Scottish Mortgage Hits Record Daily Buyback as Discount-Targeting Strategy Takes Hold

Scottish Mortgage Investment Trust buys back a record 2.325 million shares; AGM on July 2 to vote on raising unlisted investment cap as private holdings hit 40%.

Scottish Mortgage Investment Trust snapped up a record 2.325 million of its own shares on Monday, paying 1,486.19p each — its largest single-day repurchase under the current programme. The stock responded by climbing 3.53% to €17.00 in London trading.

The move marks a sharp acceleration from recent activity. Just last week, on 10 June, the trust bought back 1 million shares at 1,413.91p, followed by 435,000 shares the next day at a near-identical price. The jump to well over 2 million shares in a single session underscores a more aggressive deployment of capital since the trust tightened its buyback rules.

Under the revised framework, the board will now only authorise repurchases when the market price sits below net asset value (NAV). The previous policy of more active price support has been shelved. That shift appears to be paying off: the board now rates the discount risk as "declining and moderate", down from a prior assessment of "high".

Earlier in the week, a separate buyback of 1 million shares at 1,445.21p had already lifted the stock 1.86% to €16.73, pushing the year-to-date gain to around 20%. That figure has since widened to 22.39%, though the shares still trade roughly 13% below the 52-week high of €19.50 struck in late May.

The trust now holds approximately 372 million shares in its own treasury, leaving just over 1.11 billion in free float — the key metric for FCA reporting thresholds. Over the past two financial years, Scottish Mortgage has repurchased a total of 307.7 million shares for nearly £3.02 billion. In the fiscal year through March 2026 alone, it bought back 122.9 million shares for £1.31 billion.

AGM Showdown Over Private-Market Cap

All eyes now turn to the annual general meeting on 2 July at the National Galleries of Scotland in Edinburgh. Shareholders will vote on a proposal to raise the ceiling on unlisted investments from 30% to more than 30% of the portfolio — a technical necessity given that private holdings already account for 40% of assets. SpaceX alone, following a revaluation, now represents 21% of the trust. In April, Scottish Mortgage secured a temporary waiver allowing up to £250 million in additional allocations beyond the 30% boundary.

The AGM also features a vote on a new buyback authority, which would permit the trust to acquire up to 14.99% of its shares — strictly below NAV. Additionally, a final dividend of 2.97p per share is up for approval, bringing the full-year payout to 4.57p, a 4.3% increase that would mark the 43rd consecutive year of rising dividends.

Long-Term Performance Stands Out

Over the fiscal year to March 2026, Scottish Mortgage delivered a NAV return of 27.4% and a total shareholder return of 26.8%. The longer-term picture is even more striking: the NAV has compounded at 435.2% over the past decade, handily beating the FTSE All-World index’s 233.9% gain. With the discount narrowing and a pivotal vote looming, the trust’s next chapter may hinge as much on shareholder sentiment as on portfolio returns.