Annual Report and Financial Statements
31 December 2022
THE SCOTTISH AMERICAN
INVESTMENT COMPANY P.L.C.
SAINTS
Income again and again
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Notes
None of the views expressed in this document should be construed as advice to buy or sell a particular investment.
Investment trusts are UK public listed companies and as such comply with the requirements of the UK Listing
Authority. They are not authorised or regulated by the Financial Conduct Authority.
SAINTS currently conducts its affairs, and intends to continue to conduct its affairs, so that the Company’s Ordinary
Shares can qualify to be considered as a mainstream investment product and can be recommended by Independent
Financial Advisers (IFAs) to ordinary retail investors in accordance with the rules of the Financial Conduct Authority
(FCA) in relation to non-mainstream investment products.
THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION.
If you reside in the UK and you are in any doubt as to the action you should take, you should consult your stockbroker,


adviser.
If you have sold or otherwise transferred all of your ordinary shares in The Scottish American Investment Company
P.L.C., please forward this document, together with any accompanying documents, but not your personalised Form
of Proxy, as soon as possible to the purchaser or transferee, or to the stockbroker, bank or other agent through
whom the sale or transfer was or is being effected for delivery to the purchaser or transferee.
1 Objective
Strategic Report
2 Chairman’s Statement
5 One Year Summary
6 Five Year Summary
7 Business Review
12 Investment Approach
14 Managers’ Review
18 Investment Changes
19 Performance Attribution
19 Distribution of Portfolio
20 List of Investments
22 Property Portfolio
23 
24 Ten Year Record
Governance Report
25 Directors and Management
27 Directors’ Report
31 Corporate Governance Report
35 Audit Committee Report
37 Directors’ Remuneration Report
40 Statement of Directors’ Responsibilities
Financial Report
41 Independent Auditor’s Report
47 Income Statement
48 Balance Sheet
49 Statement of Changes in Equity
50 Cash Flow Statement
51 Notes to the Financial Statements
Shareholder Information
65 Cost-effective Ways to Buy and Hold
Shares in SAINTS
66 Communicating with Shareholders
67 Further Shareholder Information
67 Dividend Dates for 2023
68 Analysis of Shareholders
69 Notice of Annual General Meeting
75 Glossary of Terms and Alternative
Performance Measures
77 Sustainable Finance Disclosure Regulation
Contents
Investor Disclosure Document
The UK Alternative Investment Fund Managers Regulations require certain information to be
made available to investors prior to their investment in the Company. The Company’s Investor
Disclosure Document is available for viewing at saints-it.com.

The Scottish American Investment Company P.L.C. 01
Objective
SAINTS aims to deliver real dividend growth by
increasing capital and growing income.
Year to 31 December 2022 Dividend 13.82p Yield 2.7%
12
21
22
181614 2019171513
(15%)
5%
10%
(10%)
0%
(5%)
12 21 22
1816
14
2019
17
1513
100
140
120
130
110
150
 
* 





CPI
12
21
22
181614 2019171513
100
400
300
200
Share Price Total Return


Share price
*
Premium/(Discount)
*








Ten Year Summary

02


Strategic Report
Lord Macpherson of
Earl’s Court, Chairman
Strategic Report
Chairman’s Statement







nine consecutive years.
Overview



































SAINTS’ 150th Anniversary

















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









Total Return Performance












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













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



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










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





Environmental, Social and Governance (ESG)





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

04
Issuance and Buybacks







The Board






Outlook










important as ever.








Strategic Report
Proposed Change to Articles of Association















AGM, Presentation and Drinks











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
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

Chairman





The Scottish American Investment Company P.L.C. 05
31 December
2022
31 December
2021 % change

*
 
  
  

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  
   
Share price   

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

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 
Premium
†
  
   
   

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 
Active share
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 
Year to 31 December 2022 2021
Total returns (%)
†‡
  
  
Share price  

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 
Year to 31 December 2022 2022 2021 2021
Year’s high and low High Low High Low

†
   
    
Share price    

†
   

†
    
31 December
2022
31 December
2021
Net return per ordinary share
Revenue  
  
  
*
†

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
‡

Strategic Report



One Year Summary
*

06

2.2
2.4
2.6
2.8
3.0
3.2
3.4
3.6
3.8
Source: Refinitiv/Baillie Gifford and relevant underlying index providers
†
.
SAINTS dividend (pence)
2018
Years to 31 December
2019 2020
2021
2022
Five Year Quarterly Dividends Paid (pence)
*
†

‡

Strategic Report



Five Year Summary
Five Year Total Return
‡
Performance

Source: Refinitiv/Baillie Gifford and relevant underlying index providers
†
.
NAV total return (fair value)
Share price total return
Benchmark
* total return
Cumulative to 31 Decembe
r
2017
2019 2020
2021
2022
2018
80
160
180
200
140
120
100
Cumulative to 31 Decembe
r
Source: Refinitiv and relevant underlying index providers
†
.
SAINTS dividend
CPI
2017
2019 2020
2021
2022
2018
100
110
105
120
115
125


Source: Refinitiv/Baillie Gifford and relevant underlying index providers
†
.
SAINTS premium/(discount) – fair value
‡
SAINTS premium/(discount) – book value
The premium/(discount) is the difference between SAINTS’ quoted share price and
its underlying net asset value.
2017
Y
ears to 31 December
2019 2020
2021
2022
2018
(10%)
(5%)
5%
10%
0%
Premium/(Discount)
‡
to Net Asset Value


The Scottish American Investment Company P.L.C. 07
Business Review
Business Model
Business and Status


















Objective and Policy
SAINT

























investment opportunity.




















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


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















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




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Board Oversight
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





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





Strategic Report

08















Discount/Premium




The Company can issue shares at such times as the premium

















Performance



Key Performance Indicators



 
 
 


 
 

 






Borrowings


Principal and Emerging Risks
















Financial Risk




















Investment Strategy Risk


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Strategic Report

The Scottish American Investment Company P.L.C. 09
Strategic Report
Climate and Governance Risk
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Regulatory Risk
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










Custody and Depositary Risk









Operational Risk












Discount Risk






Leverage Risk












Political Risk










Cyber Security Risk











10
Emerging Risks












Viability Statement















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










Strategic Report







Promoting the Success of the Company
(Section 172 Statement)





 
 
 

 

 

 












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




 




 




 







Strategic Report
Employees, Human Rights and Community Issues








Gender Representation




Environmental, Social and Governance Policy









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Future Developments of the Company
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Chairman

12
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






Investment Approach
Strategic Report
Summary
Aim:


 


 

• 

•


• 
 
investment environments:
• 

• 


• 

Outcome: 



The Scottish American Investment Company P.L.C. 13
Compounding Machines Long-Cycle ReturnsManagement Acceleration Exceptional Revenue Opportunity
Albemarle
Intuit
Cognex
Arthur J Gallagher
Apple
Microsoft
0 –1%
United Overseas Bank
Silicon Motion Technology
B3
Man Wah
T. Rowe Price
Want Want
Kuehne + Nagel
4–5%
Rio Tinto
Hargreaves Lansdown
TCI
AVI
Línea Directa Aseguradora
Valmet
Admiral
>5%
Current Year Forecast Dividend Yield




Medtronic
GlaxoSmithKline
Midea Group
Partners Group
Watsco
United Parcel Service
3–4%
Time
Time Time
Free Cash Flow Growth Expectations

Time
Characteristics



priorities
Expected Outcome


Characteristics




Expected Outcome


Characteristics



Expected Outcome


Drivers of Free Cash Flow Growth
Free Cash Flow Growth Expectations

Free Cash Flow Growth Expectations

Free Cash Flow Growth Expectations

Characteristics



Expected Outcome


Portfolio
%
Weighted
Average Yield
%


 

Revenue
Opportunity
 


 

Returns
 
What will drive growth in free

% of Portfolio






Strategic Report
SAP
Fevertree Drinks
Anta Sports
Amadeus IT Group
Dolby Laboratories
Atlas Copco
Edenred
Experian
McDonald’s
Starbucks
Wolters Kluwer
L’Oréal
Analog Devices
Deutsche Boerse
Novo Nordisk
1–2%
Cullen/Frost Bankers
Pernod Ricard
Cisco Systems
National Instruments
Hong Kong Exchanges
and Clearing
Kering
NetEase
USS
Carsales.com
Coca Cola
Fastenal
Nestlé
Roche
Schneider Electric
Sonic Healthcare
Taiwan Semiconductor
Manufacturing
Pepsico
Procter & Gamble
2–3%

14
Managers’ Review
Strategic Report







* Over the same


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
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over







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


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


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

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


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
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
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




Coping with the shocks of 2022




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
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*
†
CPI.

The Scottish American Investment Company P.L.C. 15
Strategic Report

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











in the years to come.






Notable positive performers
















semaglutide















































New equity investments and dis-investments























16
Strategic Report























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
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





The Scottish American Investment Company P.L.C. 17
Strategic Report













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


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Investing sustainably
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





18
Strategic Report
Investment Changes
Valuation at
31 December 2021
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31 December 2022
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    
    
    
    
    
   
*  
Total Investments 1,013,257 8,535 (85,205) 936,587
    
Total Assets 1,025,346 1,055 (85,013) 941,388

* 

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

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

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

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













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Outlook for 2023 and beyond

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


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
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





































The Scottish American Investment Company P.L.C. 19
Strategic Report
Performance Attribution for the year to 31 December 2022
Portfolio breakdown
Average allocation
SAINTS
%
Average allocation
benchmark
%
Total return *
SAINTS
%
Total return
benchmark
%
    
  
  
  
  
  
Portfolio Total Return (borrowings at book value) (6.7)
Other items
†

Fund Total Return (borrowings at book value) (7.1)
 
Fund Total Return (borrowings at fair value) (3.7)


*

†

Distribution of Portfolio
Geographical as at 31 December 2022 
Equities
*
by Sector as at 31 December 2022 
Basic Materials
5.9% (6.3%)
Technology
16.1% (16.4%)
Consumer
Staples
15.1% (14.5%)
Telecommunications
1.4% (1.3%)
Utilities
0.7% (0.6%)
Consumer
Discretionary
15.3% (13.8%)
Financials
16.5% (17.4%)
Industrials
17.1% (17.4%)
Real Estate
0.3% (0.4%)
Healthcare
11.6% (11.9%)
Direct Property 7.1% (7.3%)
Australasia 3.7%
(4.5%)
South America
1.3% (1.4%)
Asia* 12.7%
(14.0%)
UK Bonds 0.6% (0.8%)
Africa and Middle
East 0.7% (0.6%)
Net Liquid Assets 0.5% (1.2%)
Europe (ex UK)*
25.6% (24.4%)
North America 36.4% (33.2%)
United Kingdom*
7.4% (8.6%)
Overseas Bonds
4.0% (4.0%)
*


20
Strategic Report
Name Business
Value
£’000
% of
total
assets
Global Equities
   
 Courier services  
   
Pepsico   
   
   
   
Roche   
   
   
   
   
   
   
Anta Sports   
   
   
   
   
   
   
   
   
   
   
   
   
 Car insurance  
   
   
Intuit   
Cisco Systems   
   
   
   
   
Rio Tinto   
   
   
 Cosmetics  
   
   
   
   
SAP   
   
   
   
   
AVI   
   
   
List of Investments at 31 December 2022

The Scottish American Investment Company P.L.C. 21
Name Business
Value
£’000
% of
total
assets
TCI   
   
   
   
   
   
   
Total Global Equities 802,218 85.2
Infrastructure Equities
   
Terna   
   
Assura   
   
Total Infrastructure Equities 24,179 2.6
Direct Property
 66,750 7.1
Bonds
 
2,537 0.3
  1,285 0.1
   
  
  
  
  
  
  
  
  
21,909 2.3
 
4,896 0.5
   
  
2,649 0.3
   
  
5,404 0.6
 
2,849 0.3
 
1,911 0.2
Total Bonds 43,440 4.6
Total Investments 936,587 99.5
  
Total Assets 941,388 100.0

Strategic Report

22
Location Type Tenant
2022
Value
£’000
2022
% of
total assets
2021
Value
£’000
*     
     

*     
 
Convenience Store    
     
     

†
    
     
Luton
*     
     

*     
     
 Convenience Store    
Prestatyn     
     
Taunton     
66,750 7.1 74,900
†

*
Strategic Report
Property Portfolio

The Scottish American Investment Company P.L.C. 23

Classification
Global and Infrastructure Equities:
UK
%
Overseas
%
2022 Total
%
2021 Total
%
    
    
Basic Materials 1.0 4.2 5.2 5.5
    
    
    
    
    
    
Consumer services    
Consumer Discretionary – 13.4 13.4 12.0
    
    
    
Consumer Staples 0.6 12.7 13.3 12.6
    
    
    
   3.3 
Financials 3.2 11.3 14.5 15.1
    
    
    
Healthcare 0.6 9.6 10.2 10.3
    
   3.3 
    
    
    
Industrials 1.7 13.3 15.0 15.1
    
Real Estate 0.3 – 0.3 0.3
    
    
Technology – 14.1 14.1 14.2
    
Telecommunications – 1.2 1.2 1.1
    
Utilities – 0.6 0.6 0.5
Total Global and Infrastructure Equities 7.4 80.4 87.8
   86.7
Direct Property 7.1 – 7.1 7.3
Bonds 0.6 4.0 4.6 4.8
Net Liquid Assets 0.2 0.3 0.5 1.2
Total Assets 15.3 84.7 100.0
   100.0
Debt (10.1) – (10.1) (9.3)
Equity Shareholders’ Funds 5.2 84.7 89.9
   90.7
Number of equity investments 9 55 64 65
Strategic Report

24
Strategic Report
Ten Year Record
*
Capital
At
31 December
Total
assets
£’000
Debenture
stocks
and loans
£’000
Shareholders’
funds
£’000
Net
asset value
per share
(nominal/par)
p
Net
asset value
per share
§
(book)
p
Net
asset value
per share
§#
(fair)
p
Share
price
p
Premium/
(discount)
^
(book)
%
Premium/
(discount)
^#
(fair)
%
    
 

 
    
 

 
    
 

 
    
 

 
    
 

 
    
 

 
    
 

 
    
 

 

        

        
2022 941,388 94,714 846,674 478.9 479.0 495.5 508.0 6.1 2.5
§


^


 .
Revenue Gearing Ratios
Year to
31 December
Gross
revenue
£’000
Available
for ordinary
shareholders
£’000
Earnings per
ordinary
share
†
p
Dividend
per ordinary
share (net)
p
Ongoing
charges
#
%
Equity
gearing
‡
%
Potential
gearing
¶
%
       
       
       
       
       
       
       
       
       
       
2022 30,043 24,345 13.82 13.82 0.59 (2) 11
†


‡


¶

Cumulative Performance (taking 2012 as 100)
At
31 December
Net asset
value per
share (fair)
#
Net asset
value (fair)
total return
#
Share
price
Share price
total return
#
Benchmark
Benchmark
total return
#
Earnings
per ordinary
share
Dividends
per ordinary
share (net)
Consumer
price
index
         
         
         
         
         
         
         
         
         
         
2022 225 316 225 315 240 307 135 141 130
Compound annual returns
         
         



*
#



The Scottish American Investment Company P.L.C. 25
Governance Report


Directors and Management
Directors
Lord Macpherson of Earl’s Court, GCB joined the Board in
2016 and was appointed Chairman on 5 April 2022. 






Bronwyn Curtis, OBE joined the Board in 2014 and was
appointed Senior Independent Director on 5 April 2022. An







Karyn Lamont, CA joined the Board in 2019 and became
Chairman of the Audit Committee in 2020.







Dame Mariot Leslie joined the Board in 2019. 








26
Christine Montgomery joined the Board on 6 April 2022.










Managers and Secretaries


























Governance Report

The Scottish American Investment Company P.L.C. 27
Governance Report


Corporate Governance


Manager and Company Secretaries

































 
 
 
 

 
 
 

 
 
Directors’ Report









Depositary










Directors



























28
Governance Report










Dividends









Share Capital
Capital Structure





Dividends



Capital Entitlement



Voting





Major Interests in the Company’s Shares
Name
No. of ordinary
25p shares held at
31 December 2022
% of
issue
  
  




Annual General Meeting
Share Issuance Authority

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

Authority to Issue Shares at a Discount to Net Asset Value
(with Borrowings Valued at Book)

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



The Scottish American Investment Company P.L.C. 29
Governance Report

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Market Purchase of Own Shares
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 
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 
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



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 
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 
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




Post Balance Sheet Events


 

Greenhouse Gas Emissions and Streamlined Energy
and Carbon Report (‘SECR’)








Bribery Act




Criminal Finances Act 2017


Recommendation







Governance Report

The Scottish American Investment Company P.L.C. 31
Governance Report
Corporate Governance Report



frc.org.uk 



theaic.co.uk.
Compliance












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
theaic.co.uk
The Board

It


treasury

separate


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
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





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






Appointments


on request.





Independence of Directors









Meetings








Directors’ Attendance at Meetings
Board
Audit
Committee
Nomination
Committee
Number of meetings 5 2 1

*   
   
   
   

†
3  
*

†

Nomination Committee














32
Governance Report












Board Diversity











Committee chair
*





*




Policy on Chairman’s and Directors’ Tenure












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Performance Evaluation

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



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 
 

 
 
















Induction and Training




Remuneration Committee





Management Engagement Committee



Audit Committee

Internal Controls and Risk Management
















The Scottish American Investment Company P.L.C. 33
Governance Report

















Going Concern




















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Climate Change
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
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

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

The Scottish American Investment Company P.L.C. 35
Governance Report
Audit Committee Report





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

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



Main Activities of the Committee






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 

 
 
 
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 

 

 

 

 

 

 

 


Internal Audit






unnecessary.
Financial Reporting




































Audit Tender








36
Governance Report
Internal Controls and Risk Management




External Auditor


 
 


 





 
 

 
 



 
 
 
 















Accountability and Audit








The Scottish American Investment Company P.L.C. 37
Directors’ Remuneration Report


Statement by the Chairman

























Directors’ Remuneration Policy



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Limits on Directors’ Remuneration
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Expected
fees for
year ending
31 Dec 2023
£
Fees for
year ended
31 Dec 2022
£
  
  

  
Annual Report on Remuneration






Directors’ Remuneration for the Year (audited)



Governance Report

38
Governance Report
Directors’ Interests (audited)
Name
Nature
of interest
Ordinary 25p
shares held at
31 December
2022
Ordinary 25p
shares held at
31 December
2021

   
   
   
   
   





Statement of Voting at Annual General Meeting






Name
2022
Fees
£
2022
Taxable
benefits *
£
2022
Total
£
2021
Fees
£
2021
Taxable
benefits *
£
2021
Total
£
   39,666   25,413
   27,732   25,510
   30,000   30,000
   25,000   25,000
   18,687   –
   12,436   42,522
   –   6,346
146,892 6,629 153,521 153,346 1,445 154,791
*
Annual Percentage Change in Directors’ Remuneration


Year ended
31 Dec 2022
%
Year ending
31 Dec 2021
%
Year ending
31 Dec 2020
%
   
   
   
   
   
   
Relative Importance of Spend on Pay


2022
£’000
2021
£’000
Change
%
   
   
Company Performance








The Scottish American Investment Company P.L.C. 39
Governance Report
Cumulative to 31 December
Source: Refinitiv and relevant underlying index providers.
See disclaimer on page 74.
SAINTS share price
Benchmark
*
FTSE All-Share
All figures are total return (see Glossary of Terms and Alternative Performance
Measures on pages 75 and 76).
* With effect from 1 January 2014, the portfolio benchmark against which
performance has been measured is FTSE All-World Index (in sterling terms).
For earlier years covered by the above graph, the Company’s benchmark was
50% FTSE All-Share Index and 50% FTSE All-World Ex UK Index (in sterling terms).
For the purposes of the above graph the returns on both benchmarks for their
respective periods have been linked to form a single benchmark. See disclaimer
on page 74.
2012
2015 2016
2021
2022
2014
2017 2018 20202019
2013
100
150
200
400
350
300
250
Performance Graph


Approval




Chairman

40














 

 

 



 


 


















Statement of Directors’ Responsibilities in Respect
of the Annual Report and the Financial Statements





Responsibility Statement of the Directors in Respect
of the Annual Financial Report

 



 



 







Governance Report

The Scottish American Investment Company P.L.C. 41
Financial Report
Independent Auditor’s Report
To the Members of Scottish American Investment Company P.L.C.
Opinion











 

 

 

Basis for opinion







Independence








Conclusions relating to going concern





 



 





 







 


 


















Overview of our audit approach

— 

— 



items in the income statement
  

An overview of the scope of our audit
Tailoring the scope










42
Financial Report
Climate change












Key audit matters





Risk Our response to the risk
Key observations
communicated to the
Audit Committee
Incorrect valuation or ownership of the
investment portfolio






























We performed the following procedures:




Listed equity and bond portfolio procedures (‘the quoted
investments’)








Investment Property procedures
























The Scottish American Investment Company P.L.C. 43
Financial Report
Risk Our response to the risk
Key observations
communicated to the
Audit Committee
All Investments











Incomplete or inaccurate revenue recognition
including the recognition of rental income and
the classification of special dividends as
revenue or capital items in the income
statement






— 

— 

— 












in the Income Statement.



















































income statement.








44
Financial Report
Our application of materiality



Materiality
The magnitude of an omission or misstatement that, individually
or in the aggregate, could reasonably be expected to influence
the economic decisions of the users of the financial statements.
Materiality provides a basis for determining the nature and extent
of our audit procedures.


: 

: 


Performance materiality
The application of materiality at the individual account or balance
level. It is set at an amount to reduce to an appropriately low level
the probability that the aggregate of uncorrected and undetected
misstatements exceeds materiality.




: 

: 








: 
Reporting threshold
An amount below which identified misstatements are considered
as being clearly trivial.



: 





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






thereon.











Opinions on other matters prescribed by the
Companies Act 2006





 


 

Matters on which we are required to report by
exception







 


 


 

 

Corporate Governance Statement










The Scottish American Investment Company P.L.C. 45
Financial Report
 


 


 


 

 


 


 

Responsibilities of Directors














statements











Explanation as to what extent the audit was
considered capable of detecting irregularities,
including fraud












 









 



 
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



 









https://www.frc.org.uk/auditorsresponsibilities.


46
Financial Report
Other matters we are required to address









Use of our report

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
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



The Scottish American Investment Company P.L.C. 47
Income Statement
For the year ended 31 December
Notes
2022
Revenue
£’000
2022
Capital
£’000
2022
Total
£’000
2021
Revenue
£’000
2021
Capital
£’000
2021
Total
£’000
 
  (80,091)   127,973
    (5,114)   13,679
    192   (21)
Income    30,043   27,980
 3   (3,920)   (3,893)
    (1,257)   (1,252)

and taxation   (60,147)   164,466
    (3,684)   (5,704)
Net return on ordinary activities before
taxation   (63,831)   158,762
    (1,750)   (1,777)
Net return on ordinary activities after
taxation 24,345 (89,926) (65,581) 21,820 135,165 156,985
Net return per ordinary share  13.82p (51.04p) (37.22p) 12.79p 79.20p 91.99p







Financial Report

48
Balance Sheet

*
As at 31 December
Notes
2022
£’000
2022
£’000
2021
£’000
2021
£’000
Non-current assets
   
   
  
 
Current assets
   
   
 
Creditors
   
Net current assets/(liabilities)  
Total assets less current liabilities  
Creditors
   
Net assets 846,674 930,185
Capital and reserves
   
Share premium account   
   
   
Revenue reserve   
Shareholders’ funds 846,674 930,185
Net asset value per ordinary share
*  479.0p 529.7p



Chairman
Financial Report

The Scottish American Investment Company P.L.C. 49
Statement of Changes in Equity
For the year ended 31 December 2022
Notes
Share
capital
£’000
Share
premium
account
£’000
Capital
redemption
reserve
£’000
Capital
reserve
£’000
Revenue
reserve
£’000
Shareholders’
funds
£’000
      930,185
       5,901
       (65,581)
       (23,831)
Shareholders’ funds at 31 December 2022 44,188 178,189 22,781 583,814 17,702 846,674

For the year ended 31 December 2021
Notes
Share
capital
£’000
Share
premium
account
£’000
Capital
redemption
reserve
£’000
Capital
reserve
£’000
Revenue
reserve
£’000
Shareholders’
funds
£’000
      731,162
       63,076
       156,985
       (21,038)
Shareholders’ funds at 31 December 2021 43,900 172,576 22,781 673,740 17,188 930,185
Financial Report

50

Financial Report
Cash Flow Statement
For the year ended 31 December
Notes
2022
£’000
2022
£’000
2021
£’000
2021
£’000

  
  
  
  
  
  
  
  
  
Cash from operations  
  
  

  
  
  
  
  

  
   
  
  
  
  
  
  
   
Cash and cash equivalents at 31 December  4,184 11,263

The Scottish American Investment Company P.L.C. 51
1 Principal Accounting Policies





(a) Basis of Accounting
 














 




















Statements.
 













 


 

investments.
(b) Investments
 


 










 







 









(c) Cash and cash equivalents
 



(d) Income
 



 






at source.


Notes to the Financial Statements
Financial Report

52
Financial Report
 




 

(e) Expenses
 


 

 





(f) Long Term Borrowings and Finance Costs
 











(g) Taxation
 








(h) Foreign Currencies
 








(i) Capital Reserve
 







 tes and Judgements
 




 














The Scottish American Investment Company P.L.C. 53
2 Income
2022
£’000
2021
£’000
Income from investments
  
  
  
Overseas interest  
25,488 23,059
Other income
  
  
Other income  
4,555 4,921
Total income 30,043 27,980
Total income comprises
  
  
  
  
30,043 27,980
3 Management Fees
2022
Revenue
£’000
2022
Capital
£’000
2022
Total
£’000
2021
Revenue
£’000
2021
Capital
£’000
2021
Total
£’000
   3,535   3,520
   385   373
980 2,940 3,920 973 2,920 3,893





4 Other Administrative Expenses – all charged to revenue
2022
£’000
2021
£’000
  
  
 
* 
  
  
1,257 1,252
* 

Financial Report

54
5 Finance Costs of Borrowings
2022
Revenue
£’000
2022
Capital
£’000
2022
Total
£’000
2021
Revenue
£’000
2021
Capital
£’000
2021
Total
£’000
Financial liabilities not at fair value

   1,527   5,528
Loan notes interest   2,157   176
921 2,763 3,684 1,426 4,278 5,704
6 Tax on Ordinary Activities
2022
Revenue
£’000
2022
Capital
£’000
2022
Total
£’000
2021
Revenue
£’000
2021
Capital
£’000
2021
Total
£’000
   –   –
   1,750   1,777
   –   –
2,540 (790) 1,750 2,509 (732) 1,777
2022
£’000
2021
£’000

 

  

   
  
  
  
  
 1,750 1,777




7 Net Return per Ordinary Share
2022
Revenue
2022
Capital
2022
Total
2021
Revenue
2021
Capital
2021
Total
 13.82p (51.04p) (37.22p) 12.79p 79.20p 91.99p





Financial Report

The Scottish American Investment Company P.L.C. 55
8 Ordinary Dividends
2022 2021 2022
£’000
2021
£’000
Amounts recognised as distributions in the year:
    
    
    
    
13.525p 12.30p 23,831 21,038



 
2022 2021 2022
£’000
2021
£’000
Dividends paid and payable in respect of the year:
    
    
    
    
13.82p 12.675p 24,381 22,010
9 Investments
As at 31 December 2022
Level 1
£’000
Level 2
£’000
Level 3
£’000
Total
£’000
Securities
    826,397
    43,440
Property
    66,750
 826,397 43,440 66,750 936,587
As at 31 December 2021
Level 1
£’000
Level 2
£’000
Level 3
£’000
Total
£’000
Securities
    889,407
    48,950
Property
    74,900
 901,126 36,966 75,165 1,013,257



Fair Value Hierarchy



Level 1 
Level 2 
 
Level 3 
Financial Report

56
9 Investments (continued)
Equities *
£’000
Bonds
£’000
Property
£’000
Total
£’000
    633,078
    380,179
 889,407 48,950 74,900 1,013,257

Purchases at cost    82,832
    (74,058)
    (239)
Losses on investments    (85,205)
 826,397 43,440 66,750 936,587
    655,855
    280,732
 826,397 43,440 66,750 936,587
* 






2022
£’000
2021
£’000
Gains/(losses) on investments
Securities:
  
  
(80,091) 127,973
Property:
  
  
(5,114) 13,679
(85,205) 141,652


10 Debtors
2022
£’000
2021
£’000
Amounts falling due within one year:
  
  
3,213 3,710
Financial Report

The Scottish American Investment Company P.L.C. 57
11 Creditors – amounts falling due within one year
2022
£’000
2021
£’000
  
  
  
  
2,596 83,327


Debenture stock




2022
£’000
2021
£’000
  
  
91,009 91,009
Net amortisation in prior years  
  
  
 – 80,236
12 Creditors – amounts falling due after more than one year
2022
£’000
2021
£’000
  
  
  
94,714 14,925




13 Share Capital
2022
Number
2022
£’000
2021
Number
2021
£’000
 176,750,943 44,188 175,600,943 43,900




Financial Report

58
14 Capital and Reserves
Share
capital
£’000
Share
premium
£’000
Capital
redemption
reserve
£’000
Capital
reserve
£’000
Revenue
reserve
£’000
Shareholders’
funds
£’000
      930,185
      (80,091)
      (5,114)
      5,901
      (2,940)
      (2,763)
      790
      192

       24,345
      (23,831)
 44,188 178,189 22,781 583,814 17,702 846,674
Share
capital
£’000
Share
premium
£’000
Capital
redemption
reserve
£’000
Capital
reserve
£’000
Revenue
reserve
£’000
Shareholders’
funds
£’000
      731,162
      127,973
      13,679
      63,076
      (2,920)
      (4,278)
      732
      (21)

       21,820
      (21,038)
 43,900 172,576 22,781 673,740 17,188 930,185


15 Net Asset Value per Ordinary Share

2022 2021 2022
£’000
2021
£’000
 479.0p 529.7p 846,674 930,185


Financial Report

The Scottish American Investment Company P.L.C. 59
16 Transactions with the Managers and Related Parties








17 Analysis of Change in Net Debt
1 January
2022
£’000
Cash
flows
£’000
Exchange
movement
£’000
Cost of
issuance *
£’000
Other
non-cash
changes
£’000
31 December
2022
£’000
      
      
      
 (83,898) (7,271) 192 223 224 (90,530)
*
18 Financial Instruments and Property









Market Risk





Currency Risk











Financial Report

60
18 Financial Instruments and Property (continued)


At 31 December 2022
Investments
£’000
Cash and
cash
equivalents
£’000
Debentures
and loan
notes
£’000
Other debtors
and creditors
£’000
Net
exposure
£’000
     371,367
     120,884
     68,085
     56,801
     40,301
     34,383
     27,922
     17,314
     15,062
     13,168
Chinese yuan     8,387
     7,014
Other overseas currencies     19,813
 797,657 64 – 2,780 800,501
     46,173
936,587 4,184 (94,714) 617 846,674
At 31 December 2021
Investments
£’000
Cash and
cash
equivalents
£’000
Debentures
and loan
notes
£’000
Other debtors
and creditors
£’000
Net
exposure
£’000
     382,002
     121,764
     88,726
     62,928
     45,437
     36,489
     29,635
     18,442
     13,162
Chinese yuan     10,357
     9,964
     5,836
Other overseas currencies     24,052
 846,167 137 – 2,490 848,794
     81,391
1,013,257 11,263 (95,161) 826 930,185
Financial Report

The Scottish American Investment Company P.L.C. 61
18 Financial Instruments and Property (continued)
Currency Risk Sensitivity




2022
£’000
2021
£’000
  
  
  
  
  
  
  
  
  
  
Chinese yuan  
  
Other overseas currencies  
40,025 42,440
Interest Rate Risk

 
 
 
 










Financial Report

62
18 Financial Instruments and Property (continued)
 
Financial Assets
2022
Fair value
£’000
2022
Weighted
average
interest rate
2022
Weighted
average fixed
rate period *
2021
Fair value
£’000
2021
Weighted
average
interest rate
2021
Weighted
average fixed
rate period *
Fixed rate:
   3 years   
      
      
      
      
      
Floating rate:

       

       
Cash and short term deposits:
Other overseas currencies      
      
*
Financial Liabilities
2022
£’000
2021
£’000

 94,714 95,161

 – 80,236
 94,714 14,925
Interest Rate Risk Sensitivity



 

2022
Within
1 year
£’000
2022
Between 1
and 5 years
£’000
2022
More than
5 years
£’000
2021
Within
1 year
£’000
2021
Between 1
and 5 years
£’000
2021
More than
5 years
£’000
      

      
Cash and short term deposits 2,831 11,322 146,515 83,534 1,338 18,118
Financial Report

The Scottish American Investment Company P.L.C. 63
18 Financial Instruments and Property (continued)
Other Price Risk




Other Price Risk Sensitivity





Property Sensitivity Analysis





Estimated movement in fair value of investment
properties at 31 December 2022 arising from:
Retail and
leisure
£’000
Industrial
£’000
Other
£’000
Total
£’000
*    1,800
*    (1,800)
    5,950
    (4,800)
Estimated movement in fair value of investment
properties at 31 December 2021 arising from:
Retail and
leisure
£’000
Industrial
£’000
Other
£’000
Total
£’000

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   900

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   (900)
    7,100
    (5,975)
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
†






Liquidity Risk








Financial Report

64
Financial Report
18 Financial Instruments and Property (continued)
Credit Risk


 

 

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
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

 
Credit Risk Exposure

2022
£’000
2021
£’000
  
  
  
  
50,837 64,130

Fair Value of Financial Assets and Financial Liabilities



2022
Par/Nominal
£’000
2022
Book
£’000
2022
Fair
£’000
2021
Par/Nominal
£’000
2021
Book
£’000
2021
Fair
£’000
      
      
      
      
95,000 94,714 65,549 95,000 95,161 97,422
19 Capital Management
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

Dividend Dates for 2023
Final
2022
First
interim *
Second
interim *
Third
interim *
    
    
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    
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


investorcentre.co.uk 

Electronic Proxy Voting


eproxyappointment.com .


CREST Proxy Voting





SAINTS is an Investment Trust. Investment Trusts
Offer Investors the Following:
 
 

 

Analysis of Shareholders at 31 December
2022
Number of
shares held
2022
%
2021
Number of
shares held
2021
%
Institutions    
    
    
    
176,750,943 100.0 175,600,943 100.0
Data Protection




saints-it.com .
Automatic Exchange of Information










entities.
S 





gov.uk/government/publications/exchange-of-
information-account-holders.



The Scottish American Investment Company P.L.C. 69
Shareholder Information
Notice of Annual General Meeting




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Ordinary Business
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
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











 








 



JOHN
LEWIS
A8 PRINCES STREET
GE
ORGE STREET
CALTON SQUARE
BUS
STATION
OMNI
CENTRE
BALMORAL
HOTEL
L
E
I
T
H
S
T
R
E
E
T
QUEEN STREET
W
A
T
E
R
L
O
O
P
L
A
C
E
C
A
L
T
O
N
H
I
L
L
CA
L
T
O
N
R
O
A
D
ST ANDREW SQUARE
EDINBURGH
WAVERLEY
STATION
LEITH WALK
A7 NORTH BRIDGE
YORK PLACE
G
R
E
E
NS
IDE ROW
ST ANDREW SQUARE
ST ANDREW SQUARE
TRAM
STOP



.



By Rail:

By Bus:


By Tram:



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


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
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
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Summary of the Principal Amendments to the
Company’s Articles of Association










saints-it.com




Hybrid/Virtual-Only Shareholder Meetings




















Director’s Remuneration


















Appendix
International Tax Regimes Requiring the
Exchange of Information




 





 








ensure that:
 



 





Minor Amendments


 



 

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
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
Leverage
Gross method Commitment method
  
  
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














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







The Scottish American Investment Company P.L.C. 75


Total Assets

Net Asset Value


Net Asset Value (Borrowings at Book Value)

Net Asset Value (Borrowings at Fair Value) (APM)


31 December 2022 31 December 2021
  
  
  
Shareholders’ funds (borrowings at fair value) £875,839,000 £927,924,000
  
Net Asset Value per ordinary share (borrowings at fair value) 495.5p 528.4p
Premium/(Discount) (APM)




2022
NAV
(book)
2022
NAV
(fair)
2021
NAV
(book)
2021
NAV
(fair)
    
    
Premium 6.1% 2.5% 2.1% 2.4%
Ongoing Charges (APM)



31 December 2022 31 December 2021
  
  
Total expenses (a) £5,177,000 £5,145,000
  
Ongoing charges (a) ÷ (b) (expressed as a percentage) 0.59% 0.62%
Glossary of Terms and Alternative Performance Measures (APM)
Shareholder Information

76
Shareholder Information
Total Return (APM)

2022
NAV
(book)
2022
NAV
(fair)
2022
Share
price
2021
NAV
(book)
2021
NAV
(fair)
2021
Share
price
       
       

*       
       
Total return  (7.1%) (3.7%) (3.5%) 20.8% 21.5% 19.5%
*

Gearing (APM)





31 December 2022 31 December 2021
  
  
Potential gearing 11% 10%

31 December 2022 31 December 2021
  
  
  
  
  
  
Equity gearing (2%) (4%)
Leverage (APM)






Active Share (APM)




The Scottish American Investment Company P.L.C. 77
Sustainable Finance Disclosure Regulation (‘SFDR’)
Sustainable Finance Disclosure Regulation (‘SFDR’)
























Taxonomy Regulation










Shareholder Information

Directors
Chairman:
Lord Macpherson of Earl’s Court, GCB
Bronwyn Curtis, OBE
Karyn Lamont, CA
Dame Mariot Leslie
Christine Montgomery
Alternative Investment
Fund Managers,
Secretaries and

Baillie Gifford & Co Limited
Calton Square
1 Greenside Row
Edinburgh
EH1 3AN
Tel: 0131 275 2000
bailliegifford.com
Registrar
Computershare
Investor Services PLC
The Pavilions
Bridgwater Road
Bristol
BS99 6ZZ
Tel: 0370 707 1282
Company Broker

The Atrium Building
Cannon Bridge
25 Dowgate Hill
London
EC4R 2GA
Independent Auditor
Ernst & Young LLP
Chartered Accountants and
Statutory Auditors
Atria One
144 Morrison Street
Edinburgh
EH3 8EX
Company Details
saints-it.com
Company Registration
No. SC000489
ISIN GB0007873697
Sedol 0787369
Ticker SAIN

549300NF03XVC5IFB447
Further Information
Client Relations Team
Calton Square
1 Greenside Row
Edinburgh EH1 3AN
Tel: 0800 917 2112
Email:
trustenquiries@bailliegifford.com
Depositary
The Bank of New York Mellon
(International) Limited
160 Queen Victoria Street
London
EC4V 4LA