Scottish Mortgage Investment Trust – Holdings, Performance & NAV Guide

Scottish Mortgage Investment Trust operates as a closed-end investment company listed on the London Stock Exchange, distinguished by its mandate to maximize long-term total returns through holdings in exceptional growth companies. Managed by Baillie Gifford since 1909, the trust benchmarks its performance against the FTSE All World TR GBP index while maintaining exposure to both publicly traded securities and private market opportunities.

As of early April 2026, the trust manages assets totaling £15.56 billion, representing one of the largest actively managed equity portfolios in the UK investment trust sector. Recent performance data indicates a significant rebound, with one-year share price returns reaching 32.9% and NAV returns at 26.7%, outperforming both the Global AIC sector average and broader developed market indices.

The trust’s structure permits investment in illiquid private companies alongside traditional public equities, a strategy that has historically contributed to its long-term performance but introduces specific valuation and liquidity considerations for shareholders.

What is Scottish Mortgage Investment Trust?

• Closed-end structure with fixed share capital traded on the London Stock Exchange under ticker SMT
• Benchmarked against the FTSE All World TR GBP index for performance measurement
• Ongoing charges of 0.31% with no additional performance fees applied
• Gross gearing maintained at 8% to enhance potential returns
• Dual focus on public equities and private growth companies
• Continuous management by Baillie Gifford since the trust’s inception
• Daily NAV calculation published for investor transparency

The Association of Investment Companies provides verified performance data showing the trust’s historical returns across multiple time horizons.

What are the top holdings of Scottish Mortgage?

The trust maintains a concentrated portfolio weighted toward transformative growth sectors. Technology represents the largest allocation at 25.87% of the portfolio, followed by Consumer Cyclical at 21.75% and Communication Services at 7.36%. Healthcare and Industrials comprise 5.51% and 3.59% respectively, with minimal exposure to Consumer Defensive sectors at 0.68%.

Sector Allocation and Geographic Exposure

This sector distribution reflects the managers’ conviction in companies capable of compounding value over extended time horizons. The allocation favors businesses with durable competitive advantages in rapidly evolving industries, while maintaining minimal defensive positioning that might protect against short-term volatility but limit long-term appreciation.

Public and Private Market Blend

A distinctive characteristic of the portfolio is its substantial allocation to private companies alongside traditional public equities. This structure allows the trust to maintain exposure to high-growth businesses before they reach public markets, though it introduces specific liquidity and valuation challenges not present in conventional equity funds.

How has Scottish Mortgage performed recently?

The twelve months ending 1 April 2026 marked a period of significant recovery for the trust. Share price total return reached 32.9%, while NAV total return registered 26.7%, both substantially outpacing the Global AIC sector averages of 21.1% and 18.2% respectively, as well as the Morningstar Developed Markets index return of 16.9%.

Short-Term Trajectory

Daily pricing data from 2 April 2026 indicates continued momentum, with one-week returns of 5.4% and one-month gains of 4.88%. The six-month performance stands at 10.17%, suggesting sustained positive sentiment toward the trust’s underlying holdings despite broader market uncertainties.

Long-Term Compounding

Extended timeframes demonstrate the trust’s capacity for wealth generation, with ten-year share price total returns of 404.6% and NAV returns of 429.8%. However, this trajectory includes periods of significant volatility, including the 2022-23 period which saw share price declines of 33.3% amid valuation corrections in growth sectors.

Understanding the NAV Discount

As of 2 April 2026, shares traded at a 4.30% discount to NAV, a narrowing from the previous 9.50% discount and the twelve-month average of 9.50%. This fluctuation reflects investor sentiment regarding the valuation of underlying private holdings and broader market appetite for growth-oriented investment vehicles.

What is the investment strategy of Scottish Mortgage?

Baillie Gifford structures the portfolio to maximize long-term total returns by identifying exceptional companies capable of shaping future economic landscapes. The approach emphasizes ownership duration over market timing, with the trust serving as a low-cost vehicle for accessing concentrated growth exposures across both public and private markets.

Strategic Approach and Benchmarking

The strategy diverges from passive index replication, instead selecting businesses demonstrating genuine innovation and durable competitive positioning. While the FTSE All World TR GBP index serves as the performance benchmark, the portfolio construction prioritizes fundamental business quality over index weighting considerations, resulting in significant active share and concentration risk.

Risk Considerations

Several distinct risk factors warrant consideration. Liquidity risks emerge from the private company allocations, where market values may lack reliability due to infrequent trading. Derivatives usage introduces additional complexity and potential performance impacts. The high concentration in technology and consumer cyclical sectors exposes the portfolio to specific economic cycles, while the closed-end structure means share prices may detach significantly from underlying asset values.

How has Scottish Mortgage evolved over time?

1. 1909 – Trust established with mandate to invest in growth companies, marking the beginning of continuous management by Baillie Gifford.
2. April 2023 – Annual returns reported at -33.3% for share price, reflecting valuation corrections in technology and growth sectors.
3. March 2024 – Interim report period showing NAV growth of 1.9%, underperforming the benchmark’s 3.6% advance.
4. April 2024 – Prior year returns registered at +6.9% share price and +11.7% NAV, indicating initial recovery phase.
5. March 2025 – Financial year-end with total dividend of 4.38p, representing 0.50% yield with cover of 0.32.
6. November 2025 – Interim dividend payment of 1.60p declared, maintaining consistency with prior year distributions.
7. April 2026 – Current reporting period showing one-year total returns of 32.9% (share price) and 26.7% (NAV).

What do we know for certain about Scottish Mortgage?

How does Scottish Mortgage compare to other investment trusts?

Scottish Mortgage occupies a distinctive position within the UK investment trust landscape due to its scale and mandate. While many global equity trusts focus exclusively on liquid public markets, SMT’s significant private company allocation creates a hybrid structure more commonly associated with venture capital or private equity vehicles. This differentiates it from traditional global growth trusts such as Foreign and Colonial Share Price vehicles, which typically maintain fully liquid portfolios.

The trust’s fee structure of 0.31% ongoing charges positions it competitively against actively managed open-ended funds, while the closed-end structure permits the managers to maintain long-term positions without liquidity-driven selling during market downturns. This structural advantage comes at the cost of potential discount volatility, a characteristic absent in open-ended fund equivalents.

Within the Global AIC sector, SMT’s recent performance of 32.9% significantly exceeded the sector average of 21.1%, though its concentration in high-growth sectors introduces volatility metrics that may exceed those of more diversified global equity vehicles.

Where does the data on Scottish Mortgage originate?

Primary data regarding share prices, NAV calculations, and portfolio composition derives from official regulatory filings and the trust’s appointed administrators. Hargreaves Lansdown provides daily pricing data and estimated NAV figures based on exchange-traded prices and fund administrator reports.

“The objective is to maximize long-term total returns by investing in a concentrated global portfolio of exceptional public and private growth companies, with the flexibility to invest across the capital structure and hold illiquid assets.”

— Baillie Gifford Strategy Description, Scottish Mortgage Official Documentation

Performance benchmarking and sector comparison data originates from the Association of Investment Companies, which aggregates NAV returns and share price movements across the closed-end fund universe. The Financial Times and Morningstar provide additional analytical context regarding relative performance metrics.

What defines Scottish Mortgage in 2026?

Scottish Mortgage Investment Trust represents a high-conviction, long-duration equity vehicle distinguished by its dual public-private structure and significant technology overweight. While recent performance has validated the managers’ growth-oriented approach with 32.9% annual returns, prospective investors must weigh the potential for continued compounding against the risks of discount volatility, private company valuation uncertainty, and sector concentration. For those considering retirement planning alongside growth allocations, understanding the UK State Pension Increase Campaign context remains essential when positioning such volatile assets within broader wealth strategies.

Frequently Asked Questions