Trustnet Magazine 62 May 2020 | Page 13

SCOTTISH MORTGAGE INVESTMENT TRUST Your portfolio 24 / 25 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. 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 Inflation is on the whole good for equities in the long term as companies can pass on price rises. However, in the short term it creates uncertainty taken people’s spending power and squandered it on something they didn’t want, meaning they get poorer in real terms. The good news So, what can investors do to protect themselves? The good news, according to Smeaton, is that inflation is, on the whole, good for equities in the long term as companies can pass on price rises. However, in the short term it creates uncertainty. Per cent change from year before 30 25 20 15 10 5 0 UK CONSUMER PRICE INDEX “Companies really struggle to understand what the real price signals are,” Smeaton says. “Is it a real price signal to produce more of this stuff, or is it just inflation? That confusion then percolates all the way through the economic system, which means that there’s more of a chance of producing the wrong goods that people don’t really need. “What you find is everything doesn’t go up simultaneously, it tends to move through in waves in the 1970 1980 1990 2000 2010 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. Source: Organization for Economic Co-operation and Development trustnet.com