Scottish Mortgage Investment Trust PLC (LSE:SMT)’s interim performance was a "dull" one for the FTSE 100-listed trust, according to Stifel analysts.
Stifel highlighted that unlisted investments, which declined by an average of 11.3%, dragged down SMT’s net asset value (NAV) by approximately 3% over the period.
According to the broker SMT’s NAV SMT’s NAV since the end of March has has increased by 1.9% with debt at fair value, compared to a rise of 3.6% for the FTSE All-World Index (both in total return terms).
Stifel was also disappointed that SMT did not provide a clear update on capital return plans, noting that despite surpassing the £1 billion buyback target set for two years from March, SMT’s share discount has widened.
“The board has spoken to a number of shareholders on this and there are mixed views on the balance between buybacks, reducing debt and making new investments. Whilst the buyback will continue, no figure has been given,” said Stifel
Looking ahead, Stifel noted a rise of approximately +7% in NAV since the end of September, supported by recent gains in the US and Chinese markets.
Scottish Mortgage Investment Trust primarily invests in both listed and private global growth companies. The trust's approach includes holding a mix of publicly traded and unlisted equities with a strong focus on technology and innovation.
SMT sarees fell 0.3% on Friday.