Scottish mortgage investment trust; is a publicly traded investment trust. It invests globally, looking for strong businesses with above-average returns. Scottish Mortgage is managed by Baillie Gifford & Co Limited, the Edinburgh-based investment management partnership.
Scottish mortgage investment trust brief highlights
Over the entire history of Scottish Mortgage, it has cut its dividend only once, in 1933 – after the effects of the Depression ravaged its portfolio.
In every other year, it either maintained or increased its dividend, even during both World Wars. In 1942 the chairman wrote with masterly understatement of “some important adverse influences…Our revenue has suffered from the almost complete stoppage of dividends from the invaded areas.
Why Scottish mortgage investment falling
The £16bn Scottish Mortgage investment trust has fallen by more than 25% in the last three weeks
Tech and growth stocks have been hit by soaring US government bond yields and inflation fears.
However SMT remains up 80% over the past 12 months thanks to its stellar performance in 2020 and until mid-February this year.
It is trading on a 2.75% discount, compared to a 12-month average 0.5% premium
The hugely popular Scottish Mortgage investment trust has slumped by more than 25 per cent in three weeks as it suffered from a sell-off in global technology and growth stocks.
Rising US bond yields and inflation fears sent the £16billion fund’s share price falling another 4.5 per cent today to 1,040p. That leaves legions of British investors nursing a hair-raising slump of 26 per cent from its peak of 1,415p in mid-February.
Scottish mortgage investment share price
SMT remains up by a hefty 73 per cent over the past 12 months but investors will be fearing there is further to fall as the tide turns against growth stocks during the pandemic recovery.
US and Chinese high-growth stocks, which make up the bulk of Scottish Mortgage’s portfolio, have been sold off over the past few weeks as their appeal has lessened due to a sharp rise in long-term bond yields.
Rising yields sharply reduce the attractiveness of equities that are valued according to high future expected earnings.
Scottish mortgage Devidend
All dividend metrics data is calculated excluding any special dividends. Historical dividends may be adjusted to reflect any subsequent rights issues and corporate actions.
Future dividend dates can be found in company information when announced by Scottish Mortgage Investment Trust plc.