Scottish Mortgage’s Premium U-Turn: How AI and SpaceX Upended the Trust’s Capital Strategy

Scottish Mortgage Investment Trust issues shares at a premium for the first time in years, fueled by soaring demand for its AI and private holdings like Anthropic and SpaceX.

For years, Scottish Mortgage Investment Trust was a serial buyer of its own shares, pouring billions into buybacks to close a stubborn discount to net asset value. Now it has done an abrupt about-face: the trust is issuing new shares — at a premium.

On 1 June, 2.35 million shares were tapped from the trust’s treasury and sold at 1,516.5 pence each, well above the NAV of 1,401.09 pence. The move marks a sea change in capital management and a vote of confidence from investors hungry for exposure to its high-growth private holdings.

The shares, which recently traded at 18.20 euros, have since climbed to 18.38 euros, brushing the record of 18.85 euros. The year-to-date gain stands at more than 30%, approaching 31%.

Anthropic’s rocket ride

The demand surge owes much to Scottish Mortgage’s bet on artificial intelligence. The trust holds a stake in Anthropic, the AI assistant developer that unveiled a legal-industry plugin in February. The announcement sent shares of established providers such as Thomson Reuters and RELX tumbling by up to 18%.

Scottish Mortgage adjusted its valuation of the Anthropic holding in April, lifting its portfolio weight from 1.1% to 2.5%. Anthropic’s revenue has ballooned too: annualised sales now run at $47bn, up from $30bn at the start of the year. A funding round in February valued the company at $965bn, vaulting it ahead of rival OpenAI.

SpaceX: the portfolio anchor

Yet the trust’s single biggest private position remains SpaceX, which accounts for 17.9% of the total portfolio. That concentration has drawn analyst warnings about overheating in private markets, but investors have so far shrugged off the concerns. SpaceX is nearing its initial public offering, with a projected market capitalisation of $1.75 trillion. For Scottish Mortgage, that would deliver an additional NAV boost of roughly 7%.

The trust’s five largest listed holdings — TSMC, MercadoLibre, Amazon, ASML and Nvidia — together make up just under 20% of the portfolio.

A shifting risk landscape

The management’s latest risk assessment reflects the changing profile. While financial risk remains high and stable, the discount-to-NAV risk has been downgraded to moderate and declining, thanks to years of aggressive buybacks that have tightened the spread between market price and intrinsic value. Meanwhile, the board has flagged cybersecurity as a new moderate risk — an area that previously drew little attention. Other regulatory risks stay low and steady.

The trust operates with 11% leverage and has $70m in undrawn credit lines, providing flexibility for further investments in private and technology companies.

Dividend lift and a rule change

Shareholders are also benefiting from a 4.3% dividend increase to 4.57 pence per share. The final dividend will be paid on 10 July, extending Scottish Mortgage’s unbroken run as a dividend hero with the Association of Investment Companies to 43 years.

Investors have also approved a one-year change to the investment policy, allowing the manager to deploy an additional £250m into private companies even if the 30% ceiling on unlisted holdings has already been breached. The trust’s cost ratio remains wafer-thin at 0.33%, with no performance fees.

Premium status fuels further appetite

For the third consecutive month in May 2026, Scottish Mortgage was the most popular choice among retail investors, outpacing rival vehicles such as Polar Capital Technology and Allianz Technology Trust. That enduring demand has pushed the trust to trade at a roughly 7% premium to NAV — a rarity in a sector where most peers still languish at a discount.

If the premium persists, further treasury issuances look probable. The SpaceX IPO, expected on 12 June, could add another leg to the rally. The trust is betting that the AI boom and its private portfolio will keep delivering — and for now, the market is betting right along with it.