The Scottish Mortgage Trust is considering its private company exposure and specifically it being over 30%. They recently issued an announcement on the London Stock Exchange regarding a proposed amendment to the Company’s investment policy.
The proposal would allow the Board limited additional flexibility to approve further investments in private companies when exposure is above the existing 30% limit. The fund’s largest private holding, SpaceX, currently represents c.15% of the unlisted portfolio following a recent revaluation, which has pushed our overall private company exposure above the long‑standing 30% guideline. To preserve flexibility, while keeping risk tightly controlled, the Board is asking shareholders to approve a limited additional capacity of up to £250m for further private investments, subject to strict caps, annual renewal and strong governance.
Shareholders will vote on the proposal at a General Meeting on 10 April 2026.
Key points of the proposal include:
• The existing 30% limit on investments in private companies, measured at the time of purchase, would remain in place.
• The Board would have limited authority to permit up to £250 million (approximately 1.7% of total assets) on an annual basis of additional investment in private companies if exposure is above the 30% limit.
• This additional capacity would be tightly capped, subject to governance oversight and renewed annually by shareholders.
Potential benefits include:
• Providing flexibility to support follow-on investments in existing private holdings and selective new opportunities.
• Allowing the portfolio to respond to changes in valuations and market movements that can affect private company exposure.
• Maintaining strong governance through clear limits and ongoing shareholder approval.
Your adviser at Hamilton Hindin Greene will monitor the outcome of the vote but please get in touch with your adviser if you have any concerns or feel that this amendment impacts on the risk that this investment represents in your portfolio.
