LONDON (Alliance News) - The Scottish American Investment Co on Friday raised its dividend for 2018, even as net asset value declined over the year.
Scottish American, which is managed by Edinburgh-based fund manager Baillie Gifford, reported a net asset value negative return of 2.4%, but still ahead of its comparative global equities index, which declined by 3.6%.
Net asset value per share in fair value terms was 343.0 pence as at the end of December, down from 366.2p on the same date in 2017. Net assets as a whole declined to GBP483.5 million from GBP497.9 million.
Shares in Scottish American were down 0.3% at 366.84 pence on Friday.
The trust recommended a final dividend of 2.925 pence per share, bringing the total payout for 2018 to 11.50p, up 3.6% from 11.1p the prior year.
Scottish American said markets made good progress in most of the year with profits rises and an improving global economy. However, most of those gains were given up in the final quarter, due to concerns over economic growth, outlook for corporate profits and escalating trade tensions.
"Wild cards such as Brexit, the extent of any slowdown in China, international trade relations and the broader geopolitical risk around China and the US make predictions challenging as quite different outcomes are entirely possible. Against this uncertain background, the board and the managers continue to view it as a strength that the company's underlying investments are closely aligned with its long-term objectives," said Chairman Peter Moon.