TL;DR
Scottish Mortgage Investment Trust PLC (ticker: SMT) is managed by Baillie Gifford and listed on the London Stock Exchange. It invests primarily in global growth companies with long-term compounding potential, including a significant allocation to private (unlisted) companies. Past performance has been strong over the long term but the trust experienced a sharp drawdown in 2022. This guide is factual information only and does not constitute investment advice.
Last reviewed: June 2026
Scottish Mortgage Investment Trust PLC is one of the most discussed investment trusts in the UK retail investment market. Founded in 1909 and managed since 2000 by Baillie Gifford's Tom Slater and Lawrence Burns (following James Anderson's departure in 2022), it has built a reputation for high-conviction, long-term investing in technology and innovation-driven companies.
Investment trusts are closed-ended funds listed on a stock exchange, which means shares trade on the open market at a price that can differ from the underlying net asset value (NAV). Scottish Mortgage's share price has at various points traded at a significant premium and a significant discount to NAV, which is an important factor when buying or selling.
KEY FACTS
- Listed: London Stock Exchange (ticker: SMT). Included in the FTSE 100.
- Manager: Baillie Gifford and Co. (Edinburgh).
- Total assets: approximately 12 billion pounds as of June 2026.
- Private company allocation: historically 20 to 30 percent of the portfolio in unlisted companies.
- Ongoing charges: approximately 0.32 percent per annum (one of the lowest among actively managed trusts).
- Qualifies for ISA and SIPP investment; no minimum investment through most platforms.
What Scottish Mortgage invests in
The trust invests in what Baillie Gifford describes as exceptional growth companies with the potential to be significantly larger in ten to twenty years. The portfolio is deliberately concentrated, typically holding 30 to 100 companies, with a high-conviction approach that tolerates significant volatility in exchange for long-term return potential.
Historically, the portfolio has included companies such as Amazon, Tesla, NVIDIA, Moderna, Spotify and ByteDance (the parent of TikTok). The specific holdings change over time and the full portfolio is published regularly on the Baillie Gifford website and in the trust's annual report. As of early 2026, the largest public equity holdings include a range of technology, healthcare and industrial companies in the US, China and Europe.
A distinctive feature of Scottish Mortgage is its allocation to private (unlisted) companies, which have included SpaceX, Stripe, Northvolt and other pre-IPO businesses. The Association of Investment Companies (AIC) requires trusts to disclose the fair value of unlisted holdings, which is determined by Baillie Gifford using independent valuation methodologies. These valuations are inherently more uncertain than market prices for listed securities.
The trust has a significant allocation to companies listed in the United States and China, which introduces currency risk and geopolitical risk. The China allocation became a source of investor concern from 2021 following regulatory actions by the Chinese government against several technology companies in which Scottish Mortgage had significant holdings.
Scottish Mortgage's performance history
Over the decade to 2021, Scottish Mortgage delivered exceptional returns, rising more than 700 percent in share price terms. This performance was driven primarily by the rapid appreciation of growth technology stocks, including Tesla and Amazon, which were among the trust's largest holdings.
In 2022, the trust fell sharply, with the share price declining approximately 45 percent. This was driven by the broad sell-off in high-growth technology stocks as interest rates rose globally, combined with write-downs in the valuations of private company holdings. The fall was steeper than the broader global equity market, reflecting the trust's concentration in high-valuation growth companies.
From 2023 to 2026, the trust partially recovered as growth stocks rebounded, though the share price continued to trade at a discount to NAV for much of this period. Investors buying at a discount to NAV are effectively buying the underlying assets at less than their assessed value, which can be attractive but also reflects market scepticism about the valuations of private holdings.
Past performance is not a reliable indicator of future results. Scottish Mortgage's long-term track record is strong, but the trust's high-conviction, concentrated approach means it can underperform significantly during periods when growth stocks are out of favour.
How investment trust pricing works: premium vs discount
Unlike open-ended funds (OEICs and unit trusts), investment trust shares trade at market prices on a stock exchange. The NAV per share is calculated daily based on the value of the underlying portfolio. The share price may be higher than NAV (a premium) or lower than NAV (a discount).
For Scottish Mortgage, the premium or discount is an important factor. When the trust traded at a 30 percent premium in 2020 and 2021, buyers were paying 30 percent more than the assessed value of the underlying assets. When it subsequently fell to a 10 to 20 percent discount in 2022 and 2023, new buyers were effectively accessing those assets at a below-NAV price.
The current premium or discount is published daily on the Baillie Gifford website, on the London Stock Exchange website, and by investment platforms. Monitoring this figure when buying or selling helps avoid paying an inflated price relative to underlying asset value.
How to buy Scottish Mortgage shares
SMT shares can be purchased through any UK-registered stockbroker or investment platform that provides access to London Stock Exchange-listed securities. Major platforms offering SMT include Hargreaves Lansdown, AJ Bell Youinvest, Fidelity Personal Investing, Interactive Investor, and Vanguard (which offers it through its investment platform rather than its own funds).
The minimum investment is determined by the platform, not the trust itself. Most platforms allow purchases of a single share or regular monthly investments in fractional amounts. As of June 2026, SMT shares trade at roughly 8 to 10 pounds per share, making individual share purchases accessible to most retail investors.
SMT can be held in a Stocks and Shares ISA, SIPP or general investment account. Holding in an ISA shelters dividends and capital gains from tax. Holding in a SIPP provides the additional benefit of pension contribution tax relief on the amount invested. Scottish Mortgage does not pay a significant dividend; its focus is on capital growth rather than income.
Ongoing charges and costs
Scottish Mortgage's ongoing charges figure (OCF) is approximately 0.32 percent per annum, which is low relative to most actively managed investment trusts and significantly lower than many actively managed open-ended funds. There is no performance fee. This means the total annual cost of holding SMT is primarily the platform charge (typically 0.15 to 0.45 percent per year depending on the platform) plus the 0.32 percent OCF.
There is also a bid-offer spread when buying and selling shares on the exchange, though for a FTSE 100 constituent like SMT, the spread is typically narrow (0.1 to 0.2 percent). Stamp duty of 0.5 percent applies when buying UK-listed shares, including SMT.
Frequently asked questions
What does Scottish Mortgage invest in?
Scottish Mortgage invests primarily in global growth companies selected for their potential to be significantly larger in ten to twenty years. Holdings have included Amazon, Tesla, NVIDIA and a range of private companies. The portfolio is concentrated and changes over time; current holdings are published on the Baillie Gifford website.
Is Scottish Mortgage a good investment?
This guide does not constitute investment advice. Scottish Mortgage has a strong long-term track record but experienced a significant drawdown in 2022. It is a concentrated, high-risk trust suited to investors with a long time horizon who understand that returns can be highly volatile. Investors should assess their own risk tolerance and consider taking independent financial advice.
How do I buy Scottish Mortgage shares?
SMT shares (ticker: SMT) can be purchased through any UK investment platform or stockbroker with access to the London Stock Exchange, including Hargreaves Lansdown, AJ Bell, Fidelity and Interactive Investor. They can be held in an ISA or SIPP for tax efficiency. Stamp duty of 0.5 percent applies on purchase.
What is the difference between NAV and share price for Scottish Mortgage?
NAV (net asset value) is the calculated value of the trust's underlying portfolio per share. The share price is what the market charges for a share. Scottish Mortgage has traded at both a premium (above NAV) and a discount (below NAV). Buying at a discount means accessing the assets at less than their assessed value; buying at a premium means paying more.
