Welcome to the 100th annual report of Murray Income

Trust. In my last year as Chair, it is a pleasure to be able to

report that the Company is in good health and has had a

good year. In this report we will review the year just ended,

look back over our 100-year history, look forward to our

centenary events and assess the long-term outlook.

First, the headline numbers for the year to 30 June 2023.

Helped by a strong second half, NAV (net asset value per

share, with debt at fair value) total return was 8.8% over

the year, outperforming the FTSE All-Share Index total

consecutive year of dividend

increases, and representing a dividend yield of 4.5% at the

30 June 2023 share price.

One thing that we can confirm is the now fifty-year record

of consecutive dividend increases. It was the autumn of

1973 when your Company last did not raise its dividend;

the year of the miners’ strike and three-day week, the

The Association of Investment Companies (the “AIC”)

accords Dividend Hero status to investment trusts which

years or more. Maintaining that Dividend Hero status and

with a starting dividend yield level of over 4% is both a

source of pride for the Board and a priority for the future.

As outlined above, the Board announced on 2 August 2023

its 50

17.5p per share to 20.2p, equivalent to 54% (2022: 48%) of

the current annual dividend of 37.5p (2022: 36.0p). The

Board gave extensive consideration to how much to grow

the dividend and how much to add to reserves. Two

factors influenced us in our decision. First is that we prefer

7.3 5.6 5.7

a search for good quality companies at attractive

valuations. The Manager defines a quality company as

full years of service, I shall be retiring from the Board at the

conclusion of the centenary Annual General Meeting

The Company will hold its centenary AGM in the city of our

incorporation, at 12.30pm on Tuesday 7 November 2023

in The Glasgow Royal Concert Hall. We hope to mark our

centenary in style. One of the advantages of investing via

investment trusts is that all shareholders have the

opportunity to meet their Manager and the Directors at

the AGM. This year’s meeting will commence with a

presentation on the Company and market outlook from

Charles Luke. There will then be the formal part of the

investment trust whose Ordinary shares are listed on the

premium segment of the London Stock Exchange.

The Company is governed by a Board of Directors (the

“Board”), all of whom are non-executive, and has no

employees. The Board is responsible for determining the

Company’s investment objective and investment policy.

Like other investment companies, the day-to-day

Limited). The Manager has delegated the company

secretarial function to abrdn Holdings Limited (formerly

Aberdeen Asset Management PLC).

The Company complies with Section 1158 of the

combined with capital growth through investment in a

portfolio principally of UK equities.

dividend growth, while at the same time providing an

shareholder returns when appropriate.

The Company maintains a diversified portfolio of the

equity securities of UK and overseas companies with an

emphasis on investing in quality companies with good

management, strong cash flow, a sound balance sheet

and which are generating a reliable earnings stream.

holdings (but without restricting the Company from

holding a more or less concentrated portfolio from time

to time);

in UK-listed equities and other securities and is permitted

50%; and

assets in other listed investment companies (including

investment trusts).

Company’s success in achieving its objectives, and these are described below, with those also categorised as Alternative

Performance Measures marked with an asterisk (see also pages 103 to 106):

The Board considers the Company’s NAV (total return), relative to the FTSE All-Share Index, to be

The figures for share price (total return) for the Year and for the past three, five and ten years, as

well as for the NAV (total return) per share, are shown on page 14. A graph showing share price

total return performance against the FTSE All-Share Index over the past five years is shown on

page 15.

closely monitored by the Board. A graph showing the discount/premium over the last five years is

shown on page 15.

The Board aims to meet the ‘high and growing’ element of the Company’s investment objective by

developing revenue reserves sufficient to support the payment of a growing dividend; figures may

be found in Financial Highlights and Dividends on page 16 in respect of earnings and dividends per

There are a number of risks and uncertainties which, if

Company’s business model, future performance and

solvency. The Board, through the Audit Committee, has

put in place a robust process to identify, assess and

monitor these by means of a risk assessment and internal

controls system. This system was reviewed during the

year, as explained in the Audit Committee Report on

pages 51 and 52. As noted therein, the committee has a

Lack of a robust strategic review, failure to understand the

market/investor demand. Failure to analyse and react to

changes or uncertainty, unclear dividend policy.

The Company's investment objective and policy (“IOP”) are

reviewed regularly by the Board to ensure they remain

appropriate and effective. The Board holds an annual strategy

Issues could arise from the lack of process ownership, poor

procedures or the failure to appropriately manage distribution,

concerns or complaints of shareholders.

The Manager’s investor relations team works closely with the

Board on institutional shareholder contact. In addition, quarterly

updates are provided to the Board by the broker. All

correspondence addressed to the Board is circulated to

Directors while any complaints relating to the Company’s

savings plans are reviewed by the Board quarterly.

records); BNP Paribas Trust Corporation UK Limited (who acts

as Depositary and Custodian); and the registrar. The security of

the Company’s assets, dealing procedures, accounting records

and adherence to regulatory and legal requirements depend

on the effective operation of the systems of these third party

service providers.

Contracts with third party providers are entered into after

appropriate due diligence. Thereafter the performance of each

provider is subject to an annual review by the Audit Committee.

The Depositary reports to the Audit Committee at least

independent assessment of the effectiveness of risks and

Failure by any service provider to carry out its obligations could

have a material adverse effect on the Company’s performance.

Disruption, including that caused by information technology

breakdown or a cyber-related issue, could prevent, for example,

the functioning of the Company; accurate reporting to the

Board or shareholders; or payment of dividends in accordance

with the announced timetable.

internal controls at the service providers including their planning

in the event of a loss of assets, the Depositary must return assets

of an identical type or the corresponding amount, unless able to

demonstrate the loss was a result of an event beyond its

reasonable control.

The Board has assessed the risk posed by cyber-crime as

elevated, despite the available mitigation, reflecting the potential

disruption which might be caused to the Company’s operations

by a cyber-attack.

The following are other risks identified by the Board which could have a major impact on the Company, but due to

mitigation are not deemed to be principal risks:

“Dividend Hero” status.

The Board reviews estimates of revenue income and

expenditure prepared by the Manager.

The Company’s level of revenue reserves is monitored and can

be added to in years of surplus, or used to support the dividend in

years where there is a revenue deficit. Dividends can also be

paid from capital, though use of capital reserves for dividends is

expected to be rare.

The Company’s investment activities expose it to a variety of

The Company is required to comply with relevant rules and

regulations. Failure to do so could result in loss of investment trust

status, fines, suspension of the Company’s shares, criminal

proceedings or financial or reputational damage.

The Manager provides investment, company secretarial,

administration and accounting services through qualified third

party professional providers.

The Board receives regular reports from its broker, depositary,

registrar and Manager as well as the industry trade body (the

Association of Investment Companies (“AIC”) on changes to

The Board regularly reviews all risks to the Company, including

emerging risks, which are identified by a variety of means,

including advice from AIC, the Company’s professional advisors,

Directors’ knowledge of markets, changes and events.

The principal risks associated with an investment in the Company’s shares can be found in the pre-investment disclosure

document (“PIDD”) published by the Manager, which is available from the Company’s website: murray-income.co.uk.

The Board recognises the importance of promoting the

Company to existing and prospective investors both for

improving liquidity and enhancing the rating of the

Company’s shares. The Board believes one effective way

to achieve this is through subscription to, and participation

The Manager’s promotional and investor relations teams

report to the Board on a quarterly basis giving analysis of

their activities as well as updates on the shareholder

register and any changes in the make-up of that register.

Company is key. The promotional programme includes

The Company supports the UK Stewardship Code 2020,

and seeks to play its role in supporting good stewardship

of the companies in which it invests. Responsibility for

actively monitoring the activities of portfolio companies

has been delegated by the Board to the Manager

which has sub-delegated that authority to the

Investment Manager.

The Manager is a tier 1 signatory of the UK Stewardship

been delegated to the Manager, the Board acknowledges

its role in setting the tone for the effective delivery of

stewardship on the Company’s behalf.

The Board has also given discretionary powers to the

Manager to exercise voting rights on resolutions proposed

by the investee companies within the Company’s portfolio.

The Manager reports to the Board on a six monthly basis

on stewardship (including voting) issues and additional

information may be found on page 97.

· The Company indemnifies its Directors for all costs,