Scottish Mortgage Investment Trust PLC
Legal Entity Identifier: 213800G37DCS3Q9IJM38
Results for the six months to 30 September 2025
The following is the unaudited Interim Financial Report for the six months to 30 September 2025 which was approved by the Board on 6 November 2025.
Chairman’s interim update
Introduction
I am pleased to report on a strong six-month period for your Company. Over the six months to 30 September 2025, Scottish Mortgage’s Net Asset Value per share rose by 22.9%, ahead of the FTSE All-World Index’s 15.4% gain. The share price increased by 20.9% (all figures on a total return* basis).
Whilst these results are encouraging, six months represents too short a time frame on which to judge performance given the long-term nature of the investment strategy. Investing in companies at the forefront of structural change means share price peaks and troughs are inevitable. We ask that shareholders remain aligned to our long investment horizon and are aware that returns are not delivered in a straight line.
Performance Drivers
| Total return* (%) | Six months to 30 September 2025 |
| NAV (borrowings at fair value) | 22.9% |
| Share price | 20.9% |
| FTSE All-World Index | 15.4% |
* Alternative Performance Measure.
The period’s strong returns reflected a growing market recognition that the companies driving fundamental technological and economic transformation have emerged from recent volatility with strengthened competitive positions.
Returns were broad-based across the portfolio, encompassing businesses operating in diverse geographies from Asia to the Americas and Europe. What united these contributors was not their sector classification, but rather their shared characteristics: the ability to scale efficiently, to benefit from compounding effects, and to operate with a long-term perspective in sectors undergoing structural change.
The performance demonstrated that patience through periods of market dislocation can be rewarded when underlying business fundamentals remain strong and innovation continues to advance. Further details are contained in the Managers’ Report.
| Total return* (%) | Five years to 30 September 2025 | Ten years to 30 September 2025 |
| NAV (borrowings at fair value) | 30.3% | 472.4% |
| Share price | 17.3% | 400.4% |
| FTSE All-World Index | 85.4% | 263.3% |
* Alternative Performance Measure.
Liquidity
The share price discount to NAV widened slightly from 9.0% to 10.5% over the six months to 30 September. During the period, the Company repurchased 75.2m shares, at a total cost of £765.4m.
The Company has bought back shares for consideration of £2.6 billion since the Board announced in March 2024 that the Company would make available at least £1 billion for the purpose of buybacks over the following two years. This activity has had a positive impact, including:
- limiting discount volatility
- meaningful accretion to net asset value
- helping to maintain a stable shareholder register
- narrowing the discount compared to the period prior to March 2024.
The Board continues to take a pragmatic approach in making capital allocation calls between buying back shares and other uses of capital such as making new investments and reducing debt. The Board and the Managers remain committed to the continuation of the buyback.
Beyond share buybacks, the Board is determined to stimulate demand for the Company’s shares and reduce the discount by continuing to develop and broaden marketing efforts in the UK and overseas. We recognise the importance of reaching potential shareholders who understand and appreciate the Company’s long-term investment approach.
Earnings and dividend
Revenue earnings for the period were higher than the comparable period, primarily due to the previous six months’ earnings being depressed by the write-off of Northvolt’s accrued bond income. Although income from the portfolio was slightly lower, the Board is proposing an unchanged interim dividend of 1.60 pence per share.
The portfolio generates limited income given that the companies we hold generally reinvest their earnings to pursue growth opportunities. Nevertheless, the Board recognises that many shareholders value the predictable and growing dividend. The Company is an ‘AIC Dividend Hero’, having increased its dividend for 43 consecutive years. The Board expects to declare an increased final dividend to maintain this status and continue this important trend.
Board
I would like to begin by expressing my deep gratitude to Justin Dowley who retired as Chairman at the Annual General Meeting in July. Justin served on the Board with distinction, from 2015, first as Audit Chair before assuming the Chairmanship for the final two years of his tenure. His expert leadership guided the Company through a period of considerable challenge, including significant market volatility and structural shifts in the investment trust sector. Justin’s calm stewardship, sound judgement and unwavering commitment to shareholders’ long-term interests have left the Company in a strong position. On behalf of the Board and shareholders, I thank him for his exceptional service.
It is both a delight and a privilege for me to have joined the Board of Scottish Mortgage and to serve as Chairman. The Company’s mission – to identify and support transformational growth businesses – is as compelling as it is important, and I look forward to working with my fellow Directors and the Managers to serve shareholders’ interests over the years ahead.
The Board values diversity of thought and experience in its composition. Directors with varied professional backgrounds, different cognitive approaches to problem-solving, and contrasting life experiences bring richness to our discussions that strengthens the quality of decision-making and the challenge brought to the Managers. This intellectual diversity enables us to question assumptions more effectively, consider issues from multiple perspectives, and better understand the complex and evolving markets in which the Company operates.
As previously announced, Professor Maxwell will retire following the conclusion of the AGM in 2026. As part of our ongoing board refreshment process, we are mindful of governance expectations regarding diversity in all its forms, including gender representation. The Board remains committed to maintaining a composition that combines diverse thinking with the skills and experience necessary to serve the long-term interests of shareholders effectively.
Outlook
We are living through a period of deep technological transformation. AI is reshaping how businesses operate, infrastructure supporting that change is in high demand, and progress is being made in areas as diverse as personalised healthcare, electrification, and digital content.
The companies driving these shifts operate across continents and sectors but share the same ambition: to reimagine what’s possible. Our task is to seek out these rare businesses creating the future, and to support them with long-term and constructive ownership. With a strong balance sheet, high conviction in the current portfolio, and patient capital, your Company is well positioned to deliver meaningful returns for shareholders over the coming years.
Christopher Samuel
Chairman
6 November 2025