Scottish Mortgage Investment Trust PLC
Legal Entity Identifier: 213800G37DCS3Q9IJM38
Results for the year to 31 March 2026
| NAV (borrowings at fair value)* | 27.4% |
| NAV (borrowings at book value)* | 27.9% |
| Share Price* | 26.8% |
| FTSE All-World Index† | 18.0% |
* Alternative Performance Measure – see Glossary of terms and Alternative Performance Measures at the end of this announcement.
† In sterling terms.
The following is the Preliminary Results Announcement for the year to 31 March 2026 which was approved by the Board on 26 May 2026.
Statement from the Chair
Introduction
This year has been characterised by a complex and shifting backdrop for investors. Markets continued to contend with uncertainty around interest rates, inflation, geopolitics and trade policy. More recently, war in the Middle East, sharp moves in oil prices and a significant sell-off in parts of the software market have served as a reminder that the path of progress is seldom straightforward.
At the same time, however, the market has increasingly recognised the scale of opportunity presented by artificial intelligence (‘AI’), the infrastructure needed to support it, and the companies capable of using it to reshape their industries. We are therefore witnessing what may prove to be a once-in-a-generation shift in technology, with value being reallocated across the global economy. Periods of such profound change are often accompanied by volatility, but they have historically created significant opportunities for long-term investors.
Against this backdrop, I am pleased to report a strong year for Scottish Mortgage, both in absolute and relative terms. While encouraging, it is important to reiterate that our investment approach is long term in nature, and performance should not be judged over a single year. The companies in which we invest are often at the forefront of technological and structural change, and returns are therefore unlikely to be linear. Our strategy is built on the belief that a relatively small number of exceptional companies can drive a disproportionate share of long-term returns. Identifying and holding these outliers requires patience and a willingness to tolerate volatility, which is an inherent feature of investing in companies at the forefront of change. Scottish Mortgage’s ability to access both public and private markets remains a distinctive feature of this approach.
We therefore believe shareholders are best served when their own investment in Scottish Mortgage is similarly long term and aligned with the long-term nature of the Company’s investment approach.
Performance
| Year to 31 March 2026 | 1 year | 3 years | 5 years | 10 years |
| Share price | 26.8% | 78.1% | 7.1% | 379.7% |
| NAV | 27.4% | 57.9% | 12.8% | 435.2% |
| FTSE All-World Index | 18.0% | 50.5% | 68.2% | 233.9% |
| Global Sector Average – Share price | 16.8% | 53.1% | 31.1% | 288.2% |
| Global Sector Average – NAV | 16.9% | 48.1% | 66.0% | 222.1% |
Over the year to 31 March 2026, the Company’s net asset value (‘NAV’) total return was 27.4% and its share price total return was 26.8%. Over the same period, the FTSE All-World Index returned 18.0%.
A notable contributor to performance was SpaceX, where continued strong operational execution has led to a significant upward revaluation, increasing its position as the Company’s largest holding by some margin. This highlights both the importance of access to leading private companies and the extent to which a small number of exceptional investments can drive long‑term returns. A separate briefing note on SpaceX, including subsequent public information following its IPO filing, is available on the Company’s website: scottishmortgage.com‡.
While performance over the year is encouraging, it follows a more challenging period for growth investing, which continues to influence the Company’s five-year record. Shareholder experience will therefore vary depending on the period considered.
Over the longer term, however, performance remains strong. The ten-year NAV total return of 435.2% compares favourably with 233.9% from the FTSE All-World Index, reflecting the benefits of a patient, long-term approach.
As in previous years, we emphasise that one year is too short a timeframe over which to assess performance. Our focus remains firmly on long-term outcomes, and the Board continues to believe that the portfolio is well positioned to deliver attractive returns over time.
Change in Investment Policy
Following the year end, shareholders approved a targeted change to the Company’s investment policy at a General Meeting held on 10 April. This provides the Managers with limited additional flexibility to invest in private companies when the portfolio is above the 30% limit, through an additional capacity of up to £250 million, subject to annual shareholder approval.
This is a modest but important evolution. It ensures that the Company is not forced to forgo attractive new or follow-on investment opportunities in exceptional private businesses, while maintaining robust guardrails and oversight.
Value for Money
We remain determined that shareholders should keep as much as possible of the returns generated by their investment. Low costs are central to the Scottish Mortgage proposition.
The Company’s ongoing charges remain very low at approximately 0.33%, and there are no performance fees. This is particularly important given the breadth of access Scottish Mortgage offers. Few vehicles provide shareholders with exposure to both listed and private growth companies in a single, liquid portfolio. Fewer still do so at such a low cost.
Private market exposure is often associated with high fees and limited access. Scottish Mortgage provides access to many exceptional private companies through the investment trust structure, many of which are now large, established businesses rather than early-stage ventures, with daily liquidity in the Company’s shares and a fee structure that remains highly competitive.
Financial Position
The Company’s financial position remains robust. During the year, a number of refinancing actions were undertaken, maintaining a diversified and flexible debt structure. The overall cost of debt remains low at approximately 3.6%.
Gearing has naturally reduced slightly over the year, moving from around 13% to approximately 11%, reflecting the growth in the portfolio rather than a reduction in absolute borrowings. The Board continues to view gearing as a long-term tool to enhance returns, used judiciously and with appropriate discipline.
Earnings and Dividend
Revenue earnings have returned to broadly similar levels to 2024, as 2025 was impacted by the write-off of accrued interest income on the Northvolt Convertible Note. As has consistently been the case, the portfolio is primarily focused on capital growth rather than income generation, with many of our largest holdings reinvesting cashflows rather than distributing income.
Nevertheless, the Company continues to maintain its long track record of dividend growth and remains an AIC ‘Dividend Hero’, having increased its dividend for 43 consecutive years. The total dividend for the year will increase by 4.3% to 4.57 pence per share, with a final dividend of 2.97 pence payable on 10 July 2026.
Discount Management
The Board remains focused on managing the Company’s share price discount and premium to NAV. Over the year, the discount moved modestly from approximately 9.0% at March 2025 to around 9.5% at March 2026, despite continued buyback activity at scale.
It is worth noting that the discount at the year end was influenced by a sharp increase in the Company’s NAV on the final day of the reporting period. Absent this movement, the year-end discount would have been somewhat narrower.
Encouragingly, post year-end, renewed investor interest, has resulted in the Company trading at a modest premium.
In line with the Company’s policy, shares have been issued at a premium since the year end. The Board remains committed to continuing buybacks should the shares return to trading at a discount.
ESG
The Board continues to support the Managers’ approach to environmental, social and governance considerations, which are integrated into the investment process. We believe that thoughtful engagement with portfolio companies on these issues contributes to long-term value creation.
Shareholder Engagement
Engagement with shareholders remains a priority. Key events during the year included the second Scottish Mortgage Digital Conference and investor forums in Edinburgh and London. The Company has also continued to broaden its engagement internationally, reflecting ongoing efforts to develop the overseas shareholder base.
The ‘Invest in Progress’ podcast series continues to be an important part of our engagement, providing shareholders with direct insights from the Managers and leaders of portfolio companies. The continued success of the series reflects the value placed on clear and accessible communication.
The Annual General Meeting will be held at 4.30pm on Thursday 2 July 2026 at the National Galleries of Scotland, Princes Street Gardens entrance, Hawthornden Lecture Theatre, The Mound, Edinburgh EH2 2EL, and we encourage shareholders to attend.
Board Composition
I am delighted to welcome Heather Manners to the Board during the year. Heather brings valuable experience across investment management, investment trusts and financial services, which will further strengthen the Board’s collective expertise.
As previously announced, Professor Patrick Maxwell will retire from the Board following many years of dedicated service. On behalf of the Board, I would like to thank Patrick for his significant contribution, particularly his insight and perspective in areas such as healthcare and scientific innovation. Sharon Flood will succeed Patrick as Senior Independent Director.
During the year, the Board established a Remuneration Committee, chaired by Sharon Flood. In addition to Directors’ fees, the Committee is expected to consider certain aspects of Board effectiveness and development. The Board has also made use of working groups to support oversight of important areas of activity as the needs of the Company develop.
Outlook
Looking ahead, the environment remains uncertain. Geopolitical tensions, evolving economic policy and structural shifts in markets will continue to influence sentiment. In a more fragmented world, supply chains, capital flows and regulatory environments are all in flux, creating both risks and opportunities for global investors.
At the same time, we believe we are in the early stages of a profound technological transition. Artificial intelligence is not simply another incremental innovation; it has the potential to reshape industries, alter competitive dynamics and change where value accrues across the economy. As with previous paradigm shifts, the ultimate winners are unlikely to be obvious in advance and may emerge from different geographies, sectors and stages of development.
In this context, the Board continues to support the Managers’ long-term, globally unconstrained approach. This includes maintaining exposure to selected Chinese companies where compelling opportunities exist, notwithstanding a more challenging domestic economic backdrop and heightened competitive dynamics. It also includes continued participation in private companies, where many of the most important innovations are taking place.
Periods of rapid change are rarely comfortable. However, they are often the most rewarding for investors able to remain patient and focused on long-term outcomes. The Board remains confident that Scottish Mortgage’s approach, of seeking out exceptional companies and supporting them over extended periods, positions the Company well to capture these opportunities and to continue delivering attractive long-term returns for shareholders.