20th Dec 2021 12:55
Scottish Investment Trust PLC - Edinburgh-based trust investing in companies with long-term upside potential - Reports annual results ahead of merger with JPMorgan Global Growth & Income PLC. Net asset value total return in the financial year that ended October 31 was 16%, while share price total return was 24%. This compares to 30% in sterling total return for the international MSCI All Country World Index. The trust says that while economic recovery from the depths of the virus pandemic helped to deliver absolute gains, the investment environment generally hasn't favoured Scottish Investment Trust's contrarian approach, causing the underperformance.
The company declares 7.0 pence final dividend, bringing a total annual payout of 24.4p, up 5.2%. Dividend policy will remain unchanged prior to the merger with JGGI, so it plans to pay 6.1p in the first quarter, equal to a quarter of its total payout for the recent year. Expects changes to its portfolio to align it with JGGI's will result in lower income for the trust, so the revenue reserve may need to be drawn upon to pay the dividends.
The switch to JPMorgan Funds Ltd as investment manager will take place around Jan 21, with the combination with JGGI to take place at the end of the first quarter. The merger will bring together two of the oldest investment trusts, both having formed in 1887.
Current stock price: 808.00 pence, down 1.1% on Monday
Year-to-date change: up 16%
By Tom Waite; [email protected]
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Related Shares:
SCIN.LJPMorgan Global Growth & Income