The £670million Scottish Investment Trust made a net asset value total return of 1 per cent and a share price total of return of 1.4 per cent in its full year to October 31.

The £670million Scottish Investment Trust made a net asset value total return of 1 per cent and a share price total of return of 1.4 per cent in its full year to October 31.

The global trust does not have a formal benchmark but noted that while the FTSE All-Share total return was 1 per cent, the All-World Index return was 8.8 per cent.

The board recommends a final dividend of 7.2p per share, up from 6.8p, which would mean a 3.4per cent increase to 12p for the year.

Chairman Douglas Macdougall, while not commenting on the trust??s performance, said it had started the year at a net cash position of 1 per cent, but had gradually deployed gearing to finish the year at 4 per cent, with benefit to the income account.

He added: ??The company has deployed a proportion of the long-term borrowings into higher-yielding equities and retains more than £60million in cash which could be utilised should attractive opportunities arise.??

The self-managed trust, which in July parted company with manager John Kennedy after 10 years, is currently under acting manager Alastair Mackinnon, who joined in 2003.

Mr Macdougall said: ??An increase in US interest rates has the potential to have a destabilising impact on global markets as the stimulatory measures employed since the financial crisis have relied upon the creation of additional debt. Investment markets are therefore likely to remain in thrall to the deliberations of the US Federal Reserve and other central banks.

??More positively, the recent sharp fall in the oil price is likely to have a stimulatory impact on economic activity and, if maintained, should filter through into an increase in consumer disposable income.??