Interim Management Statement

RNS Number : 5241E

Scottish American Investment Co PLC

07 April 2011

 

THE SCOTTISH AMERICAN INVESTMENT COMPANY P.L.C.

Interim Management Statement - 3 months to 31 March 2011

SAINTS' objective is to increase capital and grow income in order to deliver real dividend growth. Its policy is to invest flexibly and actively across a broad range of assets and markets. Listed equities, both UK and overseas, form the largest part of the portfolio. Investments are also made in bonds, property and other asset classes.

Review of the Period

·	Over the period, the Company's net asset value total return (with debt at fair value) was 1.8%. This compares to a total return on the benchmark of 1.6%. With the share price moving from a premium of 1.2% to a discount of 2.6%, the share price total return was -2.1%.
·	Portfolio turnover in the first quarter was low. A new commercial property was acquired and additions were made to Japanese equities in the wake of market falls there. Some reductions were made to credit market exposure.
·	A final dividend of 2.35p per share will be paid on 11 April 2011 to shareholders on the register on 11 March 2011.
Asset Allocation (as a % of total assets)
		31/3/11 %	31/12/10 %
Total Quoted Equities*		70.8	70.0
Quoted Equity Forestry Investments		2.0	2.4
Quoted Equity Property Investments		2.9	2.9
Direct Property		8.3	7.7
Unquoted		0.4	0.4
Fixed Interest		15.3	15.4
Net Liquid Assets		0.3	1.2
Total		100.0	100.0

*Excludes quoted equity property and forestry investments.

Top Twenty Holdings (as a % of total assets)
	31/3/11 %	31/12/10 %			31/3/11 %	31/12/10 %
Athena Debt Opportunities Fund	5.3	5.3		Holiday village, New Romney	1.6	1.6
Brazil CPI Linked 2045	4.4	4.5		BHP Billiton	1.5	1.6
Baillie Gifford High Yield Bond Fund	2.6	3.2		DBS	1.5	1.5
Baillie Gifford Greater China Fund	2.3	2.5		Philip Morris International	1.5	1.3
Cambium Global Timberland	2.0	2.4		HSBC	1.3	1.3
Atlas Copco	2.0	1.9		Taiwan Semiconductor	1.3	1.4
British American Tobacco	1.8	1.8		Nursing home, Kenilworth	1.2	1.2
Penn West Energy Trust	1.8	1.6		Royal Dutch Shell	1.2	1.2
Deere	1.7	1.5		CVRD	1.2	1.3
Rio Tinto	1.7	1.7		Samsung Electronics	1.2	1.2
				Total	39.1	40.0

Total Return Performance

	%
	3 Months	1 Year	3 Years	5 Years
Share Price	-2.1	20.0	28.1	24.1
NAV (debt at fair value)	1.8	13.1	14.1	12.1
Benchmark*	1.6	8.6	20.2	22.5

Source: Thomson Reuters Datastream/Baillie Gifford & Co.

* On 1 January 2009 the Company changed its benchmark from 70% FTSE All-Share Index and 30% FTSE World Ex UK Index (in sterling terms) to 50% FTSE All-Share Index and 50% FTSE All World Ex UK Index (in sterling terms).  For the purposes of the above table the returns on both benchmarks for their respective periods have been linked to form a single benchmark.

Past performance is not a guide to future performance

General Information
	31/3/11	31/12/10
Share price	238.0p	245.5p
Net asset value per share (after deducting debenture at fair value)*	244.4p	242.5p
Net asset value per share (after deducting debenture at book value)*	250.4p	249.7p
(Discount)/premium - debenture at fair value	(2.6%)	1.2%
(Discount)/premium - debenture at book value	(4.9%)	(1.7%)
Total assets (before deduction of  debenture)	£419.0m	£418.3m
Debenture (at fair value)	£95.3m	£97.0m
Potential Gearing (debenture at fair value)	29.4%	30.2%
Gearing less cash (debenture at fair value)	27.9%	28.3%
Gearing less cash and fixed interest (debenture at fair value)	8.1%	8.3%
Potential Gearing (debenture at book)	26.3%	26.4%
Gearing less cash (debenture at book)	24.9%	24.6%
Gearing less cash and fixed interest (debenture at book)	5.5%	5.2%

*These figures have been calculated using the AIC cum income basis (includes current financial year retained income).

This interim management statement and up to date NAV and share price information is available on the SAINTS' page of the Managers' website www.saints-it.com.

For further information contact:- Patrick Edwardson on 0131 275 2133

 

END

 

 

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