Scottish Investment Trust PLC

Global Equity Income

Rated Fund 2017-19. Portfolio revamp pays off

Scottish Investment Trust has moved into the Global Equity Income asset group from our adventurous Global section, on account of its strong focus on income generation and ample reserves to support rising dividends.

The trust, formed in 1887, has increased its dividend each year for the past 35 years. It produces a respectable yield of 2.7% and pays income quarterly.

Its recent returns were relatively insipid 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 0.52% in 2018. The number of holdings in the portfolio has been reduced to 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 the discount has narrowed from 16% in mid 2016 to less than 10% at the end of 2018.

The portfolio is widely diversified by both industrial sector and 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.

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. 

Narrative and ratings content all as of 01 January 2019.

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Scottish Investment Trust PLC
Scottish Investment Trust (The) PLC
Closed Ended Investment Company
0.45 %
Risk Rating
3 Year Sharpe
3 Year Alpha
2.8 %
Fund Size
£ 607.4 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 %
Tesco 4.80 %
Newcrest Mining 3.89 %
Glaxo Smith Kline 3.85 %
Sumitomo Mitsui Financial 3.36 %
Standard Chartered 3.30 %
Pfizer Stock 3.21 %
Royal Dutch Shell 3.17 %
BHP Billiton Ltd 3.13 %
Target 3.08 %
GAP 2.99 %
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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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.