Scottish Mortgage defends strategy after shares take beating

Baillie Gifford’s Scottish Mortgage Investment Trust has urged shareholders to remain “disciplined and patient” as it defended its investment approach after a “painful” year in which its shares have dropped by a third.

The trust’s strategy is to identify high-growth companies that will “transform” society. These stocks have sold off over the past year in an environment of higher inflation and rising interest rates.

“[The] accelerating pace of change throughout the economy has not translated into our investment results lately, but we need to remain disciplined and patient,” Tom Slater, who co-manages the £11.5bn trust with Lawrence Burns, said in its full-year earnings report on Wednesday.