Scottish mortgage non-executive director dismissed after board clash

Baillie Gifford’s flagship Scottish Mortgage Investment Trust dismissed one of its non-executive directors at a board meeting on Thursday over disagreements over the appointment of new directors at the £13.4 billion FTSE-listed company.

The collapse of ties on the board of the UK’s most prominent investment vehicle comes a year after the Trust’s share price fell more than 30% on the rise of growth stocks that have driven its performance over the past decade. The rise in interest rates has come to a halt.

Also joining Scottish Mortgage’s management team after James Anderson, who led a pioneering shift to venture capital investment at Baillie Gifford more than a decade ago, retired after nearly four decades at the Edinburgh-based private partnership. He was replaced by co-managers Tom Slater and Lawrence Burns at Scottish Mortgage.

Amar Bidet, Scottish Mortgage’s director since 2020, told the Financial Times that the process of appointing chairman Fiona McBain and two new board members clashed. £3.8 billion at the end of January.

Business scholar and author Bhidé is 67 and has no other directors. “I am very concerned about stock performance and discounting and have tried to make people understand that there are structural reasons for this.”

Bhidé said he sought to raise concerns about the portfolio’s exposure to illiquid investments at a time when a plunge in public tech markets portends reckoning in the private sector. Scottish Mortgage’s early bets on companies such as Tesla, Amazon and e-commerce giant Alibaba helped its rise.

Comparing the trust’s resources and low fee structure to those of venture capital firms and other professionals, he said: public sphere. The fact that you’ve made it through the last decade is due to a totally extraordinary period in financial history. Don’t assume you can keep playing this game. ”

McBain said: They are also discussed and scrutinized in detail by the Board of Directors.

“As Chairman of Scottish Mortgage, I am fully convinced that the Scottish Mortgage Board provides strong governance and oversight. We are confident that we have built a portfolio of transformative companies that will serve our shareholders for more than five years.”

Scottish Mortgage has a long and strong track record. Over the 10-year period to the end of February, it rose 361.7%, outperforming the FTSE All World Index benchmark, which rose 183.1% over the same period.

Bhidé is a professor of business at Tufts University in Massachusetts. Calls to Judgment: Smart Finances for a Dynamic Economyargued for human decision-making in financial institutions against centralized financial models.

Last year, Baillie Gifford worst annual autumn in assets under management. His AUM for the Edinburgh-based partnership fell by a third from £336 billion at the end of 2021 to £223 billion at the end of 2022. The decrease was primarily due to lower investment portfolio valuations.

Summarize this content to 100 words

Baillie Gifford’s flagship Scottish Mortgage Investment Trust dismissed one of its non-executive directors at a board meeting on Thursday over disagreements over the appointment of new directors at the £13.4 billion FTSE-listed company. The collapse of ties on the board of the UK’s most prominent investment vehicle comes a year after the Trust’s share price fell more than 30% on the rise of growth stocks that have driven its performance over the past decade. The rise in interest rates has come to a halt. Also joining Scottish Mortgage’s management team after James Anderson, who led a pioneering shift to venture capital investment at Baillie Gifford more than a decade ago, retired after nearly four decades at the Edinburgh-based private partnership. He was replaced by co-managers Tom Slater and Lawrence Burns at Scottish Mortgage.Amar Bidet, Scottish Mortgage’s director since 2020, told the Financial Times that the process of appointing chairman Fiona McBain and two new board members clashed. £3.8 billion at the end of January.Business scholar and author Bhidé is 67 and has no other directors. “I am very concerned about stock performance and discounting and have tried to make people understand that there are structural reasons for this.”Bhidé said he sought to raise concerns about the portfolio’s exposure to illiquid investments at a time when a plunge in public tech markets portends reckoning in the private sector. Scottish Mortgage’s early bets on companies such as Tesla, Amazon and e-commerce giant Alibaba helped its rise. Comparing the trust’s resources and low fee structure to those of venture capital firms and other professionals, he said: public sphere. The fact that you’ve made it through the last decade is due to a totally extraordinary period in financial history. Don’t assume you can keep playing this game. ”McBain said: They are also discussed and scrutinized in detail by the Board of Directors. “As Chairman of Scottish Mortgage, I am fully convinced that the Scottish Mortgage Board provides strong governance and oversight. We are confident that we have built a portfolio of transformative companies that will serve our shareholders for more than five years.”Scottish Mortgage has a long and strong track record. Over the 10-year period to the end of February, it rose 361.7%, outperforming the FTSE All World Index benchmark, which rose 183.1% over the same period.Bhidé is a professor of business at Tufts University in Massachusetts. Calls to Judgment: Smart Finances for a Dynamic Economyargued for human decision-making in financial institutions against centralized financial models.Last year, Baillie Gifford worst annual autumn in assets under management. His AUM for the Edinburgh-based partnership fell by a third from £336 billion at the end of 2021 to £223 billion at the end of 2022. The decrease was primarily due to lower investment portfolio valuations.
https://www.ft.com/content/c5da6dca-ffd3-4199-88a4-5f3857e58df5 Scottish mortgage non-executive director dismissed after board clash

Exit mobile version