Interim Management Statement

RNS Number : 2872I

Securities Trust of Scotland PLC

23 July 2012

 



SECURITIES TRUST OF SCOTLAND PLC

INTERIM MANAGEMENT STATEMENT

COVERING THE PERIOD FROM 1 APRIL TO 30 JUNE 2012

Manager's commentary

The MCSI World Index fell 3.1% over the quarter, while the High Dividend Yield index rose 0.5%.  Regionally, North America outperformed, while Europe and emerging markets were weak.  By sector, consumer staples, healthcare and telecoms were the strongest areas of the market, and materials the weakest.

Investors switched from 'risk-on' to 'risk-off' mode, with this phase lasting throughout the second quarter.  In the US, economic data was generally worse than expected, particularly in June.  This was compounded when the Federal Reserve reduced its US GDP forecast for 2012.  Meanwhile, the eurozone crisis continued to trouble world markets.  On the positive side, the supporting factors for the equity market are high dividend yields, high investor cash levels and reasonable valuations.

The fund's NAV rose by 0.3%.  Positive contributors included tobacco company Altria and US natural gas and electricity company Sempra Energy, whose earnings are largely insulated from the current economic fluctuations.  On the other side, a key detractor from performance was the Trust's holding in investment-management firm Man Group.  During the period, we bought new positions in Nestle (food and nutrition) and Total (oil and gas), and sold Tesco (retail), Centrica (energy) and Seadrill (offshore oil services).

Alan Porter

PROFILE

Objective       To achieve rising income and long-term capital growth by investment in global equities.

Benchmark    MSCI World High Dividend Yield index

Sector             Global Growth & Income

Launch           28 June 2005

PORTFOLIO

Asset class     31 Mar                        30 Jun

Equities           108.5%                        106.8%

Cash                    0.6%                            2.3%

Gearing             (9.1%)                           (9.1%)

Equity allocation

                                    31 Mar                        30 Jun

Healthcare                  18.3%                           19.8% 

Consumer goods        11.6%                           14.3%   

Financials                    13.7%                           13.3%

Oil & gas                       9.7%                           12.5%

Consumer services     12.8%                            11.2%

Industrials                   10.7%                           11.2%

Telecommunications    9.1%                              9.5%

Technology                   3.4%                              3.2%

Utilities                         6.2%                               3.1%

Basic materials              4.2%                              1.9% 

Regional allocation  31 Mar                        30 Jun

Europe                        45.3%                            45.5%

North America           40.8%                            40.8%

Asia Pacific ex Japan   5.9%                              5.8%

Emerging markets       4.8%                               4.5%

Japan                            3.1%                               3.4%

Top 10 equity holdings (35.9% of total portfolio)

Pfizer                                                   4.4%

Chevron                                              4.2%

Royal Dutch Shell                              4.1%

Vodafone                                            3.7%

Philip Morris International                3.6%

Abbott Laboratories                           3.5%

GlaxoSmithKline                                3.2%

Novartis                                              3.1%

Sanofi                                                  3.1%

Total                                                    3.0%

Number of holdings 49

Number of countries             13

Key facts

Net assets                                            £120.4m

Share price (p)                                    121.5

Net asset value per share (p)             119.5

Discount (premium)                          (1.7%)

Net yield                                             3.9%

The NAV stated in our reporting is inclusive of current year revenue.

PERFORMANCE

Discrete performance over 12 months to 30 June

	2012	2011	2010	2009	2008
Share Price	9.7%	37.5%	16.9%	(16.0%)	(22.5%)
NAV	2.1%	32.2%	25.8%	(27.2%)	(20.4%)
Benchmark	3.6%	25.6%	21.1%	(20.5%)	(13.0%)

Cumulative performance over periods to 30 June 2012

	One month	Three months	Six months	One year	Three years	Five years
Share Price	4.1%	0.7%	9.0%	9.7%	76.3%	14.7%
NAV	3.7%	0.3%	3.1%	2.1%	69.8%	(1.6%)
Benchmark	4.8%	0.5%	3.0%	3.6%	57.7%	9.0%

Source: Martin Currie and Morningstar. Bid to bid basis with net income reinvested over the periods shown in sterling terms. These figures do not include the costs of buying and selling shares in an investment trust.

If these were included, performance figures would be reduced.

Prior to 1 August 2011, the Trust's benchmark was the FTSE All-Share index and the MSCI World High Dividend Yield index thereafter. 

Past performance is not a guide to future returns.

Capital structure

Ordinary shares 100,759,771*

*Source: Martin Currie as at 30 June 2012.

Board of directors

Neil Donaldson (chairman)

Andrew Irvine

Charles Berry

Edward Murray

Rachel Beagles

Material events and transactions

The fourth interim dividend of 1.25p was paid on 29 June 2012 to shareholders on the register as at 1 June 2012.

The Trust issued 500,000 new ordinary shares during this period.

Website

The trust has its own website at www.securitiestrust.com. There you will find further details about the trust, information on Martin Currie, daily share prices (and associated risks), and you can access regular webcasts by the manager.

Key information

Year end                                                                      31 March

Annual general meeting                                            July

Interim dividends paid                                              March, June, September, December

Annual management fee as at 1 April 2012†                        0.6%

Total expense ratio 31 March 2012*                          0.7%

Epic code                                                                    STS

Reuters code                                                               STS.L

†Percentage of net assets.

*Percentage of shareholders' funds. Includes annual management fee.

Net asset value and dividend history

As at 31 March	Share price	NAV per share	Discount/ (premium)	Dividend per share
2006	125.5p	135.6p	7.4%	2.85p
2007	141.3p	148.4p	4.8%	5.05p
2008	116.0p	121.5p	3.8%	5.45p
2009	66.3p	75.4p	12.2%	5.45p
2010	99.0p	109.4p	9.5%	4.65p
2011	108.0p	117.4p	8.0%	4.65p
2012	122.0p	119.8p	(1.9%)	4.70p

Past performance is not a guide to future returns.

 

END

 

 

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