Scottish Mortgage Investment Trust reported a sharp rise in net asset value over the first half of its financial year, significantly outperforming global equity markets as investments in SpaceX, artificial intelligence and biotechnology delivered strong returns. The FTSE 100-listed trust posted a net asset value (NAV) total return of 31.5% for the six months to 30 September, against a 16.0% return from the FTSE All-World Index, Sharecast reported.

Its share price total return reached 33.8% over the half year, while NAV per share rose 31.2% to 1,726.6p from 1,315.8p at the end of March. Shareholders' funds grew to £17.69 billion from £13.82 billion, and the discount to NAV narrowed to 7.9% from 9.5%.

SpaceX leads, Tesla holding sold

SpaceX was the biggest contributor to performance, adding eight percentage points to overall returns following its stock market flotation in June, which the trust's managers described as the largest initial public offering in history. Moderna contributed 4.5 percentage points after positive clinical trial results for its personalised cancer vaccine, while AI developer Anthropic added 3.4 points.

The trust has been trimming its SpaceX holding since the flotation, as the position had grown to more than a quarter of its value. SpaceX accounted for 15% of total assets at 30 September and 11.1% by 4 November. The trust also confirmed it sold its remaining Tesla shares in April, ending an investment begun in 2013 that generated a 13-fold return.

Revenue earnings per share rose 45.2% to 2.25p, and the interim dividend increased 12.5% to 1.80p. Chair Christopher Samuel said the results were encouraging, but that the board judged the investment approach on its longer-term record rather than any single reporting period, according to Alliance News.

Sources: Sharecast; Alliance News, via Morningstar.