SCOTTISH
SCOTTISH
MORTGAGE
MORTGAGE
INVESTMENT
INVESTMENT
TRUST
TRUST
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26 / 27
Gold
SCOTTISH MORTGAGE
ENTERED THE
FTSE 100 INDEX IN
MARCH 2017.
WHO SAID THE SKY HAD
TO BE THE LIMIT?
Business’s ability to exhibit exponential growth lies at the heart of the Scottish Mortgage Investment Trust.
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.
We like companies that can deploy innovative technologies that threaten industry incumbents and disrupt sectors
as diverse as healthcare, energy, retail, automotive and advertising.
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 blue sky 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.
One commodity almost certainly
going nowhere, however, is gold.
The yellow metal was the strongest
asset of the entire first decade of the
new century, soaring from around
$275 to $1,330 per troy ounce between
2000 and 2010. This boosted 10-year
returns for BlackRock Gold & General
to an astonishing 684 per cent,
making it the best-performing fund
of the decade. Gold’s stratospheric
rise continued until 2011, when it
reached an as-yet unrepeated level
of $1,837 per troy ounce. As post-
financial crisis fears over the global
economy dissipated, however, the
asset tumbled, and by the end of 2019
BlackRock Gold & General was sitting
on 10-year losses.
Suggesting old-fashioned cyclicality
may still be relevant, however, gold
is enjoying a strong start to the
new decade. The asset is sitting at
$1,645 per troy ounce, driven by
fears over the coronavirus and the
Federal Reserve’s decision to cut
interest rates last year. Yearsley has
recently upped his exposure to gold,
saying: “In a falling interest-rate
environment, gold is what you want
as it will hold value.”
However, with little room to slash
rates further, he is not so sure about
the longer-term outlook. “Even with
the coronavirus, I’m not sure you
want to put all your money in gold.
It’s an asset you really have to get
your timing right on.”
And as we all know, timing is
notoriously tricky.
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