LONDON (Alliance News) - Scottish Mortgage Investment Trust PLC on Friday said its net asset value declined during the last financial year, but still outperformed its benchmark, as the trust increased its payout by a fraction.
The trust said its net asset value declined by 0.1% in the year to the end of March, whilst the FTSE All-World index, the company's benchmark, fell at a steeper rate of 0.5%. Scottish Mortgage Investment also noted its share price was 0.7% lower at the end of March than a year earlier.
"I am pleased to say that the Scottish Mortgage portfolio has continued to produce good long term returns for shareholders. The past financial year, taken in isolation, has not been as strong as recent years, either in terms of the NAV performance or our own share price, but I hope that my earlier statements have been consistent in warning that not every year can be expected to produce the stellar results that we have been fortunate to see in the past," said Chairman John Scott.
The trust increased its total payout for the year by 1.0% to 2.93 pence per share from 2.90p. The interim dividend was flat year-on-year at 1.38p but the final dividend was increased slightly to 1.55p from 1.52p.
That rise will push the total cost of its dividend to GBP37.7 million from GBP35.5 million.
The net asset value fell to 259.2p from 262.4p, and once borrowings are taken into account that NAV dropped to 263.8p from 268.0p.
Income from investments fell to GBP32.7 million from GBP38.7 million, whilst revenue return from its activities after tax declined to GBP21.4 million from GBP27.5 million. The capital return after tax generated a GBP36.2 million loss compared to a GBP694.5 million gain.
That means the total net return was a GBP14.8 million loss compared to a GBP722.1 million gain the year before.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Scottish Mortgage (SMT)