Fact sheet: Scottish Mortgage IT

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
IT Global
Fund type
Investment Trust
Primary aim
Why Money Observer Rates Scottish Mortgage IT

Rated Fund 2013-2018. A high conviction portfolio with a tech focus

With assets under management of almost ᆪ5.5 billion, Baillie Gifford's Scottish Mortgage is the largest global generalist investment trust. It has won a hat-trick of Money Observer awards for Best Global Growth Trust ヨ in 2015, 2016 and 2017.

Its growth saw Scottish Mortgage enter the FTSE 100 index for the first time in March 2017. As a result of achieving even greater economies of scale, the trust also cut its annual management fees from April 2017. At the end of 2017, its ongoing charges were 0.44 per cent.

It has been managed for the past 18 years by James Anderson, with Tom Slater becoming his co-manager in 2014. Anderson is a long-term believer in the power of technology and is fiercely committed to running a high-conviction portfolio of companies that will change the world. The trust's portfolio contains around 70 holdings, with the largest 30 accounting for more than 80 per cent of assets.

The duo have also gained shareholder approval to invest up to a quarter of assets in unquoted companies, because they believe that many of the most exciting companies now wait until their fastest growth period is over before seeking a stock market listing. As a result 13 per cent of the portfolio is in unquoted companies.

Anderson warns that the managers' investment approach can result in periods of underperformance, as was the case in 2016, but he expects to be judged over at least five years and preferably 10.

Shares in the trust can trade at a small premium to net asset value, but its board issues new shares in a bid to control this.<\p>

3 Year Performance
Fund Performance96.8%
Average of Rated Funds Group61.3%
Sector Performance56.2%
Fund information
Fund name
Scottish Mortgage Investment Trust PLC
Fund manager company
Baillie Gifford & Co Ltd
Fund type
Investment Trust
Fund managers
  • James Andersonsince 01/04/2000
  • Tom Slatersince 01/08/2009
Winner - Best Global trust 
Winner - Regular savings Global Generalist
Fund objective
Scottish Mortgage is an actively managed, low cost investment trust, investing in a high conviction, global portfolio of companies with the aim of maximising its total return to its shareholders over the long term. The managers aim to achieve a greater return than the FTSE AllWorld Index (in sterling terms) over a five year rolling period.
  • FTSE All World
Investment style
Investment method
Quick stats
1 Year return
1 Year rank in sector
IT Global
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
Fund size
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
Mid price
?Net asset value. The NAV per share may be higher or lower than the share price, which in turn is trading at either a discount or a premium to NAV.
?When the market price of an investment trust’s shares is less than the net asset value (NAV) per share then it is trading at a discount to NAV. A trust’s shares are on a premium when they trade at a higher price than the NAV.
?Investment trusts have the ability to borrow money which they invest with the aim of generating a higher return than the cost of the loan. An ungeared trust has a figure of 100. A figure of 110 would represent a trust with 10% gearing.
Top in this sector
Fund name1 Year
Independent Investment Trust51.6%
Edinburgh Ww IT PLC48.6%
Lindsell Train IT plc37.6%
Sct Mtg IT PLC34.1%
Monks IT PLC22.7%
...more in IT Global

Performance snapshot

Holdings snapshot

  • North America47.5%
  • Consumer Services34.3%
    Health Care13.1%
    Consumer Goods10.7%
  • North American Equities47.5%
    Chinese Equities22.3%
    Eurozone Equity 20.1%
    European Equities5%
    UK Equities3%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Rank within sector1 / 214 / 214 / 214 / 213 / 213 / 21
Calendar performance
 YTD - 20182017201620152014
Rank within sector3 / 213 / 2114 / 215 / 213 / 21
Risk statistics
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
Price movement
52 week high512
52 week low387.3
Current bid price511
Current offer price512
Current mid price512
1North America47.5%
7Money Market0.4%
Industry sector
1Consumer Services34.3%
3Health Care13.1%
4Consumer Goods10.7%
7Basic Materials1.1%
8Money Market1%
Asset type
1North American Equities47.5%
2Chinese Equities22.3%
3Eurozone Equity 20.1%
4European Equities5%
5UK Equities3%
6Indian Equities1.7%
7Money Market0.4%
Individual holdings
Fund manager group
Baillie Gifford
Fund manager company
Baillie Gifford & Co Ltd
Fund type
Investment Trust
Fund objective
Scottish Mortgage is an actively managed, low cost investment trust, investing in a high conviction, global portfolio of companies with the aim of maximising its total return to its shareholders over the long term. The managers aim to achieve a greater return than the FTSE AllWorld Index (in sterling terms) over a five year rolling period.
  • FTSE All World
Investment style
Investment method
Fund managers
James Anderson01/04/2000James graduated BA in History from Oxford University and after postgraduate study in Italy and Canada he gained an MA in International Affairs in 1982. He is a Trustee of the Johns Hopkins University. He joined Baillie Gifford in 1983 and became a Partner in 1987. He headed our European Equity team until 2003 when he founded our Long Term Global Growth strategy. He has Chaired the EAFE Alpha Portfolio Group since its inception in 2003 and has been the Manager and then Joint Manager of Scottish Mortgage Investment Trust since 2000. In 2015 James became the Chair of our newly formed Equity Improvement Group. He has also served as a member of the Advisory Board of the government sponsored Kay Review and as Chair of the subsequent industry working group that set up the UK Investor Forum.
Tom Slater01/08/2009Tom graduated BSc in Computer Science with Mathematics from the University of Edinburgh in 2000. He joined Baillie Gifford the same year and worked in the Developed Asia and UK Equity Teams before joining the Long Term Global Growth Team at the start of 2009. Tom became a Partner in the firm in 2012. Tom was appointed Joint Manager of Scottish Mortgage Investment Trust in January 2015 having served as Deputy Manager for the previous five years. In 2015 Tom was appointed Head of the North American Equities Team and is a decision maker on Long Term Global Growth portfolios. Tom’s investment interest is focused on high growth companies both in listed equity markets and as an investor in private companies.
AIC Member, Transparent for Swiss Tax
No data available.
Fund for sale in
United Kingdom
Scottish Mortgage Investment Trust PLC
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price484.26
Price updated18/05/2018
Institutional or retail classRetail
Citi codeNJFU
Data provided by

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