Over 2013 Scottish American Investment Trusts total return on its share price was 18% and, on the NAV, 17% ; lagging the return on the fund’s benchmark by 4%. They say the main reason for the company’s underperformance was its exposure to emerging markets investments.
SCAM is increasing its dividend by 4.1% to 10.2p for the year. This dividend is just covered by earnings, which were more or less flat compared to the prior year as the balance of the portfolio shifted with holdings in bonds being replaced by holdings in lower yielding equities.
The board has decided to change the benchmark from a composite of 50% FTSE All-Share and 50% FTSE All World ex UK to 100% the FTSE All-World Index.
Patrick Edwardson, the company’s main manager for the past ten years, is giving up the job (though will still be involved in strategic decisions such as asset allocation) and will be replaced by his deputy, Dominic Neary (pictured, manager of Scottish American’s equity investments).