Edison issues review Securities Trust of Scotland

RNS Number : 2140P

Securities Trust of Scotland PLC

29 August 2017

 

London, UK, 29 August 2017

Edison issues review on Securities Trust of Scotland (STS)

Securities Trust of Scotland (STS) aims to generate rising income and long-term capital growth from a relatively concentrated portfolio of 35 to 55 global equities. Since May 2016, the trust has been managed by Mark Whitehead, who heads up Martin Currie's income team. A new unconstrained, high-conviction investment approach was adopted on 1 June 2016, with performance measured against a peer group comprising both closed- and open-ended funds. STS has outperformed the peer group since the change in investment strategy. The trust actively uses gearing and has a progressive dividend strategy; its current dividend yield is 3.5%.

STS's current 6.6% share price discount to cum-income NAV is higher than the averages of the last one, three, five and 10 years of 5.6%, 5.6%, 2.4% and 3.9%, respectively. In 2015, the board introduced a new higher-yielding and progressive dividend policy aiming to bring STS's yield more in line with the peer group. The FY16 annual dividend was 18.4% higher than in FY15 and was raised by a further 2.6% in FY17. Based on the current share price, STS has a 3.5% dividend yield.  

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