Securities Trust of Scotland (STS) has revamped its investment approach, appointing Martin Currie’s income team head Mark Whitehead as lead manager and adopting an unconstrained and high-conviction strategy to meet its objective of producing real growth in capital and income, rather than measuring performance against a backward-looking market index. The more flexible mandate will allow the limited use of options and the gearing facility will be increased. These changes build on a new dividend policy announced by the board last year, which has brought STS’s yield into line with its peer group at more than 4%, and the manager’s focus on quality companies with sustainable earnings may enhance future performance and help to narrow the trust’s discount to NAV.
