Fact sheet: Scottish IT

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.
IT Global
Fund type
Investment Trust
Primary aim
No data available.
Why Money Observer Rates Scottish IT

Rated Fund 2017-2018. Portfolio revamp pays off

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 charges to 0.47 per cent in 2017. The number of holdings in the portfolio has been reduced to just over 50 and McKinnon has adopted a new, contrarian investment approach. He believes that future investment returns are driven by a change in a company's prospects and an accompanying change in perception by the crowd.

There is an active discount control strategy, and we think there is potential for returns to continue to improve under McKinnon, helped by a narrowing discount to net asset value. The discount has narrowed from over 15 per cent in mid 2016 to less than 10 per cent at the end of 2017.

The trust's portfolio is widely diversified both by industrial sector and by 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.

Analysts at Winterflood Securities say that McKinnon's approach is to analyse companies through a qualitative and quantitative framework to identify where companies are in the ムsentiment cycle'. This includes assessing potential for further improvement, and whether dividend yields offer an element of downside protection.<\p>

3 Year Performance
Fund Performance35.8%
Average of Rated Funds Group49.9%
Sector Performance46.6%
Fund information
Fund name
The Scottish Investment Trust PLC
Fund manager company
Scottish Investment Trust
Fund type
Investment Trust
Fund managers
  • Alasdair McKinnonsince 18/07/2014
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.
  • No Specified Index
Investment style
No data available.
Investment method
No data available.
Quick stats
1 Year return
1 Year rank in sector
IT Global
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.
Fund size
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.
Mid price
?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.
?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.
?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.
Top in this sector
Fund name1 Year
Independent Investment Trust64.3%
Edinburgh Ww IT PLC40.8%
Lindsell Train IT plc38.3%
Sct Mtg IT PLC28%
Monks IT PLC22.6%
...more in IT Global

Performance snapshot

Holdings snapshot

  • UK29%
    North America28%
    Europe ex UK18%
    Money Market8%
  • Financials20%
    Consumer Discretionary11%
    Consumer Staples8%
  • UK Equities29%
    North American Equities28%
    Europe ex UK Equities18%
    Japanese Equities9%
    Money Market8%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Rank within sector6 / 2221 / 2215 / 2217 / 2213 / 2218 / 22
Calendar performance
 YTD - 20182017201620152014
Rank within sector18 / 2215 / 224 / 2219 / 2217 / 22
Risk statistics
?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.
?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.
?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.
?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%.
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.
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.
?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.
Price movement
52 week high891
52 week low771
Current bid price805
Current offer price807
Current mid price806
2North America28%
3Europe ex UK18%
5Money Market8%
6Asia Pacific ex Japan5%
7Latin America3%
Industry sector
3Consumer Discretionary11%
5Consumer Staples8%
7Net Current Assets8%
8Health Care7%
9Telecommunications Utilities5%
Asset type
1UK Equities29%
2North American Equities28%
3Europe ex UK Equities18%
4Japanese Equities9%
5Money Market8%
6Asia Pacific ex Japan Equities5%
7American Emerging Equities3%
Individual holdings
4GAP INC3.6%
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.
  • No Specified Index
Investment style
No data available.
Investment method
No data available.
Fund managers
Alasdair McKinnon18/07/2014
AIC Member
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 price904.5
Price updated17/04/2018
Institutional or retail classRetail
Citi codeNJKC
Data provided by

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