Scottish Mortgage Investment Trust PLC (LSE:SMT) reported a drop in net asset value (NAV) in the first half of the year but remains confident in the long-term outlook.
The investment trust which targets growth companies said in the six months to 11 September 2023 the NAV per share fell to 787.7p from 816.8p.
Since the end of March, the firm said its NAV had fallen 2.7% compared with a rise of 4.3% for the FTSE All-World Index, although the longer-term performance record remains good.
Over five years, the NAV has gained 59.6% versus 49.6%, and over 10 years it has increased by 358.1% against 189.5% (both against the index), the company said.
“We will have periods when we underperform the market, and the six months in question was one,” the firm said.
The company said that “financial conditions have pushed companies to focus and prioritise profitable growth” and that “declines in stock prices have made valuations more attractive”.
“This combination provides a strong underpinning for the long-term outlook,” it said.
The company left the dividend unchanged at 1.60p.