Scottish Mortgage Investment Trust plc

Global Growth

Rated Fund 2013-20. A high-conviction portfolio with a tech focus      

Scottish Mortgage has claimed the title of Money Observer’s Best Global Growth Trust for five years running. With assets under management of £8.3 billion, it is a FTSE 100 company and by far the largest investment trust. It is the flagship fund of Baillie Gifford, the Edinburgh-based investment manager which promotes ‘actual’ investing – deploying cash into tangible, sustainable activities that allow companies to grow and prosper.

James Anderson has run this trust since 2000, with Tom Slater becoming co-manager in 2014. Anderson is a long-term believer in the power of technology, and fiercely committed to running a high-conviction portfolio of companies that will change the world. The trust has 85 holdings, with the top 10 accounting for almost half of assets. He warns that such an approach can result in periods of underperformance but expects to be judged over at least five and preferably 10 years. Over 10 years, the trust’s shares have risen by almost 500%, more than double the FTSE All-World index return of 212%.

The duo believe that many of the most exciting companies now wait until their fastest growth period is over before seeking a stockmarket listing. To that end, they can invest up to a quarter of assets in unquoted companies.

Economies of scale have seen the trust’s ongoing charges fall to an incredibly low 0.37%. For the past six years its shares have tended to trade at a small premium to net asset value but can sometimes be picked up at a modest discount.

Narrative and ratings content all as of 01 January 2020.

See all Money Observer rated funds
Name
Scottish Mortgage Investment Trust plc
Manager
Baillie Gifford & Co Limited.
Type
Closed Ended Investment Company
ISIN
GB00BLDYK618
Sector
Global
Launched
17/03/1909
OCF
0.37 %
Risk Rating
5
3 Year Sharpe
1.24
3 Year Alpha
4.50
Yield
0.5 %
Benchmark
FTSE All World TR GBP
Fund Size
£ 8.86 billion
NAV
644
Gearing
110
Discount Premium
-1
Scottish Mortgage carries on business as an Investment Trust. The investment objective is to maximise total return from a portfolio of long term investments chosen on a global basis enabling the Company to provide capital and dividend growth. The equity portfolio is relatively concentrated and investments are chosen on their long term merits rather than with reference to geographical asset allocation or the composition of an index. The Company aims to achieve greater return that the FTSE All World Index (in sterling terms) over a five year rolling period.
Holding %
Amazon.com Inc 8.73 %
Illumina Inc 7.39 %
Alibaba Group Holding Ltd ADR 6.81 %
Tesla Inc 5.89 %
Tencent Holdings Ltd 5.72 %
ASML Holding NV 3.95 %
Kering SA 3.67 %
Ferrari NV 3.03 %
Netflix Inc 2.62 %
Ant International Co Limited Class C Ord. 2.49 %
Region %
United States 49.39 %
Asia - Emerging 22.91 %
Eurozone 22.56 %
Sector %
Consumer Cyclical 46.72 %
Communication Services 20.97 %
Healthcare 14.21 %
Technology 13.83 %
Name
Baillie Gifford & Co Limited.
Address
EH1 3AN, Edinburgh, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

Tom Slater
Joined 08/01/2009

Tom graduated BSc in Computer Science with Mathematics from the University of Edinburgh in 2000. He joined Baillie Gifford the same year and worked in the Developed Asia and UK Equity Teams before joining the Long Term Global Growth Team at the start of 2009. Tom became a Partner in the firm in 2012. Tom was appointed Joint Manager of Scottish Mortgage Investment Trust in January 2015 having served as Deputy Manager for the previous five years. In 2015 Tom was appointed Head of the North American Equities Team and is a decision maker on Long Term Global Growth portfolios. Tom’s investment interest is focused on high growth companies both in listed equity markets and as an investor in private companies.

James Anderson
Joined 04/01/2000

James graduated BA in History from Oxford University and after postgraduate study in Italy and Canada he gained an MA in International Affairs in 1982. He is a Trustee of the Johns Hopkins University. He joined Baillie Gifford in 1983 and became a Partner in 1987. He headed our European Equity team until 2003 when he founded our Long Term Global Growth strategy. He has Chaired the EAFE Alpha Portfolio Group since its inception in 2003 and has been the Manager and then Joint Manager of Scottish Mortgage Investment Trust since 2000. In 2015 James became the Chair of our newly formed Equity Improvement Group. He has also served as a member of the Advisory Board of the government sponsored Kay Review and as Chair of the subsequent industry working group that set up the UK Investor Forum.

Data provided by Morningstar.

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