Scottish Mortgage Drops Buyback Shield for Premium Issuance as SpaceX and Anthropic Reshape Portfolio

Scottish Mortgage Trust ends buybacks, issues shares at premium after SpaceX, AI bets drive 27% NAV gain. Shareholders vote on raising private cap.

For years, the Scottish Mortgage Investment Trust was locked in a defensive buyback campaign, pouring billions into its own shares to narrow a persistent double-digit discount. That era ended abruptly this month. The trust has now flipped to issuing new stock above its net asset value — a dramatic signal that investor demand has returned.

The first hint came on 1 June, when the trust sold 2.35 million shares from its own holdings. A day later it issued a further 3.85 million new shares at 1,545.42 pence apiece, generating fresh capital at a premium to the underlying net asset value. The combined operation underscores a remarkable turnaround: just months ago the trust was battling a valuation gap of roughly 20%; today it trades at an eight percent premium.

SpaceX and AI bet drive the reversal

The catalyst for this U-turn lies in two outsized portfolio bets. SpaceX, the largest single holding, now accounts for about 19% of total assets — an unusually concentrated position for a publicly listed trust. Co-manager Tom Slater credited the rocket company with a significant contribution to the trust’s 27.4% net asset value gain over the financial year to March 2026, which lifted total shareholder assets to £13.82 billion.

Alongside SpaceX, the trust’s 2.6% stake in Anthropic has also grabbed attention. The artificial intelligence developer has filed for an initial public offering, sending Scottish Mortgage’s shares to a fresh all-time high above £15.44 in recent days. The twin IPO narratives have helped flip sentiment from defensive to expansionary.

The trust has been steadily increasing its exposure to unlisted companies. Private holdings now make up 41.3% of the portfolio, well above the historic 30% ceiling that shareholders had previously approved. In the past year alone, Scottish Mortgage funnelled £254 million into private technology firms — nearly double the prior year’s level. New additions include Anthropic and the social-media platform RedNote.

AGM set to test appetite for more private exposure

Shareholders will vote on 2 July in Edinburgh on a proposal to formally raise the private-market cap above 30%, giving the management team room to maintain or even increase the current allocation. The same meeting will consider a final dividend of 4.57 pence per share, lifting the total annual payout for the 43rd consecutive year.

The trust’s board has also tightened the conditions for future buybacks. Under the new policy, the trust will only repurchase shares when the price falls below net asset value — effectively ending the automatic support that had been in place during the discount era.

Trading picture and outlook

On Friday, the stock changed hands at €17.39 on the European exchanges, down 2.82% on the day and roughly ten percent below its 52-week high. Yet the year-to-date performance remains strong at a gain of more than 25%. The relative strength index of 50.7 points to a neutral near-term reading.

The printed annual report was dispatched to shareholders in early April, and the July AGM is expected to see the highest level of engagement in years. Investors will want clarity on when further private holdings — particularly SpaceX — might seek a public listing, and how the trust plans to manage the concentration risk that comes with having nearly a fifth of its assets riding on a single rocket company.