Baillie Gifford pursues significant share buyback

Mortgage Investment Trust has embarked on its biggest ever share buyback programme as it looks to cut its double-digit discount.

The board of directors said they were committed to a significant buyback scheme at the 115-year-old trust, which has been trading at a significant discount since 2022. The trust the flag ship fund of edinburgh scottish based investment firm Baillie Gifford - has already bought back £353 million of shares in the past two years, and will ramp up those buybacks to at least £1 billion over the next two years.

Tom Slater, manager of Scottish Mortgage Investment Trust, said: “In a volatile period for growth investment, we own a portfolio of established companies achieving rapid expansion, propelled by enduring structural trends. Advances in foundational technologies are unlocking exciting new products, services, and business models. These well-funded public and private companies are shaping the future of the economy. the stockmarket has yet to fully recognise their progress,whichcreatestheopportunityforustobuytheportfolio forlessthanitsmarketvalue.in doingso,wecanprovideliquidityandaugmentreturnsforour shareholders.”

Aidan moyle, investment analyst at Hargreaves Lansdown, noted: “the trust has been trading at a significant discount since 2022 where they have on average been trading at a discount of just under 10 per cent. Although the trust is currently trading at a double-digit discount, we have conviction in lead manager Tom Slater. He has an excellent long-term track record although the trust has struggled more recently as rising interest rates and inflation moved investors away from a growth style of investing to a focus on a value style of investing.”