Investors regain faith in popular investment trust Scottish Mortgage
Scottish Mortgage Trust (SMT) 482.5p
Gain to date: 0.2%
Original entry price: Buy at 481.4p, 18 October 2018
Impressive half year results on 2 November have helped to put our positive call on leading investment trust Scottish Mortgage (SMT) off to a steady start.
The trust’s net asset value increased by 19% in the six months to 30 September compared with an 11.4% gain for its FTSE All-World Index benchmark.
This period does not encompass the recent stock market correction when Scottish Mortgage was hit thanks to its exposure to growth stocks and, in particular, US technology businesses.
If, as the managers point out, six months is too short a time over which to measure their success then a matter of weeks certainly is.
By sticking to a consistent approach of investing in both public and private firms with the potential to grow substantially on a five or 10-year view the trust has delivered an average annual return for its shareholders of 23% over the last decade.
The latest financial results also demonstrated the advantage of being able to invest in unquoted firms. Since June 2010 when it made its first investment in a private company, these unquoted firms have delivered a total return of 419%.
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Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
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