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Scottish IT underperforms benchmarks

By BFN News | 08:02 AM | Wednesday 23 December, 2009


Scottish Investment Trust reported a 14.8% rise in net asset value for the year to October 31, underperforming its benchmark indices. The FTSE All-World Index rose by 18.3% and the FTSE All-Share by 18.4% during the period. The trust said geographic and sector positioning contributed positively to relative performance while stock selection and sterling weakness made negative contributions. 'Portfolio underperformance was primarily concentrated in March and May as markets turned and rallied sharply. Financials, in which we were under-represented, and other generally riskier shares advanced well ahead of the relatively defensive core portfolio as investors re-embraced risk. 'However, the portfolio was repositioned rapidly to a more cyclical stance and subsequently performed strongly in the period from the end of May to the year end.' Discount to NAV widened to 8.9% from 7.5% a year ago. A dividend increase of 1.1% to 9.6p from 9.5p was recommended.

Story provided by Business Financial Newswire


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