- Scottish Mortgage Inv Trust
- 16 March 2026 10:11:11
Source: Sharecast
The FTSE 100 investment trust said the proposal would retain the current rule that limits the manager to investing a maximum of 30% of total assets in private companies at the time of purchase.
However, the board would be able to approve up to £250m of additional investments in private companies in situations where the overall exposure is already above, or would rise above, that threshold.
The board said the additional capacity would be subject to strict governance controls and would require annual renewal by shareholders.
The £250m allowance would apply only while the 30% limit is exceeded and would also be capped at £250m between one annual general meeting and the next.
Scottish Mortgage said its private company exposure can move above the 30% limit due to factors beyond its control, including share buybacks, changes in public market valuations and revaluations of private holdings.
Recent valuation increases also lifted the proportion of private holdings.
The trust noted that the valuation of its largest investment, SpaceX, was adjusted significantly higher in December, raising its share of total assets to about 15.1% as of 31 December, up from around 8.2% a month earlier.
The board said the developments had been beneficial for shareholders but constrained the company’s ability to make additional investments in private companies, including follow-on funding rounds.
It said the proposal would provide flexibility to support a limited number of new and follow-on private investments while maintaining strict oversight.
Without the change, the trust would continue to operate under the existing policy and its ability to make further investments in private companies would remain constrained while exposure remains above the 30% limit.
Shareholders would vote on the proposal at a general meeting scheduled for 10 April at the offices of Deutsche Numis in London.
If approved, the amended investment policy would take effect immediately after the meeting, with the board’s authority to permit additional private investments lasting until the company’s 2027 annual general meeting and subject to annual shareholder renewal thereafter.
At 0950 GMT, shares in the Scottish Mortgage Investment Trust were up 0.72% at 1,190.5p.
Reporting by Josh White for Sharecast.com.
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