SAINTS marches on for international income and growth


#1

Originally published at: http://whichinvestmenttrust.com/saints-marches-on-for-international-income-and-growth/
Founded in 1873 by Scottish lawyer William Menzies, the Scottish American Investment Company, or SAINTS for short is today one of the oldest surviving but thriving investment trusts. Fast Facts Established in the 1873 to invest in the leading emerging market of the day – America Managed by Dominic Neary since the start of 2014.…


#2

I’m really surprised Saints is on such a premium. I thought it had become a bit of a poor performer but whilst tit’s not the very best it’s actually not too bad at all.


#3

Same here @neilwinn. It’s quite an unusual trust because it invests cautiously but has some of the highest gearing I’ve seen. I wonder if part of the reason for the high gearing might be because of the property portfolio.

It’s performed better than I expected.


#4

I’ve held shares in this for a long time. Dominic Neary has improved performance since he came on board.

I wasn’t aware it had such a high active share though, perhaps the property and bond holdings add to that.

On another point, I really like the look of these forums. they are new aren’t they? I don’t remember them looking like this before.


#5

It’s not been a fantastic performer, not sure why you’re getting so excited.

If I had to choose a fund in its category I’d go for Murray International which has seen its premium disappear, just like its performance. Over the long term I’d excerpt Murray to do much better than SAINTS.

As highly geared as it is SAINTS is too much risk in my view for too little reward.


#6

I’ve had shares in SAINTS for several years and it generally achieves what it sets out to do - be a core holding for investors seeking income. It has a widely diversified portfolio including property and bonds so it’s suitable for the “buy and forget” approach. However active investors may well do better with a mixture of more targeted trusts.


#7

I am wondering if it might be more suitable than Scottish Investment Trust. I was left shares in it by my uncle. It hasn’t performed as well as late and I’m wondering if SAINTS would maybe be a better home for my money?

Any views @dunkuring @charles ?


#8

Sods law dictates that as soon as you sell Scottish IT and buy SAINTs, the former’s discount disappears and the latter’s premium evaporates. Personally I would resist the temptation to fiddle.


#9

Both Scottish Investment Trust and SAINTS are global trusts but Scottish American is more income-orientated, with yields of 1.9% versus 4.0%. The latter also has higher gearing, possibly related to its property portfolio (currently 13% of assets) and is trading at a premium, whilst SIT is on a reasonable discount.

If you need more income or prefer a more mixed portfolio then SAINTS is a reasonable alternative, but I’d wait until their shares are trading at a discount before switching. Murray International is also worth considering, as @jkstowe mentions.


#10

Yeah I think the gearing is because of the property investments @dunkuring. Be a little bit too high otherwise.

I think Scottish IT has had some changes in recent years, the manager left abruptly. It’s not a bad performer though if you want something conservative like that then you shouldn’t really be looking for a top performer, in my min at least.

I would be more tempted by Murray international because you can get it on a little bit of a discount for once.


#11

I am sticking with Scottish Investment Trust for now loves. thanks for your considered comments :sparkling_heart: