THE £473 million Scottish American Investment Company has reported an index-beating 14 per cent total return on net asset value for its first half, and declared its long-term outlook is robust regardless of the effects of Brexit.
Scottish American Investment Company (Saints), which is run by Edinburgh-based partnership Baillie Gifford, cited particularly strong showings from its investments in companies in the healthcare and financial services sectors. It highlighted its investments in Cochlear, the hearing implant company, and BM&F Bovespa, the Brazilian stock exchange, as examples of companies in its portfolio which had performed well in the six months to June 30.
It noted the total return on global equities, measured by the FTSE All World Index in sterling terms, had been 12 per cent in the six months to June.
The trust said its directly-held UK property portfolio had posted a positive total return. It added that the valuations of its property investments were well-supported by attractive yields, sound tenants on long leases, and a strong component of inflation-linked rental income, and declared this portfolio had “excellent prospects”.
Saints said: “Whatever the broader economic and fiscal effects of Brexit, the long-term outlook for Saints' income and capital growth is robust. Both the international nature of Saints’ portfolio, and the manager's focus on identifying investments which have strong and sustainable growth prospects, and that offer a dependable and growing income stream, should support the company in continuing its long record of delivering a dividend which rises in real terms over time.”
Saints declared a second interim dividend of 2.7p, taking the total so far this year to 5.4p, up 1.4 per cent on the same period of 2015.
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