Investment Trusts  

Saints trust 'on track' to deliver growth

Saints trust 'on track' to deliver growth

The Scottish American investment trust (Saints) is "on track" to deliver growth despite underperforming recently.

In its results for the six months to the end of June, the Scottish American Investment Company reported its net asset value total return for the period and its share price total return were 0.5 per cent.

Meanwhile the total return on global equities, as measured by the FTSE All World index in sterling, was 2.1 per cent.

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In a statement the trust said: "Political and macro-economic concerns have had an impact on emerging market valuations during the period, and this held back the portfolio’s total return.

"The company’s primary objective is to deliver real dividend growth over time, as it has done over the past. We remain confident of achieving this objective, given the solid growth prospects we see for the assets held across the portfolio."

The trust's strongest returns came from its property holdings, which provided a 6.2 per cent return, while its global equities provided a total return of 0 per cent.

Meanwhile the trust's bond holdings provided a loss of 4.2 per cent.

Particularly strong share price performance was delivered by Cochlear, the Australian hearing implant manufacturer, Pearson, the education company, and Kering, the owner of Gucci and other luxury goods brands, all of which generated total returns of more than 25 per cent during the six month period.

The trust remained fully invested over the period, during which "modest" net reductions were made to the property and fixed income portfolios and re-invested in equities.

Saints paid a first interim dividend of 2.825p at the end of May and a second interim dividend of 2.85p is payable at the end of August.

The total amount of these dividends, 5.675p, is 3.7 per cent higher than the amount paid for the corresponding period in 2017. 

Earnings per share for the six months rose to 6.55p compared to 6.22p in the same period last year.