Scottish American Investment Co PLC said it underperformed against the FTSE All-World in its latest half-year, but hiked its dividend as net asset value increased.
The Edinburgh-based trust, which invests mainly in equity markets, said its NAV with borrowings at fair value was 561.7 pence per share at June 30, up 4.1% from 539.4p at December 31. With borrowings at book value, NAV grew 3.9% to 545.0p from 524.5p per share.
Shares in Scottish American Investment were trading 1.3% lower at 510.35p each in London early on Thursday afternoon.
Scottish American said its NAV total return was positive 5.5% at fair value for the first six months of 2024, and 5.3% at book value. The FTSE All-World Index, however, delivered a positive 12.2% total return in sterling terms for the period.
Nonetheless, Scottish American declared a 7.00p interim dividend, 3.7% higher than the previous year’s 6.75p per share.
Referencing the Aesop fable, Scottish American conceded that it has ‘looked a little more tortoise than hare’ in its latest half-year, explaining: ‘SAINTS’ portfolio has undoubtedly made good progress since the start of 2024, with the companies growing their earnings and dividends at a steady pace, and the company’s NAV per share (with borrowings at fair value) rising to a new record during the period... But the wider stock market has bounded ahead, up nearly 11% over the same period.’
However, the trust reassured investors: ‘Your managers have thoroughly scrutinised the holdings in the portfolio, and we firmly believe that all is well: perseverance remains the name of the game.’
Going forward, SAINTS continued: ‘We remain staunch believers that focusing on companies which steadily compound their earnings and dividends ever-higher will stand [our] shareholders in good stead in the long-term.
‘Ultimately, we expect this approach to drive not only real capital growth in the portfolio, but also inflation-beating income growth.’ Dividend growth, SAINTS added, is expected to follow suit.
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