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Scottish Mortgage heading for where

Closed-end funds and OEICs
Dod101
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Re: Scottish Mortgage heading for where

#581963

Postby Dod101 » April 10th, 2023, 3:15 pm

absolutezero wrote:
Avantegarde wrote:I read an astonishing fact in the latest edition of Trust, the quarterly publication from Baillie Gifford for its investment trust investors. https://www.bailliegifford.com/en/uk/in ... -magazine/ In the last two decades (since the start of 2003) the Scottish Mortgage trust has owned 749 shares or bonds, of which 680 (91%) have made no contribution to the trust's overall return. The 12-times return earned in that time by the trust has come from just 69 investments. And 14 of them accounted for half of the trust's growth. Has this been revealed before? I know the trust has previously publicly favoured the idea that good stock market returns hinge on the picking few companies that do spectacularly well. Even so, to see the figures as starkly as this was something of a surprise. I suppose you could conclude that 91% of the trust's investment effort was a waste of time.

This is not unusual and is the main reason for holding a global tracker rather than a DIY portfolio.


Is it? Why?

Dod

servodude
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Re: Scottish Mortgage heading for where

#582127

Postby servodude » April 11th, 2023, 8:48 am

Dod101 wrote:
absolutezero wrote:This is not unusual and is the main reason for holding a global tracker rather than a DIY portfolio.


Is it? Why?

Dod


Am I'm missing something in the question other than trackers being an automatic means of diversification?
(Notwithstanding that the degree of skew in the returns posted is more than I would have expected)

scrumpyjack
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Re: Scottish Mortgage heading for where

#582133

Postby scrumpyjack » April 11th, 2023, 9:08 am

The tracker won't have any unquoted companies which is a significant drawback.

Dod101
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Re: Scottish Mortgage heading for where

#582144

Postby Dod101 » April 11th, 2023, 9:57 am

servodude wrote:
Dod101 wrote:
Is it? Why?

Dod


Am I'm missing something in the question other than trackers being an automatic means of diversification?
(Notwithstanding that the degree of skew in the returns posted is more than I would have expected)


This exchange has now got more cryptic than I can manage. My question was because I do not know whether the poster was referring to Scottish Mortgage (in which case scrumpyjack's comment is valid) or a more general principle (in which case it is rather irrelevant on a thread discussing Scottish Mortgage)

Dod

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Re: Scottish Mortgage heading for where

#582156

Postby monabri » April 11th, 2023, 10:42 am

SMT is not doing too badly compared to Vanguard's Global ETF over the last 10 years. Getting out at the right time (or top slicing) would have been nice...it was possible to do because folk round here did so!

source : https://www2.trustnet.com/Tools/Chartin ... O:GLBLGRTH

Imagepost image urls


As an aside, I'm in the process of Bed & Isa-ering ("Isa-ering"..is that a word ?) some SMT shares with ii. First time I've used this service so I'm moving a small qty of SMT from the taxed to ISA accounts. Normally I would have done it the manual way such that I have control of pushing the buttons.

Dod101
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Re: Scottish Mortgage heading for where

#582165

Postby Dod101 » April 11th, 2023, 11:18 am

monabri wrote:SMT is not doing too badly compared to Vanguard's Global ETF over the last 10 years. Getting out at the right time (or top slicing) would have been nice...it was possible to do because folk round here did so!

source : https://www2.trustnet.com/Tools/Chartin ... O:GLBLGRTH

Imagepost image urls


As an aside, I'm in the process of Bed & Isa-ering ("Isa-ering"..is that a word ?) some SMT shares with ii. First time I've used this service so I'm moving a small qty of SMT from the taxed to ISA accounts. Normally I would have done it the manual way such that I have control of pushing the buttons.


Re SMT and the Global ETF, that is the sort of result we would hope for, given that SMT is of course much more volatile. As one of those who did get some out, I cannot see the point in 'running your winners' to the point where they have run their race, without taking out some of the proceeds. That is surely the point. My SMT are well protected in an ISA and it was a wonderful feeling to be able to extract a decent amount of cash without having to even think about tax.


Re Bed and ISA ing, I have just done the same with some Legal & General which were languishing in my Trading Account. That is the easy bit. I now need to decide which of my remaining certificated holdings I will do the same with to bring it up to the £20,000. II are good at this. Right now they say it may take a few days as they are busy with the beginning of the new tax year stuff, but I have always found that the sell and buy prices are not much different as they are done as near to simultaneously as I think they can.

Dod

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Re: Scottish Mortgage heading for where

#582827

Postby yorkshirelad1 » April 14th, 2023, 2:45 pm


Dod101
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Re: Scottish Mortgage heading for where

#582847

Postby Dod101 » April 14th, 2023, 4:20 pm

Re my post on Bed and ISA ing, my trades were done on the same day. Well done II. At almost the same price sell/buy but of course I had the Stamp Duty on the buy but free dealing costs as I had an unused credit.

Dod

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Re: Scottish Mortgage heading for where

#582850

Postby monabri » April 14th, 2023, 4:57 pm

Dod101 wrote:Re my post on Bed and ISA ing, my trades were done on the same day. Well done II. At almost the same price sell/buy but of course I had the Stamp Duty on the buy but free dealing costs as I had an unused credit.

Dod


Interesting. I completed the request at 9:00am on 11th ...carried out today at 8:19am.

Bought = £6.631 per share
Sold = £6.627 per share

Stamp duty meant I 'lost' three shares (it was a small transfer value - I wanted to ISA the shares for other reasons).

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Re: Scottish Mortgage heading for where

#586929

Postby Bouleversee » May 3rd, 2023, 3:38 pm

Did you end up with fewer shares to cover the costs? I asked for accumulated divs. in the ISA to be used for the repurchase but found I wasn't able to do that and was expected to fund a current year ISA. Otherwise I would have to do it myself with risk to share price.

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Re: Scottish Mortgage heading for where

#586940

Postby monabri » May 3rd, 2023, 4:27 pm

Bouleversee wrote:Did you end up with fewer shares to cover the costs? I asked for accumulated divs. in the ISA to be used for the repurchase but found I wasn't able to do that and was expected to fund a current year ISA. Otherwise I would have to do it myself with risk to share price.


Yes. It wasn't a very large transfer value, more a case of a tidy up of shares into a single account.

AsleepInYorkshire
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Re: Scottish Mortgage heading for where

#587194

Postby AsleepInYorkshire » May 4th, 2023, 7:28 pm

AiY post dated June 10th 2022

My best guess based on the "chart" tells me the stock is trying to test a price below £6 (but that's just a pure guess by a rank amateur)

It's starting to look tempting.



AiY(D)

Dod101
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Re: Scottish Mortgage heading for where

#587219

Postby Dod101 » May 4th, 2023, 9:54 pm

I need to ask AIY what is he trying to tell us by posting what looks like the total portfolio of just over 13 months ago ? What is the point that he is trying to make?

Starting to look tempting? I do not know about anyone else but I am totally confused about his message.

Dod

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Re: Scottish Mortgage heading for where

#599937

Postby yorkshirelad1 » July 4th, 2023, 10:55 pm

Times, Saturday 1 July 2023
Scottish Mortgage: lifting the lid on the £9.3bn fund
David Brenchley takes a seat at its AGM to see how investors are taking the slump in the UK’s biggest investment trust

https://www.thetimes.co.uk/article/scottish-mortgage-lifting-the-lid-on-the-9-3bn-fund-c2nbswgmt (paywall)
http://archive.today/2023.07.01-000233/https://www.thetimes.co.uk/article/scottish-mortgage-lifting-the-lid-on-the-9-3bn-fund-c2nbswgmt (not paywalled)

scotia
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Re: Scottish Mortgage heading for where

#600002

Postby scotia » July 5th, 2023, 9:34 am

yorkshirelad1 wrote:Times, Saturday 1 July 2023
Scottish Mortgage: lifting the lid on the £9.3bn fund
David Brenchley takes a seat at its AGM to see how investors are taking the slump in the UK’s biggest investment trust

https://www.thetimes.co.uk/article/scottish-mortgage-lifting-the-lid-on-the-9-3bn-fund-c2nbswgmt (paywall)
http://archive.today/2023.07.01-000233/https://www.thetimes.co.uk/article/scottish-mortgage-lifting-the-lid-on-the-9-3bn-fund-c2nbswgmt (not paywalled)

Many thanks for the link (not paywalled)
I was aware of the near 30% unlisted investments, but I'll confess that I was unaware how large some of these companies are. So a snippet from the AGM report surprised me:-
Burns runs through the trust’s history of investing in private, unlisted companies. Top holdings in the portfolio include the TikTok-owner ByteDance and the payments firm Ant Financial, private businesses that are bigger than every company on the FTSE 100.

Dod101
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Re: Scottish Mortgage heading for where

#600010

Postby Dod101 » July 5th, 2023, 9:53 am

Thanks for that as well. If you look at the chart it is the huge gains which were the aberration and that is volatility for you. SMT has always been volatile. As the writer says, the shares are still showing an impressive ten year profit of 318%. Without the huge uplift, that is in itself not a bad return.

Dod

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Re: Scottish Mortgage heading for where

#600049

Postby richfool » July 5th, 2023, 11:54 am

This might be of interest to Scottish Mortgage holders and watchers:
Tom Slater’s favourite stocks from the Scottish Mortgage portfolio

05 July 2023

The manager shares the stocks from his portfolio that he’s most bullish about.

By Matteo Anelli,

Reporter, Trustnet

The opportunity from investing the Scottish Mortgage way (focusing on disruptors that will be the next market leaders) is not what it was 10 years ago, according to veteran FE fundinfo Alpha Manager Tom Slater. In fact, it's “all the greater today”, he said, as “huge swathes of the economy are experiencing disruption and new approaches”.

Future disruptors – both listed and unlisted – come in many shapes and sizes. Below he selects some favourites from the trust’s portfolio.

The first up is one of the largest holdings, Moderna, which makes up 7.3% of Scottish Mortgage. This company became a household name thanks to its Covid vaccine, but in December, the company demonstrated that its approach could be used to make personalised cancer vaccines, the manager explained.

Another favourite is Nvidia, a Scottish Mortgage holding since 2016 (making up 4.2% of the portfolio today). As many investors will know, it is a key supplier of semiconductors and “enjoys some formidable advantages”, as the chip technology, which it's built over the decades for computer games, has proven ideally suitable to artificial intelligence (AI) computation.

But the trust’s plays in this sector don’t stop here, encompassing ASML (8.6%) and Tesla (5.2%) too.

“The semiconductor industry generally depends on ASML's exceptional engineering skills to produce cutting edge chips. Artificial intelligence is just one driver of the strong demand that we expect for that company over the next decade,” said Slater.

“Tesla rolled out access to its full self-driving capability across the US last year and it's now driven 150 million autonomous miles, providing it with a vast data advantage over the rest of the industry.”

Moving on to unlisted companies, the largest private holding in the portfolio is SpaceX (3.5%), whose reusable rockets made the commercial space market a reality.

“SpaceX made 60 launches in 2022, that's more than one per week and more than twice the number it did in 2021, as its has reduced launch costs by around 95%,” Slater said.

https://www.trustnet.com/news/13382988/ ... -portfolio

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Re: Scottish Mortgage heading for where

#600057

Postby torata » July 5th, 2023, 12:26 pm

Burns runs through the trust’s history of investing in private, unlisted companies. Top holdings in the portfolio include the TikTok-owner ByteDance and the payments firm Ant Financial, private businesses that are bigger than every company on the FTSE 100.


Yeah, I was looking forward to the Ant IPO. It woulda, coulda, shoulda been a big windfall for Scottish Mortgage. Who knows what'll happen there now.

torata

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Re: Scottish Mortgage heading for where

#615230

Postby scrumpyjack » September 15th, 2023, 6:06 pm

A recent interview with Tom Slater. Some new insights perhaps

https://www.investmentweek.co.uk/discus ... te-markets

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Re: Scottish Mortgage heading for where

#634210

Postby swill453 » December 15th, 2023, 5:29 pm

Up a useful 25% from its low earlier this year. Better days to come?

Scott.


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