Scottish Mortgage investment trust in ‘prime position’ to enter FTSE


The Scottish Mortgage investment trust is a contender to enter to the FTSE 100 in next week’s reshuffle.

The investment trust has total assets of £4.9bn, higher than the market cap of several companies set to drop out of the index.

Real estate investment trust Intu Properties, which focuses on retail property management and development, is currently listed on the FTSE 100, but only has a market cap of £3.6bn.

Other potential contenders to fall out of the index include £3.2bn mining company Polymetal International and £3.5bn housebuilder Travis Perkins.

Share Centre investment research analyst Helal Miah says Scottish Mortgage investment trust, alongside Smurfit Kappa and Auto Trader, is in prime position to enter the large cap index.

“With 95 per cent of its holdings weighing towards international investments, it’s possible that its recent success and subsequent rise to the top could be down to it benefitting from the weaker pound.”

Miah says investors are worried about the impact of Brexit on Intu Properties, pointing out the investment company has been “hovering above the drop zone” since the vote.