Scottish Mortgage Investment Trust PLC (LSE:SMT) enjoyed a return to positive growth in the 12 months to March 31, following two consecutive years of negative returns.
The FTSE 100-listed trust’s share price increased 32.5% in the period and the net asset value (NAV) on its holdings increased by 11.5%.
This was thanks to the trust’s two largest investments – Nvidia Corp and ASML – playing a prominent role in the artificial intelligence boom.
“Demand for Nvidia's chips has vastly exceeded expectations, which has been an important driver of our returns. Without NVIDIA's silicon or software, we would not be seeing such remarkable progress from AI systems,” said Scottish Mortgage.
ASML, which is the largest supplier of lithographic equipment needed to produce AI chips, “has one of the most apparent competitive advantages we've ever encountered”, said the trust, adding: “Its innovations are the central enablers of miniaturisation in semiconductors.”
Moderna offset some of these bumper AI-led gains, although Scottish Mortgage said its significant investment in the US pharmaceuticals company has remained unchanged.
“Vaccine fatigue has presented a challenge for the company, with vaccination levels for endemic COVID-19 well below expectations,” said Scottish Mortgage.
SpaceX remained Scottish Mortgage’s largest holding in its private portfolio.
The trust's net return after taxation reached £1.37 billion compared to a loss of £2.92 billion in the prior year.
As a result, the board recommended a 3.4% increase in the total dividend to 4.24p per share, continuing its 41-year streak of dividend growth.