Trustnet Magazine 59 February 2020 | Page 24

Your portfolio 24 / 25 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