LONDON (Alliance News) - Scottish American Investment Co PLC on Friday said it is confident of generating real dividend growth by increasing capital and growing income, despite market turmoil in the opening weeks of 2016.
The trust, which invests mainly in equity markets as well as considering assets classes such as bonds and property, said its net asset value total return in 2015 was 5.9%, ahead of the total return from global equities of 4.1%. The share price total return was 9.2%.
"Positive returns were assisted by the strong operational performance of the company's equity investments, including certain financial holdings, and by avoiding some troubled areas," the trust said.
The trust is managed by Edinburgh-based Baillie Gifford, which has around GBP108 billion in assets under management.
"Whilst it is probable that Western recovery will compensate for slowing growth elsewhere, it is not certain. Political risk close to home also remains a potential de-stabilising factor, both in relation to the forthcoming vote on Britain's future relationship with the EU, and the potential downside were we to vote to Leave," Chairman Brian Ivory said.
"Despite these uncertainties, the company is well placed to continue to meet its objectives over time. Whilst capital values will fluctuate, the global nature of the company's investments, including many of those listed in the UK, helps both the mitigation of risk and the search for reward," Ivory added.
Shares in the trust were up 0.8% at 244.04 pence on Friday. The stock is down 6.3% so far in 2016.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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