LONDON (Alliance News) - Securities Trust of Scotland PLC Friday said its net asset value rose by 1.6% during the three months to the end of June, lagging the 3.0% gain made by its benchmark, the The MSCI World High Dividend Yield index.
The trust's manager, Alan Porter, said the biggest detractor from its performance was Pfizer Inc, which publicly declared an interest in AstraZeneca PLC but had its advances rejected.
Meanwhile, not owning US quoted semiconductor chipmaker Intel Corp was a "notable negative during the period as it had higher than expected PC unit demand."
Other detractors included US household-goods firm Procter & Gamble Co, which fell after data emerged showing weakness in certain home and personal care categories, and Swiss healthcare name Roche.
"On the other side, not owning US telecoms firm AT&T Inc during part of the period had a positive effect on relative returns as the firm reduced its earnings per share guidance," Porter said.
"Luxury fashion brand Hugo Boss AG also did well. French oil multinational Total SA was a strong performer on the back of recent expenditure and high-margin barrels coming on stream. Direct Line Insurance Group PLC was another notable positive during the period," Porter said.
Porter also said the trust switched out of AT&T Inc into Verizon, due to "the relative valuation and growth prospects of the latter."
"We also exited positions in French bank BNP Paribas and Spanish telecommunications firm TelefÓnica SA. We bought German quoted media conglomerate Prosiebensat.1," Porter added.
Securities Trust of Scotland shares were Friday quoted up 1.2% at 141.39 pence.