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Planning ahead

Scottish Mortgage Investment Trust

Bestinvest LogoLarge trust with low charges - invests in fast growing equities globally.














Prices as at 04 Jul 2022.

Fund commentary last updated 04 Nov 2021.

Past performance is not an indication of future performance.

Capital at risk.

The first point to make about this trust is it is neither focussed on Scotland or mortgages. Instead, its aim is to achieve a greater return than the FTSE All-World index over rolling five-year periods by investing in both global quoted and unquoted growth companies. It is led by hugely experienced fund manager James Anderson, who looks to identify exceptional, high growth businesses with enduring competitive advantages. Anderson was an early investor in both Tesla and Amazon and continues to keep a keen eye out for disruptive businesses. His holdings also include Covid vaccine developer Moderna and Chinese shopping platform Meituan. Anderson takes a bottom-up investment approach and looks to hold stocks for many years to take full advantage of their growth. He thinks in terms of owning companies rather than renting shares.

Fund summary

LaunchedJanuary 1909
Charging Basis25% Income 75% Capital
Dividends paidJul, Dec


Annual Management Charge0.32%
Ongoing Charges Figure0.34%

Investment Process

The managers use an in-depth bottom-up research process to find exceptional, high growth firms. These companies will have enduring competitive advantages and a differentiated culture that gives them an “edge”. The team also looks at a company’s prospects for sales and margins, current and potential valuation and how it is perceived by customers. Anderson also considers how the future shape of the global economy will impact or drive the fund’s holdings, but at heart he is a stock picker. Portfolio companies fall into three categories with the first being labelled as transformational growers. These businesses are using new technology to transform existing industries, although their returns lie well into the future. The second group are the dynamic growers who are flourishing now by using the superiority or uniqueness of their products or services. The third group are the enduring growers who may be a bit slower than the other holdings but are likely to hang in there for the long-term. In general, to own a stock the managers want to clearly understand how they might make at least a 2.5 times return over five years. As part of their research the team talk to a wide canvas of people from journalists to academia and take extensive trips to healthcare clusters or the US West Coast to find new ideas. They also seek out information contained in unquoted markets and speak to the geniuses – the visionaries in charge of exceptional companies.

The information on this website is not intended to be advice or a recommendation to buy, sell or hold any investment mentioned. The value of investments and the income from them can go down as well as up and you may not get back the amount invested.

Past performance is not a guide to future performance. View full risk warning