RNS Number:3513U
Murray Global Return Trust PLC
19 January 2004

MURRAY GLOBAL RETURN TRUST PLC

Interim Announcement for the six months ended 30 November 2003

The Directors announce the interim results of Murray Global Return Trust PLC for
the six months ended 30 November 2003.

Key Points

   *Second interim dividend of 1.625p per Ordinary share declared in respect
    of the year ending 31 May 2004.

   *Net Asset Value total return for the six months ended 30 November 2003,
    with net dividends reinvested, of 20.1% from Units.

   *Net Asset Value 15.7p per Ordinary share and 143.6p per Zero Dividend
    Preference share at 30 November 2003.

   *Hurdle rate of 0.6% on the Zero Dividend Preference shares at 30 November
    2003.

Overview

For the first six months of the financial year, global stockmarkets were
encouraged by an overall improvement in macro-economic data and corporate
fundamentals. Monetary conditions remained accommodative, with ample liquidity
available to support financial markets and, with each tangible sign of recovery,
equity markets were quick to recognise good news. Consequently, the FTSE World
Index, with net dividends reinvested, was up 10% in sterling terms over the
period under review. Having divested the Company's large sovereign bond
portfolio earlier in the year and reinvested the proceeds in various, diverse
global equity markets, the Manager's response during the current period was
essentially to maintain the pro-cyclical emphasis within the portfolio. This
involved keeping a high weighting to industrial companies in Europe and a
positive asset allocation towards Asia and Emerging Market equities. The
portfolio remained totally unexposed to the US market, where valuations were
deemed too expensive relative to the underlying rate of corporate profit growth,
and exposure to the UK market was steadily reduced in favour of higher growth
opportunities elsewhere in the world. At stock level, strict adherence was
applied to holding good quality companies with solid balance sheets, low debt
and strong cash flow, in all geographical areas.

Due to the effect of operational gearing inherent within the structure of the
Company, the overall rise in Net Asset Value resulted in a proportionally larger
increase in the capital value of the Ordinary shares. Although this structural
characteristic of the Company has been consistently highlighted in the past, the
current period of rising equity markets has enabled the positive impact of such
operational leverage to be exhibited for the first time since markets troughed
in March 2003. Accordingly, the Net Asset Value per Ordinary share rose from nil
at 31 May 2003 to 15.7p at 30 November 2003, and subsequently has increased
further to 27.7p at 15 January 2004. As a result, by 15 January 2004, the hurdle
rate on the Zero Dividend Preference shares was -4.9%. With this in mind, it is
appropriate to consider the current backdrop for markets and the factors which
lead the Board to believe that the positive progress made since 31 May 2003 can
continue into the future.

Background

The re-emergence of growth throughout the developed world proved to be the
dominating influence over financial markets during the past six months. Starved
of any real tangible signs of monetary traction since interest rates began
declining close to three years ago, equity markets were suddenly confronted with
a raft of positive growth statistics, which significantly boosted investor
sentiment. The serious threat of deflation faced during the dark months of
recession diminished as global economic recovery gathered momentum. Despite weak
growth in household incomes and a massive reliance on fiscal stimulus and debt
creation, the quality and sustainability of the current business cycle was not
open to criticism. The developed world was growing again, and that was all that
mattered.

Global equity markets, not surprisingly, consistently accentuated the positive
during the period. Risk aversion declined amid renewed optimism and even some
"politically induced" currency turbulence, towards the end of September failed
to derail the upward trend. Lingering concerns over the rapid deterioration of
the "twin deficits" in the United States kept the dollar on its downward
trajectory against most global currencies, but for the most part the decline was
orderly. Rising commodity prices confirmed global reflation was underway and,
consequently, most global stockmarkets enjoyed a period of strong, positive
returns for the first time in many years.

Performance

During the six months to 30 November 2003, the Net Asset Value attributable to
the Ordinary shares rose to 15.7p on an Articles of Association ("Articles")
basis. For the six month period the return on net assets attributable to the
Units, with net dividends reinvested, was +20.1%. This compared with the return
on the FTSE All-Share Index of +10.8%, the return on the FTSE World Europe ex UK
of +12.5%, the return on the FTSE World Asia Pacific ex Japan of +21.4%, and the
return on the S&P/IFCI Latin American Index of +24.7%. These indices cover the
most important regions in which the Company's equity portfolio is invested.

Activity

In the UK, the Company continued to reduce overall exposure to the equity
market. Positions in BP, Shell, Diageo, AstraZeneca and GlaxoSmithKline were
sold outright, with the proceeds reinvested in higher growth markets worldwide.
Based on solid currency fundamentals, good recovery prospects and impressive
capital discipline at the company level, Europe continued to be fully
represented in the portfolio. Existing positions in Allied Irish Bank, Altadis,
Schneider Electric, IHC Caland and Valeo were all increased, and a new position
in leading Danish telecommunications company, TDC Corp, was also established.

In Asia, the Company used the general strength in the region to exit some
smaller holdings in various less-liquid markets. Hence, positions in Ayala Land
(Philippines), Fubon Financial(Taiwan), Sinopac Holdings(Taiwan) and Public Bank
(Malaysia) were sold outright. The proceeds were all reinvested in the region,
with India, Korea and Singapore being the main markets of choice. In India,
existing positions in Bharat Petroleum and ICICI Bank were increased; in Korea,
a new position was established in communications company, KT Corp and the
existing holding in Hyundai Motor was increased; finally, in Singapore, extra
investment was directed into two leading financial companies, United Overseas
Bank and Oversea Chinese Banking, plus a new position in ST Engineering was
established.

The Latin American region delivered some of the strongest market returns in the
world during the period, as macro-economic fundamentals rapidly improved and
stocks began recognising gains in underlying profitability. Activity in the
region focused on reducing exposure to Brazilian Bonds, following a period of
strong outperformance, and equity positions in Aracruz of Brazil and Quimica Y
Minera of Chile were sold outright. A new position in Telmex, the Mexican
communications company, was introduced to the portfolio to gain exposure to this
potentially high growth sector.

Share Buy-Backs

In the period from 1 July to 30 September 2003, the Company bought back a total
of 5,106,535 Zero Dividend Preference shares for an aggregate cost of #5,847,420
and at an average price of 113.7p per share.

The Board considers there to be advantages to both classes of Shareholder in
maintaining a carefully monitored programme of share buy backs and, accordingly,
the authority to buy back up to 14.99% of each class of share was renewed at the
Annual General Meeting of the Company, held on 30 September 2003. To date, no
transactions have been effected under the current authority as the Company's
Ordinary shares have continued to trade at a price below their nominal value of
25p, being the minimum price at which such shares may be bought back; while the
Zero Dividend Preference shares have been trading at a lower level of discount,
at which the Board and Manager considered did not represent reasonable value for
continuing Shareholders. However, the Manager will continue to seek
opportunities to effect such transactions when it is deemed beneficial to
Shareholders.

Dividends

On 1 August 2003, the Directors declared a first interim dividend, in respect of
the year ended 31 May 2004, of 1.625p per Ordinary share, payable on 24 October
2003 to Ordinary Shareholders on the register on 1 October 2003. Subsequently,
on 22 December 2003, the Directors declared a second interim dividend, in
respect of the year ended 31 May 2004, of 1.625p per Ordinary share, payable on
31 January 2004 to Ordinary Shareholders on the register on 9 January 2004.

Outlook

An unequivocal improvement in global economic activity, combined with a rapid
shift in consensus expectations from fearing deflation to embracing reflation,
were rapidly recognised in equity and bond markets over the past six months. The
respective positive and negative returns are testimony to this. However, whilst
expectations may have changed, macro-economic reality remained fairly
uninspiring. Economic growth appeared to have, at long last, responded to
aggressive monetary and fiscal stimulation, although much of this remained
contained in purely interest rate sensitive sectors such as housing and retail.
With the current business cycle clearly in its infancy and still over-dependent
on credit, it is vital that economic activity broadens out to include
manufacturing, business investment and job growth if recent momentum is to be
maintained. The prevailing climate of high debt and low savings, suggesting
impediments to growth, remain entrenched in the developed economies, obstacles
that could still prove extremely restrictive to growth if the recent back-up in
bond yields continues. For the next six months, economic recovery is likely to
remain fragile.

Where economic traction is arguably more robust is in the developing world.
Unburdened by high debt and with savings to spare, the developing economies of
Asia and Latin America have demonstrated solid macro economic improvements for
some considerable time now. In addition to domestic agendas and export success,
there continues to be a strong secular component to the transfer of
manufacturing and production resources from developed to developing economies.
The textbook comparative advantage case has always been strong and appealing -
the excesses of the last business cycle provided the catalyst for the transition
to accelerate. At this juncture, some of the cheapest markets in the world
relative to growth prospects remain in the developing world, thus Murray Global
Return will continue to focus on emphasising high quality companies within them.

Financial Highlights
For the six months ended 30 November 2003

Murray Global Return Trust had a stock market capitalisation as at 30 November
2003 of #150 million (31 May 2003 - #123 million).

                                 30 November        31 May
                                   2003              2003          % change
Assets

Total assets less current        #180,317,000      #162,266,000       11.1
liabilities
Equity Shareholders' funds*       #16,905,000                 -          -

Ordinary shares
Net Asset Value*                         15.7p                -          -
Share price                              16.3p             12.5p      30.4
Premium to Net Asset Value                3.8%                -
Hurdle rate**                             8.0%             13.1%
Cost of Ordinary share                      -          #164,000
buy-backs

Zero Dividend Preference
shares
Net Asset Value*                        143.6p            135.4p       6.1
Share price                             131.8p            103.5p      27.3
Discount to Net Asset Value               8.2%             23.6%
Hurdle rate***                            0.6%             10.1%
Cost of Zero Dividend Preference   #5,838,000        #2,207,000
share buy-backs

Units (comprising one Ordinary share and one Zero Dividend Preference share)
Net Asset Value total return for         20.1%            (15.6)%
the period per Unit
Net Asset Value                         159.3p            135.4p      17.7
Share price                             148.0p            114.0p      29.8
Discount to Net Asset Value               7.1%             15.8%

Issued share capital
Ordinary shares                   107,402,735       107,402,735
Zero Dividend Preference          100,322,828       105,429,363
shares

* Attributable on an Articles of Association basis.
** The hurdle rate indicates the compound rate of growth of the total assets
required each year up to 19 March 2005, if they are to be sufficient to repay
the predetermined repayment price on the Zero Dividend Preference shares and to
return to the Ordinary shareholders the current share price (16.3p on 30
November 2003). 
*** The hurdle rate indicates the compound rate of growth of the total assets
required each year up to 19 March 2005 if they are to be sufficient to repay the
predetermined redemption price on the Zero Dividend Preference shares. The Zero
Dividend Preference shares are repayable at a maximum of 158.69p each on 19
March 2005.

Source: splitsonline


MURRAY GLOBAL RETURN TRUST PLC
SUMMARY OF INVESTMENT CHANGES

                 Valuation                      Appreciation   Valuation
                31 May 2003     Transactions   (depreciation)  30 November 2003
Equities        #'000       %          #'000           #'000       #'000       %

United         23,122    14.2         (5,967)          1,407      18,562   10.3
Kingdom
Split capital   1,166     0.7            (34)            615       1,747    1.0
investment
trusts
Europe         52,487    32.4             72           7,162      59,721   33.1
Africa, Asia   37,123    22.9          3,293          12,038      52,454   29.1
and
Australasia
Americas       31,812    19.6         (4,190)          6,612      34,234   19.0
              -------  ------      ---------       ---------   --------- -------
              145,710    89.8         (6,826)         27,834     166,718   92.5
              -------  ------      ---------       ---------   --------- -------
Fixed Income
Europe          4,033     2.5          1,951            (596)      5,388    3.0
Africa, Asia      307     0.2             (2)            153         458    0.2
and
Australasia
Americas       12,296     7.6         (1,991)           (798)      9,507    5.3
              -------  ------      ---------       ---------   --------- -------
               16,636    10.3            (42)         (1,241)     15,353    8.5
              -------  ------      ---------       ---------   --------- -------
Other net         (80)   (0.1)        (1,534)           (140)     (1,754)  (1.0)
liabilities   -------  ------      ---------       ---------   --------- -------
Total         162,266   100.0         (8,402)         26,453     180,317  100.0
assets        -------  ------      ---------       ---------   --------- -------

                                                 Valuation
Summary of                                       30 November
net assets                                         2003
                                                  #'000           %
Equities                                         166,718       103.7
Fixed                                             15,353         9.5
income
Other net                                         (1,754)       (1.1)
assets
Borrowings                                       (19,271)      (12.0)
Provisions for                                       (98)       (0.1)
liabilities and                                 ---------   ---------
charges
Shareholders'                                    160,948       100.0
funds                                           ---------   ---------



Twenty Largest Investments
as at 30 November 2003
--------------------------                                        % of
                                                    Valuation    total
Security                             Area               #'000   assets
---------------------                -----------    ---------  --------

Tenaris                              Mexico             6,729      3.7
Government of Hungary 8.5% 12/10/    Hungary            5,388      3.0
04
Mexico 10.5% 14/7/11                 Mexico             5,361      3.0
Petrobras ADR                        Brazil             4,986      2.8
Republic of Brazil 8% 15/4/14        Brazil             4,146      2.3
Aeroportuario De Sureste ADS         Mexico             3,800      2.1
Souza Cruz                           Brazil             3,752      2.1
ICICI Bank                           India              3,654      2.0
Petrochina                           China              3,643      2.0
Samsung Electronics Preferred        South Korea        3,552      2.0
Metro                                Germany            3,491      1.9
Wing Hang Bank                       Hong Kong          3,481      1.9
Volvo                                Sweden             3,359      1.9
Bharat Petroleum Corporation         India              3,191      1.8
Stora Enso Oyj                       Finland            2,976      1.7
British American Tobacco             United             2,918      1.6
                                     Kingdom
Telefonos De Mexico ADR              Mexico             2,885      1.6
PTT Exploration & Production -       Thailand           2,840      1.6
Foreign
Arcelor                              France             2,830      1.6
Hyundai Motor                        South Korea        2,735      1.5
                                                     --------- --------
                                                       75,717     42.1
                                                     --------- --------


Statement of Total Return
(Incorporating the Revenue Account of the Company*)

                                          Six months ended
                                          30 November 2003
                                            (unaudited)

                               Revenue     Capital         Total
                                 #'000       #'000         #'000

Realised losses on                   -      (4,612)       (4,612)
investments
Unrealised gains/(losses) on         -      31,205        31,205
investments                   ---------- -----------  ----------
Gains/(losses) on                    -      26,593        26,593
investments

Income from investments          3,165           -         3,165
Other income                         6           -             6
Investment management fees        (194)       (453)         (647)
Currency losses                      -        (140)         (140)
Other expenses                    (330)          -          (330)
                              ---------- -----------  ----------
Net return before finance
costs and taxation               2,647      26,000        28,647
Finance costs of borrowing        (230)       (535)         (765)
                              ---------- -----------  ----------
Return on ordinary activities    2,417      25,465        27,882
before taxation
Taxation on ordinary              (649)        296          (353)
activities                    ---------- -----------  ----------
Return on ordinary activities    1,768      25,761        27,529
after taxation for the
period

Appropriations in respect
of non-equity shares:

Zero Dividend Preference             -      (4,231)       (4,231)
shares                        ---------- -----------  ----------
Return attributable to equity    1,768      21,530        23,298
Shareholders
Ordinary dividends on equity    (3,491)          -        (3,491)
shares                        ---------- -----------   ----------
Transfer                        (1,723)     21,530        19,807
(from)/to                     ---------- -----------   ----------
reserves


Return/(loss) per Ordinary
share on an Articles of
Association basis (pence):

Return/(loss) per Ordinary         1.7        17.3         19.0
share                         ---------- -----------   ----------
Return/(loss) per Zero               -         7.0          7.0
Dividend Preference share
Return/(loss) per share on
a FRS 4 basis (pence):
Return/(loss) per Ordinary         1.7        20.1         21.8
share                         ---------- -----------   ----------
Return per Zero Dividend             -         4.1          4.1
Preference share              ---------- -----------   ----------



Statement of Total Return
(Incorporating the Revenue Account of the Company*)

                                            Six months ended
                                            30 November 2002
                                                (unaudited)

                                     Revenue      Capital      Total
                                       #'000        #'000      #'000

Realised losses on investments             -      (22,945)   (22,945)
Unrealised gains/(losses) on               -      (23,005)   (23,005)
investments                         ----------  ----------- ----------
Gains/(losses) on investments              -      (45,950)   (45,950)

Income from investments                3,115            -      3,115
Other income                              18            -         18
Investment management fees              (203)        (473)      (676)
Currency losses                            -          (58)       (58)
Other expenses                          (280)          (6)      (286)
                                    ----------  ----------- ----------
Net return before finance
costs and taxation                     2,650      (46,487)   (43,837)
Finance costs of borrowing              (243)        (539)      (782)
                                    ----------  ----------- ----------
Return on ordinary activities          2,407      (47,026)   (44,619)
before taxation
Taxation on ordinary activities         (385)         305        (80)
                                    ----------  ----------- ----------
Return on ordinary activities after    2,022      (46,721)   (44,699)
taxation for the period
Appropriations in respect of
non-equity shares:
Zero Dividend Preference shares            -       (5,422)    (5,422)
                                    ----------  ----------- ----------
Return attributable to equity          2,022      (52,143)   (50,121)
Shareholders
Ordinary dividends on equity          (4,018)           -     (4,018)
shares                              ----------  ----------- ----------
Transfer                              (1,996)     (52,143)   (54,139)
(from)/to                           ----------  ----------- ----------
reserves

Return/(loss) per Ordinary
share on an Articles of
Association basis (pence):
Return/(loss) per Ordinary share         1.9        (39.7)     (37.8)
                                    ----------  ----------- ----------
Return/(loss) per Zero Dividend            -         (3.8)      (3.8)
Preference share                    ----------  ----------- ----------

Return/(loss) per share on a
FRS 4 basis (pence):
Return/(loss) per Ordinary share         1.9        (48.5)     (46.6)
                                    ----------  ----------- ----------
Return per Zero Dividend                   -          5.0        5.0
Preference share                    ----------  ----------- ----------



Statement of Total Return
(Incorporating the Revenue Account of the Company*)

                                               Year ended
                                              31 May 2003
                                               (audited)
                                     Revenue      Capital      Total
                                       #'000        #'000      #'000

Realised losses on investments             -      (33,966)   (33,966)

Unrealised gains/(losses) on               -         (315)      (315)
investments                         ----------  ----------- ----------
Gains/(losses) on investments              -      (34,281)   (34,281)
Income from investments                8,690            -      8,690
Other income                              24            -         24
Investment management fees              (379)        (885)    (1,264)
Currency losses                            -           (2)        (2)
Other expenses                          (532)          (8)      (540)
                                    ----------  ----------- ----------
Net return before finance costs and    7,803      (35,176)   (27,373)
taxation
Finance costs of borrowing              (457)      (1,067)    (1,524)
                                    ----------  ----------- ----------
Return on ordinary activities          7,346      (36,243)   (28,897)
before taxation
Taxation on ordinary activities       (1,637)         580     (1,057)
                                    ----------  ----------- ----------
Return on ordinary activities after    5,709      (35,663)   (29,954)
taxation for the period
Appropriations in respect of
non-equity shares:
Zero Dividend Preference shares            -       (9,999)    (9,999)
                                    ----------  ----------- ----------
Return attributable to equity          5,709      (45,662)   (39,953)
Shareholders
Ordinary dividends on equity          (7,495)           -     (7,495)
shares                              ----------  ----------- ----------
Transfer                              (1,786)     (45,662)   (47,448)
(from)/to                           ----------  ----------- ----------
reserves

Return/(loss) per Ordinary
share on an Articles of
Association basis (pence):

Return/(loss) per Ordinary share         5.3        (39.8)     (34.5)
                                    ----------  ----------- ----------
Return/(loss) per Zero Dividend            -          6.6        6.6
Preference share
Return/(loss) per share on
a FRS 4 basis (pence):
Return/(loss) per Ordinary share         5.3        (42.5)     (37.2)
                                    ----------  ----------- ----------
Return per Zero Dividend                   -          9.4        9.4
Preference share                    ----------  ----------- ----------


Balance Sheet
As at 30 November 2003
                                    As at         As at        As at
                                 30 November   30 November    31 May
                                    2003          2002         2003
                                 (unaudited)   (unaudited)   (audited)
                                    #'000         #'000       #'000

Fixed assets
Investments                       182,071       153,162     162,346

Current assets
Debtors                               962         1,348       1,461
Cash and short-term deposits          615         2,479       1,686
                                 ---------     ---------   ---------
                                    1,577         3,827       3,147
Creditors: amounts falling due     (3,331)       (4,264)     (3,227)
within one year                  ---------     ---------   ---------

Net current liabilities            (1,754)         (437)        (80)
                                 ---------     ---------   ---------
Total assets less current         180,317       152,725     162,266
liabilities

Creditors: amounts falling due    (19,271)      (19,496)    (19,385)
after more than one year
Provisions for liabilities and        (98)          (31)       (133)
charges                          ---------     ---------   ---------
Net assets                        160,948       133,198     142,748
                                 ---------     ---------   ---------

Share capital and reserves
Called up share capital
Ordinary shares                    26,851        26,851      26,851
Zero Dividend Preference           25,080        26,829      26,357
shares                           ---------     ---------   ---------
                                   51,931        53,680      53,208

Share premium                         232           232         232
Capital redemption reserve          4,223         2,475       2,946
Preference share redemption       118,962       115,849     119,292
reserve
Capital reserve - realised        (5,677)       22,068       5,275
Capital reserve - unrealised     (19,296)      (73,192)    (50,501)
Revenue reserve                   10,573        12,086      12,296
                                 ---------     ---------   ---------
                                 109,017        79,518      89,540
                                 ---------     ---------   ---------
Total Shareholders' funds        160,948       133,198     142,748
                                 ---------     ---------   ---------

Attributable on an Articles of
Association basis:
Equity Shareholders' funds        16,905             -           -
Zero Dividend Preference         144,043       133,198     142,748
Shareholders' funds              ---------     ---------   ---------
                                 160,948       133,198     142,748
                                 ---------     ---------   ---------

Attributable on a FRS 4 basis:
Equity Shareholders' funds        16,905       (9,479)      (2,901)
Zero Dividend Preference         144,043      142,677      145,649
Shareholders' funds              ---------    ---------    ---------
                                 160,948      133,198      142,748

Net Asset Value per share on an
Articles of Association basis
(pence):
Ordinary share                     15.7            -            -
Zero Dividend Preference share    143.6        124.1        135.4

Net Asset Value per share 
on a FRS 4 basis (pence):

Ordinary share                    15.7         (8.8)        (2.7)
Zero Dividend Preference share   143.6        132.9        138.1
                                ---------    ---------    ---------

Cash Flow Statement
For the six months ended 30 November 2003

                                 Six months    Six months    Year
                                   ended         ended       ended
                                 30 November   30 November   31 May 
                                   2003          2002         2003
                                (unaudited)   (unaudited)   (audited)
                                      #'000         #'000       #'000

Operating activities
Investment income received            3,400         3,890       9,045
Deposit interest received                 5            10          18
Underwriting commission                   1             7           7
received
Investment management fees             (448)         (950)     (1,540)
paid
Secretarial fees paid                   (58)          (53)        (90)
Cash paid to and on behalf of           (43)          (31)        (64)
Directors
Other cash payments                    (231)         (275)       (515)
                                 -----------   ----------- -----------
Net cash inflow from operating        2,626         2,598       6,861
activities
Returns on investment and
servicing of finance

Interest paid                          (869)         (879)     (1,742)
                                 -----------   ----------- -----------
Net cash outflow from returns          (869)         (879)     (1,742)
on investment and servicing of
finance
Taxation
UK corporation tax paid                (526)         (954)     (1,397)

Financial investment
Purchases of investments            (21,973)      (32,197)    (78,644)
Sales of investments                 29,140        37,795      85,645
                                 -----------   ----------- -----------
Net cash inflow from financial        7,167         5,598       7,001
investment

Equity dividends paid                (3,491)       (4,564)     (8,055)
                                 -----------   ----------- -----------
Net cash inflow before use of
financing and the management 
of liquid resources                   4,907         1,799       2,668
 
Financing
Repurchase of Ordinary shares             -          (164)       (164)
Repurchase of Zero Dividend          (5,838)         (489)     (2,207)
Preference shares                 -----------   ----------- -----------
Net cash outflow from                (5,838)         (653)     (2,371)
financing                         -----------   ----------- -----------
(Decrease)/increase in cash            (931)        1,146         297
                                  -----------   ----------- -----------

Notes to the Financial Statements

1.  Return/(loss) per share

    The return/(loss) per share calculated in accordance with the
    Articles of Association and FRS 4, is shown on the Statement of
    Total Return. A reconciliation between both sets of figures is shown
    below.

    Articles of Association basis:

    When calculated under the Articles of Association there was a
    shortfall in assets attributable to the Zero Dividend Preference
    ('ZDP') shares, as at 30 November 2003, of nil (31 May 2003 -
    #2,901,000; 30 November 2002 - #9,479,000). Details of the shortfall
    can be found in note 2.

    The revenue return per Ordinary share is based on the net revenue
    return for the period of #1,768,000 (31 May 2003 - #5,709,000; 30
    November 2002 - #2,022,000) and the capital return per Ordinary
    share is based on net capital gains for the period of #21,530,000
    (31 May 2003 - losses of #45,662,000; 30 November 2002 - losses of
    #52,143,000) after the deduction in respect of the ZDP shares of
    #4,231,000 (31 May 2003 - #9,999,000; 30 November 2002 -
    #5,422,000), less the decrease in the shortfall of assets #2,901,000
    (31 May 2003 - increase of #2,901,000; 30 November 2002 - increase
    of #9,479,000). Both the revenue and capital returns are based on
    107,402,735 (31 May 2003 - 107,418,762; 30 November 2002 -
    107,434,702) Ordinary shares, being the weighted average number of
    Ordinary shares in issue during the period.

    The capital return per ZDP share is based on appropriations in
    respect of ZDP shares of #4,231,000 (31 May 2003 - #9,999,000; 30
    November 2002 - #5,422,000) plus the decrease in the shortfall of
    assets of #2,901,000 (31 May 2003 - increase of #2,901,000; 30
    November 2002 - increase of #9,479,000) and on 102,249,156 (31 May
    2003 - 106,967,404; 30 November 2002 - 107,346,330) ZDP shares,
    being the weighted average number of ZDP shares in issue during the
    period.

    FRS 4 basis:

    The revenue return per Ordinary share is based on the net revenue
    return for the period of #1,768,000 (31 May 2003 - #5,709,000; 30
    November 2002 - #2,022,000) and the capital return per Ordinary
    share is based on net capital gains for the period of #21,530,000
    (31 May 2003 - losses of #45,662,000; 30 November 2002 - losses of
    #52,143,000) after the deduction in respect of the ZDP shares of
    #4,231,000 (31 May 2003 - #9,999,000; 30 November 2002 -
    #5,422,000). Both the revenue and capital returns are based on
    107,402,735 (31 May 2003 - 107,418,762; 30 November 2002 -
    107,434,702) Ordinary shares, being the weighted average number of
    Ordinary shares in issue during the period.

    The capital return per ZDP share is based on appropriations in
    respect of the ZDP Preference shares of #4,231,000 (31 May 2003 -
    #9,999,000; 30 November 2002 - #5,422,000) and on 102,249,156 (31
    May 2003 - 106,967,404; 30 November 2002 - 107,346,330) ZDP shares,
    being the weighted average number of ZDP shares in issue during the
    period.
                                                                
                                                                
                                            Six        Six       Year
                                           months     months      ended
                                           ended      ended       31 May
                                          30 Nov      30 Nov       2003
                                           2003       2002
    Reconciliation of FRS 4 basis to an     #'000      #'000      #'000
    Articles basis:
    Capital returns/
    (losses)
    Zero Dividend Preference (ZDP)
    shares
    FRS 4 basis ZDP capital                 4,231      5,422      9,999
    return
    Movement in ZDP entitlement             2,901     (9,479)    (2,901)
    shortfall*                            ---------  ---------   --------
    Articles basis ZDP capital return/      7,132     (4,057)     7,098
    (loss)                                ---------  ---------   --------

    Ordinary shares
    FRS 4 basis Ordinary capital           21,530    (52,143)   (45,662)
    return/(loss)
    Movement in ZDP entitlement            (2,901)     9,479      2,901
    shortfall*                                         
                                          ---------  ---------   --------
    Articles basis Ordinary capital        18,629    (42,664)   (42,761)
    return/(loss)                         ---------  ---------   --------

    * see note 2 for further information.

2.  Net Asset Value per share

    The Net Asset Value per share and the Net Asset Values attributable
    to each class of share at the period end, calculated in accordance
    with the Articles of Association and FRS 4 are shown on the Balance
    Sheet.

    Articles of Association basis:

    On a winding up and under an Articles of Association basis, the
    shortfall in assets would reduce the amount available to distribute
    against the Zero Dividend Preference ('ZDP') share entitlement by nil
    (31 May 2003 - #2,901,000, from #145,649,000 to #142,748,000; 30
    November 2002 - #9,479,000, from #142,677,000 to #133,198,000). At 30
    November 2003 there was a shortfall in assets attributable to the ZDP
    shares under an Articles of Association basis of nil (31 May 2003 -
    #2,901,000; 30 November 2002 - #9,479,000).

    The Net Asset Value per Ordinary share has been attributed in
    accordance with the Articles of Association of the Company on a
    return of assets, or liquidation, or otherwise. If the ZDP shares are
    fully covered, the Ordinary shares are entitled to receive any
    remaining surplus after liabilities on winding up.

    The Net Asset Value per Ordinary share is based on total equity
    Shareholders' funds of #16,905,000 (31 May 2003 - nil; 30 November
    2002 - nil) and on 107,402,735 (31 May 2003 and 30 November 2002 -
    107,402,735) Ordinary shares, being the number of Ordinary shares in
    issue at the period end.

    The Net Asset Value per ZDP share is based on total non-equity
    Shareholders' funds of #144,043,000 (31 May 2003 - #142,748,000; 30
    November 2002 - #133,198,000) after deduction of the shortfall in
    assets of nil (31 May 2003 - #2,901,000; 30 November 2002 -
    #9,479,000) and on 100,322,828 (31 May 2003 - 105,429,363; 30
    November 2002 - 107,314,363) ZDP shares, being the number of ZDP
    shares in issue at the period end.

  FRS 4 basis:

  The Net Asset value per Ordinary share is based on total equity Shareholders'
  funds of #16,905,000 (31 May 2003 - deficit of #2,901,000; 30 November 2002 -
  deficit of #9,479,000) and on 107,402,735 (31 May 2003 and 30 November 2002 -
  107,402,735) Ordinary shares, being the number of Ordinary shares in issue at
  the period end.

  The Net Asset Value per ZDP share is based on total non-equity Shareholders'
  funds of #144,043,000 (31 May 2003 - #145,649,000; 30 November 2002 -
  #142,677,000) and on 100,322,828 (31 May 2003 - 105,429,363; 30 November 2002
  - 107,314,363) ZDP shares, being the number of ZDP shares in issue at the
  period end.

A reconciliation of FRS 4 to an Articles of Association basis for each
class of share can be seen below:

                                Net Asset Value per share   Shareholders' funds
                          30 Nov  30 Nov  31 May   30 Nov    30 Nov     31 May
                           2003    2002    2003     2003      2002        2003
                            p       p        p     #'000     #'000       #'000

FRS 4 ZDP shares net     143.6   132.9     138.1  144,043   142,677     145,649
assets attributable
ZDP entitlement              -    (8.8)     (2.7)       -    (9,479)     (2,901)
shortfall                ------- -------   ------- -------   -------    -------
Non-equity shares - ZDP  143.6   124.1     135.4   144,043   133,198    142,748
entitlement              ------- -------   ------- -------   -------    -------

FRS 4 Ordinary shares net 15.7    (8.8)     (2.7)   16,905    (9,479)    (2,901)
assets attributable
ZDP entitlement              -     8.8       2.7         -     9,479      2,901
shortfall                ------- -------   -------  -------  -------    -------
Equity shares - Ordinary  15.7       -         -    16,905         -          -
entitlement              ------- -------   -------  -------  -------    -------

3.  The financial information for the six months ended 30 November 2003
    and 30 November 2002 comprises non-statutory accounts within the
    meaning of Section 240 of the Companies Act 1985. The financial
    information for the year ended 31 May 2003 has been abridged from
    published accounts that have been delivered to the Registrar of
    Companies and on which the report of the auditors was unqualified.
    The interim accounts have been prepared on the same basis as the
    annual accounts.

By order of the Board
Aberdeen Asset Management PLC, Secretary

19 January 2004

A full copy of the interim accounts will be printed and issued to shareholders.
Copies of this announcement will be available to the public at the registered
office of the Company, 123 St Vincent Street, Glasgow G2 5EA.




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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