Scottish Mortgage exceeds 30% PE limit for second time in nine months

Due to falling value of listed portfolio

The £13.8bn Scottish Mortgage investment trust has gone over its 30% limit of private investment exposure for the second time in nine months due to a drop in value of its listed equity portfolio.

As of 31 December 2022, the private investment exposure was 30.7% of total assets, which equates to 35.9% of net asset value. The trust first exceeded the limit back in July 2022, also due to stock market falls. Since August 2020, the trust's private investment weighting has doubled due to an active new investment program, the denominator effect as the listed portfolio has fallen sharply, and the fall in sterling versus the US dollar. Although the limit applies at the time of investment and breaching it due to stock market moves does not require the fund manager to sell shares, the tr...