7th Nov 2014 09:06
LONDON (Alliance News) - Scottish Mortgage Investment Trust PLC Friday said its net asset value per share increased by 9.0% and the share price rose by 12.1% over the six months to the end of September, while the FTSE All World Index rose 4.4%.
However, the trust said the six-month period represents a "very short" time frame over which to judge its investment philosophy of taking a long-term approach to investing in businesses across the world which it deems to have the potential to grow substantially faster than the broader market.
Over the last 5 years, the total return for the NAV was 117%, and 155% for the share price. The index returned 63% over the same period.
Launched in 1909, Scottish Mortgage is considered to be Baillie Gifford's flagship investment trust. "These days the trust is global rather than Scottish and has nothing whatsoever to do with mortgages," according to bailliegifford.com.
According to the trust's statement, its managers are confident that it is a good time to be a growth investor, highlighting two broad drivers.
"First is the compelling nature of change occurring across a widening spectrum of industries and second is a real shift in business models, away from capital intensive growth. In combination, these trends mean the potential rewards on offer for patient stock pickers, investing in the disruptive growth businesses of the future, could be very exciting. In order to benefit from this, one must be a long term investor. This is exactly the approach which Scottish Mortgage will continue to take for its shareholders," according to the trust's statement.
Scottish Mortgage Investment Trust shares were up 0.5% at 243.40 pence on Friday.
By Samuel Agini; [email protected]; @samuelagini
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