BOSSES at Scottish Mortgage Investment Trust are today set to face down shareholders after a "painful" year in which it has been rocked by a boardroom spat and a plunge in its share price.

The London-listed fund, which built a name for stellar returns with an innovation-focused investment strategy, has seen its value crater by over 58 per cent since a November 2021 peak.

Shareholders will now weigh in on the troubles today at the fund's annual general meeting in Edinburgh.

"The fund managers will be bracing for some tough questions from its shareholders given it reported a share price loss of 33.5 per cent in its latest annual results" said Kyle Caldwell, analyst at Interactive Investor.

Caldwell told City A.M. that investors will be looking for answers over why the firm has not seen its share price improve in 2023 despite its exposure to AI-adjacent firms, as well as what is being done to tackle its wide discount on the value of its portfolio which is sitting at over 20 per cent.

A Scottish Mortgage Investment Trust spokesperson has mounted a defence today, however, telling City A.M. that the decline in value of many of the its holdings has been "driven by macroeconomic concerns, geopolitics and the ongoing shockwaves from Covid-19".

All votes at the meeting are expected to pass today.

(c) 2023 City A.M., source Newspaper