Scottish American Investment Trust (SAINTS) has appointed two new managers after a half-year in which overseas earnings offset lagging property holdings.
The £292 million portfolio returned 14% in the first half and currently trades at a discount of 2.2%.
The company said lower equity income, following 2015's abundance of special dividends, and reduced rental income, after the company reduced its property exposure, had weighed on total returns.
This would be partially offset by introducing Dow and Ross' stock-picking experience, the group said.
Overseas financial services and healthcare were two areas of ‘particular strength’ reinforced by FX movements. Hiscox, Johnson & Johnson, Partners Group, Admiral, Deutsche Boerse and Prudential all feature in the trust’s top 20 equity holdings.
Overall, global equities contributed 12.8% of the trust’s total return, but it was the bond holdings that really took off, generating 28.8%, although these represent relatively tiny proportion at 4.7% of the portfolio.
The trust lifted its full-year dividend from 5.35p per share to 5.4p.