1. 5 key things we thought you’d like to hear

    From the 107th Scottish Mortgage AGM on June 30, 2016

    Quarter 3, 2016
  2. The 107th AGM of Scottish Mortgage Investment Trust once again saw presentations from the investment managers James Anderson and Tom Slater. We’ve captured some key points that each made on the day, as audio recordings and wanted you to have the opportunity to hear their thinking for yourself.
  4. 1. So what do we do, which we believe is a better way of investing?
  5. Our objective, and this does tie in and will tie in with questions about where dividends relative to capital gains are, is to identify great transformational companies at a very early stage of their existence and try and support them for decades into the future.
  6. 2. Two relatively new areas where we believe revolutionary and exponential change is just beginning to happen: Healthcare and Transportation/Energy.
  7. The core foundational technology in the changing of this is gene sequencing.

    We think in everything from solar energy costs, to electric vehicle performance, to battery technology, that you are at the start of exponential changes that are going to make it almost inevitable that within the next five years, that there will be no future for the oil industry.
  8. 3. Why the increasing number of unlisted companies is good news for the portfolio.
  9. We have held shares in Amazon for more than ten years. And that kind of behaviour really stands out amongst the short-termism that you see elsewhere.
  10. 4. In some less developed countries ecommerce is the future of retail and we are already seeking out those opportunities.
  11. It is going to be mobile commerce that dominates, underpinned by increasing consumption, paired with the paucity of modern, efficient high street retail, with which to compete.
  12. 5. So what about the next five or ten years?
  13. There is a lot to be excited about here. Whether it is the power of some of the largest companies in the portfolio continuing to increase and the advantages they have looking really pretty formidable or, at the same time, the remarkable amount of innovation we have been able to find.

  14. A full transcript of the presentation and the shareholder question and answer session which followed is available here. 

  15. Important Information and Risk Warnings

    The views expressed are those of James Anderson and Tom Slater and should not be considered as advice or a recommendation to buy, sell or hold a particular investment. They reflect personal opinion and should not be taken as statements of fact nor should any reliance be placed on them when making investment decisions.

    This communication was produced and approved on the stated date and has not been updated subsequently. It represents views held at the time of writing and may not reflect current thinking.

    This article contains information on investments which does not constitute independent investment research. Accordingly, it is not subject to the protections afforded to independent research and Baillie Gifford and its staff may have dealt in the investments concerned. Investment markets and conditions can change rapidly and as such your capital might be at risk.

    Scottish Mortgage Investment Trust PLC, managed by Baillie Gifford & Co Limited, is a listed UK company. As a result, the value of its shares, and any income from them, can fall as well as rise and investors may not get back the amount invested.

    The Trust invests in overseas securities and changes in the rates of exchange may also cause the value of your investment (and any income it may pay) to go down or up.

    The Trust's risk could be increased by its investment in unlisted investments. These assets may be more difficult to buy or sell, so changes in their prices may be greater.

    Scottish Mortgage also invests in emerging markets where difficulties in dealing, settlement and custody could arise, resulting in a negative impact on the value of your investment.

     

    For a Key Information Document, please visit our literature library.

     

    Ref : 33239 IND WE 0607

  16. James Anderson

    James graduated BA in History from Oxford University and after postgraduate study in Italy and Canada he gained an MA in International Affairs in 1982. He is a Trustee of the Johns Hopkins University. He joined Baillie Gifford in 1983 and became a Partner in 1987. He headed our European Equity team until 2003 when he founded our Long Term Global Growth strategy. He has Chaired the EAFE Alpha Portfolio Group since its inception in 2003 and has been the Manager and then Joint Manager of Scottish Mortgage Investment Trust since 2000. In 2015 James became the Chair of our newly formed Equity Improvement Group. He has also served as a member of the Advisory Board of the government sponsored Kay Review and as Chair of the subsequent industry working group that set up the UK Investor Forum.

  17. Tom Slater

    Tom graduated BSc in Computer Science with Mathematics from the University of Edinburgh in 2000. He joined Baillie Gifford the same year and worked in the Developed Asia and UK Equity Teams before joining the Long Term Global Growth Team at the start of 2009. Tom became a Partner in the firm in 2012. Tom was appointed Joint Manager of Scottish Mortgage Investment Trust in January 2015 having served as Deputy Manager for the previous five years. In 2015 Tom was appointed Head of the US Equities Team and is a decision maker on Long Term Global Growth portfolios. Tom’s investment interest is focused on high growth companies both in listed equity markets and as an investor in private companies.
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