Scottish Mortgage's performance has been enhanced by its switch from UK equities to overseas markets...
Scottish Mortgage's performance has been enhanced by its switch from UK equities to overseas markets.
During the 12 months to 31 March the £2.2bn trust sold £164m of UK equities to enable it to increase its exposure to the US and Europe in particular. Some 55% of the portfolio was exposed to UK equities as at 31 March 1999, but this weighting has fallen to 43.1%. Over the same period exposure to Europe has risen by 3.7% to 18.8% and the US weighting has risen from 10.6% to 12.9%.
During the period the trust benefited from outperformance in Asia, Japan, Europe and the US, according to the manager of Scottish Mortgage, James Anderson. The trust's NAV rose by 24.7% between 31 March 1999 to 31 March 2000. Its two benchmark indices, the FTSE All-Share and the FTSE World Index, rose by 7.5% and 22.6% respectively during the period.
The trust's share buyback strategy also contributed to the trust's NAV performance. It bought 22 million shares at a cost of £100m which enhanced NAV by 0.9%. The board will seek to renew its authority to buyback shares at its forthcoming AGM. As at close of 3 May the trust was trading at a discount to NAV of 14.5%.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till