)
============================================== ===== ============ ============
Interest paid (2,457) (2,106)
============================================== ===== ============ ============
Losses/(gains) on investments 1,977 (23,162)
============================================== ===== ============ ============
Overseas dividends - capital (145) -
============================================== ===== ============ ============
Currency losses/(gains) 590 (339)
============================================== ===== ============ ============
Increase in other debtors (1) (60)
============================================== ===== ============ ============
Corporation tax paid 136 -
============================================== ===== ============ ============
Return of capital included in investment
income 316 -
---------------------------------------------- ----- ------------ ------------
Net cash from operating activities 33,408 32,146
============================================== ===== ============ ============
Investing activities
============================================== ===== ============ ============
Purchases of investments - (116,708)
============================================== ===== ============ ============
Sales of investments 52,309 146,008
============================================== ===== ============ ============
Net cash from investing activities 52,309 29,300
---------------------------------------------- ----- ------------ ------------
Financing activities
============================================== ===== ============ ============
Equity dividends paid 4 (40,004) (38,917)
============================================== ===== ============ ============
Issue of Ordinary shares from Treasury 2,789 -
============================================== ===== ============ ============
Buyback of Ordinary shares to Treasury - (6,225)
============================================== ===== ============ ============
Loan repayment (60,000) (60,000)
============================================== ===== ============ ============
Issue of 2.83% Senior Unsecured Loan
Note 2037 - 59,976
---------------------------------------------- ----- ------------ ------------
Net cash used in financing activities (97,215) (45,166)
---------------------------------------------- ----- ------------ ------------
(Decrease)/increase in cash (11,498) 16,280
---------------------------------------------- ----- ------------ ------------
Analysis of changes in cash during the
period
============================================== ===== ============ ============
Opening balance 18,131 8,705
============================================== ===== ============ ============
Effect of exchange rate fluctuations
on cash held (590) 339
============================================== ===== ============ ============
(Decrease)/increase in cash as above 8 (11,498) 16,280
---------------------------------------------- ----- ------------ ------------
Closing balance 6,043 25,324
---------------------------------------------- ----- ------------ ------------
The accompanying notes are an integral part of these financial statements.
Notes to the Financial Statements (unaudited)
For the six months ended 30 June 2023
1. Accounting policies - Basis of preparation
The condensed financial statements have been prepared in accordance
with Financial Reporting Standard 104 (Interim Financial Reporting)
and with the Statement of Recommended Practice for 'Financial Statements
of Investment Trust Companies and Venture Capital Trusts'. They
have also been prepared on a going concern basis and on the assumption
that approval as an investment trust will continue to be granted.
Annual financial statements are prepared under Financial Reporting
Standard 102.
The condensed interim financial statements have been prepared using
the same accounting policies as the preceding annual financial
statements.
2. Income
==================================== ============ ============
Six months Six months
ended ended
30 June 2023 30 June 2022
GBP'000 GBP'000
==================================== ============ ============
Income from investments
==================================== ============ ============
UK dividends 4,334 3,732
======================================== ============ ============
Overseas dividends - revenue 38,908 35,810
======================================== ============ ============
Overseas dividends - capital 145 -
======================================== ============ ============
Overseas interest 4,396 5,921
---------------------------------------- ------------ ------------
47,783 45,463
---------------------------------------- ------------ ------------
Other income
==================================== ============ ============
Deposit interest 163 2
======================================== ============ ============
Stocklending 23 -
======================================== ============ ============
Interest on corporation tax reclaim 2 -
======================================== ============ ============
188 2
======================================== ============ ============
Total income 47,971 45,465
======================================== ============ ============
3. Taxation
The taxation expense reflected in the Condensed Statement of Comprehensive
Income is based on the estimated annual tax rate expected for the
full financial year. The estimated annual corporation tax rate
used for the year to 31 December 2023 is an effective rate of 23.5%.
The tax expense represents the sum of tax currently payable and
deferred tax. Any tax payable is based on the taxable profit for
the year. Taxable profit differs from net return as reported in
the Condensed Statement of Comprehensive Income because it excludes
items of income or expense that are taxable or deductible in other
years and it further excludes items that are never taxable or deductible.
4. Ordinary dividends on equity shares
============================================= ============ ============
Six months Six months
ended ended
30 June 2023 30 June 2022
GBP'000 GBP'000
============================================= ============ ============
Third interim dividend 2022 of 2.4p (2021
- 2.4p)(A) 15,001 15,104
================================================= ============ ============
Final dividend 2022 of 4.0p (2021 - 3.8p)(A) 25,003 23,813
------------------------------------------------- ------------ ------------
40,004 38,917
------------------------------------------------- ------------ ------------
(A) Rates have been restated to reflect the sub-division of each
existing Ordinary share of 25p into five Ordinary shares of 5p
each on 24 April 2023.
A first interim dividend for 2023 of 2.4p (2022 - restated 2.4p)
will be paid on 16 August 2023 to shareholders on the register
on 7 July 2023. The ex-dividend date was 6 July 2023.
A second interim dividend for 2023 of 2.4p (2022 - restated 2.4p)
will be paid on 17 November 2023 to shareholders on the register
on 6 October 2023. The ex-dividend date is 5 October 2023.
5. Return per Ordinary share (pence)
==========================================================================
Six months ended Six months ended
30 June 2023 30 June 2022
========================== ====================== ======================
GBP'000 Per Ordinary GBP'000 Per Ordinary
share (p) share (p)(A)
========================== ======== ============ ======= =============
Returns are based on the
following figures:
========================== ======== ============ ======= =============
Revenue return 41,281 6.60 39,236 6.26
============================== ======== ============ ======= =============
Capital return (6,027) (0.96) 20,252 3.23
------------------------------ -------- ------------ ------- -------------
Total return 35,254 5.64 59,488 9.49
------------------------------ -------- ------------ ------- -------------
Weighted average number
of Ordinary shares(A) 625,365,570 627,159,435
------------------------------ -------- ------------ ------- -------------
(A) Comparative figures for the six months ended 30 June 2022
have been restated to reflect the sub-division of each existing
Ordinary share of 25p into five Ordinary shares of 5p each on 24
April 2023.
6. Net asset value
The net asset value per share and the net asset value attributable
to the Ordinary shares at the period end calculated in accordance
with the Articles of Association were as follows:
As at As at
30 June 2023 31 December 2022
======================================== ============ =================
Attributable net assets (GBP'000) 1,614,789 1,616,750
============================================ ============ =================
Number of Ordinary shares in
issue (excluding Treasury)(A) 626,114,465 625,064,465
============================================ ============ =================
Net asset value per share (pence)(A) 257.9 258.7
-------------------------------------------- ------------ -----------------
(A) Comparative figures for the year ended 31 December 2022 have
been restated to reflect the sub-division of each existing Ordinary
share of 25p into five Ordinary shares of 5p each on 24 April 2023.
7. Transaction costs
During the period expenses were incurred in acquiring or disposing
of investments classified as fair value through profit or loss.
These have been expensed through capital and are included within
(losses)/gains on investments in the Condensed Statement of Comprehensive
Income. The total costs were as follows:
Six months ended Six months ended
30 June 2023 30 June 2022
GBP'000 GBP'000
=========================== ======================== ========================
Purchases - 137
=============================== ======================== ========================
Sales 39 126
------------------------------- ------------------------ ------------------------
39 263
------------------------------- ------------------------ ------------------------
8. Analysis of changes in net debt
At At
31 December Currency Cash Non-cash 30 June
2022 differences flows movements 2023
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
============================== =========== =========== ======== ========= =========
Cash and short term deposits 18,131 (590) (11,498) - 6,043
================================== =========== =========== ======== ========= =========
Debt due within one year (59,989) - 60,000 (30,000) (29,989)
================================== =========== =========== ======== ========= =========
Debt due after more than one
year (139,877) - - 29,977 (109,900)
---------------------------------- ----------- ----------- -------- --------- ---------
(181,735) (590) 48,502 (23) (133,846)
---------------------------------- ----------- ----------- -------- --------- ---------
At At
31 December Currency Cash Non-cash 30 June
2021 differences flows movements 2022
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
============================== =========== =========== ======== ========= =========
Cash and short term deposits 8,705 339 16,280 - 25,324
================================== =========== =========== ======== ========= =========
Debt due within one year (59,975) - 60,000 (60,000) (59,975)
================================== =========== =========== ======== ========= =========
Debt due after more than one
year (139,839) - (59,976) 59,949 (139,866)
---------------------------------- ----------- ----------- -------- --------- ---------
(191,109) 339 16,304 (51) (174,517)
---------------------------------- ----------- ----------- -------- --------- ---------
A statement reconciling the movement in net funds to the net cash
flow has not been presented as there are no differences from the
above analysis.
9. Fair value hierarchy
FRS 102 requires an entity to classify fair value measurements
using a fair value hierarchy that reflects the significance of
the inputs used in making the measurements. The fair value hierarchy
has the following classifications:
Level Unadjusted quoted prices in an active market for identical
1: assets or liabilities that the entity can access at the measurement
date.
Level Inputs other than quoted prices included within Level 1 that
2: are observable (ie developed using market data) for the asset
or liability, either directly or indirectly.
Level Inputs are unobservable (ie for which market data is unavailable)
3: for the asset or liability.
The financial assets and liabilities measured at fair value in
the Condensed Statement of Financial Position are grouped into
the fair value hierarchy at the reporting date as follows:
Level Level Level Total
1 2 3
As at 30 June 2023 Note GBP'000 GBP'000 GBP'000 GBP'000
============================================= ===== ========= ======= ======= =========
Financial assets at fair value through
profit or loss
============================================= ===== ========= ======= ======= =========
Quoted equities a) 1,617,676 - - 1,617,676
============================================= ========= ========= ======= ======= =========
Quoted preference shares b) - 5,766 - 5,766
============================================= ========= ========= ======= ======= =========
Quoted bonds b) - 107,110 - 107,110
============================================= --------- --------- ------- ------- ---------
Total 1,617,676 112,876 - 1,730,552
---------- ------------------------------------------- --------- ------- ------- ---------
Level Level Level Total
1 2 3
As at 31 December 2022 Note GBP'000 GBP'000 GBP'000 GBP'000
============================================= ===== ========= ======= ======= =========
Financial assets at fair value through
profit or loss
============================================= ===== ========= ======= ======= =========
Quoted equities a) 1,661,132 - - 1,661,132
============================================= ========= ========= ======= ======= =========
Quoted preference shares b) - 6,269 - 6,269
============================================= ========= ========= ======= ======= =========
Quoted bonds b) - 117,419 - 117,419
============================================= --------- --------- ------- ------- ---------
Total 1,661,132 123,688 - 1,784,820
---------- ------------------------------------------- --------- ------- ------- ---------
a) Quoted equities. The fair value of the Company's investments
in quoted equities has been determined by reference to their
quoted bid prices at the reporting date. Quoted equities included
in Fair Value Level 1 are actively traded on recognised stock
exchanges.
b) Quoted preference shares and bonds. The fair value of the Company's
investments in quoted preference shares and bonds has been determined
by reference to their quoted bid prices at the reporting date.
Investments categorised as Level 2 are not considered to trade
in active markets.
10. Share capital
On 24 April 2023 there was a sub-division of each existing Ordinary
25p share into five Ordinary shares of 5p each. During the period
1,050,000 Ordinary shares were released from Treasury for proceeds
of GBP2,794,000.
As at 30 June 2023 there were 626,114,465 (31 December 2022 - restated
625,064,465) Ordinary shares of 5p each in issue. Ordinary shares
held in Treasury were 20,945,550 (31 December 2022 - restated 21,995,550).
Subsequent to the period end 536,157 Ordinary shares were bought
back to be held in Treasury at a cost of GBP1,322,000.
11. Transactions with the Manager
The Company has agreements with abrdn Fund Managers Limited ('aFML'
or the 'Manager') for the provision of investment management, secretarial,
accounting and administration and promotional activity services.
The management fee has been charged on net assets (i.e. excluding
borrowings for investment purposes) averaged over the six previous
quarters at a rate of 0.5% per annum up to GBP500 million, and
0.4% per annum thereafter. A fee of 1.5% per annum is chargeable
on the value of any unlisted investments. The investment management
fee is chargeable 30% against revenue and 70% against realised
capital reserves. During the period GBP3,464,000 (30 June 2022
- GBP3,351,000) of investment management fees was payable to the
Manager, with an amount of GBP1,737,000 (30 June 2022 - GBP1,685,000)
being payable to aFML at the period end.
No fees are charged in the case of investments managed or advised
by the abrdn Group. The management agreement may be terminated
by either party on the expiry of six months' written notice. On
termination the Manager is entitled to receive fees which would
otherwise have been due up to that date.
The promotional activities fee is based on a current annual amount
of GBP400,000 (30 June 2022 - GBP400,000), payable quarterly in
arrears. During the period GBP200,000 (30 June 2022 - GBP200,000)
of fees was payable, with an amount of GBP100,000 (30 June 2022
- GBP100,000) being payable to aFML at the period end.
12. Segmental information
The Company is engaged in a single segment of business, which is
to invest in equity securities and debt instruments. All of the
Company's activities are interrelated, and each activity is dependent
on the others. Accordingly, all significant operating decisions
are based on the Company as one segment.
13. Half-Yearly Report
The financial information in this Report does not comprise statutory
accounts within the meaning of Section 434 - 436 of the Companies
Act 2006. The financial information for the year ended 31 December
2022 has been extracted from published accounts that have been
delivered to the Registrar of Companies and on which the report
of the Company's auditor was unqualified and contained no statement
under Section 498 (2), (3) or (4) of the Companies Act 2006. The
condensed interim financial statements have been prepared using
the same accounting policies as contained within the preceding
annual financial statements.
The financial information for the six months ended 30 June 2023
and 30 June 2022 has not been audited or reviewed by the Company's
auditor.
14. This Half-Yearly Financial Report was approved by the Board on 10
August 2023.
Alternative Performance Measures
Alternative performance measures are numerical measures of the Company's
current, historical or future performance, financial position or cash
flows, other than financial measures defined or specified in the applicable
financial framework. The Company's applicable financial framework includes
FRS 102 and the AIC SORP. The Directors assess the Company's performance
against a range of criteria which are viewed as particularly relevant
for closed-end investment companies.
(Discount)/premium to net asset value per Ordinary share
The (discount)/premium is the amount by which the share price is lower
or higher than the net asset value per share, expressed as a percentage
of the net asset value.
31 December
2022
30 June 2023 (*Restated)
================================================= ========== ============ ==============
NAV per Ordinary share (p) a 257.9 258.7
================================================= ========== ============ ==============
Share price (p) b 254.0 266.8
================================================= ========== ============ ==============
(Discount)/premium (b-a)/a -1.5% 3.1%
------------------------------------------------- ---------- ------------ --------------
* Restated to reflect the sub-division of each existing Ordinary share
of 25p into five Ordinary shares of 5p each on 24 April 2023.
Net gearing
Net gearing measures the total borrowings less cash and cash equivalents
dividend by shareholders' funds, expressed as a percentage. Under AIC
reporting guidance cash and cash equivalents includes amounts due to
and from brokers at the period end as well as cash and cash equivalents.
30 June 2023 31 December
2022
================================================= ========== ============ ==============
Borrowings (GBP'000) a 139,889 199,866
================================================= ========== ============ ==============
Cash (GBP'000) b 6,043 18,131
================================================= ========== ============ ==============
Amounts due from brokers (GBP'000) c - (173)
================================================= ========== ============ ==============
Shareholders' funds (GBP'000) d 1,614,789 1,616,750
------------------------------------------------- ---------- ------------ --------------
Net gearing (a-b+c)/d 8.3% 11.2%
------------------------------------------------- ---------- ------------ --------------
Ongoing charges
The ongoing charges ratio has been calculated in accordance with guidance
issued by the AIC as the total of investment management fees and administrative
expenses and expressed as a percentage of the average published daily
net asset values with debt at fair value throughout the year. The ratio
for 30 June 2023 is based on forecast ongoing charges for the year
ending 31 December 2023.
30 June 2023 31 December
2022
================================================= ========== ============ ==============
Investment management fees (GBP'000) 6,930 6,748
================================================= ========== ============ ==============
Administrative expenses (GBP'000) 1,692 1,651
================================================= ========== ============ ==============
Less: non-recurring charges(A) (GBP'000) (64) (72)
------------------------------------------------- ---------- ------------ --------------
Ongoing charges (GBP'000) 8,558 8,327
------------------------------------------------- ---------- ------------ --------------
Average net assets (GBP'000) 1,653,541 1,604,867
------------------------------------------------- ---------- ------------ --------------
Ongoing charges ratio (excluding look-through
costs) 0.52% 0.52%
------------------------------------------------- ---------- ------------ --------------
Look-through costs(B) - -
------------------------------------------------- ---------- ------------ --------------
Ongoing charges ratio (including look-through
costs) 0.52% 0.52%
------------------------------------------------- ---------- ------------ --------------
(A) Professional services comprising new Director recruitment costs
and legal fees considered unlikely to recur.
(B) Calculated in accordance with AIC guidance issued in October 2020
to include the Company's share of costs of holdings in investment companies
on a look-through basis.
The ongoing charges ratio provided in the Company's Key Information
Document is calculated in line with the PRIIPs regulations, which includes
amongst other things, the cost of borrowings and transaction costs.
Total return
NAV and share price total returns show how the NAV and share price
has performed over a period of time in percentage terms, taking into
account both capital returns and dividends paid to shareholders. Share
price and NAV total returns are monitored against open-ended and closed-ended
competitors, and the Reference Index, respectively.
Share
Six months ended 30 June 2023 NAV price
================================================ =========== ============ ==============
Opening at 1 January 2023 a 258.7p 266.8p
================================================ =========== ============ ==============
Closing at 30 June 2023 b 257.9p 254.0p
================================================ =========== ============ ==============
Price movements c=(b/a)-1 -0.3% -4.8%
================================================ =========== ============ ==============
Dividend reinvestment(A) d 2.5% 2.3%
------------------------------------------------ ----------- ------------ --------------
Total return c+d +2.2% -2.5%
------------------------------------------------ ----------- ------------ --------------
Share
Year ended 31 December 2022 (*Restated) NAV price
================================================ =========== ============ ==============
Opening at 1 January 2022 a 248.1p 231.2p
================================================ =========== ============ ==============
Closing at 31 December 2022 b 258.7p 266.8p
================================================ =========== ============ ==============
Price movements c=(b/a)-1 4.3% 15.4%
================================================ =========== ============ ==============
Dividend reinvestment(A) d 4.5% 5.2%
------------------------------------------------ ----------- ------------ --------------
Total return c+d +8.8% +20.6%
------------------------------------------------ ----------- ------------ --------------
* Restated to reflect the sub-division of each existing Ordinary share
of 25p into five Ordinary shares of 5p each on 24 April 2023.
(A) NAV total return involves investing the net dividend in the NAV
of the Company with debt at fair value on the date on which that dividend
goes ex-dividend. Share price total return involves reinvesting the
net dividend in the share price of the Company on the date on which
that dividend goes ex-dividend.
Summary of Net Assets
Valuation Valuation
30 June 2023 31 December 2022
======================== ==================== ====================
GBP'000 % GBP'000 %
======================== ============ ====== =========== =======
Equities 1,617,676 100.2 1,661,132 102.7
======================== ============ ====== =========== =======
Preference shares 5,766 0.4 6,269 0.4
======================== ============ ====== =========== =======
Bonds 107,110 6.6 117,419 7.3
------------------------ ------------ ------ ----------- -------
Total investments 1,730,552 107.2 1,784,820 110.4
======================== ============ ====== =========== =======
Net current assets 24,126 1.5 31,796 2.0
------------------------ ------------ ------ ----------- -------
Total assets 1,754,678 108.7 1,816,616 112.4
======================== ============ ====== =========== =======
Prior charges(A) (139,889) (8.7) (199,866) (12.4)
------------------------ ------------ ------ ----------- -------
Net assets 1,614,789 100.0 1,616,750 100.0
------------------------ ------------ ------ ----------- -------
(A) All short-term and long-term bank loans and loan notes.
Summary of Investment Changes
Valuation Appreciation/ Net purchases/ Valuation
31 December 2022 (depreciation) (sales) 30 June 2023
====================== ================== ============== ============== ================
GBP'000 % GBP'000 GBP'000 GBP'000 %
====================== =========== ===== ============== ============== ========= =====
Equities
====================== =========== ===== ============== ============== ========= =====
UK 68,771 3.9 (8,847) - 59,924 3.4
====================== =========== ===== ============== ============== ========= =====
North America 468,484 26.2 (8,246) (138) 460,100 26.6
====================== =========== ===== ============== ============== ========= =====
Europe ex UK 448,335 25.1 21,230 (27,666) 441,899 25.5
====================== =========== ===== ============== ============== ========= =====
Asia Pacific ex Japan 444,303 24.9 (7,004) (8,685) 428,614 24.8
====================== =========== ===== ============== ============== ========= =====
Latin America 218,800 12.3 8,553 (11,716) 215,637 12.5
====================== =========== ===== ============== ============== ========= =====
Africa 12,439 0.7 (937) - 11,502 0.7
---------------------- ----------- ----- -------------- -------------- --------- -----
1,661,132 93.1 4,749 (48,205) 1,617,676 93.5
---------------------- ----------- ----- -------------- -------------- --------- -----
Preference shares
====================== =========== ===== ============== ============== ========= =====
UK 6,269 0.3 (503) - 5,766 0.3
---------------------- ----------- ----- -------------- -------------- --------- -----
6,269 0.3 (503) - 5,766 0.3
---------------------- ----------- ----- -------------- -------------- --------- -----
Bonds
====================== =========== ===== ============== ============== ========= =====
Europe ex UK 6,771 0.4 (2,343) (117) 4,311 0.2
====================== =========== ===== ============== ============== ========= =====
Asia Pacific ex Japan 47,079 2.6 (353) 98 46,824 2.7
====================== =========== ===== ============== ============== ========= =====
Latin America 47,790 2.7 (1,145) (4,001) 42,644 2.5
====================== =========== ===== ============== ============== ========= =====
Africa 15,779 0.9 (2,382) (66) 13,331 0.8
---------------------- ----------- ----- -------------- -------------- --------- -----
117,419 6.6 (6,223) (4,086) 107,110 6.2
---------------------- ----------- ----- -------------- -------------- --------- -----
Total investments 1,784,820 100.0 (1,977) (52,291) 1,730,552 100.0
---------------------- ----------- ----- -------------- -------------- --------- -----
Investment Portfolio
As at 30 June 2023
================================================================================
Valuation Valuation
Security Country GBP'000 %
==================================== ==================== ========= =========
Broadcom Corporation USA 81,811 4.7
==================================== ==================== ========= =========
Aeroporto del Sureste Mexico 78,615 4.5
==================================== ==================== ========= =========
Taiwan Semiconductor Manufacturing Taiwan 65,348 3.8
==================================== ==================== ========= =========
Philip Morris International USA 53,738 3.1
==================================== ==================== ========= =========
BE Semiconductor Netherlands 52,652 3.0
==================================== ==================== ========= =========
AbbVie USA 47,667 2.9
==================================== ==================== ========= =========
Unilever(A) UK & Netherlands 47,103 2.7
==================================== ==================== ========= =========
TotalEnergies France 45,096 2.6
==================================== ==================== ========= =========
CME Group USA 43,718 2.5
==================================== ==================== ========= =========
Samsung Electronics Korea 43,706 2.5
------------------------------------ -------------------- --------- ---------
Top ten investments 559,454 32.3
---------------------------------------------------------- --------- ---------
Oversea-Chinese Bank Singapore 42,822 2.5
==================================== ==================== ========= =========
Zurich Insurance Switzerland 37,348 2.2
==================================== ==================== ========= =========
Siemens Germany 36,298 2.1
==================================== ==================== ========= =========
Kimberly Clark de Mexico Mexico 34,874 1.9
==================================== ==================== ========= =========
Sociedad Quimica Y Minera De
Chile Chile 34,268 2.0
==================================== ==================== ========= =========
Hon Hai Precision Industry Taiwan 34,095 2.0
==================================== ==================== ========= =========
Tryg Denmark 33,216 1.9
==================================== ==================== ========= =========
BHP Group Australia 32,760 1.9
==================================== ==================== ========= =========
Bristol-Myers Squibb USA 32,690 1.9
==================================== ==================== ========= =========
Cisco Systems USA 32,539 1.9
------------------------------------ -------------------- --------- ---------
Top twenty investments 910,364 52.6
---------------------------------------------------------- --------- ---------
Johnson & Johnson USA 32,136 1.9
==================================== ==================== ========= =========
Danone France 32,086 1.8
==================================== ==================== ========= =========
Shell Netherlands 31,858 1.8
==================================== ==================== ========= =========
Merck USA 31,750 1.8
==================================== ==================== ========= =========
GlobalWafers Taiwan 31,380 1.8
==================================== ==================== ========= =========
Enel Italy 30,809 1.8
==================================== ==================== ========= =========
Telus Canada 30,613 1.8
==================================== ==================== ========= =========
Sanofi France 29,495 1.7
==================================== ==================== ========= =========
Verizon Communications USA 29,252 1.7
==================================== ==================== ========= =========
Atlas Copco Sweden 29,110 1.7
------------------------------------ -------------------- --------- ---------
Top thirty investments 1,218,853 70.4
---------------------------------------------------------- --------- ---------
British American Tobacco UK 28,683 1.7
==================================== ==================== ========= =========
Vale do Rio Doce Brazil 28,083 1.6
==================================== ==================== ========= =========
Taiwan Mobile Taiwan 27,766 1.6
==================================== ==================== ========= =========
Singapore Telecommunications Singapore 26,154 1.5
==================================== ==================== ========= =========
Epiroc Sweden 25,385 1.5
==================================== ==================== ========= =========
Woodside Energy Australia 25,223 1.5
==================================== ==================== ========= =========
Telkom Indonesia Indonesia 25,183 1.4
==================================== ==================== ========= =========
Roche Holdings Switzerland 24,046 1.4
==================================== ==================== ========= =========
Banco Bradesco Brazil 23,477 1.4
==================================== ==================== ========= =========
China Resources Land China 23,326 1.3
------------------------------------ -------------------- --------- ---------
Top forty investments 1,476,179 85.3
---------------------------------------------------------- --------- ---------
TC Energy Canada 22,261 1.3
==================================== ==================== ========= =========
Enbridge Canada 21,925 1.3
==================================== ==================== ========= =========
SCB X Thailand 21,264 1.2
==================================== ==================== ========= =========
Ping An Insurance China 17,994 1.0
==================================== ==================== ========= =========
United Mexican States 5.75%
05/03/26 Mexico 16,717 1.0
==================================== ==================== ========= =========
Telefonica Brasil Brazil 16,320 0.9
==================================== ==================== ========= =========
Republic of Indonesia 6.125%
15/05/28 Indonesia 15,808 0.9
==================================== ==================== ========= =========
Republic of South Africa 7%
28/02/31 South Africa 13,331 0.8
==================================== ==================== ========= =========
Republic of Indonesia 8.375%
15/03/34 Indonesia 12,062 0.7
==================================== ==================== ========= =========
Telenor Norway 11,982 0.7
------------------------------------ -------------------- --------- ---------
Top fifty investments 1,645,843 95.1
---------------------------------------------------------- --------- ---------
China Vanke China 11,593 0.7
==================================== ==================== ========= =========
MTN South Africa 11,502 0.7
==================================== ==================== ========= =========
Republic of Dominica 6.85%
27/01/45 Dominican Republic 10,681 0.5
==================================== ==================== ========= =========
Petroleos Mexicanos 6.75% 21/09/47 Mexico 9,830 0.6
==================================== ==================== ========= =========
HDFC Bank 7.95% 21/09/26 India 7,222 0.4
==================================== ==================== ========= =========
Power Finance Corp 7.63% 14/08/26 India 7,179 0.4
==================================== ==================== ========= =========
Vodafone Group UK 6,656 0.4
==================================== ==================== ========= =========
Petroleos Mexicanos 5.5% 27/06/44 Mexico 5,416 0.3
==================================== ==================== ========= =========
Republic of Indonesia 10% 15/02/28 Indonesia 4,553 0.3
==================================== ==================== ========= =========
Santander 10.375% Non Cum Pref UK 2,910 0.2
------------------------------------ -------------------- --------- ---------
Top sixty investments 1,723,385 99.6
---------------------------------------------------------- --------- ---------
General Accident 7.875% Cum
Irred Pref UK 2,856 0.2
==================================== ==================== ========= =========
Republic of Turkey 8% 12/03/25 Turkey 2,172 0.1
==================================== ==================== ========= =========
Republic of Turkey 9% 24/07/24 Turkey 2,139 0.1
==================================== ==================== ========= =========
Total investments 1,730,552 100.0
---------------------------------------------------------- --------- ---------
(A) Holding comprises UK and Netherlands securities, split GBP24,585,000
and GBP22,518,000 respectively.
The Half Yearly Report will be printed and issued to
shareholders and further copies will be available on the Company's
web site murray-intl.co.uk*.
* Neither the Company's website nor the content of any website
accessible from hyperlinks on it (or any other website) is (or is
deemed to be) incorporated into, or forms (or is deemed to form)
part of this announcement.
By order of the Board
ABRDN HOLDINGS LIMITED, SECRETARY
10 August 2023
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END
IR FLFFRTTIILIV
(END) Dow Jones Newswires
August 11, 2023 02:00 ET (06:00 GMT)
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