130 th Annual General Meeting The Scottish Investment Trust PLC 2 nd February 2018
The Scottish Investment Trust PLC The year 1
The Scottish Investment Trust PLC Contrarian Investing Markets are emotional o This creates an opportunity for profits o We seek undervalued, unfashionable companies o We take a different view to the crowd o We seek superior returns over the long term o 2
The Scottish Investment Trust PLC What makes contrarian investing work? 3
The Scottish Investment Trust PLC A 20 year view The Global Market 275 275 250 250 225 225 200 200 175 175 150 150 125 125 100 100 75 75 MSCI All Countries World Index – capital return (sterling terms) 4
The Scottish Investment Trust PLC “It’s the economy, stupid” 5
The Scottish Investment Trust PLC Hot money 6
The Scottish Investment Trust PLC Three investment categories 7
The Scottish Investment Trust PLC Treasury Wine Estates – More to come AUD AUD 18 18 16 16 14 14 12 12 10 10 8 8 6 6 4 4 2 2 0 0 Jan 13 Jan 14 Jan 15 Jan 16 Jan 17 Jan 18 8
The Scottish Investment Trust PLC Tesco – Ugly duckling GBp GBp 400 400 350 350 300 300 250 250 200 200 150 150 100 100 50 50 0 0 Jan 13 Jan 14 Jan 15 Jan 16 Jan 17 Jan 18 9
The Scottish Investment Trust PLC Performance o 12.8% share price total return o 11.0% NAV total return* o International equities 13.3%** o UK equities 13.5%** * NAV (at market) ** MSCI ACWI and MSCI UK All Cap 10
The Scottish Investment Trust PLC Corporate events o Repurchase of Aviva holding o Successful migration of Savings Schemes 11
The Scottish Investment Trust PLC Low ongoing charges 0.68% 0.52% 0.49% 0.49% 2014 2015 2016 2017 12
The Scottish Investment Trust PLC Ongoing charges Comparison with AIC Global peers The Scottish 0.0 0.5 1.0 1.5 % Source: Numis Securities 13
The Scottish Investment Trust PLC Dividend o Step change 48.1% increase in regular dividend to 20p o Special dividend of 5p o Total dividend increase of 11.1% o Move to quarterly dividends o 34th consecutive year of regular dividend increase 14
The Scottish Investment Trust PLC Regular dividend v UK inflation 20 20 18 18 16 16 14 14 12 12 p 10 10 8 8 6 6 4 4 2 2 0 0 Regular Dividend Proposed Final Dividend Cumulative UK Inflation 15
The Scottish Investment Trust PLC Total dividend v UK inflation 25 25 20 20 15 15 p 10 10 5 5 0 0 Regular Dividend Proposed Final Dividend Special Dividend Cumulative UK Inflation 16
The Scottish Investment Trust PLC Summary o A highly differentiated long term approach o We don’t follow the crowd o Hot money creates an opportunity for a contrarian o Step change in regular dividend o Low ongoing charges 17
Risk statement Past performance may not be repeated and is not a guide to future performance. The value of shares and the o income from them can go down as well as up as a result of market and currency fluctuations and you may not get back the amount you invest. The Scottish Investment Trust PLC has a long‐term policy of borrowing money to invest in equities in the expectation that this will improve returns. However, should stockmarkets fall, such borrowings would magnify any losses on these investment. This may mean you get back nothing at all. To ensure compliance with the Alternative Investment Fund Managers Directive (AIFMD), the board of o The Scottish Investment Trust PLC (the Company) has approved the appointment of SIT Savings Ltd as the Company's alternative investment fund manager (AIFM) under the terms of, and subject to the conditions of, an agreement between the Company and SIT Savings Ltd. This presentation has been prepared by SIT Savings Ltd, a wholly‐owned subsidiary of The Scottish Investment o Trust PLC authorised and regulated by the Financial Conduct Authority, is for information only and does not constitute investment advice. This information should not be considered an offer or solicitation to deal in investments. Investment Trusts are listed on the London Stock Exchange and are not authorised or regulated by the o Financial Conduct Authority. All sources The Scottish Investment Trust PLC unless otherwise stated. o The Global Industry Classification Standard (“GICS”) was developed by and is the exclusive property and a o service mark of MSCI Inc. (“MSCI”) and Standard & Poor’s, a division of The McGraw‐Hill Companies, Inc. (“S&P”). 18
The Scottish Investment Trust PLC 6 Albyn Place, Edinburgh, EH2 4NL 0131 225 7781 info@thescottish.co.uk www.thescottish.co.uk 19
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