Report

Review: Growth and income from a concentrated portfolio

Securities Trust of Scotland (STS) seeks a combination of rising income and long-term capital growth from a concentrated (currently 46 stocks) global portfolio of mainly larger companies. Stocks are chosen for attributes including yield and dividend growth, financial strength and valuation. A new policy to enhance the yield, together with the potential for better underlying performance, could see the shares re-rate to a level closer to peers. The shares had moved to a discount to NAV following a spell of lacklustre performance versus the MSCI World High Dividend Yield Index benchmark in 2014, driven by a combination of geopolitical factors and lack of exposure to some large constituents that performed well.
Underlying
Securities Trust of Scotland PLC

Securities Trust of Scotland is an investment trust company. Co. invests in a diversified portfolio of assets particularly in a balanced portfolio constructed from global equities. Co.'s portfolio is invested in listed equities, with majority of its investment portfolio is invested in overseas securities. As of Mar 31 2017, Co.'s total investment portfolio was valued at £219.8 million.

Provider
Edison Investment Research
Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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