Scottish Mortgage Investment Trust puts in strong full-year performance

0 Fiona Mcbain – focus on attractive long-term returns The Scottish Mortgage Investment Trust, managed by Baillie Gifford, is sticking by its long-term growth strategy after putting in a stellar fullyear performance.

Results released yesterday for the 12 months to the end of March revealed a 25 per cent surge in net asset value (NAV) alongside a 21.6 per cent gain in the investment trust’s share price.itsbenchmark,theftse All-world index, nudged up 2.9 per cent in sterling terms over the period.

The trust, which is chaired by former Scottish Friendly chief executive Fiona Mcbain, also highlighted its performance over ten years, with NAV and share price gains of 287.8 per cent and 334.7 per cent, respectively. That compares with global sector average total returns in NAV and share price of 178.1 per cent and 218.1 per cent, according to the Association of Investment Companies.

The board has recommended a final dividend of 1.68p per share, providing a total distribution for the year of 3.07p per share, a year-on-year increase of just over 2 per cent.

Writing in the chairman’s statement, Mcbain said: “Long-term performance continues to be the yardstick by which the board measures the results of the managers’ endeavours for Scottish Mortgage.

“Formorethanadecadenow, the managers have remained steadfast in their approach. Their consistency and clarity of purpose has proved its value to shareholders over time, despite some exceptionally challenging phases in global financial markets over that same period.”

“Whatever the precise trajectory of stock markets turns out to be over the coming years, the board and the managers strongly believe that attractive long-term returns continue to be available to those who can turn time to their advantage.”