Scottish Mortgage Investment Trust plc

Global Growth

Rated Fund 2013-2018. A high conviction portfolio with a tech focus

With assets under management of almost £5.5 billion, Baillie Gifford's Scottish Mortgage is the largest global generalist investment trust. It has won a hat-trick of Money Observer awards for Best Global Growth Trust in 2015, 2016 and 2017.

Its growth saw Scottish Mortgage enter the FTSE 100 index for the first time in March 2017. As a result of achieving even greater economies of scale, the trust also cut its annual management fees from April 2017. At the end of 2017, its ongoing charges were 0.44 per cent.

It has been managed for the past 18 years by James Anderson, with Tom Slater becoming his co-manager in 2014. Anderson is a long-term believer in the power of technology and is fiercely committed to running a high-conviction portfolio of companies that will change the world. The trust's portfolio contains around 70 holdings, with the largest 30 accounting for more than 80 per cent of assets.

The duo have also gained shareholder approval to invest up to a quarter of assets in unquoted companies, because they believe that many of the most exciting companies now wait until their fastest growth period is over before seeking a stock market listing. As a result 13 per cent of the portfolio is in unquoted companies.

Anderson warns that the managers' investment approach can result in periods of underperformance, as was the case in 2016, but he expects to be judged over at least five years and preferably 10.

Shares in the trust can trade at a small premium to net asset value, but its board issues new shares in a bid to control this.

Narrative and ratings content all as of 01 January 2018.

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
01/01/1909
OCF
0.37 %
Risk Rating
5
3 Year Sharpe
1.58
3 Year Alpha
4.99
Yield
0.6 %
Benchmark
FTSE All World TR GBP
Fund Size
£ 7.96 billion
NAV
538
Gearing
107
Discount Premium
3
Scottish Mortgage carries on business as an Investment Trust. The investment objective is to maximise total return, whilst also generating real dividend growth, from a focused and actively managed global portfolio. 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 10.46 %
Alibaba Group Holding Ltd ADR 7.06 %
Tencent Holdings Ltd 6.98 %
Illumina Inc 6.44 %
Tesla Inc 5.23 %
Baidu Inc ADR 4.35 %
Kering SA 4.10 %
Industria De Diseno Textil SA 3.49 %
Netflix Inc 3.02 %
Ferrari NV 2.93 %
Region %
United States 49.57 %
Asia - Emerging 25.26 %
Eurozone 18.82 %
Sector %
Consumer Cyclical 48.39 %
Technology 31.14 %
Healthcare 12.43 %
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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