Fact sheet: The Scottish Investment Trust

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
GLOBAL GROWTH
Sector
IT Global
Fund type
Investment Trust
Primary aim
No data available.
Why Money Observer Rates The Scottish Investment Trust

New for 2017. Patiently turning a tanker round

Scottish Investment Trust was formed in 1887. Its returns were relatively insipid in recent years until its current manager, Alasdair McKinnon, took over in February 2015.

Since then its performance has improved markedly. McKinnon has slimmed down the trust's investment management team and cut back on other expenses to bring down its ongoing charge.

The number of holdings in the portfolio has been reduced and McKinnon has adopted a new, contrarian investment approach. There is an active discount control strategy. So we think there is potential for returns to continue to improve under McKinnon, enhanced by a narrowing discount.

The trust's portfolio is widely diversified both by market sector and geographic location in order to spread investment risk. However, investments themselves are acquired on the basis of the merits of the individual stocks rather than those of regions, sectors or themes.

McKinnon says that in general terms he looks to hold companies where he can see a clear path to future price appreciation. He warns that his views are not always initially confirmed by a friendly share price movement, but he is prepared to be patient.

Analysts at Winterflood Securities say that McKinnon's approach is to analyse companies through a qualitative and quantitative framework in order to identify where companies are in the 'sentiment cycle'.

This includes assessing how much potential exists for further improvement, and whether dividend yields offer an element of downside protection. Along with reducing the number of holdings to around 70, McKinnon's aim is to have low portfolio turnover.

3 Year Performance
Fund Performance46.6%
Average of Rated Funds Group63.7%
Sector Performance57.9%
Fund information
Fund name
The Scottish Investment Trust PLC
Fund manager company
Scottish Investment Trust
Fund type
Investment Trust
Fund managers
  • Alasdair McKinnonsince 17/07/2014
Accolades
Fund objective
To provide investors, over the longer term, with above-average returns through a diversified portfolio of international equities and to achieve dividend growth ahead of UK inflation.
Benchmark
  • FTSE All World
Investment style
No data available.
Investment method
No data available.
Quick stats
1 Year return
14.7%
1 Year rank in sector
19/23
Sector
IT Global
Yield
1.6%
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
0.49%
Fund size
£664m
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
98
Mid price
837.5
NAV
?Net asset value. The NAV per share may be higher or lower than the share price, which in turn is trading at either a discount or a premium to NAV.
917.3
Discount/Premium
?When the market price of an investment trust’s shares is less than the net asset value (NAV) per share then it is trading at a discount to NAV. A trust’s shares are on a premium when they trade at a higher price than the NAV.
-8.70
Gearing
?Investment trusts have the ability to borrow money which they invest with the aim of generating a higher return than the cost of the loan. An ungeared trust has a figure of 100. A figure of 110 would represent a trust with 10% gearing.
106
Top in this sector
Fund name1 Year
Independent Investment Trust75.9%
Sct Mtg IT PLC46.7%
Monks IT PLC46.3%
Edinburgh Worldwide IT PLC45.4%
Lazard World Trust36.7%
...more in IT Global

Performance snapshot

Holdings snapshot

  • UK29%
    North America26%
    Europe ex UK18%
    Asia Pacific ex Japan11%
    Japan8%
  • Financials19%
    Energy15%
    Consumer Staples12%
    Industrials10%
    Consumer Discretionary9%
  • UK Equities29%
    North American Equities26%
    Europe ex UK Equities18%
    Asia Pacific ex Japan Equities11%
    Japanese Equities8%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund-0.9%3%5.4%14.7%46.6%99.6%
Sector1%5.2%10.7%26.5%57.9%111%
Rank within sector18 / 2318 / 2319 / 2319 / 2315 / 2320 / 23
Quartile4th4th4th4th3rd4th
Calendar performance
 YTD - 20172016201520142013
Fund12.1%30.6%1%3.4%26.4%
Sector21.1%21.1%6.8%7.4%21%
Rank within sector17 / 234 / 2320 / 2318 / 2315 / 23
Quartile3rd1st4th4th3rd
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
-0.73
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
0.95
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
1.09
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
10.56
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
6.6
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
-0.25
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.6
Price movement
52 week high851.5
52 week low739
Current bid price837.5
Current offer price838
Current mid price837.5
Region
1UK29%
2North America26%
3Europe ex UK18%
4Asia Pacific ex Japan11%
5Japan8%
6Money Market5%
7Latin America3%
Industry sector
1Financials19%
2Energy15%
3Consumer Staples12%
4Industrials10%
5Consumer Discretionary9%
6Health Care9%
7Materials8%
8Net Current Assets5%
9Telecommunications Utilities5%
Asset type
1UK Equities29%
2North American Equities26%
3Europe ex UK Equities18%
4Asia Pacific ex Japan Equities11%
5Japanese Equities8%
6Money Market5%
7American Emerging Equities3%
Individual holdings
1TREASURY WINE ESTATES LTD NPV5.7%
2RENTOKIL INITIAL5.3%
3ING GROEP N.V.3.5%
4STANDARD CHARTERED3.3%
5MARKS & SPENCER GROUP3%
6NEWCREST MINING3%
7ROYAL DUTCH SHELL2.9%
8SUNCORP GROUP LTD2.8%
9TESCO CORP2.8%
Management
Fund manager group
Scottish Investment Trust
Fund manager company
Scottish Investment Trust
Fund type
Investment Trust
Fund objective
To provide investors, over the longer term, with above-average returns through a diversified portfolio of international equities and to achieve dividend growth ahead of UK inflation.
Benchmark
  • FTSE All World
Investment style
No data available.
Investment method
No data available.
Fund managers
NameSinceBiography
Alasdair McKinnon17/07/2014
Compliance
AIC Member
Domicile
No data available.
Fund for sale in
United Kingdom
The Scottish Investment Trust PLC
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price949.5
CurrencyGBX
Price updated20/11/2017
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeNJKC
Data provided by

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