Scottish American Investment Company Plc

Global Equity Income

Rated Fund 2015-17, 2020. Seeks out good growth prospects and rising yields    

Scottish American was moved to our reserve bench in 2018 after lead manager Dominic Neary retired and his deputies James Dow and Toby Ross took the helm. Saints, as it is commonly known, returns to our Rated Funds for 2020 on the strength of impressive performance that won it the title of Best Global Income Trust in Money Observer’s 2019 investment trust awards.

The trust is part of a stable run by Baillie Gifford, a staunch growth-oriented investment house. The trust aims to be a core holding for income-seeking investors. Its yield is low for its sector, at 2.8%, but it is committed to growing its dividend at a faster rate than inflation and it has a strong dividend record. It has raised its dividend every year for 40 years. This has been paid quarterly since 1986 and is well-supported by revenue reserves. Its five-year performance is the highest of all global equity income trusts. That’s important, because capital growth makes it easier to generate future dividend growth.

Dow and Ross focus on companies with enduring competitive positions, strong balance sheets and proven management. Their top two holdings at the end of 2019 were Coca-Cola and Procter & Gamble, which makes Oral-B dental products and Pampers nappies. They seek businesses with good growth prospects and growing yields, while paying close attention to the resilience of a company’s dividend through business and economic cycles.

Saints can invest in a variety of assets, but equities currently account for 84% of the portfolio, as they offer potential for both income and capital growth. The balance is mainly in direct UK property. Its shares have consistently traded at a premium of up to 6% over the past three years but have dipped close to net asset value on occasion.

Narrative and ratings content all as of January 2020.

See all Money Observer rated funds
Name
Scottish American Investment Company Plc
Manager
Baillie Gifford & Co Limited.
Type
Closed Ended Investment Company
ISIN
GB0007873697
Sector
Global Equity Income
Launched
31/03/1873
OCF
0.77 %
Risk Rating
2
3 Year Sharpe
0.59
3 Year Alpha
4.94
Yield
2.3 %
Benchmark
FTSE All World TR GBP
Fund Size
£ 641.43 million
NAV
394
Gearing
113
Discount Premium
7
The policy of the company is to invest mainly in equity markets, but other investments may be held from time to time including bonds, property and other asset classes.
Holding %
Roche Holding AG Dividend Right Cert. 3.35 %
Procter & Gamble Co 2.80 %
Romney Sands, Kent 2.71 %
Coca-Cola Co 2.67 %
Nestle SA 2.65 %
Breckland Milton Keynes 2.58 %
Deutsche Boerse AG 2.52 %
Microsoft Corp 2.38 %
PepsiCo Inc 2.32 %
Taiwan Semiconductor Manufacturing Co Ltd ADR 2.28 %
Region %
United States 33.31 %
Europe - ex Euro 17.57 %
Eurozone 15.94 %
United Kingdom 11.60 %
Asia - Developed 7.58 %
Sector %
Financial Services 23.90 %
Consumer Defensive 19.51 %
Industrials 17.54 %
Technology 11.98 %
Healthcare 10.70 %
Consumer Cyclical 7.16 %
Communication Services 5.39 %
Name
Baillie Gifford & Co Limited.
Address
EH1 3AN, Edinburgh, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

James Dow
Joined 07/29/2016

James Dow - graduated MA (Hons) in Economics-Philosophy from the University of St Andrews in 2000, and an MSc in Development Studies at the London School of Economics in 2001. He spent three years working at The Scotsman newspaper, where he was the Economics Editor. James joined Baillie Gifford’s graduate scheme in 2004 working as an Investment Manager in our North American Equity Team and as a Global Sector Specialist, before joining the Global Income Growth team. He is a CFA Charterholder.

Toby Ross
Joined 07/29/2016

Toby Ross - graduated MA in English Literature from the University of Cambridge in June 2006 and joined Baillie Gifford in the same year. He spent some time as an Investment Analyst in the UK Equity Team and as a Global Sector Specialist, before joining the Global Income Growth team. Toby is a CFA Charterholder.

Data provided by Morningstar.

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