Scottish Mortgage Investment Trust Reports Strong NAV Growth and Dividend Increase
Why we think this is good
The investment trust has delivered impressive results in a challenging global environment. With an 11.2% increase in NAV, outperforming the FTSE All-World index, and a 3.3% dividend hike, Scottish Mortgage continues to demonstrate its ability to generate value for shareholders. The company's focus on resilience and adaptability, coupled with its long-term investment strategy in high-growth sectors, positions it well for future growth. While there are some concerns such as decreased revenue and cash levels, these are outweighed by the strong overall performance and positive outlook.
Key Points
- NAV per share (borrowings at fair value) increased by 11.2% to 1,037.0p
- Total dividend increased by 3.3% to 4.38 pence per share
- Net return after taxation of £1,217,759,000
- Share price discount to NAV widened from 4.5% to 9.0%
- Active share buyback program with 210 million shares bought back
- Focus on resilience, adaptability, and innovation in investment strategy
- Outperformed FTSE All-World index which returned 5.5%
Summary
Scottish Mortgage Investment Trust has delivered a strong performance for the year ended 31 March 2025. The company's NAV per share increased by 11.2%, significantly outperforming the FTSE All-World index's 5.5% return. Despite a decrease in revenue, the trust reported a substantial net return after taxation of £1.2 billion. The company has continued its impressive track record of dividend growth, increasing its total dividend by 3.3% to 4.38 pence per share, marking the 42nd consecutive year of dividend increases. The trust's investment strategy focuses on resilience, adaptability, and innovation, with a particular emphasis on companies at the forefront of technological change and structural shifts in the global economy. While acknowledging global economic uncertainties and geopolitical tensions, the company remains confident in its approach and its ability to identify and invest in exceptional growth companies for the long term.