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LONDON (Alliance News) - Securities Trust of Scotland PLC Wednesday said it underperformed its benchmark, reporting a flat total return on its net asset value per share including reinvested dividends in its most recently ended financial year.
This compares to a 4.4% total return from its benchmark, the MSCI World High Dividend Yield index, in the year to end-March. It said that positive contributions from stronger sectors like staples, utilities and telecoms were not enough to offset the weakness of stocks in the materials and energy sectors.
The trust declared a fourth dividend of 1.45 pence, bringing its total dividend to 5.8p, up 18% compared to the previous year.
"The global economic backdrop remains volatile as developed market economies experience modest and uneven recoveries and many developing market economies continue to face challenging times," Securities Trust of Scotland said in a statement.
"Surveys suggest that global fund managers are also cautious and are most fearful of a potential US recession, the failure of loose monetary policies and Chinese capital controls. However, on the brighter side, global equities continue to offer an attractive dividend yield relative to other asset classes," the trust said.
Shares in Securities Trust of Scotland were up 0.7% at 135.40 pence Wednesday.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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