When you hit rock bottom, the only way to go is up – at least in theory. But in the case of Scottish Mortgage Investment Trust (SMT), it is still unclear which way its share price is headed at present.
The trust has had a rough couple of weeks following a rough year. Earlier this month, Amar Bhidé, a director who has left the trust's board, told the Financial Times that he had clashed with the chair of the board, Fiona McBain, over the process to appoint two new board members, as well as his assessment of the risks posed by the trust’s unquoted investments. Since then, Bhidé says that he has reported his concerns to the Financial Conduct Authority.
Over the month to 28 March, Scottish Mortgage Investment Trust’s share price fell 9.9 per cent and its discount to net asset value (NAV) widened to 21.2 per cent, in contrast to the one-year average of 10.1 per cent.