Scottish Mortgage Investment Trust plc (SMT.L) — Company Research

Scottish Mortgage Investment Trust plc (LSE: SMT) is a FTSE 100-listed UK closed-end investment trust managed by Baillie Gifford & Co Limited, with the investment objective of generating long-term total returns from a global portfolio of approximately 100 listed and unlisted growth companies (per Scottish Mortgage's investor disclosures and yfinance, pulled 2026-05-26). The trust is currently the largest holding-weighted investment in Space Exploration Technologies Corporation (SpaceX), which represents approximately 19% of the portfolio following a March 2026 external-transaction-based revaluation (per the Scottish Mortgage / Edison Group H1 FY2026 commentary). For the six months ended 30 September 2025 the trust's NAV per share rose 22.9% and the share price 20.9%, both outperforming the FTSE All-World Index's 15.4% (per Scottish Mortgage's H1 FY2026 interim report). The shares last traded at 1,529.0 pence against a 52-week range of 972.4p to 1,540.0p — at or close to a 12-month high (per yfinance, pulled 2026-05-26). All figures in pounds sterling (GBP).

1. Company Snapshot

2. Bull Case vs Bear Case

Bull Case

• H1 FY2026 NAV per share +22.9% and share price +20.9% — beating FTSE All-World. Per Scottish Mortgage / Edison Group H1 FY2026 commentary: the trust's NAV per share rose 22.9% in the six months to 30 September 2025, with the share price up 20.9%, both materially outperforming the FTSE All-World Index's 15.4% return.
• Major exposure to SpaceX (~19% of portfolio) with March 2026 revaluation. Per the Scottish Mortgage / Edison Group H1 FY2026 report: SpaceX is the trust's largest holding at approximately 19% of portfolio NAV, with a March 2026 revaluation based on an external transaction; the combined £200 million Scottish Mortgage investment in SpaceX is now valued at approximately £3 billion — a roughly 15x mark-up on cost.
• Unique access for retail investors to private growth companies. Per Scottish Mortgage's investor disclosures: the trust gives UK retail investors access to a portfolio of unlisted growth companies (SpaceX, Anthropic added in H1 FY2026, ByteDance and others) that would otherwise be inaccessible outside institutional vehicles.
• Long-term track record of NAV compounding. Per Scottish Mortgage's long-term performance disclosures: the trust has compounded NAV at high single-digit / low double-digit annualised rates over rolling 10-year periods, anchored by named long-term winners (Tesla, ASML, Amazon, NVIDIA in the listed portfolio and SpaceX, ByteDance and Anthropic in the private portfolio).
• Trading at a premium to NAV reflects renewed market enthusiasm. Per the H1 FY2026 commentary: Scottish Mortgage has recently returned to trading at a premium to NAV, having spent much of 2022–2024 at a discount; the move to premium reflects renewed investor confidence in the manager's portfolio.

Bear Case

• Concentration risk on SpaceX at ~19% of NAV. Per the H1 FY2026 commentary: a single unquoted holding represents approximately 19% of portfolio NAV; any future SpaceX valuation step-down (in a subsequent funding round, IPO or external transaction) would directly impair Scottish Mortgage NAV.
• Unquoted portfolio valuation is mark-to-model. Per Scottish Mortgage's accounting policy disclosures: unquoted holdings (SpaceX, ByteDance, Anthropic and others) are valued using a mix of external-transaction reference and discounted-cash-flow / market-comparable methodologies — the valuations are inherently less observable than listed-market quotes and may lag listed-market drawdowns.
• Premium-to-NAV reversal risk. Per Scottish Mortgage's discount/premium history: the trust traded at a substantial discount to NAV through much of 2022–2024; a return to discount would compound any underlying NAV drawdown for shareholders.
• Manager / key-person risk. Per Scottish Mortgage disclosures: lead manager Tom Slater has been associated with the trust's investment strategy since the post-James Anderson era; departure or strategy drift would be material to the equity story.
• Gearing amplifies losses on the downside. Per Scottish Mortgage's gearing disclosures: the trust uses structural debt (long-term private placement borrowings) to enhance returns — typical gearing in the high single-digit to mid-teens percentages — which amplifies losses in a down market.

3. What Does Scottish Mortgage Actually Do?

Per Scottish Mortgage's investor disclosures and Baillie Gifford management commentary: Scottish Mortgage is a UK-domiciled, FTSE 100-listed closed-end investment trust that invests in a global portfolio of approximately 100 listed and unlisted companies that the manager identifies as long-duration disruptive growth winners. The trust is managed under a long-term, low-turnover, "best-ideas-only" approach by Baillie Gifford's Long Term Global Growth team. Portfolio composition (per the most recent disclosures):

(Note: percentages above describe the composition of underlying investments, not the precise FY2026 balance-sheet allocation — see the Scottish Mortgage Annual Report for full disclosure.) In plain English, Scottish Mortgage gives UK retail investors a single share that owns a slice of Baillie Gifford's highest-conviction global growth book — including private companies (SpaceX, ByteDance, Anthropic) that retail investors cannot otherwise easily access.

4. The Business Model

Per Scottish Mortgage's investor disclosures: Scottish Mortgage operates as a closed-end investment trust — the trust raises capital at IPO / follow-on issues, deploys it across listed and unlisted holdings, charges an investment-management fee to Baillie Gifford (a low, all-in expense ratio by industry standards — typically below 0.50% per annum on NAV), and uses structural gearing (long-term debt at fixed rates) to amplify returns. Returns to shareholders come from share-price appreciation (driven by NAV growth plus discount/premium dynamics) and a modest dividend.

The competitive proposition rests on three elements (per Scottish Mortgage disclosures): first, Baillie Gifford's long-term-growth investment philosophy and access to private growth-company funding rounds; second, the closed-end-fund structure that lets the manager hold illiquid private positions without forced selling; and third, a low expense ratio relative to actively managed mutual-fund alternatives.

5. Financial Health

Scottish Mortgage is an investment trust — "financial health" in the operating-company sense does not apply. Instead the relevant metrics are NAV per share, NAV total return, share-price total return, gearing, and the discount/premium to NAV.

NAV and total return performance (per Scottish Mortgage / Edison Group H1 FY2026 commentary):

The trust's principal external "liability" is its long-term debenture / private-placement gearing — used to enhance returns to ordinary shareholders. Specific FY2026 gearing percentage is not disclosed in this report's source data; structural gearing for Scottish Mortgage has historically been in the high single-digit to mid-teens percent of net assets range.

Per yfinance (pulled 2026-05-26): the trust's market capitalisation is £16.86 billion across approximately 1.103 billion shares. Note that for an investment trust, market cap measures the price-times-shares of the equity rather than an "enterprise value" applicable to operating companies.

6. Valuation & Market Data

Raw market data only — no commentary on cheap or expensive.

(Note: operating-company valuation ratios such as P/S, EV/EBITDA, ROE in the conventional sense are not applicable to a closed-end investment trust — the trust's "operating income" line is investment income plus realised and unrealised investment gains less management fees and admin expenses.)

7. What Are They Building / What's Coming

Per Scottish Mortgage / Edison Group H1 FY2026 commentary and Baillie Gifford disclosures:

• Continued exposure to SpaceX and the broader space-economy theme. Per the H1 FY2026 commentary: SpaceX (~19% of NAV) had a March 2026 revaluation based on an external transaction; SpaceX's commercial Starlink launches and Starship development are forward NAV drivers.
• AI and disruptive software exposure including Anthropic. Per the H1 FY2026 commentary: Scottish Mortgage added Anthropic during H1 FY2026 as part of a broader exposure to AI infrastructure and applications across listed (NVIDIA, ASML, TSMC) and private (Anthropic) holdings.
• Private-company allocation maintained as a competitive differentiator. Per Scottish Mortgage disclosures: a meaningful share of the trust's NAV remains allocated to unlisted growth companies, providing differentiated exposure relative to listed-only growth funds.
• FY2026 Annual Report and ongoing buyback authority. Per Scottish Mortgage disclosures: the trust has a buyback authority (used to manage the discount when the shares trade at a discount to NAV); deployment depends on market conditions.

8. Competitive Landscape

Scottish Mortgage competes for UK retail and institutional capital against other Baillie Gifford trusts (Monks Investment Trust, Edinburgh Worldwide), other global-growth investment trusts (Allianz Technology Trust, F&C Investment Trust, Polar Capital Technology) and open-ended global / technology mutual funds and ETFs (Lindsell Train Global Equity, Fundsmith Equity, MSCI ACWI ETFs). Peer-data extraction beyond Scottish Mortgage itself is not in this report's source data.

The peer market-data rows above are not in this report's source data at publish time. Scottish Mortgage's principal differentiation is its meaningful unlisted-company allocation (SpaceX, Anthropic, ByteDance) and Baillie Gifford's long-duration growth investment philosophy.

9. Leadership and Ownership

Per Scottish Mortgage's investor disclosures: Scottish Mortgage is managed by Baillie Gifford & Co Limited under an investment-management agreement. Lead managers are Tom Slater (lead) and Lawrence Burns (deputy) of Baillie Gifford's Long Term Global Growth team. The Board of Directors of Scottish Mortgage Investment Trust plc (the listed company) provides governance, with the Chair and Senior Independent Director appointed by the Board; specific 2026 Board composition is not separately extracted in this report's source data.

Ownership of Scottish Mortgage shares is fragmented and dominated by UK retail platforms (Hargreaves Lansdown, AJ Bell, interactive investor) and institutional asset managers. yfinance reports only a small number of named institutional holders (predominantly ETFs and US-listed international equity funds with sub-1% positions); the bulk of Scottish Mortgage's register sits in UK nominee accounts and is not separately broken out in this report's source data.

Top institutional shareholders reported by yfinance (pulled 2026-05-26) — note these are small ETF / fund positions only:

(The dollar-value figures returned by yfinance for SMT.L appear to be denominated in pence units rather than US dollars in some fields; users should consult the Scottish Mortgage shareholder register and Annual Report for authoritative holdings information.) No material insider transactions are disclosed in this report's source data for Scottish Mortgage.

10. Risks and Challenges

• Single-position concentration on SpaceX (Concentration): Per the H1 FY2026 commentary: SpaceX represents approximately 19% of NAV — any future revaluation step-down would directly impair Scottish Mortgage NAV.
• Unquoted-portfolio valuation risk (Operational): Per Scottish Mortgage's accounting-policy disclosures: unquoted holdings (SpaceX, ByteDance, Anthropic and others) are valued using external-transaction references and discounted-cash-flow / market-comparable models — less observable than listed quotes and may lag listed-market drawdowns.
• Discount / premium to NAV volatility (Market & Demand): Per Scottish Mortgage's discount/premium history: the trust traded at a substantial discount to NAV through 2022–2024; a return to discount would compound any underlying NAV drawdown for shareholders.
• Structural gearing amplifies downside (Financial): Per Scottish Mortgage's gearing disclosures: long-term debenture / private-placement debt enhances returns on the upside but amplifies losses on the downside; typical gearing in the high single-digit to mid-teens percent of net assets.
• Foreign-exchange exposure on USD / Asian-currency holdings (Market & Demand): Per Scottish Mortgage's portfolio disclosures: a meaningful share of NAV is in US-dollar-denominated and Asian-currency holdings (Amazon, NVIDIA, ASML, MercadoLibre, ByteDance, Pinduoduo); GBP/USD and GBP/CNY moves drive NAV in GBP terms.
• Key-person / manager risk (Concentration): Per Scottish Mortgage's manager disclosures: lead manager Tom Slater and deputy Lawrence Burns drive portfolio construction; departure or strategy drift would materially affect the equity story.
• Cybersecurity at Baillie Gifford and the trust's administration (Cyber & Physical): Standard operational-risk consideration for an investment trust — cyber incidents at the manager could disrupt trading and shareholder services.
• Regulatory and tax regime changes (Regulatory): Per Scottish Mortgage disclosures: UK investment-trust tax regime (exemption from corporation tax on capital gains subject to the AIC Code) and the trust's status as a UK investment company under section 1158 are subject to ongoing tax-law and regulatory change risk.
• Liquidity for very large unquoted positions (Operational): Per Scottish Mortgage's disclosures: realising unquoted positions at quoted prices is not assured — a forced sale would impair recovery against carrying value.
• Geopolitical exposure on Chinese holdings (Market & Demand): Per Scottish Mortgage's portfolio disclosures: meaningful exposure to Chinese companies (ByteDance, Meituan, Pinduoduo) exposes NAV to US-China trade policy, US listing scrutiny and Chinese regulatory action.

11. Recent Developments

Most recent first.

• March 2026 — SpaceX external-transaction revaluation; combined £200M investment now ~£3bn: Per the Scottish Mortgage / Edison Group H1 FY2026 commentary: SpaceX is the trust's largest holding at ~19% of NAV; a March 2026 external-transaction-based revaluation provides the current valuation reference for the position. Source: Edison Group H1 FY2026 report.
• H1 FY2026 (six months to 30 September 2025) — NAV per share +22.9%, share price +20.9%, FTSE All-World +15.4%: Per the Scottish Mortgage interim report and Edison Group commentary: in the first half of FY2026 (i.e. the six months ended 30 September 2025), NAV per share rose 22.9% and the share price rose 20.9%, both outperforming the FTSE All-World Index. Source: Edison Group H1 FY2026 report.
• H1 FY2026 — Anthropic and other names added to the portfolio: Per the Scottish Mortgage / Edison Group H1 FY2026 commentary: three listed and two private positions were added during H1 FY2026, including leading AI developer Anthropic. Source: Edison Group H1 FY2026 report.

Scottish Mortgage's official X (Twitter) handle is @ScotMortgageIT. No additional independently link-verifiable X items within the 30-day window are included in this report's source data.

12. Key Dates Coming Up

• FY2026 Annual Report (year ended 31 March 2026) — date not disclosed in this report's source data: Scottish Mortgage's full-year results are typically published in May 2026 each year; specific date is not in this report's source data.
• 2026 Annual General Meeting: Typically held in late June or early July for Scottish Mortgage; specific 2026 AGM date is not disclosed in this report's source data.
• H1 FY2027 interim results (six months ending 30 September 2026): Typically published in November each year; specific date is not disclosed in this report's source data.
• Quarterly NAV factsheets: Scottish Mortgage publishes monthly NAV updates and quarterly factsheets via Baillie Gifford / scottishmortgage.com; specific dates are not disclosed in this report's source data.

Risk Warning: This research is for information only and is not investment advice or a recommendation to buy or sell any security. CFD Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74–89% of retail investor accounts lose money when trading CFDs. Affiliate Disclosure: We may receive a commission from some links on this page at no extra cost to you. Data Disclaimer: All figures are sourced from company filings, earnings releases, and public market data as at the date above. Forward-looking statements are attributed to the company and may not be achieved. Always do your own research. Generated by ChartsView research tooling. Thesis strength measures how well the evidence in this report supports the company's stated thesis — it is NOT a buy/sell rating or price target. ChartsView is not authorised by the FCA to provide regulated investment advice.