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
|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 %|
|United States||33.31 %|
|Europe - ex Euro||17.57 %|
|United Kingdom||11.60 %|
|Asia - Developed||7.58 %|
|Financial Services||23.90 %|
|Consumer Defensive||19.51 %|
|Consumer Cyclical||7.16 %|
|Communication Services||5.39 %|
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 - 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.
The Content is only for your general information and use and is not intended to address your particular requirements. The Content does not constitute any form of advice, recommendation or arrangement by Money Observer and is not intended to be relied upon by you in making (or refraining from making) any specific investment or other decisions. Appropriate independent advice should be obtained before making any such decision.
This information is sourced from our partner Morningstar. We believe the data to be correct however you should take care in using any information.
You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.