15th May 2020 08:38
(Alliance News) - Scottish Mortgage Investment Trust PLC on Friday said its net asset value total return outperformed its benchmark in financial 2020 as it declared a hike in its dividend payout.
Shares in the FTSE 100-listed investment trust were trading 2.7% higher at 693.02 pence each on Friday morning in London.
For its financial year ended March 31, Scottish Mortgage's NAV total return with borrowings at fair value was positive 13.7%, beating the FTSE All-World Index which returned negative 6.2%.
As at March 31, the company's NAV per share was 567.3p, up 13% year-on-year from 504.0p.
The total annual dividend declared was 3.25p, up 4.3% from 3.13p in financial 2019.
During the year, Scottish Mortgage added Chinese media company Bytedance to its portolio. Tiktok is Bytedance's social media platform.
Looking ahead, the trust said it has decided not to provide a financial outlook amid the "difficult environment" caused by the Covid-19 pandemic, though it did boldly declare the end of carbon and the rise of renewables.
Scottish Mortgage noted the fall in share price of Exxon Mobil Corp, BP PLC and Schlumberger Ltd in January and February, pointing out that in the first three months of 2020, 52% of German electricity came from renewables with the percentage in the UK standing at 45%.
"In the current difficult environment, I wish to conclude with the positive reminder that, 'this too will pass'. At this early stage I would also observe that no one can predict with any reasonable confidence when that will be. It will take time and the road is likely to be bumpy. Collectively, we will find ways to move forward.," said Chair Fiona McBain
By Ife Taiwo; [email protected]
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