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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Investments and investor services

Scottish Mortgage powered higher by tech giants Amazon and Google in first half

It is likely to be a different picture when Scottish Mortgage reports its full-year results, given the recent equities sell-off which has hit tech stocks especially hard

Another strong performance from its tech-dominated portfolio fired the value of Scottish Mortgage Investment Trust PLC (LON:SMT) higher in its latest half-year.

Net asset value rose 19% to 527.7p in the six months ended September 30, while its share price climbed 22.4%. The FTSE All-World Index rose 11.3% over the same period.

The dividend was held at 1.39p, unchanged from the same period last year.

Scottish Mortgage’s portfolio is dominated by tech giants, with Amazon accounting for 10.5% of the portfolio, Alibaba 5.7%, Tesla 4.6%, Baidu 5.3% and Alphabet (Google) 1.9%.

The trust also has a host of other big tech names in its stable including Spotify, Netflix and Airbnb, as well as a slew of non-quoted businesses such as Uber rival Lyft.

Picture has changed of late

The recent global equities sell-off has hit tech stocks in particular pretty hard, especially Amazon and Alphabet which disappointed with their third-quarter results and guidance.

That means figures from the current half are likely to be markedly less impressive, although the trust is optimistic in its outlook.

Quoting Alibaba chairman Jack Ma, Scottish Mortgage said: “Monumental challenges give rise to monumental opportunities.”

At the half-year, the portfolio was worth a total of £8.31bn.

Shares rose 2.7% to 494.2p early on Friday morning.

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