The Premium Returns: How Scottish Mortgage’s Market Re-rating Is Unlocking New Firepower
24.05.2026 - 01:07:15 | boerse-global.de
Scottish Mortgage Investment Trust is once again commanding a premium over its net asset value — a shift that has stirred the FTSE 100 fund into action. By issuing shares from its own treasury stock at a price above the estimated NAV, the trust is capitalising on surging demand rather than merely reporting a technical compliance step.
On 22 May, the trust placed 2.25 million treasury shares in the market at 1,496.62 pence each. That transaction came after two earlier tranches earlier in the week, priced at just under 1,440 pence. The result: the trust now holds 379,614,074 treasury shares, with 1,105,166,806 shares outstanding for FCA threshold calculations. The willingness of investors to pay above the asset backing marks a decisive reversal from the prolonged discount that characterised much of the trust’s recent history.
At Friday’s close, the shares stood at 1,497.50 pence in London, roughly 6.52 percent above the estimated NAV of 1,406.28 pence. In euro terms, that translated to €17.93 — a fresh 52-week high and a daily gain of 3.94 percent. Year-to-date, the total return sits at 29.12 percent. The 50-day moving average sits 13.83 percent below the current price, while the RSI at 40.6 suggests the stock is not yet overheating.
A key catalyst for this re-rating is SpaceX, the trust’s largest single holding. Scottish Mortgage valued its stake at around £2.98 billion as of 31 March, underpinned by a SpaceX enterprise valuation of $1.25 trillion, with S&P Global acting as an independent external assessor. The trust’s managers explained the methodology after merging data from SpaceX and xAI, pointing to secondary-market transactions as the basis for the figure.
Should investors sell immediately? Or is it worth buying Scottish Mortgage Investment?
Now speculation is building that the rocket company could float as early as June. Reports point to an IPO valuation range of $1.75 trillion to $2 trillion — a leap that would dwarf even the largest US tech listings. If realised, index inclusion would force passive funds to buy in: an estimated 19 percent of the available free float would need to be absorbed by S&P 500 trackers alone, with a combined weight across the Russell 1000 and Nasdaq 100 potentially reaching 24 percent. For Scottish Mortgage, which holds a significant unlisted stake, that demand could further support the valuation of its private equity book.
Beyond SpaceX, the trust’s manager Baillie Gifford has been active elsewhere. During the first quarter of 2026, it added 2.5 million shares in Axon, the Taser maker pivoting to AI-powered security solutions, increasing the position by 50 percent. Axon’s revenue has grown by more than 30 percent for nine consecutive quarters, and although the stock trades at roughly $400 — about 50 percent below its all-time high — analysts’ average price target stands at $649. The move fits Baillie Gifford’s long-established playbook: making concentrated, early bets on companies with durable technological advantages.
The broader market environment has also turned favourable. London’s FTSE 100 closed the week at a record 10,846.70 points, up 2.65 percent, breaking a recent losing streak. Cooler inflation data and softer retail sales figures have eased concerns about aggressive interest rate hikes, helping growth-dependent assets. In Europe, ASML and Schneider Electric have each rallied more than 20 percent since the start of April, reinforcing the tailwind for a portfolio tilted toward AI, platform companies and long-cycle innovation.
There is even a political dimension north of the border. First Minister John Swinney has signalled a sharper focus on economic growth after meetings with leading entrepreneurs, including Sir Tom Hunter, who had warned that political uncertainty was deterring investment. Swinney has promised a rapid review of business property taxes and is prioritising economic stability over constitutional debates. With Scotland facing a ÂŁ26.5 billion budget gap, a credible growth agenda could make the region more attractive for institutional capital.
Scottish Mortgage’s board is meanwhile proposing to allow up to an additional £250 million in private company exposure, even if the allocation exceeds the current 30 percent threshold. As long as the premium to NAV persists, the trust can continue placing treasury shares into the market. Should that premium evaporate, the window for issuance will close just as quickly. For now, the combination of a recovering tech sector, a potentially blockbuster SpaceX IPO and a growing Axon bet is giving investors a clear reason to pay above book again.
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