7th Dec 2015 07:50
LONDON (Alliance News) - The Scottish Investment Trust PLC has a portfolio of "sound" companies which should benefit shareholders, according to outgoing Chairman McDougall, who said there is uncertainty for investors as a result of cheap credit and the expected divergence of monetary policy.
The international equities investor, which aims to generate above average returns and grow dividends ahead of UK inflation, said its net asset value total return, with borrowings at market value, was 4.0% in the 12 months to October 31, while its share price total return was 3.7%. The trust increased its dividend for the year by about 33% to 16.0 pence, when including a special element of 3.5p.
Over the same period, the FTSE All-World Index sterling total return was 4.2% and the FTSE All-Share Index total return was 3.0%, according to the trust, which does not have a formal benchmark against which it measures performance.
The results were Douglas McDougall's last as chairman, as he will be replaced by James Will following the trust's next annual meeting of shareholders.
"We exist in an investment climate that owes much to the continued availability of cheap credit. Complicating this is the fact that the credibility of the US Federal Reserve has been staked on a desire to 'normalise' interest rate policy while other important central banks continue to discuss further extraordinary stimulus. It is unclear how this will eventually end," McDougall said in a statement.
"Regardless of the above uncertainty, we believe that we have a portfolio of sound companies which should work to the long term advantage of our shareholders.
By Samuel Agini; [email protected]; @samuelagini
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