Scottish Mortgage NAV dragged down by 11.3% average drop in private company valuations

New director set to become chair

Scottish Mortgage (SMT) has reported stunted growth in its net asset value for the six months to the end of September, largely driven by a decline in the valuation of its private company holdings.

In its half-year financial results published today (8 November), the trust said its NAV grew by just 1.9% over the reported period, lagging its FTSE All-World benchmark, which gained 3.6%.  The trust's results were impacted by a drop in the valuation of its private companies, which fell by around 11.3% on average. According to SMT, 96% of the companies in the trust's portfolio were revalued up to four times in the period, but said "continued market volatility has meant that recent pricing has moved much more frequently than during stable market conditions". Scottish Mortgage adds '...