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Scottish Mortgage reported a 31.5% total net asset return for the six months to the end of September, after selling part of its SpaceX holding following the company’s June market debut. The trust warned that AI shares may remain volatile as markets sell off, while saying it sees a positive long-term direction for the sector.
Scottish Mortgage Investment Trust reported a 31.5% total net asset return for the six months to the end of September, after selling part of its SpaceX holding following the company’s June market debut. The trust also cautioned that AI stocks could face a bumpy path as a market selloff unsettled investors, while stressing that its reported performance predates the latest falls.
The trust’s six-month net asset return was up from 22.9% in the same period a year earlier, according to its results. Its share-price return was 33.8%, compared with a 16% return for the FTSE All-World Index over the period. These figures cover a period ending in September and do not include the full effect of the market declines reported this week.
Scottish Mortgage said it reduced its SpaceX holding to 11% of the portfolio after the company’s market debut in June made the investment an “unusually large” position. The trust had first invested in Elon Musk’s company about seven and a half years ago. It also sold its remaining Tesla stake, saying it believed the share price reflected much of the company’s potential in autonomy and robotics.
The trust increased its exposure to AI-related companies during the reporting period, adding to holdings in Nvidia and Anthropic. The source report said Anthropic was expected to list imminently, though it also noted speculation that market turbulence could delay a listing. Scottish Mortgage’s share price fell about 4% this week, according to the report, as technology stocks came under pressure.
Strong Returns Meet a Volatile Market
The results show how gains in high-growth technology companies and the SpaceX investment contributed to Scottish Mortgage’s returns before the latest selloff. But the timing matters: the six-month figures are historical results, not a measure of how the portfolio has performed through the more recent decline. Investors should distinguish the reported period from current market conditions.
The trust’s holdings also make the AI market’s direction relevant to its future performance. If technology shares fall further, the value of its portfolio and its share price could be affected. The report does not quantify how much of the trust’s return came from SpaceX or AI holdings, and it does not establish whether the recent falls will continue.
Scottish Mortgage’s warning reflects a wider tension for investors: companies may keep investing heavily in AI, while markets remain concerned about the scale and returns of that spending. The trust says companies it speaks with expect to spend more and report positive returns on that spending. That is the trust’s account of those companies’ views, not independent proof that the investment levels will produce lasting profits.
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SpaceX and the Trust’s Portfolio
Scottish Mortgage is an investment trust focused on high-growth businesses, including technology companies. It backed SpaceX well before the June market debut. As the value of that holding grew, the trust said it cut the position because SpaceX had become unusually large within the portfolio. The sale was therefore both a source of realised gains and a way of reducing concentration in one company; the source does not give the amount or proceeds from the shares sold.
The trust’s decision to exit Tesla was separate from its SpaceX sale. It said it sold the remaining holding because it judged that Tesla’s market price already reflected much of its promise in autonomy and robotics. That is the investment trust’s rationale, rather than a confirmed assessment of Tesla’s future prospects.
The current market pressure followed a sharp decline in US shares described in the source report. It said the Nasdaq fell 5.5% in one session and the S&P 500 fell 4.4%. The report linked the week’s concerns to political opposition to AI infrastructure and questions about technology companies’ spending. It did not provide further detail establishing how election results or policymakers’ actions would affect AI development.
“The path will be bumpy, but the long-term direction is clear.”
— Christopher Samuel, Scottish Mortgage chair
AI Spending and Market Risks
It is not clear how long the current market selloff will last, how it will affect Scottish Mortgage’s portfolio after September, or whether AI companies’ planned spending will deliver sustained returns. The published six-month figures do not include the full impact of this week’s falls, and the source does not give an updated net asset value or a breakdown of performance by holding.
The source report also does not detail the specific policy proposals or actions that might restrict AI infrastructure development. It describes investor concerns about political opposition, but does not confirm that policymakers will halt or materially limit such investment. The timing of any potential Anthropic listing was also uncertain in the report.
Investors Await Updated Valuations
The next clear measure of the selloff’s effect will be Scottish Mortgage’s subsequent portfolio and net asset value reporting. Investors will also watch whether AI companies maintain their spending plans and whether the trust’s holdings continue to report returns from that investment. The report does not give a date for a further update.
For now, the trust’s results offer a snapshot through September, while its comments set out its view of the longer-term AI outlook. Any assessment of performance after the market declines will require figures covering the later period.
Key Questions
What return did Scottish Mortgage report?
It reported a 31.5% total net asset return for the six months to the end of September 2026. Its share-price return for that period was 33.8%, compared with 16% for the FTSE All-World Index, according to the results cited in the report.
Why did Scottish Mortgage sell some SpaceX shares?
The trust said SpaceX had become an “unusually large” part of its portfolio after its June market debut. It reduced the holding to 11% of the portfolio; the report does not state how many shares it sold or the proceeds.
What did the trust say about AI stocks?
Chair Christopher Samuel said the path for AI stocks would be “bumpy”, while describing the long-term direction as clear. He said companies the trust speaks with expect to spend more on AI and report positive returns from that spending.
Do the six-month returns include this week’s market falls?
No. The reported period ended on September 30, 2026, before the selloff described in the report. The figures do not show the full effect of the later market declines on the trust’s portfolio.
Source: thisismoney.co.uk
