27th Jul 2015 08:28
LONDON (Alliance News) - The Scottish American Investment Company PLC Monday said it performed better than its comparative index in the first six months of 2015 because of its equity portfolio.
"We believe that our focus on identifying companies which have good growth prospects, and that offer a dependable and growing income stream, means that the outlook for SAINTS' income and capital growth is strong," the trust's report said.
The investment trust's net asset value total return for the six months ended June 30 was 4.0% and the share price total return was 10.4%.
The total return of global equities, measured by the FTSE All World Index in Sterling, was 2.2% in the same period, the trust said.
"The NAV performance exceeded the FTSE All World Index return mainly due to strong performance from our equity portfolio," Baillie Gifford & Co, the trust's Edinburgh, Scotland-based investment manager, said in a statement.
"The companies in which the portfolio is invested have in general continued to make solid operational progress. The financial services sector was an area of particular strength with our holdings of securities exchanges Deutsche Börse and Hong Kong Exchanges and Clearing performing well," the report added.
Royal Dutch Shell's GBP47 billion acquisition of BG Group helped the portfolio, as did that of can maker Rexam by US rival Ball Corp for GBP4.3 billion.
The report said its exposure to directly-held UK property "increased modestly" in the six months, funded from the fixed income portfolio.
"Valuations on commercial property outside of London continue to look attractive, particularly in light of the continued economic recovery and increasing investment demand. Income from property was boosted by underlying rental income growth and the increased allocation. Prospects for capital and rental income growth from the property portfolio are strong," the report said.
Shares in the trust were down 0.9% at 269.38 pence on Monday morning in London.
By Samuel Agini; [email protected]; @samuelagini
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