Fact sheet: Scottish American IT

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
GLOBAL EQUITY INCOME
Sector
IT Global Equity Income
Fund type
Investment Trust
Primary aim
GROWTH & INCOME
Why Money Observer Rates Scottish American IT

Rated Fund 2015-2017. Aiming for real income growth

With the likelihood of increasing inflation in the years to come, Scottish American's aim - not just to pay an income but to grow its dividend at a faster rate than inflation - will be particularly attractive to investors. The focus of its portfolio is on global equities but investments are also made in bonds, property and other asset types.

At the end of 2016, non-equities accounted for around 17 per cent of the portfolio. The trust's lead manager since the beginning of 2014 has been Dominic Neary of Baillie Gifford. In 2016 James Dow and Toby Ross were appointed deputy managers.

The team looks for companies with dependable and growing cash flows that will be able to sustainably grow their dividends. They separate their holdings into four buckets with different characteristics to reflect the managers' aim to achieve a balance between present yield, and long-term income and capital growth potential.

The four buckets comprise the 'compounding machines' - companies with enduring competitive positions and financial strength, which represent over two-thirds of the portfolio.

Then there are 'exceptional revenue opportunities' - companies expected to deliver exceptional growth in earnings and cash flow; 'profitability transformations' - companies where a catalyst for change has been identified that is likely to deliver dividend growth; and 'capital decisions' - companies where developments are likely to result in an increase in cash available for dividends.

The managers also aim to keep income sources diverse, with no one holding providing more than 5 per cent of the trust's income.

3 Year Performance
Fund Performance62.7%
Average of Rated Funds Group40.9%
Sector Performance42.9%
Fund information
Fund name
Scottish American Investment Company PLC
Fund manager company
Baillie Gifford & Co Ltd
Fund type
Investment Trust
Fund managers
  • James Dowsince 17/08/2017
  • Toby Rosssince 17/08/2017
Accolades
Fund objective
The Trust aims to be a core investment for private investors seeking income. Its objective is to grow the dividend at a faster rate than inflation by increasing capital and growing income. The focus of the portfolio is on global equities but investments are also made in bonds, property and other asset types.
Benchmark
  • FTSE All World
Investment style
None
Investment method
Shares
Quick stats
1 Year return
8.4%
1 Year rank in sector
6/7
Sector
IT Global Equity Income
Yield
3.1%
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
0.78%
Fund size
£482m
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
124
Mid price
354
NAV
?Net asset value. The NAV per share may be higher or lower than the share price, which in turn is trading at either a discount or a premium to NAV.
349.84
Discount/Premium
?When the market price of an investment trust’s shares is less than the net asset value (NAV) per share then it is trading at a discount to NAV. A trust’s shares are on a premium when they trade at a higher price than the NAV.
+1.19
Gearing
?Investment trusts have the ability to borrow money which they invest with the aim of generating a higher return than the cost of the loan. An ungeared trust has a figure of 100. A figure of 110 would represent a trust with 10% gearing.
117
Top in this sector
Fund name1 Year
JPM Gbl Grw&Inc plc14.2%
Blue Planet Inv Tst PLC ORD 1P13.3%
Hnd Int Inc Tst plc10%
Invesco Perp Select GE plc9.7%
Murray Intl Tst PLC9%
...more in IT Global Equity Income

Performance snapshot

Holdings snapshot

  • Europe35.1%
    North America23.3%
    Not Specified20.3%
    Asia10.3%
    Australasia5.3%
  • No data available.
  • European Equities35.1%
    North American Equities23.3%
    Asia Pacific Equities15.6%
    Property14.6%
    Global Fixed Interest5.7%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund-5.7%-2.8%-0.6%8.4%62.7%75.9%
Sector-4.3%-1.8%1.2%10.1%42.9%66.1%
Rank within sector6 / 76 / 75 / 76 / 72 / 74 / 7
Quartile4th4th3rd4th2nd3rd
Calendar performance
 YTD - 20182017201620152014
Fund-3.8%17.1%28.7%9.2%1.6%
Sector-3.2%17.6%25.6%1.7%2.4%
Rank within sector6 / 74 / 75 / 71 / 75 / 7
Quartile4th3rd3rd1st3rd
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
4.51
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
0.97
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
1.25
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
11.86
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
8.83
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
0.42
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.43
Price movement
52 week high381
52 week low327
Current bid price354
Current offer price358
Current mid price354
Region
1Europe35.1%
2North America23.3%
3Not Specified20.3%
4Asia10.3%
5Australasia5.3%
6South America2.9%
7Middle East/ Africa2.5%
8Others0.2%
9Money Market0.1%
Industry sector
No data available.
Asset type
1European Equities35.1%
2North American Equities23.3%
3Asia Pacific Equities15.6%
4Property14.6%
5Global Fixed Interest5.7%
6American Emerging Equities2.9%
7Middle East & African Equities2.5%
8International Equities0.2%
9Money Market0.1%
Individual holdings
1COCA COLA2.1%
2JOHNSON & JOHNSON2.1%
3CH ROBINSON WORLDWIDE INC1.9%
4PRUDENTIAL PLC1.9%
5DEUTSCHE BOERSE AG1.8%
6PARTNERS GROUP HOLDING1.8%
7PROCTER & GAMBLE CO1.8%
8FASTENAL CO1.7%
9ANTA SPORTS PRODUCTS1.6%
Management
Fund manager group
Baillie Gifford
Fund manager company
Baillie Gifford & Co Ltd
Fund type
Investment Trust
Fund objective
The Trust aims to be a core investment for private investors seeking income. Its objective is to grow the dividend at a faster rate than inflation by increasing capital and growing income. The focus of the portfolio is on global equities but investments are also made in bonds, property and other asset types.
Benchmark
  • FTSE All World
Investment style
None
Investment method
Shares
Fund managers
NameSinceBiography
James Dow17/08/2017James 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 and became an Investment Manager in our US Equities Team. He is a Global Sector Specialist and a CFA Charterholder.
Toby Ross17/08/2017Toby 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 before becoming a Global Sector Specialist. Toby is a CFA Charterholder.
Compliance
AIC Member
Domicile
No data available.
Fund for sale in
United Kingdom
Scottish American Investment Company PLC
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price355.35
CurrencyGBX
Price updated19/02/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeNJFE
Data provided by

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