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Scottish American manager Neary steps down

Scottish American manager Neary steps down

Dominic Neary has left Baillie Gifford, stepping down as the manager of the Scottish American (SCAM) investment trust, also known as Saints, and Baillie Gifford Global Income Growth fund.

Management of both the £485 million trust and £470 million fund will pass to James Dow and Toby Ross (pictured below), previously deputy managers on the trust and co-managers on the fund.

Neary had managed the fund since 2010 before being appointed deputy manager of the trust in 2012, then lead manager in 2014 after Patrick Edwardson stepped down.

Over three years the trust's shares have delivered 69.6%, ahead of an average 44.8% for trusts in Numis' global equity income sector, and currently trades on a yield of 3%. The fund has delivered 48.3% over three years to the end of July, placing it in the top half of funds in Citywire's Global Equity income sector.

Dow (pictured below) and Ross have served as deputy managers on the trust since 2016, and co-managers on the fund since 2015. Neither the trust nor the fund is expected to change approach following the changes.

Commenting on the changes to the trust, analysts at Numis said: 'We do not expect Dominic Neary's departure to have any impact on the way the portfolio is run. The team-based approach has meant that portfolio ideas required majority support at the weekly investment meetings to enter the portfolio.'

Scottish American's income focus means it has little cross-over with more growth-focused Baillie Gifford trusts like the flagship Scottish Mortgage (SMT) or Monks (MKS).

Numis highlighted that a third of its stocks were unique within Baillie Gifford, and that the only 15% of the portfolio overlapped with Monks, and just 5% with Scottish Mortgage.

But it does share a lack of adherence to any benchmark. 'The portfolio has little resemblance to any index, with a high active share,' said Numis.

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