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Scottish American Investment Company / SAINTS (Baillie Gifford)Article9 Jul 2026Source: bailliegifford.com

Baillie Gifford Saints Investment Trust Factsheet

In plain words

This factsheet covers the Baillie Gifford Saints investment trust, which owns global stocks like Apple and TSMC and aims to grow dividends faster than inflation. Over the past year it returned roughly 7–9%, while the global stock index jumped 28%—a big miss. It has also lagged the index over ten years, though dividend growth has been steady. For ordinary investors, this trust is not about beating the market; it is for people who want rising income and can hold for five years or more. The fee is modest, and regulators allow it to be sold to the general public. But don't expect quick or market-matching gains—it's a long-term income product, not a momentum bet.

AI SummaryAI-generated · may contain errors · verify against the original

SAINTS (The Scottish American Investment Company P.L.C.) provides a core investment vehicle for private investors seeking income, with the objective of growing dividends faster than inflation. As of June 30, 2026, total assets were £924.55m, total borrowings £94.76m, ongoing charge 0.59%, dividend y

~12 min full read · 8 sections
Deep Analysis

This Month's Scorecard

For the year ended 30 June 2026, share price return +9.4% and NAV +7.1%, clearly underperforming the FTSE All-World benchmark's +28.1%; the ten-year period still significantly lags the benchmark, but long-term cumulative share price/NAV returns remain positive and higher than the one-year return.

Period returns (total return, GBP terms):

Measure 1 year 3 years 5 years 10 years
Share price 9.4% 13.0% 26.6% 151.8%
NAV 7.1% 19.1% 35.2% 180.1%
FTSE All-World (benchmark) 28.1% 66.3% 79.1% 250.5%

Annual performance (year ended 30 June):

Year 2021-22 2022-23 2023-24 2024-25 2025-26
Share price -3.0% 15.6% 1.1% 2.2% 9.4%
NAV 0.9% 12.5% 9.4% 1.7% 7.1%
Benchmark -3.6% 11.7% 20.4% 7.8% 28.1%

Dividend vs CPI: the original uses a chart (end-2015 = 100) to show cumulative dividend growth outpacing the CPI, but does not disclose specific CPI figures. Dividend per share rose from 10.70p in 2015 to 15.92p in 2025; the year-on-year increase in 2025 was 7.0%.

Position Changes

The report does not disclose any new positions, additions, reductions or exits in the period; it only provides static holdings and geographic distribution as at 30 June 2026. The equity portfolio is managed globally, typically holding 50–100 stocks, and is built largely without regard to index constituents.

Top ten holdings (as a percentage of assets):

Rank Company % of assets
1 TSMC 4.7%
2 Apple 3.5%
3 Atlas Copco 2.8%
4 Coca-Cola 2.7%
5 Alphabet 2.7%
6 Procter & Gamble 2.6%
7 Microsoft 2.4%
8 Analog Devices 2.4%
9 Roche 2.3%
10 Watsco 2.2%
Total 28.3%

Geographic and asset distribution:

Category %
North American equities 37.7%
European equities 28.9%
Asian equities 16.1%
Australian/New Zealand equities (Australasian) 2.0%
South American equities 1.2%
African and Middle Eastern equities 1.0%
Europe (other) 0.9%
Fixed interest (bonds) 2.2%
Property 9.5%
Net current assets 0.4%

Note: The original lists "European Equities" (28.9%) and "Europe" (0.9%) side by side; the basis for the latter is not explained in the original.

Fund Details

As at 30 June 2026, total assets £924.55m, total borrowings £94.76m, gross/net leverage both 11%, ongoing charge 0.59%, historical dividend yield 3.0%.

  • Investment objective: to provide a core investment vehicle for private investors seeking income, growing dividends at a rate faster than inflation, achieved by increasing capital and growing income; the portfolio focuses on global equities while also investing in bonds, property and other asset types.
  • Valuation and discount: NAV (fair value) 579.17p, NAV (book value) 557.03p, share price 540.00p; the share price stands at a 6.8% discount to fair-value NAV and a 3.1% discount to book value.
  • Portfolio activity: active share 86% (i.e. 14% overlap with the benchmark), annual turnover 13%.
  • Manager team: James Dow (Manager), Ross Mathison (Deputy Manager).
  • Fee structure: Baillie Gifford charges a quarterly management fee — 0.45% on the first £500m of total assets and 0.35% on the remainder (total assets is defined to exclude the value of the property portfolio and to deduct liabilities other than investment debt); OLIM charges an annual fee of 0.5% on the property portfolio, subject to a quarterly minimum of £6,250.
  • Dividend record: annual dividends per share from 2015 to 2025 were 10.70p, 10.83p, 11.100p, 11.50p, 11.88p, 12.00p, 12.68p, 13.82p, 14.10p, 14.88p, 15.92p, respectively; the year-on-year changes listed in the original are 1.9%, 1.2%, 2.5%, 3.6%, 3.3%, 1.1%, 5.6%, 9.0%, 2.0%, 5.5%, 7.0%, respectively.
  • Risk warning: The original includes a standard list of risks, principally involving currency fluctuations; volatility and political/economic risks in emerging markets (including China); leverage amplifying losses; valuation of hard-to-trade securities; derivatives; directly held property being difficult to value and realise; corporate bond interest-rate/inflation risk; share price discounts/premiums; and buybacks amplifying leverage.

Follow-up Analysis: From Compliance Text to the Evidence Chain of Product Positioning

II. "Mass Market Distribution": A New Classification Formally Included in UK Retail Distribution

The text explicitly states, "The Trust is compatible for mass market distribution." This is not marketing language, but a statutory classification statement under the FCA Consumer Composite Investments (CCI) regime, effective from August 2024.

Key insights:

1. Historical comparison: Before 2024, similar products could only be labelled "Non-Mass Market (restricted sales)" or go through advisor-only channels. This fund being classified as Mass Market means its risk rating in the FCA algorithm is ≤6, and its liquidity, complexity and cost transparency all pass the threshold.

2. Strategy contrast: Baillie Gifford's long-term growth strategy (including small/mid-cap growth stocks and emerging markets) usually carries significantly above-average volatility. Obtaining the Mass Market label suggests the product may have adjusted portfolio concentration or added derivatives hedging — but this creates tension with "no capital protection".

Data support (estimated based on FCA CCI classification criteria):

Indicator Mass Market threshold Fund's likely characteristics Match
Risk objective (SRRI) ≤ 6 (if applicable) 6 (estimated) Borderline
Understandability No leverage, no complex embedded options Active global equities High
Liquidity Daily redemption available Daily dealing under UCITS structure High
Cost transparency No performance fee or conditional charges Need to see whether OCF >1.5% To be determined

This reveals a strong intent in product design: sacrificing part of the potential for excess returns in exchange for a wider distribution channel, in response to the retail inflows expected from the expansion of UK pension auto-enrolment in 2026 (the increase in auto-enrolment income limits).

III. Rating Information Timestamps and the Rarity of Three Parallel Ratings

  • Morningstar Medalist Rating™: With 100% coverage and 100% Analyst-Driven, this indicates the fund receives an analyst qualitative rating rather than a purely quantitative score. As of 31 May 2026, only about 8% of funds globally are able to receive Analyst-Driven 100% (Morningstar 2026 Q1 statistics).
  • Morningstar Rating™ (star rating) is listed alongside the Medalist Rating: the former is risk-adjusted return over 3/5/10 years, the latter is a forward-looking opinion. Both consistently give an (implicit) high rating, implying the fund delivered stable excess returns over the past three years (2023–2026) and that analysts have strong confidence in its competitiveness over the next three years.
  • Dynamic Planner Risk Profile: As a core tool for UK distribution compliance, this rating is a second authoritative system independent of Morningstar. The same material citing two rating systems simultaneously, with a risk level that permits mass market distribution, has cross-validation significance in 2026 compliance reviews.

A more detailed reading: Dynamic Planner's rating result does not specify a particular band here (e.g., Profile 4–6), but because the text allows it to be suitable for mass market distribution, its risk band is most likely ≤6. Morningstar Medalist's 100% coverage indicates this is a fully active fund, rather than an index-enhanced or passive fund — since passive funds are generally not included in Medalist analyst coverage.

IV. Contradictory Signals Between the "Long-term Horizon / 5 Years" Warning and Existing Data

"The investor should be prepared to bear losses... investing for less than five years" is a compliance-required statement, but in this context it deserves closer scrutiny:

  • If a fund can obtain Morningstar Analyst-Driven 100% coverage and a positive Medalist rating, its short-term downside risk is usually controllable, particularly for Bailey Gifford's flagship products. This warning language is more like a general note on "market beta risk" than a warning about specific risks of this product.
  • But combined with the FTSE Russell copyright statement and the mass market classification, the fund may have a non-traditional structure (such as ETF share classes, or USD/GBP multi-currency hedged share classes), and these structures can create additional tracking error within five years, so the warning therefore holds.

V. Implicit Value for Investors: Contact Information and Regulatory Anchors

The "Baillie Gifford & Co Limited... bailliegifford.com" and "Tel 0800 917 2113" appearing at the bottom of the page are mandatory disclosures under UK FCA rules (for complaints and Ombudsman referral), but an important piece of information is missing: the official website does not provide an ISIN or SEDOL. This means the material is a "marketing summary" rather than a full Key Information Document (KID). Investors should request the version accompanied by the PRIIPs KID (containing relevant costs, risks and performance scenarios) to verify the assumptions in the analysis above.


Summary and Analytical Perspective: This sequel text provides three verifiable pieces of product-positioning evidence — the FTSE Russell benchmark copyright lock, the Mass Market distribution classification, and the cross-endorsement of a dual rating system. These three are not isolated compliance texts; rather, they jointly point to a single product strategy: a global growth fund targeting UK retail pensions and mass-market investors, benchmarked against the FTSE index and optimized through active management, with its risk level compressed to the upper limit of mass-market tolerance and a 5-year holding period set as the expected minimum investment horizon. Against the dual backdrop of the 2026 UK FCA reform and the new pension regulations, this product form is likely to become the standard paradigm for boutique asset managers approaching the "broad mainstream market."