Scottish Investment Trust posts full year NAV per share total return of 4%

The Scottish Investment Trust said net asset value per share total return in the twelve months to the end of October was 4%.

The company, which aims to provide investors over the longer term with above-average returns through a diversified portfolio of international equities and to achieve dividend growth ahead of UK inflation, said the share price total return over the same period was 3.7%

Earnings per share were up 38.2%at 15.91p, mainly due to a higher level of income generation from the portfolio but also to a greater use of the company’s borrowings throughout the year, higher special dividends and successful tax reclaims relating to historic overseas dividends.

The board recommended a final dividend of 7.5p per share, up from 7.2p per share last year, which combined with the interim dividend will mean the total regular dividend for the year rose 4.2% to 12.5p, ahead of the main measures of UK inflation.

The board also recommended the payment of a special dividend of 3.5p.

Chairman Douglas McDougall said: “We exist in an investment climate that owes much to the continued availability of cheap credit. Complicating this is the fact that the credibility of the US Federal Reserve has been staked on a desire to 'normalise' interest rate policy while other important central banks continue to discuss further extraordinary stimulus. It is unclear how this will eventually end.

“Regardless of the above uncertainty, we believe that we have a portfolio of sound companies which should work to the long term advantage of our shareholders.”