Interim Management Statement

RNS Number : 1905P

Scottish American Investment Co PLC

22 October 2012

 



The Scottish American Investment Company P.L.C.      

Interim Management Statement - 3 Months to 30 September 2012

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		¾  Over the period, the Company's net asset value total return (with debt at fair value) was 4.4%. This compares to a total return on the benchmark of 4.3%. The share price total return was 2.4%, reflecting a reduction in the premium from 5.0% to 3.0%. ¾  Apart from the sale of Deere and a partial sale of the Industrial & Infrastructure holding, the changes to the Top Twenty Holdings have been as a result of market movements. The weighting in unquoted investments has fallen as a result of a capital distribution from International Mezzanine received in the period. ¾  The second interim dividend of 2.45p per share was paid on 28 September 2012 to shareholders on the register on 24 August 2012.
Top Twenty Holdings (as a % of total assets)					30/9/12 %		30/6/12 %
		Athena Debt Opportunities Fund			3.6		3.6
		Baillie Gifford High Yield Bond Fund			3.1		3.0
		Brazil CPI Linked 15/05/2045			2.5		2.5
		Philip Morris International			2.1		2.2
		Baillie Gifford Greater China Fund			2.1		2.1
		Holiday Village in New Romney			1.9		2.0
		Taiwan Semiconductor Manufacturing			1.8		1.6
		BHP Billiton			1.7		1.6
		Amlin			1.6		1.4
		Samsung Electronics			1.5		1.5
		Cambium Global Timberland			1.5		1.7
		Rio Tinto			1.4		1.5
		Nursing Home in Kenilworth			1.3		1.4
		Royal Dutch Shell			1.3		1.3
		Scottish & Southern Energy (SSE)			1.3		1.3
		Japan Residential Investment Company			1.3		1.2
		Rexam			1.2		1.2
		British American Tobacco			1.1		1.2
		Doric Nimrod Air Two			1.1		1.2
		Industrial & Infrastructure Fund			1.1		1.6
		Total			34.5		34.8
Asset Allocation (as a % of total assets)					30/9/12 %		30/6/12 %
		Total Quoted Equities†			72.7		70.7
		Fixed Interest			12.7		12.0
		Direct Property			9.8		10.1
		Quoted Equity Property Investments			3.2		3.8
		Quoted Equity Forestry Investments			1.5		1.7
		Unquoted			0.1		0.5
		Net Liquid Assets			0.0		1.2
		Total			100.0		100.0
		†Excludes quoted equity property and forestry investments.
Total Return Performance			%
			3 Months	1 Year		3 Years		5 Years
		Share Price	2.4	7.2		47.4		13.3
		NAV (debt at fair value)	4.4	14.1		27.9		0.0
		Benchmark‡	4.3	17.3		24.9		10.4
		Source: Thomson Reuters Datastream/Morningstar/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					30/9/12		30/6/12
		Share price			219.8p		217.0p
		Net asset value per share (after deducting debenture at fair value)**			213.3p		206.6p
		Net asset value per share (after deducting debenture at book value)**			231.9p		224.4p
		Premium - debenture at fair value			3.0%		5.0%
		Discount - debenture at book value			(5.2%)		(3.3%)
		Total assets (before deduction of  debenture)			£394.2m		£384.4m
		Debenture (at fair value)			£111.2m		£110.2m
		** These figures have been calculated using the AIC cum income basis (includes current financial year retained income).

General Information (Ctd)			30/9/12	30/6/12
		Potential Gearing (debenture at fair value)	39.3%	40.2%
		Gearing less cash (debenture at fair value)	38.5%	36.9%
		Gearing less cash and fixed interest (debenture at fair value)	20.8%	20.1%
		Potential Gearing (debenture at book)	28.1%	29.1%
		Gearing less cash (debenture at book)	27.4%	26.1%
		Gearing less cash and fixed interest (debenture at book)	11.2%	10.7%
		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 ‡ ‡ Neither the contents of the Managers' website nor the contents of any website accessible from hyperlinks on the Managers' website (or any other website) is incorporated into, or forms part of, this announcement. For further information, contact: Robert O'Riordan  0131 275 3181  [e-mail]

 

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