130 th Annual General Meeting The Scottish Investment Trust PLC 2 nd - - PowerPoint PPT Presentation

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130 th annual general meeting the scottish investment
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130 th Annual General Meeting The Scottish Investment Trust PLC 2 nd - - PowerPoint PPT Presentation

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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

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The Scottish Investment Trust PLC

2nd February 2018

130th Annual General Meeting

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The Scottish Investment Trust PLC

The year

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  • Markets are emotional
  • This creates an opportunity for profits
  • We seek undervalued, unfashionable companies
  • We take a different view to the crowd
  • We seek superior returns over the long term

Contrarian Investing

The Scottish Investment Trust PLC

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The Scottish Investment Trust PLC

What makes contrarian investing work?

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MSCI All Countries World Index – capital return (sterling terms)

The Scottish Investment Trust PLC

A 20 year view

The Global Market

75 100 125 150 175 200 225 250 275 75 100 125 150 175 200 225 250 275

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“It’s the economy, stupid”

The Scottish Investment Trust PLC

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The Scottish Investment Trust PLC

Hot money

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The Scottish Investment Trust PLC

Three investment categories

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The Scottish Investment Trust PLC

Treasury Wine Estates – More to come

2 4 6 8 10 12 14 16 18 2 4 6 8 10 12 14 16 18 Jan 13 Jan 14 Jan 15 Jan 16 Jan 17 Jan 18 AUD AUD

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The Scottish Investment Trust PLC

Tesco – Ugly duckling

50 100 150 200 250 300 350 400 50 100 150 200 250 300 350 400 Jan 13 Jan 14 Jan 15 Jan 16 Jan 17 Jan 18 GBp GBp

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  • 12.8% share price total return
  • 11.0% NAV total return*
  • International equities 13.3%**
  • UK equities 13.5%**

* NAV (at market) ** MSCI ACWI and MSCI UK All Cap

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Performance

The Scottish Investment Trust PLC

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  • Repurchase of Aviva holding
  • Successful migration of Savings Schemes

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The Scottish Investment Trust PLC

Corporate events

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Low ongoing charges

The Scottish Investment Trust PLC

0.68% 0.52% 0.49% 0.49%

2014 2015 2016 2017

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Comparison with AIC Global peers

The Scottish Investment Trust PLC

Ongoing charges

0.0 0.5 1.0 1.5 The Scottish % Source: Numis Securities

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  • Step change 48.1% increase in regular dividend to 20p
  • Special dividend of 5p
  • Total dividend increase of 11.1%
  • Move to quarterly dividends
  • 34th consecutive year of regular dividend increase

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Dividend

The Scottish Investment Trust PLC

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The Scottish Investment Trust PLC

Regular dividend v UK inflation

2 4 6 8 10 12 14 16 18 20 2 4 6 8 10 12 14 16 18 20 p

Regular Dividend Proposed Final Dividend Cumulative UK Inflation

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The Scottish Investment Trust PLC

Total dividend v UK inflation

5 10 15 20 25 5 10 15 20 25 p

Regular Dividend Proposed Final Dividend Special Dividend Cumulative UK Inflation

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  • A highly differentiated long term approach
  • We don’t follow the crowd
  • Hot money creates an opportunity for a contrarian
  • Step change in regular dividend
  • Low ongoing charges

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The Scottish Investment Trust PLC

Summary

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Risk statement

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  • Past performance may not be repeated and is not a guide to future performance. The value of shares and the

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

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

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

Financial Conduct Authority.

  • All sources The Scottish Investment Trust PLC unless otherwise stated.
  • The Global Industry Classification Standard (“GICS”) was developed by and is the exclusive property and a

service mark of MSCI Inc. (“MSCI”) and Standard & Poor’s, a division of The McGraw‐Hill Companies, Inc. (“S&P”).

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The Scottish Investment Trust PLC 6 Albyn Place, Edinburgh, EH2 4NL 0131 225 7781 info@thescottish.co.uk www.thescottish.co.uk