The only investment trust on the FTSE 100, Scottish Mortgage (SMT), is up 2.8% to 693.7p. The move pushed it back above a £10bn valuation, overtaking 3i (III) as the largest fund on the index, as its portfolio recovered quickly from the coronavirus-inspired correction.
For the 12 months to 31 March 2020, the company upped its total dividend for the year by 4% to 3.25p per share.
Its net asset value total return for the year rose 13.7%. That compared to a 6.2% fall in the FTSE All-World Index and a global sector average return of 0.1%.
Since the end of March, the company’s holdings in large tech businesses have been well-aligned with the recovery from the sell-off. Manager James Anderson said: ‘Most investors craving safety now see Amazon and its kin as far less exposed to economic angst.
‘In general our quoted portfolio has therefore become more conventional and gradually, then suddenly, less differentiated from the index than in the past. This does not unduly concern us at present as the world adapts to wrenching changes but it may become an issue in the future. We must continue to evolve.’
‘OPPORTUNITIES FOR GROWTH INVESTORS PLENTIFUL’
Anderson is critical of ‘fading dynamism’ in the US, with Tesla and largest holding Amazon major exceptions. His colleague Tom Slater namechecked several innovative Chinese web-based businesses and added: ‘Whilst the newspapers focus on the gloom associated with the impact of COVID-19 it is important not to lose sight of the fact that we live in a time of great progress. The opportunities for growth investors are plentiful.’
Elsewhere the company announced plans to increase the current limit on unquoted assets by 5% to 30% at the time of its next purchase in this category.
Chair Fiona McBain said: ‘Together, the members of the board and the managers have many decades of experience. The combined lesson from all would be the importance of enduring through difficult periods. In long term investment, often the best course is to remain steadfast. Scottish Mortgage remains best suited to those who share its long term and patient approach.’
