Portfolio & performance
Summary balance sheet
| 31 July 2022 (£'000) |
31 October 2021 (£'000) |
Change % | Total return % | |
|---|---|---|---|---|
| Total assets | 688,678 | 670,751 | ||
| Borrowings at par | -84,123 | -84,105 | ||
| Pension scheme deferred tax on surplus | 0 | -145 | ||
| Shareholders' funds | 604,555 | 586,501 | ||
| NAV with borrowings at market value | 896.3p | 851.1p | 5.3 | 7.6 |
| NAV with borrowings at par | 913.6p | 886.3p | 3.1 | 5.3 |
| Share price | 850.0p | 820.0p | 3.7 | 6.0 |
| Discount to NAV with borrowings at market value | -5.2% | -3.7% | ||
| Gearing | 0% | 6% |
*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.