Half Yearly Results

RNS Number : 1527W

Murray International Trust PLC

17 August 2015

MURRAY INTERNATIONAL TRUST PLC

HALF YEARLY REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2015

The Directors of Murray International Trust PLC report the unaudited results of the Company for the six months ended 30 June 2015.

INTERIM BOARD REPORT

Background

Currencies, interest rates and Central Bank policy continued to dictate the direction of financial markets over the period under review. Sterling relentlessly rose to a seven year high against a currency benchmark of leading trading partners, exerting downward pressure on UK export competitiveness and restricting returns from overseas investments. Short term interest rates generally remained benign, but both bond and equity markets displayed considerable volatility. Deteriorating debt dynamics in Greece and other financially stretched nations plus ongoing commitments to unorthodox monetary policy in Europe and Japan maintained a steady flow of newly-created liquidity from Central Banks. This provided an underpin to equity markets which periodically breached historical highs.

Performance

The net asset value ("NAV") total return, with net income reinvested, for the six months to 30 June 2015 declined by 2.6% compared with a total return of 2.0% on the Company's benchmark (40% the FTSE World UK and 60% FTSE World ex UK). Over the six month period the share price total return declined by 4.1% reflecting a small reduction in the premium to NAV on which the shares traded.

By far the largest contributing factor to constraining overall portfolio returns was Sterling's strength; with close to ninety per cent of net assets invested internationally, the Pound's constant appreciation proved negative for returns. In addition, in markets driven primarily by liquidity from aggressive Central Bank policy, fundamentals were largely overlooked. On a regional basis the significant underweight position in North America was positive from an asset allocation basis, as this benchmark heavyweight index barely changed in Sterling terms over the period. Overweight exposures to Asia and Latin America conversely proved negative as both regional indices declined. Although positive stock selection in Taiwan, Singapore, Indonesia and Mexico produced solid capital gains, these were more than offset by weakness in Malaysia, Thailand and most noticeably Brazil. With the Japanese index being the best performing market in Sterling terms, the minimal exposure to Japan accounted for almost a quarter of benchmark relative underperformance. Defensive portfolio positioning in Europe did not protect capital given a weak economic backdrop and challenging corporate environment. Although the recently increased fixed income portfolio performed resolutely in local currency terms, further weakness in emerging market currencies against Sterling dampened returns, marginally adding further relative negative performance to overall gross assets.

Management of Premium and Discount

During the period under review, the Company issued 130,000 new Ordinary shares at a premium to the prevailing NAV (including income) per Ordinary share at the time of each issue. Since the start of the issuance programme over £360 million of new funds has been raised through the issue of new shares and, by issuing these shares at a premium, the Company is able to enhance slightly the NAV per share whilst also improving the liquidity of its shares. As previously stated, such issuance is also important for Share Plan Participants and other regular purchasers of the Company's shares because it ensures that the premium is managed. At the AGM of the Company held in April 2015, shareholders authorised the Company to issue new Ordinary shares for cash representing up to 10% of the issued share capital. The Board will continue to consider the merits of issuing new shares, at a premium, when there is unfulfilled demand in the market and it is in shareholders' interests to do so subject to the overriding Listing Rule requirement not to issue more than 10% of the outstanding equity in any rolling 12 month period.

The Board continues to believe that it is appropriate to seek to address temporary imbalances of supply and demand for the Company's shares which might otherwise result in a recurring material discount. Subject to existing shareholder permission (given at the last AGM) and prevailing market conditions over time, the Board intends to buy back shares if they trade at a persistent significant discount to NAV (excluding income). As with issuance, the Board believes that this process is in all shareholders' interests as it seeks to reduce volatility in the premium/discount to underlying NAV whilst also making a small positive contribution to the NAV.

Gearing

In May 2015 the Company entered into a new £50 million loan facility with The Royal Bank of Scotland plc ("RBS") which was drawn in full on 13 May 2015 and fixed for five years at an all-in rate of 2.4975%. The new facility has been used to repay a maturing Yen 8.4 billion loan with RBS. At the period end the Company had net gearing of 16.0%.

Outlook

For over six years financial markets have traded against a backdrop of virtually zero interest rates. During this period of unorthodox and unfamiliar policies, many unrecognisable financial relationships have evolved. During the last six months we have witnessed: negative deposit rates and negative bond yields in some countries; record levels of stock buy-backs in the US; and constant intervention from all major Central Banks. In addition to numerous other economic consequences, this financial landscape has proved particularly harsh on savers. The current financial environment is uncomfortable for savers and investors alike. Additional uncertainty also prevails for companies operating in this environment. Delivering progressive profitability and dividend growth against a back drop of intense competition, unpredictable final demand and downward pressure on selling prices will be difficult to achieve. The Company continues to be invested in a broadly diversified global portfolio, and in individual companies believed to have sound business models, strong market positions and competent management focused on shareholder interests. In your Board's opinion, these features offer the best opportunity of meeting the Company's investment objective over time.

Kevin Carter

Chairman

14 August 2015

Principal Risks and Uncertainties

The Board has adopted a matrix of the key risks that affect the business. The major financial risks associated with the Company are detailed in note 19 to the Annual Report and Financial Statements for the year ended 31 December 2014 ("2014 Annual Report") and the other principal risks are summarised below. These risks represent the principal risks for the remaining six months of the year.

Details of the management of the risks and the Company's internal controls are disclosed on pages 30 to 31 of the 2014 Annual Report.

Discount and Premium Control Policy

The market value of, and the income derived from, the shares can fluctuate and, notwithstanding the Board's discount and premium control policy, may not always reflect the Net Asset Value per share. There can be no guarantee that any appreciation in the value of the Company's investments will occur and investors may not get back the full value of their investment. No assurance can be given that any sale of the Company's investments would realise proceeds which would be sufficient to repay any borrowings or provide funds for any capital repayment to shareholders. Shareholders will bear the rewards and risks of the success or otherwise of the Company's investments.

The market value of the shares, as well as being affected by the Net Asset Value, also takes into account the dividend yield and prevailing interest rates, supply and demand for the shares, market conditions and general investor sentiment.

The Company operates a discount and premium control policy. The operation of the discount control element of this policy could lead to a significant reduction in the size of the Company over time, which would increase the Company's total expense ratio and prejudice the ability of the Company to pay satisfactory levels of dividend to shareholders. When demand exceeds supply, the Company will consider issuing new shares and/or selling shares held in treasury at a small premium to the Net Asset Value per share. Any such new issue or sale will be dependent on market conditions generally at the relevant time, upon shareholders in general meeting conferring appropriate authorities on the Board to issue further shares and, where required under the Prospectus Rules, upon a prospectus having been approved by the Financial Conduct Authority and published. The ability of the Company to operate the discount control policy will depend on the Company being able to purchase its own shares, which will be dependent upon shareholders in general meeting conferring authority on the Board to purchase its own shares. The Directors will seek renewal of this authority from shareholders annually and at other times should this prove necessary. However, there can be no guarantee that the requisite shareholder approvals will be obtained.

In accordance with the Listing Rules, the extent of each buy-back authority which will be sought by the Company from shareholders in general meeting will be limited to 14.99% of the Company's issued share capital as at the date on which such authority is granted. In order to continue purchasing its own shares once any such authority has been exhausted, the Company would be required to seek a renewal of such authority from shareholders in general meeting.

The ability of the Company to purchase its own shares will be subject to the Companies Act 2006 and all other applicable legislation, rules and regulations of any government, regulatory body or market applicable to the Directors or the Company and, in particular, will be dependent on the availability of distributable reserves.

Borrowings

The Company uses borrowings for investment purposes. The use of borrowings can enhance the total return on the shares where the return on the Company's underlying assets exceeds the cost of borrowing. It is likely to have the opposite effect where the return on the underlying assets is below the cost of borrowing. As a result, the use of borrowings by the Company will increase the volatility of the Net Asset Value per share.

There is no guarantee that any borrowings of the Company would be refinanced on their maturity either at all or on terms that are acceptable to the Company.

Foreign Currency Risks

The Company's investments are principally in overseas securities. The Company accounts for its activities and reports its results in sterling. The Company currently hedges most of the foreign currency exposure in respect of the liabilities attached to its borrowings. Where the Company does not hedge its currency exposure, which is currently the case with the investment portfolio, the movement of exchange rates will have a favourable or unfavourable effect on the gains and losses experienced on investments and the income derived from investments which are made or realised in currencies other than pounds sterling.

Investment Strategy Risk

The Company's investment strategy requires investment in equity and fixed income stockmarkets, which may lead to loss of capital. Separately, inappropriate asset allocation or level of gearing, as part of the investment strategy adopted by the Company, may result in underperformance against either the Company's benchmark and/or its peer group, leading to the establishment of a discount.

The Board seeks to manage these risks by diversifying its investments, as set out in the investment restrictions and guidelines agreed with the Manager, and on which the Company receives regular reports from the Manager. At each Board meeting, the Directors review the investment process with the Manager by assessing relevant management information including revenue forecasts, absolute/relative performance data, attribution analysis and liquidity/risk reports. The Board holds a separate, annual meeting devoted to investment strategy.

Related Party Transactions

AFML acts as Alternative Investment Fund Manager, AAM acts as Investment Manager and Aberdeen Asset Management PLC acts as Company Secretary to the Company; details of the service and fee arrangements can be found in the 2014 Annual Report, a copy of which is available on the Company's website. Details of the fees payable to Aberdeen group companies are disclosed in note 10 to the financial statements.

Going Concern

In accordance with the Financial Reporting Council's Guidance on Risk Management, Internal Control and Related Financial and Business Reporting issued in September 2014, the Directors have undertaken a rigorous review and consider both that there are no material uncertainties and that the adoption of the going concern basis of accounting is appropriate. The Company's assets consist of a diverse portfolio of listed equities and bonds which in most circumstances are realisable within a very short timescale. The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Directors' Responsibility Statement

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

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

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

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

The Half-Yearly Financial Report for the six months ended 30 June 2015 comprises the Half-Yearly Board Report, the Directors' Responsibility Statement and a condensed set of Financial Statements.

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

Kevin Carter

Chairman

14 August 2015

HIGHLIGHTS

	30 June 2015	31 December 2014	% change
Total assets [A] (£'000)	1,373,323	1,429,179	-3.9
Equity shareholders' funds (£'000)	1,179,859	1,240,537	-4.9
Share price - Ordinary share	960.5p	1026.0p	-6.4
Share price - B Ordinary share	900.0p	1087.5p	-17.2
Net asset value per Ordinary and B Ordinary share	918.2p	966.6p	-5.0
Premium to net asset value per Ordinary share	4.6%	6.1%
A Represents total assets less current liabilities (before deducting prior charges).

Performance (total return)

	Six months ended 30 June 2015	Year ended 31 December 2014
Net asset value total return per Ordinary and B Ordinary share with net income reinvested	-2.6%	+3.0%
Share price	-4.1%	+1.7%
Benchmark	+2.0%	+7.5%
Source: Aberdeen Asset Management, Morningstar & Russell Mellon

CONDENSED STATEMENT OF COMPREHENSIVE INCOME

		Six months ended			Six months ended
		30 June 2015			30 June 2014
		(unaudited)			(unaudited)
		Revenue	Capital	Total	Revenue	Capital	Total
	Note	£'000	£'000	£'000	£'000	£'000	£'000
(Losses)/gains on investments		-	(63,572)	(63,572)	-	38,670	38,670
Income	3	41,096	-	41,096	35,740	-	35,740
Investment management fees		(1,074)	(2,507)	(3,581)	(1,084)	(2,528)	(3,612)
Other expenses		(1,027)	-	(1,027)	(1,039)	-	(1,039)
Currency losses		- ______	(182) ______	(182) ______	- ______	(195) ______	(195) ______
Net return before finance costs and taxation		38,995	(66,261)	(27,266)	33,617	35,947	69,564

Finance costs		(719) ______	(1,678) ______	(2,397) ______	(751) ______	(1,752) ______	(2,503) ______
Return on ordinary activities before tax		38,276	(67,939)	(29,663)	32,866	34,195	67,061

Tax on ordinary activities	2	(1,453) ______	955 ______	(498) ______	(2,635) ______	407 ______	(2,228) ______
Return attributable to equity shareholders		36,823 ______	(66,984) ______	(30,161) ______	30,231 ______	34,602 _____	64,833 ______


Return per Ordinary share assuming full conversion of the B Ordinary shares (pence)	5	28.7 ______	(52.2) ______	(23.5) _____	23.9 ______	27.4 ______	51.3 ______

The total column of the Condensed Statement of Comprehensive Income is the profit and loss account of the Company.
A Statement of Total Recognised Gains and Losses has not been prepared as all gains or losses are recognised in the Condensed Statement of Comprehensive Income.
All revenue and capital items in the above statement derive from continuing operations.

CONDENSED STATEMENT OF FINANCIAL POSITION

		As at	As at
		30 June 2015	31 December 2014
		(unaudited)	(audited)
	Notes	£'000	£'000
Non-current assets
Investments at fair value through profit or loss		1,358,229 ______	1,408,332 ______

Current assets
Debtors		13,607	8,015
Cash and short-term deposits		4,492 ______	17,766 ______
		18,099 ______	25,781 ______

Creditors: amounts falling due within one year
Bank loans		(23,314)	(44,933)
Other creditors		(3,005) ______	(4,934) ______
		(26,319) ______	(49,867) ______
Net current liabilities		(8,220) ______	(24,086) ______
Total assets less current liabilities		1,350,009	1,384,246

Creditors: amounts falling due after more than one year
Bank loans and Debentures		(170,150) ______	(143,709) ______
Net assets		1,179,859 ______	1,240,537 ______

Capital and reserves
Called-up share capital		32,123	32,084
Share premium account		349,338	348,045
Capital redemption reserve		8,230	8,230
Capital reserve	6	720,498	787,488
Revenue reserve		69,670 ______	64,690 ______
Equity shareholders' funds		1,179,859 ______	1,240,537 ______


Net asset value per Ordinary and B Ordinary share (pence)	7	918.2 ______	966.6 ______

CONDENSED STATEMENT OF CHANGES IN EQUITY

Six months ended 30 June 2015 (unaudited)
		Share	Capital
	Share	premium	redemption	Capital	Revenue
	capital	account	reserve	reserve	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 December 2014	32,084	348,045	8,230	787,488	64,690	1,240,537
Return on ordinary activities after taxation	-	-	-	(66,984)	36,823	(30,161)
Dividends paid (see note 4)	-	-	-	-	(31,843)	(31,843)
Issue of new shares	39 ______	1,293 ______	- ______	(6) ______	- ______	1,326 ______
Balance at 30 June 2015	32,123 ______	349,338 ______	8,230 ______	720,498 ______	69,670 ______	1,179,859 ______

Six months ended 30 June 2014 (unaudited)
		Share	Capital
	Share	premium	redemption	Capital	Revenue
	capital	account	reserve	reserve	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 December 2013	31,516	324,866	8,230	803,986	68,120	1,236,718
Return on ordinary activities after taxation	-	-	-	34,602	30,231	64,833
Dividends paid (see note 4)	-	-	-	-	(29,985)	(29,985)
Issue of new shares	273 ______	11,052 ______	- ______	(6) ______	- ______	11,319 ______
Balance at 30 June 2014	31,789 ______	335,918 ______	8,230 ______	838,582 ______	68,366 ______	1,282,885 ______

CONDENSED STATEMENT OF CASH FLOWS

	Six months ended	Six months ended
	30 June 2015	30 June 2014
	(unaudited)	(unaudited)
	£'000	£'000
Net return before finance costs and taxation	(27,266)	69,564
Adjustments for:
Losses/(gains) on investments	63,572	(38,670)
Effect of foreign exchange losses	182	195
Amortisation of fixed income book cost	(1,222)	3,075
Increase in accrued income	(4,355)	(1,847)
Decrease in other debtors	26	1
Increase in accruals	73	113
Tax on unfranked income - overseas	(1,762)	(2,580)
Stock dividends included in investment income	(1,704) ______	- ______
Net cash inflow from operating activities	27,544	29,851
Returns on investment and servicing of finance
Interest paid	(2,431) ______	(2,575) ______
Net cash outflow from servicing of finance	(2,431)	(2,575)
Financial investment
Purchases of investments	(24,862)	(100,473)
Sales of investments	12,570 ______	91,806 ______
Net cash outflow from financial investment	(12,292)	(8,667)

Equity dividends paid	(31,843) ______	(29,985) ______
Net cash outflow before financing	(19,022)	(11,376)

Financing
Share issue	1,326	11,319
Loan repayment	(45,007)	(11,545)
Loan drawdown	50,000 ______	15,000 ______
Net cash inflow from financing	6,319 ______	14,774 ______
(Decrease)/increase in cash	(12,703) ______	3,398 ______
Analysis of changes in cash during the period
Opening balance	17,766	4,535
(Decrease)/increase in cash as above	(12,703)	3,398
Currency differences	(571) ______	(2,946) ______
Closing balances	4,492 ______	4,987 ______

NOTES TO THE FINANCIAL STATEMENTS

1.	Accounting policies
	Basis of preparation
	The condensed financial statements have been prepared in accordance with Financial Reporting Standard104 (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.

	These condensed financial statements are the first since FRS 102 (The Financial Reporting Standard applicable in the UK and Republic of Ireland) came into effect for accounting periods beginning on or after 1 January 2015. An assessment of the impact of adopting FRS 102 has been carried out and found that no restatement of balances as at the transition date, 1 January 2014, or comparative figures in the Condensed Statement of Financial Position or the Condensed Statement of Comprehensive Income is considered necessary.

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

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 2015 is an effective rate of 20.25%. This is above the current corporation tax rate of 20% because prior to 1 April 2015 the prevailing corporation tax rate was 21%.

		Six months ended	Six months ended
		30 June 2015	30 June 2014
3.	Income	£'000	£'000
	Income from investments
	UK dividends	3,549	4,243
	UK unfranked investment income	-	74
	Overseas dividends	27,876	26,463
	Overseas interest	7,751	4,134
	Stock dividends	1,705 ______	826 ______
		40,881 ______	35,740 ______

	Interest
	Deposit interest	215 ______	- ______
	Total income	41,096 ______	35,740 ______

		Six months ended	Six months ended
		30 June 2015	30 June 2014
4.	Ordinary dividends on equity shares	£'000	£'000
	Third interim dividend 2014 of 10.00p (2013 - 9.50p)	12,736	11,887
	Final dividend 2014 of 15.00p (2013 - 14.50p)	19,107	18,163
	Refund of unclaimed dividends	- ______	(65) ______
		31,843 ______	29,985 ______

	A first interim dividend for 2015 of 10.50p (2014 - 10.00p) will be paid on 17 August 2015 to shareholders on the register on 10 July 2015. The ex-dividend date was 9 July 2015.

	A second interim dividend for 2015 of 10.50p (2014 - 10.00p) will be paid on 17 November 2015 to shareholders on the register on 9 October 2015. The ex-dividend date is 8 October 2015.

	In accordance with the terms of the Articles of Association of the Company the Directors will resolve to make bonus issues of B Ordinary shares to B Ordinary shareholders which correspond to the first and second interim dividends.

		Six months ended	Six months ended
		30 June 2015	30 June 2014
5.	Returns per share	£'000	£'000
	Based on the following figures:
	Revenue return	36,823	30,231
	Capital return	(66,984) ______	34,602 ______
	Total return	(30,161) ______	64,833 ______

	Weighted average number of Ordinary shares	127,388,586	125,444,909
	Weighted average number of B Ordinary shares	986,204 ______	945,653 ______
	Weighted average number of Ordinary shares assuming conversion of B Ordinary shares	128,374,790 ______	126,390,562 ______

6.	Capital reserves
	The capital reserve reflected in the Statement of Financial Position at 30 June 2015 includes gains of £270,823,000 (31 December 2014 - gains of £340,581,000) which relate to the revaluation of investments held at the reporting date.

7.	Diluted net asset value
	The diluted net asset value per share and the net asset value attributable to the Ordinary shares (including conversion of the B Ordinary shares) at the period end calculated in accordance with the Articles of Association were as follows:

		As at	As at
		30 June 2015	31 December 2014
	Attributable net assets (£'000)	1,179,859 ______	1,240,537 ______

	Number of shares in issue:
	Ordinary shares	127,491,901	127,361,901
	B Ordinary shares	1,000,563 ______	975,063 ______
		128,492,464 ______	128,336,964 ______

8.	Transaction costs
	During the period expenses were incurred in acquiring or disposing of investments classified as fair value through profit or loss. These have been expensed through capital and are included within (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 2015	30 June 2014
		£'000	£'000
	Purchases	26	38
	Sales	17 ______	54 ______
		43 ______	92 ______

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 shall have the following classifications:

Class A: quoted prices for identical instruments in active markets;

Class B: prices of recent transactions for identical instruments; and

Class C: valuation techniques using observable and unobservable market data.

The financial assets and liabilities measured at fair value in the Statement of Financial Position are grouped into the fair value hierarchy at the reporting date as follows:

Class C

Observable

Unobservable

Class A

Class B

Inputs

Total

As at 30 June 2015

Note

£'000

Financial assets at fair value through profit or loss

Quoted equities

1,179,612

Quoted preference shares

6,805

Quoted bonds

138,119

______

33,693

______

171,812

______

Total

1,324,536

______

33,693

______

1,358,229

______

Financial liabilities at fair value through profit or loss

Foreign exchange forward contracts

______

(151)

______

(151)

______

Net fair value

1,324,536

______

33,693

______

(151)

______

1,358,078

______

Class C

Observable

Unobservable

Class A

Class B

Inputs

Total

As at 31 December 2014

Note

£'000

Financial assets at fair value through profit or loss

Quoted equities

1,225,696

Quoted preference shares

6,566

Quoted bonds

144,106

______

31,964

______

176,070

______

Total

1,376,368

______

31,964

______

1,408,332

______

Financial liabilities at fair value through profit or loss

Foreign exchange forward contracts

______

(370)

______

(370)

______

Net fair value

1,376,368

______

31,964

______

(370)

______

1,407,962

______

Quoted equities and preference shares

The fair value of the Company's investments in quoted equities and preference shares has been determined by reference to their quoted bid prices at the reporting date. Quoted equities and preference shares included in Fair Value Class A are actively traded on recognised stock exchanges.

Quoted bonds

The fair value of the Company's investments in quoted bonds has been determined by reference to their quoted bid prices at the reporting date. Bonds included in Fair Value Classes A and B include Government Bonds and Corporate Bonds. Investments categorised as Class B are not considered to trade in active markets.

Foreign exchange forward contracts

The fair value of the Company's investment in foreign exchange forward contracts has been determined in relation to models using observable market inputs and hence are categorised in Fair Value Class C - Observable inputs.

10.

Transactions with the Manager

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

The management fee is payable quarterly in arrears based on an annual amount of 0.5% of the value of total assets, less unlisted investments and all current liabilities excluding monies borrowed to finance the investment objectives of the Company, averaged over the six previous quarters. A fee of 1.5% per annum is charged on the value of unlisted investments. The investment management fee is chargeable 30% to revenue and 70% to capital. During the period £3,581,000 (30 June 2014 - £3,612,000) of investment management fees were earned by the Manager, with a balance of £1,785,000 (30 June 2014 - £1,819,000) being payable to AFML at the period end.

Included within the charge of 0.5% above is a secretarial fee of £100,000 per annum which is chargeable 100% to revenue. During the period £50,000 (30 June 2014 - £50,000) of investment management fees were earned by the Manager, with a balance of £25,000 (30 June 2014 - £25,000) being payable to AFML at the period end.

In addition the Manager is entitled to a performance fee on the following basis:

- a fee of 5% of the first 2% of any outperformance of the Company's net asset total return over that of its benchmark;

- a fee of 10% of any additional outperformance against the benchmark.

During the period £nil (30 June 2014 - £nil) performance fees were earned by the Manager.

The total amount of the fee earned by the Manager in any one year (comprising the basic management fee and performance fee) is capped at 0.8% of the average value of the Company's total assets less current liabilities. Any performance fee is paid in equal instalments over a four year period with any underperformance offset against the fee payable.

No fees are charged in the case of investment managed or advised by the Aberdeen Asset Management Group. The management agreement may be terminated by either party on the expiry of one year's written notice. On termination the Manager would be 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 £500,000, payable quarterly in arrears. During the period £252,000 (30 June 2014 - £252,000) of fees were earned, with a balance of £124,000 (30 June 2014 - £124,000) being payable to AFML at the period end.

11.	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 2014 has been extracted from published accounts that have been delivered to the Registrar of Companies and on which the report of the auditors was unqualified and contained no statement under Section 498 (2), (3) or (4) of the Companies Act 2006. The interim financial statements have been prepared using the same accounting policies as contained within the preceding annual financial statements.

	Ernst & Young LLP has reviewed the financial information for the six months ended 30 June 2015 pursuant to the Auditing Practices Board guidance on Review of Interim Financial Information.

12.	This Half-Yearly Financial Report was approved by the Board on 14 August 2015.

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

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

By order of the Board

ABERDEEN ASSET MANAGEMENT PLC, SECRETARY

14 August 2015

INDEPENDENT REVIEW REPORT TO MURRAY INTERNATIONAL TRUST PLC

Introduction

We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2015 which comprises the Condensed Statement of Comprehensive Income, the Condensed Statement of Financial Position, the Condensed Statement of Changes in Equity, the Condensed Statement of Cash Flows and the related Notes 1 to 12. We have read the other information contained in the half yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the Company in accordance with guidance contained in International Standard on Review Engagements 2410 (UK and Ireland) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our work, for this report, or for the conclusions we have formed.

Directors' Responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

As disclosed in Note 1, the annual financial statements of the Company are prepared in accordance with United Kingdom Generally Accepted Accounting Practice. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with the FRS 104 "Interim Financial Reporting".

Our Responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2015 is not prepared, in all material respects, in accordance with FRS 104 "Interim Financial Reporting" and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

Ernst & Young LLP

Edinburgh

14 August 2015

SUMMARY OF INVESTMENT CHANGES

	Valuation		Appreciation/		Valuation
	30 June 2015		(depreciation)	Transactions	31 December 2014
	£'000	%	£'000	£'000	£'000	%
Equities
United Kingdom	178,398	13.0	16,358	2,396	159,644	11.2
North America	207,066	15.1	(10,931)	(3,696)	221,693	15.5
Europe ex UK	246,851	18.0	(9,876)	494	256,233	17.9
Japan	27,948	2.0	(3,186)	-	31,134	2.2
Asia Pacific ex Japan	249,100	18.1	(23,802)	1,831	271,071	19.0
Latin America	243,971	17.8	(20,540)	5,539	258,972	18.1
Africa	26,278 ______	1.9 ______	(671) ______	- ______	26,949 ______	1.9 ______
	1,179,612 ______	85.9 ______	(52,648) ______	6,564 ______	1,225,696 ______	85.8 ______
Fixed income
United Kingdom	6,805	0.5	239	-	6,566	0.4
Asia Pacific ex Japan	51,963	3.8	(4,531)	5,762	50,732	3.5
Latin America	101,964	7.4	(5,052)	1,103	105,913	7.4
Africa	17,885 _______	1.3 ______	(1,580) ______	40 ______	19,425 ______	1.4 ______
	178,617 ______	13.0 ______	(10,924) ______	6,905 ______	182,636 ______	12.7 ______
Other net assets	15,094 ______	1.1 ______	(5,753) ______	- ______	20,847 ______	1.5 ______
Total assets [A]	1,373,323 ______	100.0 ______	(69,325) ______	13,469 ______	1,429,179 ______	100.0 ______
A Figure for 30 June 2015 excludes bank loan of £23,314,000 (31 December 2014 - £44,933,000) which is shown as a current liability in the Balance Sheet.

SUMMARY OF NET ASSETS

	Valuation		Valuation
	30 June 2015		31 December 2014
	£'000	%	£'000	%
Equities	1,179,612	100.0	1,225,696	98.8
Fixed income	178,617	15.1	182,636	14.7
Other net assets [A]	15,094	1.3	20,847	1.7
Bank loans and Debentures	(193,464) ______	(16.4) ______	(188,642) ______	(15.2) ______
	1,179,859 ______	100.0 ______	1,240,537 ______	100.0 ______
A Excluding short-term bank loans.

INVESTMENT PORTFOLIO

AS AT 30 JUNE 2015

		Valuation	Total assets
Security	Country	£'000	%
Aeroportuario del Sureste ADS	Mexico	67,608	4.9
British American Tobacco [A]	UK & Malaysia	61,569	4.5
Taiwan Semiconductor Manufacturing	Taiwan	50,203	3.7
Unilever Indonesia	Indonesia	48,979	3.6
Taiwan Mobile	Taiwan	44,360	3.2
Philip Morris International	USA	39,746	2.9
Nordea	Sweden	39,618	2.9
Roche Holdings	Switzerland	35,651	2.6
Telus	Canada	35,065	2.5
Zurich Financial Services	Switzerland	34,841 ______	2.5 ______
Top ten investments		457,640 ______	33.3 ______
Singapore Telecommunications	Singapore	33,320	2.4
Fomento Economico Mexicano	Mexico	31,379	2.3
Verizon Communications	USA	31,367	2.3
Pepsico	USA	29,675	2.2
Souza Cruz	Brazil	28,003	2.0
Daito Trust Construction	Japan	27,948	2.0
Banco Bradesco [B]	Brazil	27,533	2.0
Casino	France	27,199	2.0
Total	France	26,855	2.0
Standard Chartered	UK	26,494 ______	1.9 ______
Top twenty investments		747,413 ______	54.4 ______
MTN	South Africa	26,278	1.9
Johnson & Johnson	USA	24,775	1.8
Royal Dutch Shell	UK	24,575	1.8
Public Bank	Malaysia	24,266	1.8
Baxter International	USA	23,997	1.8
HSBC	UK	23,374	1.7
Kimberly Clark de Mexico	Mexico	23,347	1.7
Vale do Rio Doce [C]	Brazil	22,658	1.7
Potash Corporation of Saskatchewan	Canada	22,441	1.6
ENI	Italy	21,091 ______	1.5 ______
Top thirty investments		984,215 ______	71.7 ______
Telefonica Brasil	Brazil	20,092	1.5
BHP Billiton	Australia	19,984	1.4
Tenaris ADR	Mexico	18,892	1.4
Novartis	Switzerland	18,809	1.3
Republic of South Africa 7% 28/02/31	South Africa	17,885	1.3
Sociedad Quimica Y Minera De Chile	Chile	17,815	1.3
Petroleos Mexicanos 5.5% 27/06/44	Mexico	17,549	1.3
Nestlé	Switzerland	16,074	1.2
Federal Republic of Brazil 10% 01/01/17	Brazil	15,556	1.1
Republic of Venezuela 5.75% 26/02/16	Venezuela	15,547 ______	1.1 ______
Top forty investments		1,162,418 ______	84.6 ______
GDF Suez	France	14,850	1.1
Oversea-Chinese Bank	Singapore	13,775	1.0
Weir Group	UK	13,576	1.0
Swire Pacific 'B'	Hong Kong	13,390	1.0
Coca-Cola Amatil	Australia	12,600	0.9
Atlas Copco	Sweden	11,862	0.9
Republic of Indonesia 6.125% 15/05/28	Indonesia	11,745	0.9
Republic of Indonesia 7.0% 15/05/22	Indonesia	11,538	0.8
Bharti Airtel International 5.125% 11/03/23	India	11,285	0.8
Hypermarcas 6.5% 20/04/21	Brazil	10,670 ______	0.8 ______
Top fifty investments		1,287,709 ______	93.8 ______
Other investments		70,520 ______	5.1 ______
Total investments		1,358,229 ______	98.9 ______
Net current assets excluding bank loans		15,094 ______	1.1 ______
Total assets		1,373,323 ______	100.0 ______
A Holding comprises equity holdings in both UK and Malaysia, split £36,541,000 and £25,028,000 respectively.
B Holding comprises equity and fixed income securities, split £18,152,000 and £9,381,000 respectively.
C Holding comprises equity and fixed income securities, split £9,133,000 and £13,525,000 respectively.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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