Edison review on The Scottish Investment Trust

London, UK, 26 July 2017

Edison issues review on The Scottish Investment Trust (SCIN)

The Scottish Investment Trust (SCIN) invests globally, with the aim of achieving capital appreciation and above-inflation dividend growth. A self-managed trust with a 130-year history, SCIN follows a contrarian investment style, with a high conviction portfolio of 50-100 stocks drawn from three categories: 'ugly ducklings', 'change is afoot' and 'more to come'. The four-strong management team, led by Alasdair McKinnon, uses behavioural finance techniques to exploit the tendency of investors to 'follow the crowd'. By focusing on stocks that are very unloved, those with operational improvements that have been overlooked, and more popular stocks that can continue to do better, they build in a margin of safety. There is an active discount management programme and the trust has recently announced a move to quarterly dividends from FY18.

At 21 July 2017, SCIN's shares traded at a 9.0% discount to cum-income NAV. This is narrower than both short- and longer-term averages of c 10%. Downside from this level is limited by an active buyback policy targeting a maximum discount of 9% in normal market conditions. During the year there was a large buyback from Aviva; this has further orientated the share register in favour of private and discretionary investors, which may be a more stable source of demand. SCIN currently yields 2.8% (1.7% excluding special dividends).

Click here to view the full report.

All reports published by Edison are available to download free of charge from its website

www.edisoninvestmentresearch.com

About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information please contact Edison:

Sarah Godfrey, +44 (0)20 3681 2519

Mel Jenner, +44 (0)20 3077 5720

[email protected]

Learn more at www.edisongroup.com and connect with Edison on:

LinkedIn https://www.linkedin.com/company/edison-investment-research 

Twitter www.twitter.com/Edison_Inv_Res 

YouTube www.youtube.com/edisonitv