Scottish Mortgage must 'clear the air' over start-up investments

'It feels like they have lost their way'

Scottish Mortgage's assertion it does not invest in start-ups is not entirely accurate, according to experts and the trust's manager, Baillie Gifford, which admitted to Investment Week the trust has knowingly invested in start-up businesses.

Experts have suggested the trust should "clear the air" over these investments, arguing there is no inherent issue with such plays, but investors are owed transparency. The £12bn trust has sat comfortably at the top of long-term performance tables and fund buyers' lists for decades, its returns propelled by investments in what it previously called "exceptional growth outliers". According to data from the Association of Investment Companies, it has delivered the highest returns over ten years in the IT Global sector, returning 301% versus the 193.2% average performance. However, it has...