TOP NEWS: Scottish Mortgage Net Asset Value Falls; reduces exposure to China

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(Alliance News) – Scottish Mortgage Investment Trust PLC said on Friday its net asset value fell in the first half, despite increasing its dividend.

The tech-focused investor said its NAV per share as of September 30 was down 18% to 841.7 pence from 1,021.8 pence as of March 31. NAV per share was 39% lower year-on-year at 1,381.1 pence. It signaled a swing to a negative total NAV return of 17%, from a positive return of 16% a year ago.

The company turned to an interim pre-tax loss of £2.57bn, compared to a profit of £2.67bn the previous year.

Scottish increased its interim dividend by 5.2% to 1.60p per share from 1.52pa a year ago.

Looking ahead, the company noted growing friction between the United States and China amid rising interest rates that both create a “problematic environment to navigate.”

The company noted that it had cut several Chinese holdings, such as long-standing investments in Alibaba Group Holding Ltd and Tencent Holdings Ltd due to the country’s regulatory environment.

Scottish Mortgage said Moderna Inc remains its largest holding, which continues to advance its infectious disease portfolio, including a bivalent booster for Covid.

At issuing entity Tesla Inc, the company noted that sales were strong. However, he said battery cell supply chain issues remain the biggest constraint.

The investment trust said it invested more in Swedish battery developer Northvolt AB, which is now one of its largest positions. He sees Northvolt on track to supply a rapidly growing electric vehicle market.

Scottish Mortgage shares were up 2.5% at 819.60 pence each in London on Friday morning.

By Tom Budszus; [email protected]

Copyright 2022 Alliance News Limited. All rights reserved.

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