Securities Trust of Scotland plc is a UK-based close-ended investment company. It was founded in the year 2005 and its headquarters are situated in Edinburgh, United Kingdom. The investment objective of the company is to create a diversified and balanced portfolio of high-quality global equities to maximise the long-term income and capital growth for all its shareholders. The company is listed and traded on the London Stock Exchange. The new investment manager appointed by the trust in November 2020 is Troy Asset Management Limited, and previously, Martin Currie managed the trust. The alternative investment fund manager of Securities Trust of Scotland plc is Juniper Partners Limited, which come under the Financial Conduct Authority regulation.
The trust mainly invests in companies that have low market sensitivity and more defensive characteristics, rather than capital intensive companies which are cyclical in nature. The investment strategy focuses on long-term compound returns, and therefore, the performance of the company may appear to be stagnant in rising markets which are mainly led by cyclical companies. Troy Asset Management focuses on compounding the value of investments in the long run and aims not to trade but rather own the investments, after being convinced that those investments have the potential to generate future cash flows. The focus of the trust is on quality of investments, and thus it invests in stable and flourishing companies, with a differentiated product range, having low risk and high profitability, instead of indebted and acquisitive companies.
A major proportion of its portfolio consists of large capitalisation companies, which typically have market capitalisation over £1 billion. The diversified portfolio is based on meticulous market research and consists of 30-50 high conviction stocks. But there are certain conditions, such as an upper limit of 10% on the investment of company’s gross assets in listed investment companies, which include the investment trusts listed in UK, the sum of all the holdings over 5% of the total portfolio should be less than 40% of the portfolio, and warrants should be under 5% of the total portfolio.
In addition to these, all the investment schemes that the investment manager sponsors, are to be approved by the board first, and a 15% upper limit is set for collective investment schemes, with an individual upper limit of 10% for each holding in the total collective investment schemes. Under normal circumstances, the investment in listed equities can be made within a range of 90-120% of shareholders’ funds. The board and the manager regularly assess the gearing levels, with the gearing limit set at 20%. As the shares of the company are admitted to the Official List under Chapter 15 of the UKLA Listing Rules, it cannot change its investment policy without getting the shareholders’ approval.
Securities Trust of Scotland plc Saltire Court, 20 Castle Terrace EDINBURGH EH1 2ES United Kingdom GBR
+44 131 229 5252