London, UK, 24 February 2017

Edison issues review on Securities Trust of Scotland (STS)

Securities Trust of Scotland (STS) aims to achieve rising income and long-term capital growth from a concentrated portfolio of large- and mid-cap global equities. Following the move to a higher-yielding and progressive dividend policy in May 2015, from 1 June 2016 STS adopted a new unconstrained, high-conviction investment approach under new manager Mark Whitehead. Performance is now measured versus a peer group of both open and closed-ended funds and in September 2016 gearing was increased from £17m to £25m. The changes appear to be bearing fruit - STS has outperformed its peer group benchmark since the change in investment approach in June 2016.

STS's current 4.4% share price discount to cum-income NAV compares to the one-, three-, five- and 10-year averages of 6.0%, 4.5%, 1.6% and 3.8% respectively. There is scope for the discount to narrow further, or return to a premium, if STS's relative performance versus the peer group continues to improve. STS adopted a higher-yielding and progressive dividend policy in 2015 - the FY16 annual dividend increased 18.4% versus the prior year and its current dividend yield is 3.4%.

Click here to view the full report.

All reports published by Edison are available to download free of charge from its website
www.edisoninvestmentresearch.com

About Edison: 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, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

Contact details: Learn more at www.edisongroup.com and connect with Edison on: