Portfolio & performance

Summary balance sheet

31 October 2016
Change % Total return %
Equity investments 820,130 893,432    
Net current assets 37,444 42,502    
Total assets 857,574 935,934    
Borrowings at par -83,683 -83,645    
Pension liability -3,272 -3,272    
Shareholders' funds 770,619 849,017    
NAV with borrowings at market value 887.3p 854.9p 3.8 5.9
NAV with borrowings at par 919.4p 881.2p 4.3 6.4
Share price 798.0p 769.5p 3.7 6.0
Discount to ex-income NAV with borrowings at market value 9.1% 8.1%    
Gearing 6.0% 5.0%    

*with borrowings at market value

NAV is net asset value per share.
In line with our reporting policy, the NAVs are calculated taking the valuation of investments at closing bid or last price, as the case may be. The latest NAVs are unaudited.
Borrowings at par is the nominal value of the borrowings less any unamortised issue expenses.
Borrowings at market value is the company’s estimate of the “fair value” of its borrowings. The current estimated fair value of the company’s borrowings is based on the redemption yield of the relevant existing reference gilt plus a margin derived from the spread of BBB UK corporate bond yields (15 years+) over UK gilt yields (15 years+). The reference gilt for the secured bonds is the 6% UK Treasury Stock 2028 and the reference gilt for the perpetual debenture stocks is the longest dated UK Treasury stock listed in the Financial Times.
Total assets means total assets less current liabilities.
Gearing is based on figures with borrowings at par.

Past performance is not a reliable indicator of future results. The value of shares and the income from them can go down as well as up as a result of market and currency fluctuations and investors may not get back the amount originally invested. The Scottish Investment Trust has a long-term policy of borrowing money to invest in equities in the expectation that this will improve returns and, should stockmarkets fall, such borrowings would magnify losses on these investments. The company can buy back and cancel its own shares. All other things being equal, this would have the effect of increasing gearing. For planning purposes, an investment in the Scottish Investment Trust should be viewed as a long-term commitment.

All sources the Scottish Investment Trust, unless otherwise stated.