Interim Management Statement

RNS Number : 2685U

Scottish American Investment Co PLC

12 October 2010

 

THE SCOTTISH AMERICAN INVESTMENT COMPANY P.L.C.

Interim Management Statement - 3 months to 30 September 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 10.5% and the share price total return was 16.2%. This compares to a total return on the benchmark of 11.0%.
·	At the period end, the Company's share price stood at a 0.6% premium to its net asset value (with debt at fair value), as compared to a discount of 4.2% at 30 June 2010.
·	The holding in HSBC was reduced, as were the holdings in Imperial Tobacco, GlaxoSmithKline and Vodafone which have, consequently, dropped out of the top 20 holdings. Other changes to the Top 20 Holdings were due to market movements.
·	An interim dividend of 2.30p per share was paid on 30 September 2010 to shareholders on the register on 27 August 2010.

Asset Allocation (as a % of total assets)
	30/9/10 %	30/6/10 %
UK Quoted Equities*	25.2	27.0
Overseas Quoted Equities*	44.3	42.7
Total Quoted Equities*	69.5	69.7
Quoted Equity Forestry Investments	2.9	2.9
Quoted Equity Property Investments	2.8	2.8
Direct Property	7.7	8.2
Unquoted	0.5	0.5
Fixed Interest	14.9	14.9
Net Liquid Assets	1.7	1.0
Total	100.0	100.0

*Excludes quoted equity property and forestry investments

Top Twenty Holdings (as a % of total assets)
	30/9/10 %	30/6/10 %			30/9/10 %	30/6/10 %
Athena Debt Opportunities Fund	4.7	5.0		Penn West Energy Trust	1.4	1.5
Brazil CPI Linked 2045	4.3	4.4		HSBC	1.4	1.7
Baillie Gifford High Yield Bond Fund	3.4	3.4		BHP Billiton	1.4	1.3
Cambium Global Timberland	2.9	2.8		Philip Morris	1.4	1.3
Baillie Gifford Greater China Fund	2.5	2.4		Quorum Oil and Gas	1.4	1.6
British American Tobacco	1.8	1.8		Nursing home in Kenilworth	1.3	1.4
Holiday Village in New Romney	1.7	1.9		Deere	1.3	1.2
Atlas Copco	1.6	1.4		CVRD	1.3	1.1
Rio Tinto	1.5	1.3		New York Community Bank	1.2	1.3
DBS	1.5	1.6		Petrobras	1.2	1.2
				Total	39.2	39.6

Total Return Performance

	%
	3 Months	1 Year	3 Years	5 Years
Share Price	16.2	35.3	4.0	34.4
NAV (debt at fair value)	10.5	20.4	(11.2)	16.8
Benchmark*	11.0	11.6	(1.3)	25.4

Source: Thomson Reuters 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
	30/9/10	30/6/10
Share price	219.5p	191.0p
Net asset value per share (after deducting debenture at fair value)*	218.1p	199.3p
Net asset value per share (after deducting debenture at book value)*	228.1p	207.0p
Premium/(discount) - debenture at fair value	0.6%	(4.2%)
Premium/(discount) - debenture at book value	(3.8%)	(7.7%)
Total assets (before deduction of  debenture)	£389.7m	£361.9m
Debenture (at fair value)	£100.9m	£97.8m
Potential Gearing (debenture at fair value)	34.9%	37.0%
Gearing less cash (debenture at fair value)	32.2%	35.2%
Gearing less cash and fixed interest (debenture at fair value)	12.1%	14.8%
Potential Gearing (debenture at book)	29.0%	32.0%
Gearing less cash (debenture at book)	26.4%	30.1%
Gearing less cash and fixed interest (debenture at book)	7.2%	10.5%

*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

 

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