Fact sheet: The Scottish Investment Trust

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.
IT Global
Fund type
Investment Trust
Primary aim
No data available.
Why Money Observer Rates The Scottish Investment Trust

New for 2017. Patiently turning a tanker round

Scottish Investment Trust was formed in 1887. Its returns were relatively insipid in recent years 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 charge.

The number of holdings in the portfolio has been reduced and McKinnon has adopted a new, contrarian investment approach. There is an active discount control strategy. So we think there is potential for returns to continue to improve under McKinnon, enhanced by a narrowing discount.

The trust's portfolio is widely diversified both by market 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 says that in general terms he looks to hold companies where he can see a clear path to future price appreciation. He warns that his views are not always initially confirmed by a friendly share price movement, but he is prepared to be patient.

Analysts at Winterflood Securities say that 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. Along with reducing the number of holdings to around 70, McKinnon's aim is to have low portfolio turnover.

3 Year Performance
Fund Performance44.1%
Average of Rated Funds Group54.7%
Sector Performance52.7%
Fund information
Fund name
The Scottish Investment Trust PLC
Fund manager company
Scottish Investment Trust
Fund type
Investment Trust
Fund managers
  • Alasdair McKinnonsince 17/07/2014
Fund objective
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.
  • No Specified Index
Investment style
No data available.
Investment method
No data available.
Quick stats
1 Year return
1 Year rank in sector
IT Global
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.
Fund size
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.
Mid price
?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.
?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.
?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.
Top in this sector
Fund name1 Year
Independent Investment Trust64.6%
Edinburgh Ww IT PLC40.5%
Sct Mtg IT PLC29%
Monks IT PLC28.1%
Lazard World Trust24.7%
...more in IT Global

Performance snapshot

Holdings snapshot

  • UK29%
    North America27%
    Europe ex UK18%
    Asia Pacific ex Japan8%
  • Financials20%
    Consumer Discretionary10%
    Consumer Staples9%
  • UK Equities29%
    North American Equities27%
    Europe ex UK Equities18%
    Japanese Equities9%
    Asia Pacific ex Japan Equities8%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Rank within sector18 / 228 / 2214 / 2219 / 2213 / 2219 / 22
Calendar performance
 YTD - 20182017201620152014
Rank within sector19 / 2215 / 224 / 2219 / 2217 / 22
Risk statistics
?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.
?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.
?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.
?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%.
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.
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.
?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.
Price movement
52 week high891
52 week low777.5
Current bid price819
Current offer price822
Current mid price820
2North America27%
3Europe ex UK18%
5Asia Pacific ex Japan8%
6Money Market6%
7Latin America3%
Industry sector
3Consumer Discretionary10%
5Consumer Staples9%
7Health Care6%
8Net Current Assets6%
9Information Technology5%
Asset type
1UK Equities29%
2North American Equities27%
3Europe ex UK Equities18%
4Japanese Equities9%
5Asia Pacific ex Japan Equities8%
6Money Market6%
7American Emerging Equities3%
Individual holdings
6GAP INC3.3%
Fund manager group
Scottish Investment Trust
Fund manager company
Scottish Investment Trust
Fund type
Investment Trust
Fund objective
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.
  • No Specified Index
Investment style
No data available.
Investment method
No data available.
Fund managers
Alasdair McKinnon17/07/2014
AIC Member
No data available.
Fund for sale in
United Kingdom
The Scottish Investment Trust 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 price911.2
Price updated14/02/2018
Institutional or retail classRetail
Citi codeNJKC
Data provided by

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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.