Interim Management Statement

RNS Number : 9209J

Scottish American Investment Co PLC

08 April 2010

 

THE SCOTTISH AMERICAN INVESTMENT COMPANY P.L.C.

Interim Management Statement - 3 months to 31 March 2010

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 10.8%. With the discount narrowing from 12.1% to 8.4%, the share price total return was 15.7%. This compares to a total return on the benchmark of 8.3%.
·	A final dividend of 2.30p per share will be paid on 12 April 2010 to shareholders on the register on 5 March 2010.
·	There were no significant transactions during the period.
Asset Allocation					Top Ten Holdings
Category		% of total assets at 31/03/10	% of total assets at 31/12/09		Name	% of total assets at 31/03/10	% of  total assets at 31/12/09
UK Quoted Equities*		29.1	28.9		Athena Debt Opportunities Fund	4.3	4.0
Overseas Quoted Equities*		41.9	39.9		Brazil CPI Linked 2045	4.0	4.0
Total Quoted Equities*		71.0	68.8		Baillie Gifford High Yield Bond Fund	3.2	2.6
Quoted Equity Forestry   Investments		2.8	2.8		Cambium Global Timberland	2.8	2.8
Quoted Equity Property Investments		2.3	2.0		Baillie Gifford Greater China Fund	2.4	2.5
Direct Property		7.7	8.5		Quorum Oil and Gas	1.9	1.7
Unquoted		0.5	0.5		British American Tobacco	1.8	1.7
Fixed Interest		15.7	14.6		HSBC	1.7	1.9
Net Liquid Assets		-	2.8		Holiday Village in New Romney	1.7	1.8
					Penn West Energy Trust	1.5	1.3
Total		100.0	100.0		Total	25.3	24.3

* Excludes quoted equity property and forestry investments

Total Return Performance

	3 Months	1 Year	3 Years	5 Years
Share Price	15.7%	78.9%	-4.0%	39.2%
NAV (debt at book value)	11.0%	72.6%	-8.4%	32.2%
Benchmark*	8.3%	50.3%	4.0%	45.5%

Source: Thomson Financial 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
	31/03/10	31/12/09
Share price	207.0p	181.0p
Net asset value per share (after deducting debenture at fair value)*	225.9p	206.0p
Discount (debenture at fair value)*	8.4%	12.1%
Total assets (before deduction of  debenture)*	£392.4m	£365.1m
Debenture (at fair value)	£93.2m	£92.2m
Potential Gearing (debenture at fair value)	31.1%	33.8%
Gearing less cash (debenture at fair value)	29.8%	29.9%
Gearing less cash and fixed interest (debenture at fair value)	9.2%	10.4%
Potential Gearing (debenture at book)	28.8%	31.7%
Gearing less cash (debenture at book)	27.5%	27.9%
Gearing less cash and fixed interest (debenture at book)	7.2%	8.7%

*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:-  Robert O'Riordan on 0131 275 3181

 

END

 

 

IMSBUGDSBGGBGGI