Scottish Mortgage Investment Trust plc

Global Growth

Rated Fund 2013-19. A high-conviction portfolio with a technology focus

With assets under management of £7.6 billion, Scottish Mortgage is a FTSE 100 company and by far the largest investment trust. Last year it claimed the title of Money Observer’s Best Global Growth Trust for the fourth year running.

It is a flag-bearer for Baillie Gifford’s campaign to promote ‘actual’ investing. Actual investment requires a willingness to be different, and to accept uncertainty and the possibility of being wrong, the fund management group says.

James Anderson has run the trust since 2000. Tom Slater became 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 innovative firms. ­The trust has around 80 holdings, with the top 10 accounting for half of assets.

He warns that such an approach can result in periods of underperformance, but he expects to be judged over at least five years. Over 10 years the trust’s shares have risen by almost 760%, more than three times the FTSE All-World index return of 240%. ­

The duo believes many exciting firms wait until their fastest growth is over before seeking a stockmarket listing. ­The managers can invest up to a quarter of assets in unquoted firms.

Th­e trust’s ongoing charges have fallen to an incredibly low 0.37%. Its shares can trade at a meaningful premium to net asset value, but the board regularly issues new shares to reduce this.

Narrative and ratings content all as of 01 January 2019.

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
1.55
3 Year Alpha
6.51
Yield
0.6 %
Benchmark
FTSE All World TR GBP
Fund Size
£ 7.62 billion
NAV
504
Gearing
99
Discount Premium
2
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 9.61 %
Illumina Inc 7.56 %
Alibaba Group Holding Ltd ADR 6.57 %
Tencent Holdings Ltd 6.56 %
Tesla Inc 5.28 %
Kering SA 3.69 %
Netflix Inc 3.13 %
Ferrari NV 3.04 %
ASML Holding NV 2.87 %
Ant International 2.37 %
Region %
United States 54.24 %
Asia - Emerging 25.01 %
Eurozone 16.05 %
Sector %
Consumer Cyclical 48.14 %
Technology 32.08 %
Healthcare 15.32 %
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.

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