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1 top Bailey Gifford investment trust I would buy for my ISA and hold for decades.

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For investors looking to give their ISA portfolios a little boost, some of Bailey Gifford’s growth funds and trusts are worth considering.

The Edinburgh-based investment management firm has a reputation for delivering strong returns. Recently, it has been in the news when the Hay Festival dropped its sponsorship.

This was due to celebrities pulling out of the literary event and accusing the asset manager of investing billions in firms with alleged links to fossil fuels and the Israeli defense sector.

In response, the company said:The suggestion that Bailey Gifford is a major investor in the occupied Palestinian territories is grossly misleading.

Just as strange to me is the idea that Bailey Gifford is a major oil investor. It is more popular for backing. Teslamany years ago it was popular to do so.

The solar and electric vehicle pioneer has done more to move the world toward more sustainable forms of energy than almost any other firm.

Anyway, here’s a Bailey Gifford investment trust I’d buy today and hold long-term.

Growth and revenue

gave Scottish American Investment Company (LSE: SAIN) is one. FTSE 250 A member with a truly amazing track record of increasing his dividend. He has now extended his repayments to 50 years!

Founded in 1873, it aims to increase real profits by increasing capital and income. Real profit growth means growth above the rate of inflation, which it has achieved in the long run.

Source: Saints 2023 Annual Report

Now, as we can see above, the dividend yield is not that attractive. Based on the current share price, that’s just 2.75%. When I can bag 7%-10% yield. FTSE 100it doesn’t look very appealing.

However, it targets firms that have the potential to increase both their share prices and profits over several years. And it only invests in those whose income and cash flow are likely to grow ahead of inflation.

Risk of consideration

The downside of this approach is that there may be periods of underperformance when a small number of non-profit-paying stocks outperform the market.

It happened to him recently. Nvidiawhich has negligible dividend yield and is therefore not part of the portfolio. Partly because of this, the trust underperformed its benchmark. FTSE All World Index) last year.

If this happens again, investors may question the strategy and sell shares.

Despite this risk, I am buoyed by the quality and sustainability of the trust’s portfolio, which also lacks bonds, property and infrastructure assets that pay income.

I love it Novo Nordisk And Microsoft His top holdings include This duo is at the forefront of two of the biggest trends I see emerging in the next decade: weight loss drugs and artificial intelligence (AI).

The number of adults living with obesity will increase from 800 million in 2020 to 1.53 billion by 2035. So this is a really noticeable market opportunity for weight loss treatments like Novo Nordisk. Wegovie

Meanwhile, we can’t go 24 hours these days without hearing about AI. Nvidia CEO Jensen Huang just announced that a new AI “The industrial revolution“It has begun.

As a leader in cloud computing and a major investor in ChatGPT parent OpenAI, Microsoft looks incredibly well-placed to take advantage of this.


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