14th Dec 2020 10:38
(Alliance News) - Scottish Investment Trust PLC on Monday reported its 37th consecutive year of dividend increases, despite a fall in net asset value.
The FTSE 250-listed and Edinburgh-based investment trust said its net asset value per share as of October 31 was 793.6 pence, down from 915.9p a year earlier. Earnings per share fell by 27% to 21.7p from 29.8p.
Scottish Investment Trust reported a share price total return of negative 12% in its financial year to the end of October and a NAV per share total return of negative 10.6%.
The company does not have a formal benchmark but noted, by way of comparison, the sterling total return of the international MSCI All Country World Index was 5.0%, while the UK-based MSCI UK All Cap Index total return was negative 20.6%.
Scottish Investment Trust proposed a final dividend of 6.1 pence which, if approved, will mean that the total dividend for the year will be 23.2 pence per share, an increase of 1.8% from 22.80 pence per share the year prior.
The company reported a target of declaring three quarterly interim dividends of 5.8 pence for the new financial year to October 31, 2021 and plans to recommend a final dividend of at least 5.8 pence for shareholder approval at its annual general meeting in 2022.
Looking ahead, Chair James Will said "the divergence of valuations within markets has reached new extremes, a position that we believe is unsustainable and likely to reverse." Despite this, it believes this "contrarian approach" seeks out mispriced investments that have been overlooked and that the company is "well placed for the future."
Shares in Scottish Investment Trust were up 0.7% at 725.25 pence in London on Monday.
By Zoe Wickens; zoewickens@alliancenews.com
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