Scottish Mortgage Investment Trust PLC on Friday reported its net asset value fell in its first half, though it increased its dividend.

The technology sector-focused investor said its NAV per share at September 30 decreased 18% to 841.7 pence from 1,021.8p at March 31. The NAV per share was 39% lower year-on-year from 1,381.1p. It reported a swing to a negative NAV total return of 17%, compared to positive 16% a year ago.

The company turned to an interim pretax loss of £2.57 billion, from a profit of £2.67 billion a year prior.

Scottish increased its interim dividend by 5.2% to 1.60p per share from 1.52p a year ago.

Looking ahead, the company noted increasing friction between the US and China amid rising interest rates which both create a ‘problematic environment to navigate’.

The firm noted that it had reduced several Chinese holdings, such as long-standing investments in Alibaba Group Holding Ltd and Tencent Holdings Ltd due to the regulatory environment in the country.

Scottish Mortgage said that Moderna Inc remains its largest holding, which continues to progress its infectious disease portfolio, including a bivalent booster for Covid.

At investee Tesla Inc, the company noted sales are strong. However, it said battery cells supply chain issues remain the most significant constraint.

The investment trust said it invested further into Swedish battery developer Northvolt AB, which is now one of its largest positions. It sees Northvolt on track to supply a rapidly growing electric vehicles market.

Scottish Mortgage shares were 2.5% higher at 819.60 pence each in London on Friday morning.

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