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Scottish Mortgage heading for where

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

#398167

Postby scrumpyjack » March 23rd, 2021, 8:39 am

bluedonkey wrote:I think the discount/premium for SMT can be clouded by the off-market valuations of the substantial private equity holdings it has.


Another example of the value of their unquoted investments. This one has increased in value by 61% since SMT bought in only last summer.

https://citywire.co.uk/funds-insider/ne ... _news_list

Charlottesquare
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Re: Scottish Mortgage heading for where

#398302

Postby Charlottesquare » March 23rd, 2021, 1:23 pm

joey wrote:
scrumpyjack wrote:Another example of the value of their unquoted investments. This one has increased in value by 61% since SMT bought in only last summer.

https://citywire.co.uk/funds-insider/ne ... _news_list


One of the reasons I bought SMT was that I want exposure to companies that are yet to be listed. It seems the capital markets have significantly changed in their purpose even in my lifetime. Their primary purpose should of course be for raising capital whereas that seems to have taken a (very) back seat these days. AFAIK the number of listed companies in both the UK and US is c.50% of what it was, say, 25/30 years ago. That's a pretty good indicator that capital raises are happening by other means, presumably throughout different sectors, industries, etc. Being listed brings with it more scrutiny, so for investors, unlisted is not without extra risk. Obviously any SMT holder trusts the managers to perform due diligence. I'm just making a more general comment that the changes in the capital markets WRT raising funds is not a one way street.


I watched a presentation a while back that mentioned that these days companies are waiting far longer before they want to list so of course a lot of the growth value that previously might have flowed to the listed period of their lifecycle is now not available to mere mortal investors, by tapping into this market SMT grab for their shareholders this growth part .

Think it was this one with Stewart Heggie.

https://video.search.yahoo.com/search/v ... ction=view

Dod101
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Re: Scottish Mortgage heading for where

#398303

Postby Dod101 » March 23rd, 2021, 1:31 pm

I read somewhere that at least some of the reduction in quoted companies is because many companies are dealing in intellectual property of one sort or another which is capital lite compared to say running a steel mill and so they do not need to raise capital for the business. Of course many choose to be quoted in order that the founders can sell some shares and capitalise on their work.

Dod

Adamski
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Re: Scottish Mortgage heading for where

#399213

Postby Adamski » March 26th, 2021, 1:22 pm

As mentioned previously I took the opportunity from the recent tech sell off to buy some SMT. Over the past couple of weeks been converting my China holdings, 15% portfolio value, to SMT 5% and Monks 10%.

On the basis that move to more global rather than being overweight in one country. Arguably should have held onto China funds, but swopping one growth and volatile holding for another, but to one which is more diversified.

Also as SMT has lost 20%, if it was to return to its previous price by the end of the year, that would mean a gain of 25% from where it is now. maybe too optimistic, a return to half would be good for me. I guess this is dependent on whether inflation fears are realised, and how much of a rotation to value there continues to be.

kempiejon
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Re: Scottish Mortgage heading for where

#409332

Postby kempiejon » May 4th, 2021, 5:57 pm

I see SMT heading down again today, my limit order for £12.50 triggered.

kempiejon
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Re: Scottish Mortgage heading for where

#409340

Postby kempiejon » May 4th, 2021, 6:22 pm

ReallyVeryFoolish wrote:
kempiejon wrote:I see SMT heading down again today, my limit order for £12.50 triggered.

To buy, or to sell?

RVF


Buy, I sold a couple of months back to realise a capital gain for the year end planning. Freed up cash was directed to the ISA but I bought in the SIPP which has monthly additions of more cash and quarterly purchases - this limit order was outside my normal practice, let's see how that fares. I see it cost me 1249.94p to buy a share currently valued at 1211p.

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Re: Scottish Mortgage heading for where

#409473

Postby Nocton » May 5th, 2021, 8:59 am

ReallyVeryFoolish wrote:
kempiejon wrote:I see SMT heading down again today, my limit order for £12.50 triggered.

To buy, or to sell?
RVF

I sold at £12.50 to bring SMT's share of my total portfolio - ISA plus non-ISA - down from ~25% to ~17%. As with other posters, this is the result of SMT's spectacular performance over the last 10 years or so. Took a large CGT hit, but feel more comfortable now as never normally let one share go beyond 10%.

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Re: Scottish Mortgage heading for where

#410831

Postby Adamski » May 10th, 2021, 6:04 pm

Down 6.2% today! Do you know what's driving it? Seems to be more of a fall, than the tech market?

OLTB
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Re: Scottish Mortgage heading for where

#410832

Postby OLTB » May 10th, 2021, 6:06 pm

I don’t know if that’s the case - my holding in Allianz Technology Trust (ATT) was down 6.55% today :shock:

Cheers, OLTB.

thehaggistrap
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Re: Scottish Mortgage heading for where

#411124

Postby thehaggistrap » May 11th, 2021, 5:47 pm

Adamski wrote:Down 6.2% today! Do you know what's driving it? Seems to be more of a fall, than the tech market?


basically concerns that interest rates will rise as world recovers from covid.
apparently this affect tech / growth stocks dis proportionally as their value based on future earnings.

best advice is to strap in and ride it out.
despite an overall tech theme SMT is actually fairly well diversified across different sectors.

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Re: Scottish Mortgage heading for where

#411158

Postby Matchless » May 11th, 2021, 7:10 pm

Perhaps its the fear of the SNP and a haggis trap?

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Re: Scottish Mortgage heading for where

#411163

Postby airbus330 » May 11th, 2021, 7:17 pm

I'm hoping it dips some more, buying opportunity and see the benefit in 18 months time. Just so long as the Fed doesn't lose control of that inflation and it averages out at c2% after the blip up over.

thehaggistrap
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Re: Scottish Mortgage heading for where

#411166

Postby thehaggistrap » May 11th, 2021, 7:25 pm

Matchless wrote:Perhaps its the fear of the SNP and a haggis trap?


Maybe - Scottish Mortgage Trust has been a stand out performer in 2020.
I am more than 100% up....

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Re: Scottish Mortgage heading for where

#411470

Postby Wizard » May 12th, 2021, 8:32 pm

thehaggistrap wrote:
Adamski wrote:Down 6.2% today! Do you know what's driving it? Seems to be more of a fall, than the tech market?


basically concerns that interest rates will rise as world recovers from covid.
apparently this affect tech / growth stocks dis proportionally as their value based on future earnings.

best advice is to strap in and ride it out.
despite an overall tech theme SMT is actually fairly well diversified across different sectors.

May be why AAT seems to have been hit harder than SMT.

thehaggistrap
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Re: Scottish Mortgage heading for where

#411495

Postby thehaggistrap » May 12th, 2021, 10:14 pm

Wizard wrote:May be why AAT seems to have been hit harder than SMT.


Who knows!
Allianz is usually pretty steady as it is big tech stocks (microsoft / apple / google).
SMT can be more little volatile as it is more speculative growth investments.

With benefit of hindsight it is easy to not regret selling at last two peaks.
However the longer term trend is what is most important.
My advice is to leave both alone and try to ignore the peaks / troughs...

richfool
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Re: Scottish Mortgage heading for where

#411665

Postby richfool » May 13th, 2021, 2:41 pm

Scot.Mort Inv Tst
Preliminary Results
RNS Number : 4606Y
Scottish Mortgage Inv Tst PLC
13 May 2021
An extract from the above:
Earnings and dividend

The Managers seek to maximise total return by providing growth capital to a global portfolio of transformational public and private companies. One common characteristic across these companies is that many choose to retain and reinvest most of their earnings to support future growth. This results in a relatively low level of dividend income for your Company that represents a small and diminishing part of the overall return generated. The revenue earnings per share for Scottish Mortgage over the period were 0.62 pence - this represents a reduction on last year (1.55 pence in 2020), following a decline in income received from portfolio companies.

As a Board we acknowledge the importance of providing a predictable and growing level of dividend income, to help shareholders plan for their own overall portfolio income needs. The Directors are, therefore, recommending that this year the total dividend be increased by 5.2% to 3.42 pence.

The Company's revenue earnings for the year are insufficient to cover the dividend and the majority will be paid from realised capital reserves. Collectively, we believe this to be appropriate, given the relatively immaterial size of the element paid from capital compared with the scale of the distributable capital gains achieved over the long term

https://www.investegate.co.uk/scot.mort ... 00064606Y/

Dod101
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Re: Scottish Mortgage heading for where

#411676

Postby Dod101 » May 13th, 2021, 3:55 pm

thehaggistrap wrote:
Wizard wrote:May be why AAT seems to have been hit harder than SMT.


Who knows!
Allianz is usually pretty steady as it is big tech stocks (microsoft / apple / google).
SMT can be more little volatile as it is more speculative growth investments.

With benefit of hindsight it is easy to not regret selling at last two peaks.
However the longer term trend is what is most important.
My advice is to leave both alone and try to ignore the peaks / troughs...


I sold SMT on 4 occasions last year and of course in retrospect might have been better leaving it alone. I sold once again this year in February at £14.10, just about its peak for the time being. My now current holding, even at today's price, is still worth more than I started with on 1 Jan 2020. It has been the most amazing share in the last 18 months or so. We all know it can be volatile which is why I was selling last year. I do not give advice but I would suggest that it depends entirely on one's circumstances what you do. Since there is virtually no dividend I am very happy to take some capital profits and reinvest most elsewhere.

Dod

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Re: Scottish Mortgage heading for where

#411902

Postby jonb1950 » May 14th, 2021, 12:37 pm

I first invested in 2017, largely encouraged by favourable comments here and on the old Motley Fool boards. It has done very well for me over the past few years.

Like some others, on a couple of occasions I trimmed, then bought back later. My timing has been misconceived, but far from disastrous. With hindsight, I would have done better had I invested and then just left it alone, which is now my intention.

An article from Trustnet is an interesting read, reinforcing the impression that SMT is an unusual beast.
https://www.trustnet.com/news/13259133/ ... bly-broken

NotSure
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Re: Scottish Mortgage heading for where

#415322

Postby NotSure » May 26th, 2021, 3:26 pm

Another article from James Anderson - goes over some of the same ground as earlier posts, but I think it is different (apologies if not)

https://www.bailliegifford.com/en/uk/individual-investors/funds/scottish-mortgage-investment-trust/ic-article/2021-q2-scottish-mortgage-manager-reviews-sm-james-anderson-manager-review-ind-we-2008

scrumpyjack
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Re: Scottish Mortgage heading for where

#415340

Postby scrumpyjack » May 26th, 2021, 4:27 pm

Hargreaves Lansdown have just issued a reasonably fair summary of SMT.

https://www.hl.co.uk/news/articles/scot ... Override=1


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