• About Us
  • Privacy Policy
  • Contact
Mortgage Insurance Center
  • Home
  • Mortgages
  • Health Insurance
  • Home Insurance
  • Life insuranace
  • Finance Laws
    • Banking Laws
    • Assets
    • Interest Rate
    • Loans
No Result
View All Result
  • Home
  • Mortgages
  • Health Insurance
  • Home Insurance
  • Life insuranace
  • Finance Laws
    • Banking Laws
    • Assets
    • Interest Rate
    • Loans
No Result
View All Result
Mortgage Insurance Center
No Result
View All Result
Home Mortgages

Are Scottish Mortgage shares now a buy?

by Matthew Upton
May 28, 2022
in Mortgages
0
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter

[ad_1]

During the decade after the global financial crisis the Scottish Mortgage investment trust dominated the portfolios of many investors.

Its share price total return of more than 700 per cent meant that even after clients stopped adding to their holding, the proportion of their overall portfolio exposed to the trust kept rising. 

And with the trust being exposed to technology companies which offered products that were widely adopted during the pandemic, the share price gains seemed less the result of a bubble and more a rational pricing by the market of a changing world. 

But this year to date has seen a re-pricing, with the share price falling by around 50 per cent since January 1.

The reasons for this are numerous but includes a general market aversion to tech companies and biotech in a world of higher interest rates. Worries about the attractiveness of investing in Chinese companies amid recent regulatory interventions and the zero-Covid policy pursued by authorities in Beijing have also contributed to the under performance. 

Although the trust is associated with large-cap US tech, and continues to have Tesla and Amazon among its top 10 holdings, the fund managers have been increasing exposure to biotech and China in recent years.

Indeed, there are more Chinese large-cap tech stocks – Alibaba, Meituan and Tencent – than US ones in the top 10 holdings. 

Scottish Mortgage 10-year performance

The largest investment in the trust is the biotech Moderna, a company which developed a widely used Covid vaccine. 

The trust’s managers remained very bullish on China and in 2021 reduced US technology exposure in favour of buying more in China.

The soon-to-retire fund manager James Anderson annoyed a number of the company’s US institutional clients by brushing off concerns about the macro environment in China, saying that (under the presidency of Donald Trump) it was debateable whether the US would still be a democracy in 10 years. 

A third factor has been the investment in unquoted companies. 

Simon Elliott, head of investment trust research at Winterflood Securities, says: “Investors in Scottish Mortgage investment trust must be forgiven for feeling as if they’re riding a rollercoaster. The trust’s share price is now down more than 40 per cent so far this year and has halved since its peak in November last year.

“This begs the question, should existing investors sell and minimise the risk of a further decline? Conversely, is the current share price an interesting entry point? The answer to both these questions basically depends on investors’ timescale.

Scottish Mortgage is clear in its pursuit of the world’s most exceptional growth companies.

Anthony Leatham, Peel Hunt

“In our opinion, the trust suits long-term investors who can withstand significant drawdowns as have been seen in the past – most notably in 2008 at the time of the global financial crisis.”

Elliott adds: “The Baillie Gifford investment team has made it clear that their investment philosophy and approach has not changed, with a focus on identifying exceptional growth prospects, with the potential to generate significant returns. Their track record is impressive in this regard and we rate the long-term global growth team led by Tom Slater highly.”

[ad_2]

Source link

Previous Post

Fifth Third Bancorp: Attractively Positioned For Rising Rates (FITB)

Next Post

More oversight, transparency for Pennsylvania economic development loans proposed | State

Next Post

More oversight, transparency for Pennsylvania economic development loans proposed | State

Popular Posts

Ajanta Pharma : Newspaper Advertisements
Life insuranace

Taiming Assurance Broker : Announcement on behalf of the major subsidiary Link-Aim Life Insurance Broker Co.,LTD. to distribute dividends.

by Matthew Upton
July 28, 2022
0

Close Provided by: TAIMING ASSURANCE BROKER CO.,LTD. SEQ_NO 4 Date of...

Read more

Taiming Assurance Broker : Announcement on behalf of the major subsidiary Link-Aim Life Insurance Broker Co.,LTD. to distribute dividends.

20% interest rate on credit cards! Here’s how to avoid paying those high rates :: WRAL.com

Sens. Murphy, Blumenthal, Colleagues Reintroduce the Behavioral Health Coverage Transparency Act – InsuranceNewsNet

$1 billion in loans still available for agricultural funding in Ohio

How Long Do Car Accidents Stay on Your Record?

Rocket Mortgage Classic Wagers: Pick To Finish Top-10

Load More

Popular Posts

Hingham DPW Workers Deserve Respect, Decent Wages and Affordable Health Insurance

Hingham DPW Workers Deserve Respect, Decent Wages and Affordable Health Insurance

by Matthew Upton
July 5, 2022
0

Propy introduces blockchain title and escrow service

Propy introduces blockchain title and escrow service

by Matthew Upton
May 26, 2022
0

Biden administration sued after fertility awareness methods cut from health coverage

by Matthew Upton
June 15, 2022
0

Ajanta Pharma : Newspaper Advertisements

Taiming Assurance Broker : Announcement on behalf of the major subsidiary Link-Aim Life Insurance Broker Co.,LTD. to distribute dividends.

July 28, 2022

20% interest rate on credit cards! Here’s how to avoid paying those high rates :: WRAL.com

July 28, 2022
Edelweiss General Insurance launches India’s first on-demand, mobile telematics-based comprehensive motor insurance – SWITCH

Sens. Murphy, Blumenthal, Colleagues Reintroduce the Behavioral Health Coverage Transparency Act – InsuranceNewsNet

July 28, 2022

Categories

  • Assets
  • Banking Laws
  • Finance Laws
  • Health Insurance
  • Home Insurance
  • Interest Rate
  • Life insuranace
  • Loans
  • Mortgages

Tags

home loans mortgage personal loan
  • Privacy Policy
  • contact us

© 2023 JNews - Premium WordPress news & magazine theme by Jegtheme.

No Result
View All Result
  • About Us
  • contact us
  • Home
  • Home 2
  • Home 3
  • Privacy Policy

© 2023 JNews - Premium WordPress news & magazine theme by Jegtheme.