Founded in 1909, Scottish Mortgage Investment Trust Plc is a UK-based low cost closed-ended investment trust that invests in globally listed and private company securities and makes other investments with strong businesses with above-average returns, to maximize total return over the long term from a high conviction, actively managed portfolio. The company invests in various sectors, including industrials, basic materials, real estate, healthcare, technology, energy and financials across Europe, Asia, North America and South America. The company’s shares are listed on the London Stock Exchange as LON: SMT and is a constituent of the FTSE 100 Index.
The company has appointed Baillie Gifford & Co Limited as alternative investment fund manager (AIFM). The company’s aims to maximize total return with capital and dividend growth from a portfolio of long term investments. The company mainly invest in equity that range between 50 and 100 holdings with no fix limits set as to industry, sector and geographical. No more than 8% of the total assets should be invested in a particular holding at the time of purchase. An average holding period for investments of five years or more is targeted. The company may also invest in fixed interest securities, funds, unquoted entities, convertible securities and other assets based on the individual investment case. The company may invest in unquoted companies, no more than 30% of the total assets and it may also invest in derivative instrument for efficient portfolio management. It may also invest up to 15% of the gross assets in other UK listed investment companies. The company aims to achieve return higher than the FTSE All-World Index over a five year rolling period or longer.