Scottish Mortgage 'under pressure' due to stretched private assets exposure

Several possible remedies

Valeria Martinez
clock • 5 min read

Scottish Mortgage is sitting in an uncomfortable position with its private equity exposure at full capacity, but analysts have pointed out several ways the managers of the £14.5bn investment trust giant could relieve some of the pressure.

As a result of public equity market falls, particularly among the growth stocks that the trust focuses on, the unlisted portion of Scottish Mortgage's portfolio has risen above its self-imposed limit of 30% for the second time in nine months. While going over the 30% limit does not represent a breach of the investment policy, as it applies at the time of purchase, it means that there is little scope for the managers to make any follow-on investments or invest in new opportunities. Emma Bird, head of investment companies research at Winterflood, views this as the biggest concern for th...

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