Interim Management Statement

RNS Number : 2517F

Scottish American Investment Co PLC

07 October 2008

THE SCOTTISH AMERICAN INVESTMENT COMPANY P.L.C.

Interim Management Statement - 3 months to 30 September 2008

SAINTS' objective is to increase capital and grow income in order to deliver real dividend growth. Its policy is to invest flexibly and actively across a broad range of assets and markets. Listed equities, both UK and overseas, form the largest part of the portfolio. Investments are also made in bonds, property and other asset classes.

Review of the Period

	Over the period, the Company's net asset value total return was -15.2%. This compares to a total return on the benchmark of -10.1%.
	In capital terms, the Company's net asset value fell by 17.2% compared to a fall in the benchmark of 10.9%. The share price fell by 13.5%.
	An interim dividend of 2.20p per share was paid on 30 September 2008 to shareholders on the register on 5 September 2008.
	The investment in the Athena Debt Opportunities Fund has now been fully funded. This fund is managed by London based Prytania Asset Management and invests in structured debt instruments.
Asset Allocation				Top Ten Holdings
Category		% of total assets at 30/09/08	% of total assets at 30/06/08	Name	% of total assets at 30/09/08	% of total assets at 30/06/08
UK Quoted Equities*		31.5	33.7	Athena Debt Opportunities
Overseas Quoted Equities*		37.7	37.6	Fund	4.9	1.6
Total Quoted Equities*		69.2	71.3	Petrobras	3.9	6.3
				Cambium Global
Quoted Equity Forestry				Timberland	3.7	3.5
Investments		3.7	4.0	Royal Bank of Scotland	3.3	3.4
Quoted Equity Property				BG 5.45% 2008 and 7.25%
Investments		4.8	5.3	2009 Notes**	3.1	3.1
Direct Property		7.8	6.6	Brazil CPI Linked 2045	2.8	2.8
Unquoted		0.5	0.4	Barclays	2.4	2.0
Fixed Interest		15.6	11.3	Amazon.com	1.9	1.5
Net Liquid Assets		(1.6)	1.1	Vodafone	1.8	1.9
				Holiday Village in New Romney	1.6	1.4
Total		100.0	100.0	Total	29.4	27.5

*Excludes quoted equity property and forestry investments

**These investments are structured notes, the capital performance of which is dependent upon the share price of the company.

Total Return Performance

	%
	3 Months	1 Year	3 Years	5 Years
Share Price	-12.6	-25.3	-3.4	48.8
NAV (debt at fair value)*	-15.2	-28.4	-4.7	35.1
Benchmark**	-10.1	-19.9	1.7	40.4

Source: Thomson Financial Datastream/Baillie Gifford & Co

*5 year data not available: NAV (debenture at book cost) total return movement provided in lieu.

** On 1 January 2004 the Company changed its benchmark from 65% FTSE All-Share Index and 35% FTSE

World Ex UK Index to 70% FTSE All-Share Index and 30% FTSE World Ex UK Index. For the purposes of the above table the returns on both benchmarks for their respective periods have been linked to form a single benchmark.

Past performance is not a guide to future performance

General Information
	30/09/08	30/06/08
Share price	176.5p	204.0p

Net asset value per share (after deducting debenture at fair value)	193.9p	234.3p

Discount (debenture at fair value)	9.0%	12.9%

Total assets (before deduction of debenture)	£353.5m	£402.9m

Debenture (at fair value)	£96.6m	£92.5m

Potential Gearing (debenture at fair value)	37.6%	29.8%
Gearing less cash (debenture at fair value)	37.3%	23.4%
Gearing less cash and fixed interest (debenture at fair value)	16.0%	10.0%

Potential Gearing (debenture at book)	33.3%	28.2%
Gearing less cash (debenture at book)	33.1%	21.8%
Gearing less cash and fixed interest (debenture at book)	12.4%	8.6%