Trustnet Magazine Issue 10 September 2015 | Page 26

SCOTTISH MORTGAGE INVESTMENT TRUST

IN THE BACK

SCOTTISH MORTGAGE WAS
ORIGINALLY LAUNCHED TO
PROVIDE LOANS TO RUBBER
GROWERS IN MALAYSIA IN THE
EARLY 20TH CENTURY.

While others stick to the indices,
we are free to choose.
Scottish Mortgage Investment Trust has its own way of doing things. So it’s hardly surprising that the Trust’s portfolio looks nothing like
the index. After all, we are active rather than passive investors and we firmly believe that the index is an illustration of ‘past glories’ rather
than future prospects. In fact, our abiding principle has always been to invest in tomorrow’s companies today.
We give ourselves time to add value by being patient investors in an impatient world. But don’t just take our word for it. Over the last five
years Scottish Mortgage has delivered a total return of 154.6%* compared to 71.4%* for the index. And Scottish Mortgage is low-cost with
an ongoing charges figure of just 0.48%†.
Standardised past performance to 30 June each year*:
20102011

20112012

20122013

20132014

20142015

Scottish Mortgage

39.0%

-11.0%

26.9%

28.9%

25.8%

FTSE All-World Index

21.7%

-4.1%

21.4%

9.6%

10.2%

Past performance is not a guide to future returns.
Scottish Mortgage Investment Trust is managed by Baillie Gifford and is available through our Share Plan and ISA.
It is also available through a range of investment platforms.
Please remember that changing stock market conditions and currency exchange rates will affect the value of your
investment in the fund and any income from it. You may not get back the amount invested.

For a free-thinking investment approach call 0800 917 2112
or visit www.scottishmortgageit.com
Baillie Gifford – long-term investment partners
*Source: Morningstar, share price, total return as at 30.06.15. †Ongoing charges as at 31.03.15. Your call may be recorded for training or monitoring purposes. Baillie
Gifford Savings Management Limited (BGSM) is the manager of the Baillie Gifford Investment Trust Share Plan and the Investment Trust ISA. BGSM is an affiliate
of Baillie Gifford & Co Limited, which is the manager and secretary of Scottish Mortgage Investment Trust PLC. Your personal data is held and used by BGSM
in accordance with data protection legislation. We may use your information to send you information about Baillie Gifford products, funds or special offers and to
contact you for business research purposes. We will only disclose your information to other companies within the Baillie Gifford group and to agents appointed by
us for these purposes. You can withdraw your consent to receiving further marketing communications from us and to being contacted for business research purposes
at any time. You also have the right to review and amend your data at any time.

OPENING THE
TRANSFER WINDOW
Head of Trustnet Direct John Blowers looks at why it takes so long to transfer
investments between platforms – and why the process is finally beginning to speed up

A

nyone who has tried to move
assets from one provider to
another over the last few
months can’t have helped noticing
the glacial pace of this process and
its associated frustrations.
Candidly, at Trustnet Direct, it
has been the largest challenge in
meeting the high standards we have
set ourselves and the biggest source
of client dissatisfaction.
So why does it take so long
to move – or re-register – your
investments from one platform
provider or broker/fund manager
to another and what can be done to
improve matters?
Firstly, it is an industry-wide issue
and the regulator is keen to see what
trustnetdirect.com

can be done to improve service
levels around the speed and efficacy
of the transfers-in process.

BETTER TERMS

So, what actually is transferring-in
and why do people do it?
Historically, investors have
bought and managed fund
investments in ISAs (PEPs) and
pensions from many different
places such as direct from the fund
manager, an IFA, a bank or wealth
manager. More recently, with the
advent of platforms, investors have
seen that they can get better terms
not only on any new investments,
but on their existing ones if they
swap them in from elsewhere.

A good example is if you had
bought a fund directly from the
fund manager, you may still be
paying an annual management
charge of around 1.5 per cent.
However, if you were to move that
fund to a platform, you would
almost certainly pay around half of
that, plus the platform fee of that
provider (in the case of Trustnet
Direct, that is 0.25 per cent capped
at £200 a year).

WORTH THE EFFORT

On a £50,000 investment, that
would be a saving of approximately
£250 a year, which is well worth the
effort of re-registering the fund.
Once you open an account with
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