Scottish Mortgage Investment Trust PLC on Monday said its net asset value fell in its first half, as total return lagged behind a key index.
The Edinburgh-based company invests in growth companies, including US tech stocks such as Amazon.com Inc, Tesla Inc and Netflix Inc. It is managed by Baillie Gifford & Co.
The firm reported that net asset value in the first six months ended September 30 was 787.7 pence, down from 816.8p at March 31.
The trust said NAV total loss was 2.7%, compared with a 4.3% rise in the FTSE ALL-World Index. ‘We will have periods when we underperform the market, and the six months in question was one,’ the firm noted.
It declared a dividend of 1.60p per share, unchanged from a year ago. Scottish Mortgage said it believes a small and consistent dividend is ‘of value’ to shareholders.
Scottish Mortgage posted a pretax loss of £371.1 million, narrowing from a pretax loss of £2.57 billion the year prior.
‘Our portfolio of growth investments is in robust health. Financial conditions have pushed companies to focus and prioritise profitable growth. Declines in stock prices have made valuations more attractive. This combination provides a strong underpinning for the long-term outlook,’ Investment Manager Tom Slater commented.
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