Fiona Hamilton

The Scottish method yields outstanding dividends

The Scottish Investment Trust (SCIN) invests in international equities for above-average long-term returns and dividend growth ahead of UK inflation. SCIN’s report and accounts for the year to 31 October 2018 shows shareholders’ assets of £715 million, after deducting long-term borrowings of £83.8 million.

Alasdair McKinnon has been the trust’s lead manager since July 2014 and has introduced a high-conviction, global contrarian approach. The portfolio has been concentrated down to 50 holdings, focused on unfashionable and unpopular companies ripe for improvement.

Out-of favour opportunities increase for Temple Bar

Temple Bar Investment Trust (TMPL) targets long-term total returns in excess of the FTSE All-Share index. It invests mostly in constituents of the FTSE 350 index. TMPL’s annual report for the year to 31 December 2018 shows shareholders’ assets of £802 million. Its dividend has been raised every year since 1983.

Alastair Mundy, who heads Investec Asset Management’s UK Value team, has been manager since 2002. Peter Lowery, who has worked closely with him since 2003, is deputy manager.