Scottish Mortgage & TERN: 2 FTSE stocks to buy and hold for long term


  • UK financial services exports rose by £0.08 billion to the EU in Q1 2021 from pre-pandemic levels, despite many predicting Brexit would impact trade.
  • UK’s financial services imports fell by £0.57 billion this quarter from Q1 2019.

UK’s financial services exports to the EU rose by £0.08 billion in Q1 2021 when compared to Q1 2019, according to recently released data from the Office of National Statistics.

The rise came despite many expected Brexit to negatively impact financial services trade with the EU. Also, UK financial services imports from the EU dropped by 35.2 per cent or £0.57 billion in the quarter compared to pre-pandemic levels in Q1 2019.

Two financial services sector stocks were trending in today’s session, reacting to the news. Let us take a deep dive into these two FTSE listed stocks Scottish Mortgage Investment Trust Plc (LON: SMT) and Tern PLC (LON: TERN), and see how they have performed:

  1. Scottish Mortgage Investment Trust Plc (LON: SMT)

FTSE 100 index listed firm Scottish Mortgage Investment Trust is a closed end investment firm and is among one of the largest investment trusts in the UK.

The company’s cumulative par net asset value (NAV) increased to 1435.80 pence per share as of 6 September from 1423.73 pence per share as on 3 September.

(Image Source: Refinitiv)

Scottish Mortgage’s shares were trading at GBX 1,398.00, up by 0.25 per cent on 7 September 2021 at 10:59 AM GMT+1. The FTSE 100 index was trading at 7,164.28, down by 0.32 per cent.

SMT’s market cap is at £19,694.37 million, and its one-year return is 64.61 per cent as of 7 September.

  1. Tern Plc (LON: TERN)

Tern is a technology focused investment company. It particularly invests in companies involved in the internet of things (IoT). It is a constituent of the FTSE AIM All-Share index.

The company is set to report its interim results on 14 September. Tern also recently reported that its portfolio company Wyd Networks AB had entered into a loan agreement of SEK 12 million with asset management firm Formue Nord Fokus A/S to drive Wyd’s growth.

Tern holds 60.7 per cent of Wyd’s shares.

(Image Source: Refinitiv)

Tern’s shares were trading flat at GBX 22.00 on 7 September 2021 at 11:25 AM GMT+1. The FTSE AIM All-Share index was trading at 1,313.31, down by 0.06 per cent.

The company’s market cap is at £77.36 million, and its one-year return is 264.75 per cent as of 7 September.

Bottom Line

Tern has returned over 260 per cent to its shareholder in the past 1 year and is also involved in forward looking technology such as IoT, which is expected to have widespread use in an increasingly tech dependent world.

It can be a good investment option for investors seeking mid to long term exposure in IoT startups and could go for it after relevant research.

Blue-chip stock SMT would be better suited for income investors due to it being a mature and relatively stable investment proposition.