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  • Securities Trust
    of Scotland plc

  • Glossary

    Discount When the share price is lower than the NAV per share, the shares are trading at a discount (shown as a percentage). Normally an investment trust operates at a discount rather than a premium. Securities Trust of Scotland manages its discount to remain in single figures.
    Net asset value (NAV) The total market value of the investments held less any costs or borrowings.
    NAV per share The net asset value divided by the number of shares in issue.
    Share buybacks Securities Trust of Scotland has the option to buy back its own shares and cancel them if the directors think this will benefit the company especially if the share price is at a discount to the NAV. While buybacks reduce the total NAV, the advantage is that they increase the NAV per share.
    Dividend Dividends are paid from the profits of the company. Securities Trust of Scotland pays dividends four times a year (March, June, September and December).
    Gearing The company can borrow to buy investments if the manager expects the stock market to rise. This is called gearing and enables the manager to make a greater return on the money borrowed.


    For more information on investment trusts, visit the website of the Association of Investment Companies at www.theaic.co.uk.