Scottish Mortgage is one of five global trusts run by Baillie Gifford - along with Edinburgh Worldwide, Mid Wynd International, Monks and Scottish American - and is designed as a core holding.
Manager James Anderson has performed largely in line with his 50 per cent FTSE All-Share/50 per cent FTSE World excluding UK benchmark, but is now moving from a regional team approach to a more focused global stock-picking style. He is optimistic about the long-term growth prospects of Asia and other emerging markets, and currently has an 18 per cent exposure.
Long-term debt, offset by a bond portfolio, reduces the trust's discount to net asset value (NAV) from 20 per cent to 13 per cent, compared with the sector average of a 15 per cent discount, and a repayment value discount of 12 per cent. Broker Close WINS thinks that the trust is an "attractive holding", noting the board's active share buy-back programme to manage the discount. Around 20 per cent of the trust's shares have been bought back since mid-1999, reducing the proportion of institutional investors to a minority.
Management group: Baillie Gifford
Telephone number: 0131 275 2000
Lead manager: James Anderson (Five years)
Touch: 326-327p | 5-year NAV performance: £73 |
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Market value: £956m | Discount to NAV: 20% |
Dividend yield: 2.3% | Gearing: 113% |
12-month high: 351p | Low: 281p |
Year to | Net Asset Value | Earnings | dividend |
---|---|---|---|
31 Mar | per share (p) | per share (p) | per share (p) |
2004 | 362.8 | 8.05 | 7.00 |
2005 | 394.4 | 7.37 | 7.35 |
Compound % | +9 | -8 | +5 |