13th Feb 2020 11:03
(Alliance News) - Scottish American Investment Co PLC on Thursday posted a rise in net assets and upped its dividend for the 40th year in succession.
Net assets at December 31 jumped 24% year-on-year at GBP600.5 million from GBP483.5 million. Net asset value per share was 19% higher at 407.1 pence each from 343.0p the year prior.
Shares in the company were 0.5% lower at 429.02 pence each in London on Thursday morning.
Net asset value total return was 22.9% in 2019, compared to negative 2.4% in 2018.
The trust said: "As well as being a very strong year in terms of absolute performance, returns also exceeded those from global equities which rose 22.3% over 2019. More importantly, however, it continues a record of outperformance which has enabled SAINTS not only to meet its objectives but also to deliver returns at the head of its peer group of Global Income investment trusts over the past five years."
The company raised its dividend by 3.3% to 11.875p per share from 11.5p in 2018. The trust explained that its "grown its dividend every year for the last four decades and has not reduced its dividend since 1938".
Scottish American said: "Markets again made good progress in 2019, helped by further support from the US Federal Reserve and other central banks. The path was not, however, smooth and the politicians were less helpful than the central bankers. Trade war fears were realised as tariffs were increased, and Brexit remained a feature.
"Eventually, though, markets returned to their upwards trajectory as trade tensions lessened, a withdrawal agreement was passed by the newly elected UK parliament and economic news improved. However, the reduction in uncertainties at one level has brought new ones in its wake such as the shape of any trade deal with the European Union."
Looking ahead, the trust said that with the exception of the new coronavirus, which has claimed more than 1,000 lives in China, the market concerns "remain essentially the same as in recent years".
By Eric Cunha; [email protected]
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