SMT's Stewart Heggie: 'How long do you let the discount go on without taking concerted action?'

'High conviction call'

Eve Maddock-Jones
clock • 3 min read

Scottish Mortgage has made a “high conviction call” to address its ongoing discount, with the launch of a minimum £1bn share buyback programme, which Baillie Gifford argued is part of its solution to the trust's discount.

This morning, the flagship product of the Edinburgh firm revealed it was embarking on the largest share buyback programme undertaken by an investment trust over the coming 24 months. Markets have responded positively to the announcement, with SMT shares up almost 4% since trading opened today (15 March), according to data from the London Stock Exchange. Shavar Halberstadt, equity research analyst at Winterflood Securities, said it was "reminiscent of Mario Draghi's ‘Bazooka' moment at the ECB - the SMT board has decided on a bold move, aiming to jolt the market into a correction". ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week