Scottish Investment Trust PLC

Global Equity Income

Rated Fund 2017-20. Portfolio revamp paying off for fund fishing in unpopular waters

Scottish Investment Trust moved into the Global Equity Income asset group from our adventurous Global Growth choices in 2019 on account of its strong focus on income generation and ample reserves to support rising dividends. The trust has increased its dividend each year for the past 36 years. It produces a respectable yield of 2.8% and pays income quarterly.

Formed in 1887, it adopted a contrarian investment style after manager Alasdair McKinnon took over in February 2015. 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, so he often fishes in unpopular waters. He favours undervalued, unfashionable companies that are ripe for improvement; and he is prepared to be patient. The trust has lagged the MSCI World index, but McKinnon points to the “potential of the unloved UK market”, where he has 23% of assets. The portfolio is widely diversified, both by industrial sector and geographic location, in order to spread investment risk.

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. He has slimmed down the trust’s investment management team and cut back on other expenses to bring down ongoing charges to 0.52% in 2019. The number of holdings in the portfolio has been reduced to around 50 of his best ideas.

There is an active discount control strategy in place. The shares have traded at a discount to net asset value ranging from 12% to 6% over the past three years.

Narrative and ratings content all as of 01 January 2020.

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Scottish Investment Trust PLC
Scottish Investment Trust (The) PLC
Closed Ended Investment Company
0.58 %
Risk Rating
3 Year Sharpe
3 Year Alpha
3.6 %
Fund Size
£ 564.6 million
Discount Premium
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. To achieve this objective, the Company invests in an integrated global portfolio constructed through an investment process whereby assets are primarily allocated on the basis of the investment merits of individual stocks rather than that of regions, sectors or themes. The company is relatively concentrated and typically will contain 50 to 100 listed international equity investment. The portfolio widely diversified both by industrial sector and geographic location to spread investment risk.
Holding %
Newcrest Mining Limited 4.93 %
Tesco PLC 4.66 %
Target Corp 4.42 %
Newmont Corp 4.10 %
Barrick Gold Inc 4.00 %
Bt Grp 3.74 %
Pfizer Stock 3.15 %
Royal Dutch Shell PLC 2.94 %
Roche Holding AG 2.58 %
Ing Groep Nv 2.44 %
Region %
United States 25.19 %
United Kingdom 20.20 %
Eurozone 17.56 %
Japan 9.16 %
Australasia 7.28 %
Europe - ex Euro 5.43 %
Sector %
Consumer Defensive 22.10 %
Basic materials 20.87 %
Energy 15.35 %
Healthcare 11.92 %
Communication Services 10.61 %
Financial Services 8.95 %
Industrials 6.81 %
Scottish Investment Trust (The) PLC
EH2 4NL, Edinburgh, United Kingdom
Legal Structure
Closed Ended Investment Company


Mark Dobbie
Joined 10/31/2018

Mark joined the Company in 2000 and became an Investment Manager in 2011. He has 8 years of investment experience. He also has extensive knowledge of the operation of investment trusts, including valuation and performance analytics, from previous roles with the Company. Mark is a CFA charterholder.

Martin Robertson
Joined 10/31/2018

Martin joined the Company in 2004 and became Deputy Manager in 2015. He has over 30 years of investment experience. He is a graduate of both Dundee and Edinburgh universities gaining a BSc with Honours in Civil Engineering and a Master of Business Administration, respectively. Martin is a member of the CFA Institute and an Associate of the UK Society of Investment Professionals.

Sarah Monaco
Joined 10/31/2018

Sarah joined the Company in 2000 and became an Investment Manager in 2002. She has 16 years of investment experience. She graduated with a Master of Business Administration from the University of Edinburgh and previously gained a BA in Commerce. Sarah also has broader investor relations experience and a Post Graduate CIM Diploma in Marketing. Sarah is a member of the CFA Institute.

Igor Malewicz
Joined 10/31/2018

Igor joined the Company in 2017. He graduated MA with Honours in Economics and Finance and MSc in Petroleum, Energy Economics and Finance, both from the University of Aberdeen.

Alasdair McKinnon
Joined 07/18/2014

Data provided by Morningstar.

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