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| Titel | Ex-Datum | Zahldatum | Bruttobetrag |
Scottish Mortgage Investment Trust PLC |
21.11.24 |
13.12.24 |
0.0002 |
Scottish Mortgage Investment Trust PLC |
13.06.24 |
11.07.24 |
0.0003 |
Scottish Mortgage Investment Trust PLC |
23.11.23 |
15.12.23 |
0.0002 |
Scottish Mortgage Investment Trust PLC |
01.06.23 |
04.07.23 |
0.0002 |
Scottish Mortgage Investment Trust PLC |
24.11.22 |
16.12.22 |
0.0002 |
Scottish Mortgage Investment Trust PLC |
01.06.22 |
01.07.22 |
0.0002 |
Scottish Mortgage Investment Trust PLC |
18.11.21 |
03.12.21 |
0.0001 |
Scottish Mortgage Investment Trust PLC |
03.06.21 |
01.07.21 |
0.0002 |
Scottish Mortgage Investment Trust PLC |
19.11.20 |
04.12.20 |
0.0001 |
Scottish Mortgage Investment Trust PLC |
04.06.20 |
01.07.20 |
0.0002 |
Scottish Mortgage Investment Trust PLC |
21.11.19 |
06.12.19 |
0.0001 |
Nachrichten |
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| Datum / Uhrzeit | Titel | Bewertung |
| 19.12.24 08:41:33 | FTSE 100 closes lower and US rebounds following Fed rate cut scare and BoE hold |  |
| The FTSE 100 (^FTSE) and European markets were in the red on Thursday by the closing bell, and US stocks rebounded slightly following a jam-packed two days of central bank news on both sides of the Atlantic. Stocks in the US took a dive on Wednesday after Federal Reserve chair Jerome Powell set out to adjust expectations on the schedule of interest rate cuts in 2025. The remarks came following news the bank had cut its key deposit rate by 25 basis points. Meanwhile, the Bank of England's last meeting of the year concluded on Thursday with the expected news that Threadneedle Street is holding rates at 4.75% for another month at least. The nine-person monetary policy committee voted six-to-three to hold. The move comes following data which shows a high rate of UK wage growth and inflation at 2.6%, above the bank's 2% target. Read more: Bank of England keeps interest rate at 4.75% amid inflation fears The FTSE 100 (^FTSE) fell 1.2% by the end of the session. Germany's DAX (^GDAXI) fell 1.3% and the CAC 40 (^FCHI) waned 1.3%. The pan-European STOXX 600 (^STOXX) was also 1.6% lower. In the US, the Dow (^DJI) opened around 0.9% higher, snapping a losing streak. By mid-morning it was trading up 0.2%. The S&P 500 (^GSPC) and Nasdaq (^IXIC) rose 1% and 1.1% respectively before both settling around 0.2% higher. On Wednesday, ten Fed officials estimated two interest rate cuts next year, fewer than four seen in September, as officials marked up their projections for core inflation and growth next year, while lowering their forecast for unemployment in 2025.LIVE COVERAGE IS OVER16 updates Thu, December 19, 2024 at 4:30 PM UTC Lucy Harley-McKeown Wrapping up That's all from me — head over to our US site for more market moving news. Thu, December 19, 2024 at 2:30 PM UTC Lucy Harley-McKeown How US stocks are faring at the open Thu, December 19, 2024 at 12:07 PM UTC Lucy Harley-McKeown BoE committee was split on hold Here's how they voted: Six members (Andrew Bailey, Sarah Breeden, Megan Greene, Clare Lombardelli, Catherine L Mann and Huw Pill) voted in favour of the proposition. Three members (Swati Dhingra, Dave Ramsden and Alan Taylor) voted against the proposition, preferring to reduce the bank rate by 0.25 percentage points, to 4.5%. Thu, December 19, 2024 at 12:04 PM UTC Lucy Harley-McKeown Rachel Reeves responds The Chancellor of the Exchequer said: Thu, December 19, 2024 at 12:03 PM UTC Lucy Harley-McKeown Our full take on interest rates Breaking: Bank of England keeps interest rate at 4.75% amid inflation fears Thu, December 19, 2024 at 12:01 PM UTC Lucy Harley-McKeown Breaking: Bank of England opts to hold rates at 4.75% The base rate will remain the same for the last central bank meeting of the year. Traders are now betting that the Bank of England will lower interest rates just twice next year, taking the base rate from 4.75% to 4.25% by the end of 2025. Thu, December 19, 2024 at 11:50 AM UTC Lucy Harley-McKeown Pound gains after Fed rate signal The pound gained ground against the US dollar in early European trading on Wednesday, rising 0.4% to $1.2622. The uptick came as the currency rebounded from steep losses incurred late the previous day, following remarks from US Federal Reserve officials that sent the dollar surging. The Fed's decision to remove two expected rate cuts from next year's projections triggered the dollar's climb. The Fed's move, which included a 25-basis-point interest rate hike, also saw policymakers adjust their 2024 rate expectations. They now predict only a 50-bp reduction in borrowing costs next year — half the amount originally forecast in September. The changes fuelled an uptick in US government bond yields, which in turn made the dollar more attractive to investors. "The market was blindsided by the surprising hawkishness," said Steve Englander, head of global FX research at Standard Chartered. "The market impact was particularly sharp because most of the market expected a really low volatility (Fed meeting)." As traders recalibrated following the Fed's update, attention in the UK now turns to the Bank of England (BoE). The central bank is expected to keep interest rates unchanged at 4.75% this Thursday, as persistent inflation continues to limit its policy options, even amid signs of a slowing economy. Read more on Yahoo Finance UK Thu, December 19, 2024 at 11:45 AM UTC Lucy Harley-McKeown Coinbase stock and bitcoin dip after Fed clarification Bitcoin (BTC-USD) fell on Wednesday after Jerome Powell said that the Fed was not able to hold the cryptocurrency, which was something the central bank was not seeking to change. "We're not allowed to own bitcoin," Powell said in a press conference following the Fed's interest rate decision. As for the legal issues of holding bitcoin, Powell said that this was the "kind of thing for Congress to consider, but we are not looking for a law change at the Fed", according to Reuters. Bitcoin had fallen back to $101,815 on Thursday morning, having topped $108,000 on Tuesday. Cryptocurrency exchange platform Coinbase, which is consider a proxy stock for the digital tokens, closed Wednesday's session 10% in the red. Powell's comments come ahead of president-elect Donald Trump's return to the White House in January, after having won the US election last month. Trump said in his election campaign that he planned to make the US the global capital for cryptocurrency and he'd create a national stockpile of bitcoin. Thu, December 19, 2024 at 11:29 AM UTC Lucy Harley-McKeown Utilities stocks climb the FTSE 100 Water companies Severn Trent and United Utilities (UU.L) were the top risers in the FTSE 100 (^FTSE) on Thursday morning, up nearly 2% and 1% respectively. This came after the UK water industry regulator Ofwat announced that it had approved a £104bn ($131bn) upgrade to accelerate delivery of cleaner rivers and seas. However, to help fund these upgrades, it said that the average water bill would rise by 20% to £86 next year, though there would be smaller percentage increases in the following four years. Russ Mould, investment director at AJ Bell, said: "This news may not trigger a flood of new buyers for water company shares given a lot of the increase in bills will go towards investing in creaking infrastructure. "After all, with bills going up but problems around sewage spills and water outages continuing at current levels, some will feel this doesn’t appear a sustainable state of affairs." Severn Trent said that it had been given the green light for a £15bn investment programme to improve its services and boost river health. Thu, December 19, 2024 at 10:48 AM UTC Lucy Harley-McKeown Gold prices dip Pedro Goncalves writes: Gold prices dipped on Thursday morning, extending the losses from a one-month low reading on Wednesday, following the Fed's decision to lower interest rates as anticipated. However, the central bank also indicated it would slow the pace of future rate cuts, a move that helped strengthen the dollar and push up bond yields. The spot gold price lost 1.2%, trading at $2,617.33, while gold futures fell 0.9% to trade at $2,628.60. "Markets are climbing a wall of worry into the close as Powell nods to a period of slower rate cuts predicated on further progress in inflation. Core PCE data later this week now takes on more importance," said Tai Wong, an independent metals trader. Fed chair Powell emphasised that further reductions in borrowing costs would depend on continued progress in reducing inflation, which remains stubbornly high. "The big question over here is that because the Fed says they will still be data-dependent and if Trump's policy starts to actually see inflation, a big risk would be that the Fed may not cut rates next year at all," said Kelvin Wong, OANDA's senior market analyst for Asia Pacific. Market expectations now point to the Fed keeping rates unchanged at its January meeting. Thu, December 19, 2024 at 9:50 AM UTC Lucy Harley-McKeown Serco stock jumps Russ Mould, investment director at AJ Bell, said: Thu, December 19, 2024 at 9:36 AM UTC Lucy Harley-McKeown FCA ramps up simplification drive The Financial Conduct Authority (FCA) has set out plans to simplify the information supplied to investors to boost confidence and drive investment. “High quality product information will give consumers the confidence to invest; increased participation in this market will not only benefit consumers but will also provide capital to drive the economy and boost growth," said Simon Walls, interim executive director of markets. Under the current rules, introduced across Europe when the UK was in the EU, people buying investments like investment funds are supplied with standardised documents covering prescribed information. In practice, these documents were often complex, unclear and could miss important points. This could put people off investing or lead them to make less informed decisions. The FCA has proposed replacing this with a simpler and flexible system which is tailored to the UK. Firms will be given more choice about how, what and when they communicate. The FCA has also set out some detailed requirements where it is really necessary to ensure consistency and comparability across the market to help consumers. Under the proposals, new product information requirements would help consumers understand the products they are buying while giving firms flexibility to innovate. Thu, December 19, 2024 at 8:14 AM UTC Lucy Harley-McKeown Bills, bills, bills: water charges set to mount Regulator Ofwat said on Thursday that water bills are set to rise an average of £31 per household over the next five years — an increase that kicks in in April. The jump is above the £19 the regulator had proposed earlier this year but lower than what water companies requested. Secretary of State for the Environment, Food and Rural Affairs, Steve Reed, said: Thu, December 19, 2024 at 8:07 AM UTC Lucy Harley-McKeown How US stocks are faring in premarket US stocks look set to stage a small recovery when markets open later on. Thu, December 19, 2024 at 8:06 AM UTC Lucy Harley-McKeown Overnight in the US From our US team: Stocks were clobbered Wednesday after the Federal Reserve, despite slashing interest rates by 25 basis points, signalled it would cut fewer times next year than previously projected. All three major indices reversed gains following the decision to end with steep losses. The Dow Jones Industrial Average (^DJI) was down about 2.6%, or over 1,000 points, clinching its 10th straight down session, the longest losing streak since 1974. Meanwhile, the S&P 500 (^GSPC) fell roughly 3%, and tech-heavy Nasdaq Composite (^IXIC) slid more than 3.5%. Ten Fed officials estimated two interest rate cuts next year, fewer than four seen in September, as officials marked up their projections for core inflation and growth next year, while lowering their forecast for unemployment in 2025. "The slower pace of cuts for next year really reflects both the higher inflation readings we had this year and the expectation inflation will be higher," Fed Chair Jerome Powell said. He added later that as long as the economy and labor market remain "solid," "we can be cautious as we consider further cuts." Thu, December 19, 2024 at 8:04 AM UTC Lucy Harley-McKeown Good morning! Last night we saw the Federal Reserve cut rates in a 'close' vote by the US central bank's committee. The Bank of England's interest rate decision is due to drop at noon (more on that later). Later on we'll also get a US GDP reading and results from the likes of BlackBerry (BB) and FedEx (FDX). Let's get to it. View Comments |
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| 23.07.24 13:21:07 | Investors flock to tech funds amid AI race |  |
| Investors are going global and targeting tech with most of the popular funds at investment platform Interactive Investor focusing on technology shares. The UK’s second largest investment platform for retail investors has launched an investment barometer, which ranks the most-popular funds, investment trusts, and exchange-traded funds (ETFs) each quarter. Many investors are increasingly seeking focused exposure to the US technology sector. This trend is highlighted by the fact that seven of the top 50 investment funds are specifically targeting the tech industry. While the risk of late entry into a trending sector remains, investors are betting on the longevity of artificial intelligence (AI) as a pivotal growth driver in the years ahead. ADVERTISEMENT Of these seven technology-focused funds, three are actively managed. Investors in these funds place their confidence in professional stock pickers to identify and capitalise on the best opportunities within the tech landscape. Notably, two of these actively managed funds are investment trusts currently trading at a discount, offering investors the opportunity to acquire tech stocks at attractive valuations. Read more: How to invest in AI as the rally continues The remaining four funds are passively managed, delivering returns linked to the performance of technology company indices. It's important for investors to note that these passive funds often have significant weightings in the largest tech stocks. Consequently, any downturn in tech performance can heavily impact overall returns. Assessing the top 10 holdings of these funds can provide a quick and revealing snapshot of potential concentration risks, ensuring that they are not overly exposed to any single segment of the market. Investors are also favouring a global approach rather than seeking funds that invest in a specific region. Nearly one in three (15) funds in the Interactive Investor Top 50 Fund Index invest in global shares. The US market is the second-most popular region, with seven funds featuring. Lower down the list, the UK has only three funds, India has two, and Europe and Asia Pacific one each. Story continues A global approach also means that investors, particularly those in index funds or ETFs, will gain exposure to the US technology giants, which have delivered strong returns for more than a decade with shares accelerating again at the start of 2023. “While going global provides exposure to US tech, many investors also want dedicated technology exposure, reflected by seven of the top 50 funds investing in the sector. While there’s always the danger of identifying a theme late in the day, investors are positioning for artificial intelligence (AI) to remain a key trend for years to come,” Kyle Caldwell, funds and investment education editor at Interactive Investor, said. ii Top 50 Fund Index Chart: Interactive Investor The Vanguard S&P 500 ETF (VOO) has emerged as the top pick among investors, underscoring the trend towards cost-effective exposure to global markets. The Vanguard S&P 500 ETF (Accumulation), ranked fifth, provides low-cost access to the world's most widely covered stock market, with an annual fee of just 0.07%, equating to £7 on a £10,000 investment. In second place, the Vanguard LifeStrategy 80% Equity fund (VNGA80.MI) appeals to both novice and seasoned investors. This fund is one of five in the LifeStrategy range, all of which are favoured for their low costs and diversification benefits, making them ideal "core" choices for diversified portfolios. Scottish Mortgage (SMT.L), occupying the third spot, invests in a mix of global businesses, including up to 30% in private companies leveraging technological advancements. This unique approach offers investors exposure to cutting-edge innovation across various sectors. The rest of the top 10 features a mix of passive and actively managed funds, with a strong focus on global and technology stocks. Read more: How to invest in the Indian stock market Among the passive options are the L&G Global Technology Index Trust (0P0000XAFS.L), HSBC FTSE All World Index (0P000159KA.L), and iShares Core MSCI World ETF (SWDAM.XD), all of which provide broad, diversified exposure to international markets. Three actively managed funds also make the top 10 list. The Royal London Short Term Money Market (0P0000NRQO.L) fund attracts investors with its 5% yield, achieved through investments in low-risk segments of the bond market. Jupiter India (0P00018LFD.L) is gaining traction due to optimism about India's business-friendly reforms and favourable demographics driving long-term growth. Lastly, Fundsmith Equity (0P0000RU7Y.L), managed by Terry Smith, continues to be a popular choice for its concentrated portfolio of high-quality global stocks known for their consistent long-term performance. A simple way to understand the difference between active and passive is to think of active managers as trying to uncover needles (good shares) in a haystack (the market). Passive funds, meanwhile, buy the whole haystack, knowing that the needles are in there somewhere. Investment trusts, however, dominate the list far more significantly than traditional funds, with 20 investment trusts making the cut compared to just four funds. Read more: Stocks to watch this week: Tesla, Microsoft, Alphabet and Amazon The unique structure of investment trusts offers several advantages to private investors. These include the potential to purchase shares at a discount to net asset value (NAV) and the presence of revenue reserves, which enable many investment trusts to maintain long-term records of dividend growth year after year. Passive funds are broadly categorised into index funds and ETFs. The key distinction between the two lies in their trading capabilities: unlike index funds, ETFs can be bought and sold throughout the day on the stock market, much like individual stocks. For long-term investors, this difference is largely negligible. Nonetheless, there appears to be a slight preference for ETFs, with 14 ETFs compared to 12 index funds in the latest rankings. “Currently, there are plenty of investment trust discount opportunities,” Caldwell said. “The renewable energy infrastructure sector is one where some investors have looked to take advantage of big discounts, hoping it will return to form having been negatively impacted by rising interest rates. Four trusts from that sector feature in the ii Top 50: Greencoat UK Wind (UKW.L), NextEnergy Solar Fund (NESF.L), The Renewables Infrastructure Group (TRIG.L), and Gore Street Energy Storage Fund (GSF.L),” he added. Download the Yahoo Finance app, available for Apple and Android. |
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| 22.03.24 12:35:23 | UK Tech Investor Is Elliott’s Latest Target | |
| (Bloomberg) -- Elliott Investment Management has built a stake in one of the UK’s best-known technology-focused investment funds. Most Read from Bloomberg NY Gears Up to Seize Trump Westchester Assets If Fraud Fine Is Unpaid Baltimore Wants to Sell Hundreds of Vacant Homes for $1 Each Yemen’s Houthis Tell China, Russia Their Ships Won’t Be Targeted China Scrutinizes PwC Role in $78 Billion Evergrande Fraud Case What Happens If Trump Can’t Post His $454 Million Bond The activist investor has a 5% exposure to Scottish Mortgage Investment Trust Plc, according to a filing late Thursday. Most of the holding is via financial instruments, but Elliott has a 0.5% stake that carries voting rights, the statement showed. “We have been in contact, as we often are with shareholders,” SMIT Chair Justin Dowley told Bloomberg News, declining to comment further. Bloomberg News has contacted Elliott for comment. SMIT’s largest holdings include chip giant Nvidia Corp. and semiconductor machinery group ASML Holding NV, with each stake worth more than $1 billion, according to data compiled by Bloomberg. The fund, managed by Edinburgh-based Baillie Gifford, rode a rally during the pandemic in electric-car maker Tesla Inc. and vaccine-producer Moderna Inc., but its share price then slumped as interest rates surged and Covid-19 faded. Read more: After 2,240% Run, Tesla Visionary Leaves UK Fund Bleeding Money Its shares rose as much as 1.9% Friday to take gains this month above 9%. Paul Singer’s Elliott is considered one of the world’s most-influential activist investors — funds who build stakes in companies and attempt to influence strategy. Elliott manages $65.5 billion, according to its website, and previous targets have included Goodyear Tire & Rubber Co. and Salesforce Inc. Most Read from Bloomberg Businessweek Elon Musk’s Don Lemon Implosion Weight-Loss-Drug Users Pay Up for Help Ditching the Pricey Meds Magnificent Seven? It’s More Like the Blazing Two and Tepid Five Wall Street and Silicon Valley Elites Are Warming Up to Trump The Fed’s Foot-Dragging Is Making the Last Mile Harder ©2024 Bloomberg L.P. |
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| 15.03.24 07:28:32 | UPDATE 1-Scottish Mortgage announces $1.3 bln buyback over next two years | |
| (Adds details in paragraph 2, background in paragraph 3) March 15 (Reuters) - Scottish Mortgage Investment Trust , Britain's largest investment trust, will buy back shares worth 1 billion pounds ($1.27 billion) over the next two years, it said on Friday, as its portfolio companies deliver strong operational results. SMT, one of asset manager Baillie Gifford's flagship trusts and an investor in big U.S. tech stocks, said the buybacks were part of its intention to take more "concerted action" to address the discount to net asset value at which the its shares trade. Last year, the trust named Justin Dowley its new chair as part of a broader boardroom shake-up, as it sought to draw a line under a board dispute following a steep decline in its share price. ($1 = 0.7848 pounds) (Reporting by Eva Mathews in Bengaluru; Editing by Savio D'Souza and Rashmi Aich) |
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| 19.01.24 10:14:37 | What happened to Scottish Mortgage? Once Britain’s best loved fund, investors are nursing big losses | |
| scottish mortgage Scottish Mortgage investment trust has never been a fund for the faint-hearted. The objective of the 115-year-old fund, which is worth around £10bn at today’s valuation, is to find and back high-growth companies that its managers believe have the greatest chance of changing the world. It is a compelling investment case, and one that has served shareholders well in the past, with its total return 277pc over the past ten years according to the Association of Investment Companies. A £1,000 investment in 2013 would be worth around £3,760 today. But the end of the era of cheap money has brought Scottish Mortgage’s share price crashing down. Since its peak in November 2021, the price is down 50pc as soaring interest rates battered the fast-growing, largely technology-focused stocks that make up its portfolio. Today, its shares are trading at a 10pc discount to the value of its underlying assets with influential brokers advising clients to sell their holdings. Scottish Mortgage co-manager Tom Slater played down the impact that rising rates could have on the trust's performance - Geoff Pugh Speaking to 150 investors at the Pan Pacific Hotel in London last week, manager Tom Slater said rising interest rates should not be such a significant challenge going forward and that the managers were therefore bullish on the outlook for their portfolio. Analysts, however, are divided over whether the fund managers can turn it around. Whereas Jefferies maintains its “Buy” rating of Baillie Gifford’s flagship fund, rival Investec has had the trust on “Sell” since January 2023. Last year, Questor, this newspaper’s daily stock-picking column, tipped the ailing fund on the back of its exposure to highly profitable private companies, long track record of impressive returns and tempting discount. So, who’s right? Telegraph Money sat down with Lawrence Burns, co-manager of Scottish Mortgage, to discuss the fund’s recent underperformance, its controversial private company listings and whether 2024 is the year growth investing comes back into favour. What went wrong? The past few years have been a harsh reminder that no one style of investing can win in all market conditions. Even so, compared to other similar trusts, Scottish Mortgage’s share price fall has been especially steep – and the fund managers admit that mistakes were made. Story continues The first, Mr Lawrence said, is they were too slow to think through the implications of rising geopolitical tensions between the US and China. “With hindsight, we could have reacted more quickly to the increasing probabilities of that – and what the implications were for the portfolio,” he said. Scottish Mortgage went against the grain by increasing its allocation to China at a time when other asset managers were slashing their exposure because of a regulatory crackdown. Beijing proposed new regulations to curb the power of its internet platforms back in 2020 but it was not until 2022 that Scottish Mortgage reduced its stakes in Tencent and Alibaba. Lawrence Burns, co-manager of Scottish Mortgage admits that doubling down on China when the fund did was a mistake - Geoff Pugh Mr Burns said: “We’re in a more geopolitically volatile world than we’ve been in most people’s lifetimes, and that is going to affect investments. The lesson we take from that going forward is quite an obvious one of making sure that we think through increasingly the geopolitical implications of the investments that we’re making.” As an example, Scottish Mortgage has invested in Northvolt, a Swedish battery company which currently makes up 3.2pc of the portfolio, hoping that the firm will become more strategically important as Europe looks to pivot away from the Chinese manufacturers currently dominating the industry. The second mistake was underestimating the impact of deteriorating market conditions on companies’ growth, said Mr Burns. “I think we were probably too optimistic in terms of – as those lockdowns ended – the growth rates that those companies would be able to produce.” Last year should have been different. But in 2023, as markets bounced back, defying gloomy market expectations, the investment trust was up just 13pc. By comparison, other growth-focused trusts such as Polar Capital Technology Trust rose almost 50pc. Alan Brierley, an investment trust expert at Investec, said: “The numbers were ok. But they were well behind what other growth managers, like Polar Capital and Allianz, achieved.” That is partly because Scottish Mortgage did not have exposure to some of last year’s top performers. While the trust has a stake in Nvidia, one of the best-performing stocks, it is not invested in Microsoft, Apple and Alphabet, responsible for much of the stock market gains in 2023 – and which allowed other investors to achieve better-than-expected returns. But Mr Burns defended their decision to avoid some of the so-called Magnificent Seven. “What we’re looking for is a small number of companies that can deliver exceptional outlier-like returns,” he said. “The difficulty you run into when you get into a multi-trillion dollar valuation is ‘can you make three, four or five times your money from here?’ For us, it’s not about ‘is this company a good company?’ It’s about ‘is it really going to make a difference for our shareholders over the long run?’” Over leveraged and over exposed? If you ask a bullish investor why you should buy Scottish Mortgage, and a bearish investor why you should sell, there is a good chance they will give you the same answer: the trust’s private listings. Scottish Mortgage can invest up to 30pc of its money in unlisted holdings. This lets ordinary people gain exposure to companies they would otherwise struggle to access, such as ByteDance, the Chinese owner of TikTok. More than half of its private company exposure is in 10 large firms. The jewel in its crown has been Elon Musk’s SpaceX, now reportedly worth $180bn (£142bn). Mr Burns said: “That’s the quintessential example of an asset that is targeting a huge industry, that is growing very well and has a really good track record in terms of profitability. It is in some ways a completely unique and prestigious asset.” The rationale for investing in unlisted companies is that this allows investors to capture more of their growth before they go public. The average company now lists after 20 years, compared to four years in 2000. But while some private companies have proven incredibly profitable, others have struggled to adapt to the challenging market conditions. One of Scottish Mortgage’s write-downs last year was Convoy, a freight start-up that plummeted from a valuation of $3.8bn to a shutdown in just 18 months due to a slump in shipping demand. “Some investments will work, and some won’t,” said Mr Burns. “I feel far worse about the really successful private companies that we didn’t own than I do about the few that we had and that didn’t work out.” Scottish Mortgage’s private company investments have been under increased scrutiny since former director Amar Bhidé left the board last year questioning the management of its unlisted holdings. Several months later the trust released additional information on its top 10 private firms to reassure shareholders. This revealed that over three years the average growth of these holdings was 164pc – or 58pc excluding one exceptional company. Ewan Lovett-Turner, of broker Numis, said the disclosure showed that the portfolio “has the potential to deliver growth, even in a higher interest environment”. Others, however, remain nervous about Scottish Mortgage’s level of exposure to private companies, which currently account for nearly a third of the value of its assets. Analysts at JP Morgan warned last summer that the trust’s 30pc limit “could restrict its ability to buy back shares and to provide follow-on capital to private companies.” But the managers have hit back at these concerns. “There were no new private company opportunities in 2023 that we were unable to make due to the 30pc limit,” said Mr Burns. Scottish Mortgage, he continued, deployed £193m into private companies last year, including follow-on investments in software companies Databricks and Stripe and one new investment in tech platform Oddity. Another source of worry for some analysts is the trust’s use of borrowing, often called “gearing”. Currently the trust is 12pc geared – slightly above its long-term average of 10pc and higher than the industry average of 7pc. “That is a high level of gearing for what is already a high risk strategy,” said Mr Brierley. The advantage of gearing is it can enhance returns in rising markets. But conversely, it can magnify losses when markets are falling. Gearing in investment trusts has become more of a concern as interest rates have risen. However, Mr Burns said: “The trust is in a strong position. It is 12pc geared, its average cost of debt is 2.7pc, and higher interest rates have little impact as we paid down the debt that was most sensitive to interest rate rises.” Looking forwards, it has been reported that Northvolt is considering a stock market flotation this year and there has been much speculation that SpaceX could spin off its satellite business Starlink as well, although Mr Musk has poured cold water on these rumours. In a note, Numis said these events would be significant for Scottish Mortgage as they would “provide a highly visible valuation point for investors” while also easing pressure on the 30pc limit in unlisted firms. Whether 2024 could be the year the IPO market makes a comeback, there is no way of knowing. But a successful private company going public is now perhaps the trust’s best chance of improving investor confidence and kickstarting a recovery. |
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| 24.11.23 11:14:07 | Investment bargains to pick this Black Friday | |
| There are three investment trusts that look to be going cheap this Black Friday. Photo: Phil Noble/ Reuters (Phil Noble / reuters) Shoppers are on the hunt for good deals and offers on Black Friday but investors can also grab a bargain in the UK stock market. However, just like on the high street, there will be deals that are genuine bargains worth jumping and discounts to try and make it like a good offer but that you should walk away from. Dzmitry Lipski, head of funds research at interactive investor, checked out the deals and found three funds you might want on your shopping list. Scottish Mortgage Trust (SMT.L) | Discount: 14% Baillie Gifford’s Scottish Mortgage trust aims for capital appreciation by investing for the long-term in best-in-class growth companies across the globe, allowing an allocation of up to 30% in unlisted assets. Over the past decade, the trust has traded typically near to net asset value (NAV) or at a small premium, until a deterioration in performance in late 2021 saw the discount widen through 2022 to a depth of about 22% in the first half of 2023. Despite a small recovery over the past two months, the current discount of near 14% still represents a divergence from the trust’s five-year premium/discount trend. Net asset value, or NAV, of an investment company is the company's total assets minus its total liabilities. For example, if an investment company has securities and other assets worth £50m and has liabilities of £10m, the company's NAV will be £40m. When the market price of a fund is trading below its net asset value, is is trading at a discount.When the opposite happens, it is trading at a premium. Read more: Black Friday: Where can investors find great deals? The trust clearly struggled through 2022, Lipski says. However, he says ii’s confidence in SMT’s investment strategy remains intact. “This unique and high active share approach has proven its ability to create substantial alpha and pick companies at the helm of transformative themes. The global trust offers a unique and long-term approach to investing in future winners, as well as exposure to operationally strong and growing businesses that aren’t accessible via any exchange listing,” Lipski said. Story continues European Smaller Companies Trust (ESCT.L) | Discount: 14% Managed by Janus Henderson’s Ollie Beckett, the European Smaller Companies Trust invests in small-cap companies across Europe. The bottom-up process seeks companies overlooked by the market with barriers to entry, differentiated business models and strong management. The portfolio is varied in allocating a small amount to early-cycle growth companies, with the balance across quality growth, mature and turnaround companies. The overall portfolio has no preeminent value or growth tilt, but a clear bias toward the bottom of the market-cap spectrum, even versus other small-cap peers. “European small caps have lagged returns of their large-cap counterparts through a tough 2022 and 2023 year-to-date. Valuations across European markets have fallen to levels below recent averages, throwing up opportunities for value-minded investors, such as ESCT, and exacerbating the perceived cheapness of the already discounted trust,” Lipski said. Baillie Gifford Shin Nippon Trust (BGS.L) | Discount: 13% Baillie Gifford Shin Nippon Ord, managed by Praveen Kumar, seeks to grow capital over the long term via investing predominantly in disruptive and dynamic Japanese small-cap companies possessing of substantial future growth potential. The trust is currently trading at a discount of near 13%, which, aside from a brief period in early 2020, represents the deepest discount for the trust in over a decade and the widest discount to NAV of its peer group. And that discount is far below its five-year average of around 2%. Read more: Trending tickers: Novo Nordisk | Walmart | Barclays | Foot Locker “While the trust boasts strong long-term performance and some great individual examples of stock picking, since 2021, the stylistic bias towards growth has been a headwind for recent returns and valuations across the portfolio have fallen to just over half those earnings multiples seen in late 2019. "If sentiment towards portfolio companies recovers, and valuations normalise there could be scope for a reversal of fortunes for the trust,” Lipski said. Watch: Markets in 3 Minutes: China Property Only Matters in Long-Term Download the Yahoo Finance app, available for Apple and Android. |
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| 18.05.23 06:00:00 | This Fund Owns SpaceX, Moderna, and ByteDance. Buy It at a Discount. | |
| The world’s largest closed-end fund, Scottish Mortgage Investment Trust, is now trading at a 23% discount to its net asset value. Top holdings include SpaceX, Moderna, and MercadoLibre. Continue reading |
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| 17.05.23 07:12:34 | Scottish Mortgage defends strategy after shares take beating | |
| Baillie Gifford’s Scottish Mortgage Investment Trust has urged shareholders to remain “disciplined and patient” as it defended its investment approach after a “painful” year in which its shares have dropped by a third. Continue reading |
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| 27.03.23 04:00:19 | Hedge funds scale back bets against Scottish Mortgage | |
| Hedge funds have closed bets against Baillie Gifford’s Scottish Mortgage Investment Trust after a large fall in its share price, despite concerns over board governance and exposure to risky private companies. James Hanbury, who runs the Brook Absolute Return and Developed Markets funds at Odey Asset Management, is among investors to have scaled back their short positions on the technology-focused company, one of the most popular investment funds in the UK, with £13.4bn of assets. According to an investor update this week, seen by the Financial Times, Hanbury said he had pared back some of his short positions, “notably some of [the] position in Scottish Mortgage”, in a sign that investors believe the share price might be nearing the bottom. Continue reading |
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| 24.03.23 05:00:57 | Inside the boardroom bust-up that shook Scottish Mortgage | |
| Amar Bhidé’s exit from UK’s biggest investment trust highlights tensions over strategy after share slide Continue reading |
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