should not invest in a product just because the managers have a material holding in it. However, at the very least there should be transparency so you can be fully informed and feed this into your ultimate decision on whether to invest or not.
these trusts against 66.4% for trusts in general. What could be the reason behind this performance differential? While in most cases managers will be working to the best of their ability to deliver returns for investors, the manager of a trust might only be in-situ for a few years and they therefore could be tempted
to make decisions which boost performance in the short term. However, managers with their own personal wealth tied up in their investment trust are likely to exercise more patience. Indeed, a patient approach to investing is typically a more rewarding one. Skin in the game is no guarantee of success and investors
A CHEF SHOULD EAT THEIR OWN COOKING Terry Smith, chief executive and chief investment officer of asset manager Fundsmith, comments: ‘It is important fund managers have skin in the game to truly deliver alignment of interest with investors and disclosure of their stake should be mandatory. Who would trust a chef who wouldn’t eat his/her own cooking?’ Yet as Investec notes: ‘While
What’s next? It’s a question we ask ourselves every day. So, we speak to academia, to authors, to people who think differently, to help us imagine the future. This helps us seek out those genuinely innovative businesses which are providing new solutions, and disrupting existing industries. As actual investors we believe it’s our task to find these companies, and make sure they reach your portfolio. Over the last five years the Scottish Mortgage Investment Trust has delivered a total return of 347.9% compared to 98.5% for the index*. And Scottish Mortgage is low-cost with an ongoing charges figure of just 0.36%**. 2017
2018
2019
2020
2021
SCOTTISH MORTGAGE
Standardised past performance to 31 March*
40.9%
21.6%
16.5%
12.7%
99.0%
FTSE ALL-WORLD INDEX
33.1%
2.9%
10.7%
-6.2%
39.6%
Past performance is not a guide to future returns. Please remember that changing stock market conditions and currency exchange rates will affect the value of the investment in the fund and any income from it. Investors may not get back the amount invested. Find out more by watching our film at scottishmortgageit.com A Key Information Document is available. Call 0800 917 2112.
Actual Investors
*Source: Morningstar, share price, total return in sterling as at 31.03.21. **Ongoing charges as at 31.03.21 calculated in accordance with AIC recommendations. Details of other costs can be found in the Key Information Document. Your call may be recorded for training or monitoring purposes. Issued and approved by Baillie Gifford & Co Limited, whose registered address is at Calton Square, 1 Greenside Row, Edinburgh, EH1 3AN, United Kingdom. Baillie Gifford & Co Limited is the authorised Alternative Investment Fund Manager and Company Secretary of the Trust. Baillie Gifford & Co Limited is authorised and regulated by the Financial Conduct Authority (FCA). The investment trusts managed by Baillie Gifford & Co Limited are listed UK companies and are not authorised and regulated by the Financial Conduct Authority.