Scottish American Investment Trust Upgraded

Morningstar analyst David Holder says that an excellent investment house and competitive fees are compelling reasons for upgrading the Scottish American Investment Trust

David Holder 11 April, 2019 | 9:08AM
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David Holder: The investment objective of the Scottish American Investment Trust (SCAM) is to provide a rising real level of income in addition to a growing capital base. The portfolio is predominantly invested via an unconstrained global equity portfolio. In addition, there is a strategic long-term allocation to UK commercial property and an opportunistic, but limited, exposure to niche fixed income assets. 

Toby Ross and James Dow are the managers and co team heads. They have spent all their investment careers at Baillie Gifford and so are immersed in the unique culture and are well placed to draw upon the in-house expertise. Over half of the stocks in this portfolio are held elsewhere in Baillie Gifford which endorses the powerfully collegiate approach to investment across the firm.

In common with Baillie Gifford’s house style, stock selection is based upon fundamentals and so the portfolio is likely to bare only very limited likeness to its FTSE All World benchmark. Indeed, the active share is in the region of 90% indicating material positions away from the index. Overall this profile sets this fund aside from other global income focused strategies which makes it an interesting diversifier for those seeking a growing income stream.  

We believe that the team dynamics and adherence to the process within the context of an excellent investment house, in-concert with competitive fees all bode well. Our conviction in the managers continues to grow, resulting in an upgrade from Neutral to a Morningstar Analyst Rating of Bronze. 

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Scottish American Ord506.00 GBX-0.20Rating

About Author

David Holder  is a senior investment research analyst at Morningstar

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