Edison review on Securities Trust of Scotland

RNS Number : 1706N

Securities Trust of Scotland PLC

20 September 2019

 

London, UK, 20 September 2019

Edison issues review on Securities Trust of Scotland (STS)

Securities Trust of Scotland (STS) aims to deliver both income and capital growth to shareholders over the long term. Since June 2016, STS has employed an investment mandate that is not constrained by index considerations. The manager, Mark Whitehead, follows a rigorous bottom-up approach to construct a relatively concentrated portfolio of 35-55 high quality, large-cap companies with sustainable earnings and dividend growth. Since the change in the trust's benchmark on 1 June 2016, STS has delivered an annualised NAV total return of 14.3% to end-August 2019. The board adopts a progressive dividend policy and refreshed the trust's marketing strategy last year, including the appointment of director, Sarah Harvey, who is a marketing specialist.

STS trades at a 3.5% discount to its cum-income NAV, which is below the three-year average of 6.2%. This is wider than its peers despite a respectable performance and dividend yield. The board is committed to promoting the trust and combined with the continuing solid performance since the change of manager and mandate, there is emerging evidence that the discount is on a narrowing trend.

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