Scottish Mortgage Investment Trust Plc (LON:SMT) has announced its 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 to30 September 2025 |
| NAV (borrowings at fair value) | 22.9% |
| Share price | 20.9% |
| FTSE All-World Index | 15.4% |
* Alternative Performance Measure – see Glossary of terms and Alternative Performance Measures below.
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 – see Glossary of terms and Alternative Performance Measures below.
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, Scottish Mortgage Investment Trust
6 November 2025
Interim management report
The six months to 30 September 2025 have been a period of meaningful progress, not only in markets, but more importantly, in the companies leading fundamental change. 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).
These results reflect renewed investor interest in innovation and growth but also a recognition that many of the companies driving transformation have emerged from the recent dislocation stronger, more efficient, and more ambitious.
A Global Engine of Progress
This period’s strongest returns came from companies building real capabilities across a wide range of sectors and geographies. It has become increasingly clear that the forces reshaping the global economy, from artificial intelligence to digital commerce and electrification, are not confined to any one country or industry. Our top contributors reflected this global diversity.
The build-out of artificial intelligence infrastructure continues to accelerate, and the companies enabling this transformation are increasingly being recognised for their strategic value. Our holdings in ASML and TSMC, essential suppliers to the world’s most advanced chipmakers, delivered strong returns as investment in computing power remained a top priority for both enterprises and governments. The performance of NVIDIA reinforced the broader opportunity around AI hardware and software. Further up the stack, Cloudflare and Snowflake benefited as businesses continued upgrading their digital architecture to better handle distributed workloads, data integration, and AI‑enhanced applications.
The expansion of digital platforms, both consumer- and enterprise-facing, also contributed significantly. Companies like Roblox, Meta, and Spotify appreciated as user engagement and monetisation improved. In each case, long-term product and network investments are bearing fruit. These platforms have shown that when usage and creator ecosystems deepen, business models become more resilient and scalable. Likewise, Netflix demonstrated that disciplined content investment and pricing power can still produce robust growth in a more mature market.
In commerce and logistics, our holdings in MercadoLibre and Sea performed well. These businesses, often underappreciated due to their regional focus in Latin America and Southeast Asia, are building scaled and profitable ecosystems not just in ecommerce, but also in digital payments and financial services. The story is similar at Shopify and Doordash, which capitalised on previous infrastructure investment to improve profitability and capital efficiency.
We also saw renewed investor attention in companies tied to electrification and clean energy. CATL, the dominant Chinese battery manufacturer, and Tesla, a long-standing holding, both contributed positively. Despite differing regulatory and competitive dynamics, each benefits from the global trend toward electrification, and from deep vertical integration in their respective segments.
Underlying all these businesses is a shared set of characteristics: the ability to scale efficiently, to benefit from compounding network or data effects, and to operate with a long-term view in sectors undergoing structural change. Whether in Taiwan, Brazil, Sweden, Singapore or Silicon Valley, these companies are pushing the boundaries of what’s possible and the market has begun to take notice.
Investing in the Next Generation
In recent months, we have introduced a number of new holdings that reflect how the global economy is changing. While the sectors vary, the companies share important traits: they are founder-led, ambitious, and well placed to benefit from long-term shifts in technology, consumer behaviour and energy.
A key area of interest for us is the way people work, create, and interact online. We invested in Figma, which is becoming the standard design tool for building websites, apps and digital services. It helps teams work together in real time and is already used by many of the world’s largest companies. We also bought shares in AppLovin, a company that helps mobile games and apps reach the right audiences through better advertising. As people spend more time on their phones, AppLovin is helping app developers grow their businesses more efficiently.
We continue to look for platforms that understand the next generation of internet users. Xiaohongshu, or “Little Red Book”, is one of the most popular lifestyle platforms in China. Its users are mostly young and urban and use it to discover products and share ideas about fashion, beauty, travel and more. The platform is growing quickly but still has lots of room to expand through advertising and ecommerce.
Electrification remains one of the most important global trends. We added CATL, the world’s largest battery maker, which supplies electric vehicle and energy storage companies across Asia, Europe and the US. We also added to our position in BYD, a Chinese company that makes electric cars and buses. Both companies are positioned to benefit as transport systems shift away from fossil fuels.
Finally, we invested in Anthropic, a company building the next generation of artificial intelligence. While still at an early stage, it is one of a small number of teams globally with the expertise to train powerful AI models. These technologies could reshape how people interact with software, and how information is processed and used. We believe the company has the right mix of technical depth, safety focus and commercial potential. Anthropic (like Xiaohongshu) is a private company. Access to private companies is a necessity for investors wanting exposure to the new generation of companies focused on training AI models.
Funding has come from reductions in holdings such as Amazon, Roblox, Spotify, Meta Platforms, Netflix, Tempus AI, MercadoLibre and Shopify. Each has delivered operational progress, often with improved financial performance or renewed investor recognition. These reductions were not driven by any loss of conviction. On the contrary, we remain supportive of their long-term potential and in all cases retain meaningful positions.
Beneath the Headlines
Inflation has eased meaningfully from its post-pandemic peaks, though it remains above historical norms in many parts of the world. Interest rates appear to have peaked for now, and while central banks are in no rush to ease, market expectations are more stable than they have been in some time. Geopolitical tensions from US-China rivalry to regional conflicts continue to shape supply chains and national policy. However, we believe the most important shifts are not occurring in policy corridors, but in labs, datacentres, and factories around the world.
This is a period of deep technological transformation. AI is reshaping how businesses operate and how decisions are made. The infrastructure powering that change is in high demand. But progress is not limited to computing. We’re seeing progress in areas as diverse as personalised healthcare, electrification, logistics, and digital content. The companies driving these shifts operate across continents, cultures, and sectors but they share the same ambition to reimagine what’s possible.
Patience, Rewarded
Periods of strong performance are welcome, but they do not change our approach. We are not chasing short-term trends or market approval. We are long-term owners, focused on identifying the exceptional few companies that can deliver transformational outcomes over decades.
Many of the companies that contributed most this period did so after long stretches of being out of favour. Their short-term returns were not linear nor were they predictable. But they reflect what we believe is the essence of successful investing: patience in the face of noise, and conviction in the face of doubt.
We thank shareholders who share that mindset. Our task is to seek out the rare businesses creating the future, and to support them with long-term and constructive ownership, wherever in the world they may be.
Tom Slater
Baillie Gifford & Co Limited
Managers and Secretaries
6 November 2025
* Alternative Performance Measure – see Glossary of terms and Alternative Performance Measures below.
Total return information sourced from LSEG/Baillie Gifford.
See disclaimer below.
Past performance is not a guide to future performance.
The principal risks and uncertainties facing the Company are set out at the end of this announcement.
Responsibility statement
We confirm that to the best of our knowledge:
a) the condensed set of Financial Statements has been prepared in accordance with FRS 104 ‘Interim Financial Reporting’;
b) the Interim Management Report includes a fair review of the information required by Disclosure and Transparency Rule 4.2.7R (indication of important events during the first six months, their impact on the condensed set of Financial Statements and a description of the principal risks and uncertainties for the remaining six months of the year); and
c) the Interim Financial Report includes a fair review of the information required by Disclosure and Transparency Rule 4.2.8R (disclosure of related party transactions and changes therein).
By order of the Board
Christopher Samuel
Chairman
6 November 2025
