Scottish Mortgage Investment Trust plc
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
|Amazon.com Inc||9.28 %|
|Illumina Inc||8.35 %|
|Tesla Inc||6.98 %|
|Tencent Holdings Ltd||6.55 %|
|Alibaba Group Holding Ltd ADR||5.64 %|
|Kering SA||3.46 %|
|Baidu Inc ADR||2.87 %|
|ASML Holding NV||2.75 %|
|Ant International Co Limited Class C Ord.||2.71 %|
|Netflix Inc||2.69 %|
|United States||55.10 %|
|Asia - Emerging||23.98 %|
|Consumer Cyclical||45.90 %|
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 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.
The Content is only for your general information and use and is not intended to address your particular requirements. The Content does not constitute any form of advice, recommendation or arrangement by Money Observer and is not intended to be relied upon by you in making (or refraining from making) any specific investment or other decisions. Appropriate independent advice should be obtained before making any such decision.
This information is sourced from our partner Morningstar. We believe the data to be correct however you should take care in using any information.
You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.