[On :Freetrade:] Scottish Mortgage Investment Trust (SMT)

Couldn’t find another thread for this, if there is just transfer it over :+1:t3:

Anyone hold, or have any thoughts on SMT?

There’s a few of the pricier tech names I want in on but don’t want to overweigh my portfolio with them. Namely, Amazon, Alphabet, Tesla and the two big Chinese stocks Alibaba and Tencent.

After a bit of research this fund has been active since 1909, and has only failed to pay a dividend once in that time, still managing to pay even through both WW1 and WW2.

May look to start a position now with many of these stocks dropping from previous highs.

I have never invested in a trust (I’m a shares and ETFs guy, and big on company fundamentals).

How do you think about this investment? A constituent companies such as Illumina (DNA sequencing, intriguing) shoots up in value, will the SMT price follow? I vaguely recall from finance classes that the price movement is not “automatic” based on the value of the shares the trust holds, but fluctuates with the supply and demand, same as a share.

The other thing I know about trusts is that they are a bit expensive, normally above 1% fee.

Thank you for your thoughts.

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The price of a trust doesn’t need to match the value of its holdings. When you look up trusts you’ll either see a Premium or Discount to its NAV (net asset value). Lindsell Train for example was trading at a premium of over 50% for ages.

SMT’s holdings have changed a lot recently. Tesla is no longer their top holding. Clearly they cashed in when the price surged.

Long term holder here of SMT - still up around +48% on my investment.

It’s currently trading at a discount of -5.14% so could be a good time to dip in, if you are considering doing so.

In case you’ve missed it, here’s Freetrade’s info on investment trusts and funnily enough, they use SMT as an example: https://blog.freetrade.io/whats-an-investment-trust-c54d0e5925e4

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Like weenie I’ve been holding them for years, consistently good returns and decent fees.

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Out of curiosity, when did you buy?

Mostly 2015 and 2016. Last made a top up in 2018.

Okay interesting, thank you.

Had a wee look and they have outperformed the S&P on both the 2 year and 5 year charts.

I may stick in a small lump sum and like all my stocks hold long term.

There’s plenty of stocks in there I would like to own outright but this would give me more diversification again, with a trust that on paper has a proven track record :ok_hand:t3:

I hold SMT to, up 21% on my investment since Feb 2019. Bought it for exposure to some of the big tech names and liked the steeped in history aspect :smiley:

Good shout @weenie, not at that level for a good while:

On a similar vein the Polar Capital Technology Trust ( PCT ) now trades at a NAV discount of 8.35%.

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Got a small amount in and will keep topping up.

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One of my few actively managed funds. Have done superbly well in recent years with some very punchy weights in some high flying companies such as Amazon and Illumina.

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Given the general feel of smt’s holdings why no Microsoft?? Strange