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SCOTTISH MORTGAGE INVESTMENT TRUST
SCOTTISH MORTGAGE
ENTERED THE
FTSE 100 INDEX IN
MARCH 2017.
WANTED. DREAMERS, VISIONARIES
AND REVOLUTIONARIES.
Visionary entrepreneurs offer opportunities for great wealth creation. The Scottish Mortgage Investment Trust
actively seeks them out.
Our portfolio consists of around 80 of what we believe are the most exciting companies in the world today. Our vision
is long term and we invest with no limits on geographical or sector exposure.
Our track record as long-term, supportive shareholders makes us attractive to a new breed of capital-light businesses.
And our committed approach means we can enjoy a better quality of dialogue with management teams at transformational
organisations. Over the last five years the Scottish Mortgage Investment Trust has delivered a total return of 143.1%
compared to 106.9% for the sector*. And Scottish Mortgage is low-cost with an ongoing charges figure of just 0.37%**.
Standardised past performance to 31 December*
2015 2016 2017 2018 2019
Scottish Mortgage 13.3% 16.5% 41.1% 4.6% 24.8%
AIC Global Sector^ 9.1% 23.5% 26.4% -1.8% 24.5%
^Weighted average.
Past performance is not a guide to future returns.
Please remember that changing stock market conditions and currency
exchange rates will affect the value of the investment in the fund and
any income from it. Investors may not get back the amount invested.
For a farsighted approach call 0800 917 2112
or visit us at www.scottishmortgageit.com
A Key Information Document is available by contacting us.
Long-term investment partners
*Source: Morningstar, share price, total return as at 31.12.19. **Ongoing charges as at 31.03.19 calculated in accordance with AIC recommendations.
Details of other costs can be found in the Key Information Document. Your call may be recorded for training or monitoring purposes. Issued and approved
by Baillie Gifford & Co Limited, whose registered address is at Calton Square, 1 Greenside Row, Edinburgh, EH1 3AN, United Kingdom. Baillie Gifford &
Co Limited is the authorised Alternative Investment Fund Manager and Company Secretary of the Company. Baillie Gifford & Co Limited is authorised and
regulated by the Financial Conduct Authority (FCA). The investment trusts managed by Baillie Gifford & Co Limited are listed UK companies and are not
authorised and regulated by the Financial Conduct Authority.
of their job and I believe most will
consult with major shareholders
prior to making any change, but
shareholders on retail platforms may
get little say until after a change has
been made.”
However, the fact that boards can
take such action at all should largely
be seen as a real advantage for
shareholders in closed-ended funds:
“Investment trust boards do not
just have a ceremonial role; they are
usually looking out for their fellow
shareholders in a way that you just
don’t get in an open-ended fund,”
Godfrey adds.
Heathcoat Amory says holding
managers to account and scrutinising
performance helps trusts fight
their corner for retail money in a
competitive market. “Although we do
not have data to suggest managers
are being sacked more readily,
anecdotally we do think there is a
growing recognition that boards need
to stay ahead of the game in ensuring
investors get what they want.”
Overall, Hughes thinks action
by boards has made the sector
healthier, with discount policies and
share buybacks working effectively
compared with years past when it was
unusual for an investment trust to
trade on a premium.
When the tables turn
But boards don’t always get it right,
and sometimes the tables are turned.
“Invesco Enhanced Income was
one example where the board got
shareholders’ mood music wrong,”
notes Heathcoat Amory. “Having
had a bust-up over fees, the board
sacked Invesco. It turned out that the
majority of independent investors
wanted Invesco to remain, so in the
end it was the chairman who had to
go.”
trustnet.com