Interim Management Statement

RNS Number : 0350Q

Scottish American Investment Co PLC

12 October 2011

 

THE SCOTTISH AMERICAN INVESTMENT COMPANY P.L.C.

Interim Management Statement - 3 months to 30 September 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 -17.8%. This compares to a total return on the benchmark of -14.3%. The share price total return was -10.7%.
·	Transactions within the Top Twenty Holdings included partial disposals of Athena Debt Opportunities Fund and British American Tobacco and additions to BHP Billiton and Rio Tinto. All other changes to the Top Twenty were as a result of market movements.
·	On 30 September 2011 the Company issued 190,000 ordinary shares for cash at a price of 212.75p per share to satisfy demand from the market.
·	An interim dividend of 2.35p per share, payable on 30 September 2011 to shareholders on the register on 31 August 2011, was declared on 29 July 2011.

Asset Allocation (as a % of total assets)
		30/9/11 %	30/6/11 %
Total Quoted Equities*		70.4	70.8
Fixed Interest		13.0	14.9
Direct Property		9.6	8.5
Quoted Equity Property Investments		3.2	3.1
Quoted Equity Forestry Investments		2.2	2.0
Unquoted		0.5	0.4
Net Liquid Assets		1.1	0.3
Total		100.0	100.0

*Excludes quoted equity property and forestry investments.

Top Twenty Holdings (as a % of total assets)
	30/9/11 %	30/6/11 %			30/9/11 %	30/6/11 %
Brazil CPI Linked 15/05/2045	4.6	4.5		Rio Tinto	1.5	1.7
Athena Debt Opportunities Fund	4.2	5.4		Taiwan Semiconductor	1.4	1.3
Cambium Global Timberland	2.2	2.0		DBS	1.4	1.5
Holiday Village in New Romney	2.0	1.8		Canon	1.4	1.2
Baillie Gifford Greater China Fund	2.0	2.3		Nursing Home in Kenilworth	1.3	1.2
Baillie Gifford High Yield Bond Fund	1.8	1.7		Deere	1.3	1.4
British American Tobacco	1.6	2.0		Scottish & Southern Energy	1.3	1.2
Philip Morris International	1.6	1.5		Japan Residential Investment	1.3	1.0
BHP Billiton	1.6	1.6		Royal Dutch Shell	1.3	1.2
Atlas Copco	1.6	2.0		International Oil & Gas Tech	1.2	1.1
				Total	36.6	37.6

Total Return Performance

	%
	3 Months	1 Year	3 Years	5 Years
Share Price	-10.7	1.6	41.4	15.9
NAV (debt at fair value)	-17.8	-6.5	13.9	-2.5
Benchmark*	-14.3	-4.6	17.6	6.0

Source: Thomson Reuters Datastream/Fundamental Data/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
	30/9/11	30/6/11
Share price	214.4p	242.5p
Net asset value per share (after deducting debenture at fair value)*	195.8p	240.9p
Net asset value per share (after deducting debenture at book value)*	209.9p	248.8p
Premium - debenture at fair value	9.5%	0.7%
Premium/(discount) - debenture at book value	2.1%	(2.5%)
Total assets (before deduction of  debenture)	£365.6m	£416.8m
Debenture (at fair value)	£105.8m	£97.7m
Potential Gearing (debenture at fair value)	40.7%	30.6%
Gearing less cash (debenture at fair value)	39.0%	30.0%
Gearing less cash and fixed interest (debenture at fair value)	20.7%	10.5%
Potential Gearing (debenture at book)	31.3%	26.5%
Gearing less cash (debenture at book)	29.7%	25.8%
Gearing less cash and fixed interest (debenture at book)	12.6%	7.0%

*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

 

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