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Low ISA charges have long term benefits for SIT ISA investors


SIT is one of the few providers with a capped ISA pricing structure for the benefit of investors.
The SIT ISA boasts no initial charge (there is no initial plan charge or dealing charge; external expenses, government stamp duty of 0.5% and dealing spread which has averaged 0.9% over the last 3 years, apply) and the annual charge is only 0.6% which is capped at £30 + VAT, no matter how much the investment grows or how many years’ ISA allowances are invested with SIT. The 0.6% charge benefits small investors who, for example, would only pay £6 for an investment valued at £1,000 while the £30 + VAT cap favours those with an investment valued at £7,000. Investors often overlook the effect of high charges on returns but those with large ISA investments can make sizeable savings by choosing their ISA provider carefully.

The SIT ISA provides a very cost effective entry into The Scottish Investment Trust’s professionally managed portfolio of global equities. The diversity of SIT’s investments means that risk is spread over numerous companies, sectors and countries, while allowing a wide search for investment opportunities ( ). SIT has seen a continuation of improved performance, showing a net asset value (NAV) total return of 31.2% over the 12 months to 9 January 2006 (4.1% for 5 years) (source: Fundamental Data for the AITC).

The SIT ISA also provides the following additional advantages:

Investment Growth is free from Capital Gains Tax – This advantage is greater for investments held over the long term
No Need To Declare On Tax Return - Money invested in and dividend income received from an ISA does not have to be declared on a self-assessment tax return
Free ISA Transfer Facility – SIT does not charge investors to transfer existing equity ISAs held with other managers into The SIT ISA.
Simple Application Process – SIT offers several routes to application. Investors can apply by downloading the application form available on the SIT website (, or requesting the information pack by contacting SIT on 0800 42 44 22 or by asking their IFA.
Planning Flexibility – Investors have the choice of payment options, either by monthly direct debit (minimum £50), through lump sum payments (minimum £500) which can be made at any point during the tax year, or a combination of both. Additional lump sums can be added up to the annual investment limit (currently £4,000 for a Mini equities ISA and £7,000 for a Maxi equities ISA – per person per tax year) without the investor needing to make an additional ISA application.
Easy Administration – Investors receive a twice-yearly report on their ISA’s performance and can view their ISA account on line.

Sherry-Ann Sweeting, Marketing Manager, SIT Savings Ltd, says, “Research recently undertaken by SIT shows that, along with fund performance, charges rank at the top of investors’ criteria when choosing an investment product. We all know that past performance is not necessarily a guide to the future and market movements are something investors have no control over. Charges can be almost as crucial to the performance of an investor’s investment but they are something the investor does have control over – in their selection of product / provider. Thus it is very important for investors to consider charges when selecting their investments.

SIT’s Maxi/Mini equities-only ISA combines access to a global portfolio of international equities with a highly competitive charging structure.”

Past performance will not necessarily be repeated and is no guide for, or guarantee of, future returns. The value of shares and the income from them can go down as well as up as a result of market and currency fluctuations and investors may not get back the amount originally invested. SIT has a long term policy of borrowing money to invest in equities in the expectation that this will improve returns for SIT shareholders. However, if markets fall these borrowings will magnify any losses.

For further information please contact:

Sherry-Ann Sweeting Denise Lyttle/Campbell Hood
The Scottish Investment Trust Polhill Communications
0131 225 7781 020 7655 0550

Editors’ Notes

The Scottish Investment Trust PLC (SIT - is a global growth investment trust. Unlike the majority of investment trusts, SIT is independent and self-managed. Founded in 1887, SIT currently manages total assets of £850 million (net assets of £725 million, borrowings at market value) as at 28 February 2006. The trust is managed with the objective of providing investors, over the longer term, with above average returns through a diversified portfolio of international equities and achieving dividend growth ahead of UK inflation.
SIT’s dividends have increased for each of the past 21 years.
SIT’s Standardised Past Performance

The Scottish Investment Trust PLC 1
Mid price to mid price net income reinvested year to 31 January (% growth)
2002 -17.1
2003 -38.2
2004 23.0
2005 21.4
2006 36.4


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