14th Feb 2014 10:36
LONDON (Alliance News) - The Scottish American Investment Trust Co. PLC Friday raised its total dividend but underperformed its benchmark in the year ended December 31, 2013.
The investment trust saw a total return on net asset value per share of 17%, under performing its benchmark, a composite index of the FTSE All Share and FTSE All World excluding UK, which saw a total return of 21%.
The trust's under performance was due to a greater allocation of its portfolio in Emerging Markets, it said, although it noted that the long term potential of weighting towards Emerging Markets "remains considerable".
The company will be changing its benchmark to the FTSE All World Index effective from the start of 2014, as it said it better aligns with its investment policy.
Scottish American posted a final dividend of 2.6 pence, taking the full year dividend to 10.2 pence, up 4.1% from 9.8 pence in the previous year.
The trust said it expects further dividend growth, although it was cautious about its outlook.
"Global economic growth has improved but remains below trend and valuation measures suggest stock markets are not lowly rated," the company said in a statement. "This, together with the impact that less supportive monetary policy may have, suggests the outlook for capital returns is modest."
Shares in Scottish American were trading down 0.2% at 240.00 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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