AGM Statement

RNS Number : 5809U

Scottish Mortgage Inv Tst PLC

26 June 2009

Scottish Mortgage Investment Trust PLC

ANNUAL GENERAL MEETING STATEMENT

Scottish Mortgage celebrates its Centenary Year.
Over five years to the end of May 2009, the share price has increased by 56% and net asset value by 41%; by comparison the FTSE All World Index (in sterling terms) increased by 29% (these figures are on a total return basis).
China and other rapidly growing countries remain central to Scottish Mortgage's investment strategy.
Many companies in our portfolio have emerged from the crisis in strengthened positions.

Scottish Mortgage held its 100th AGM in Edinburgh on 25 June 2009.

The Chairman, Sir Donald MacKay said:

'Scottish Mortgage's 100 year record is a significant achievement. The Company has stuck to its original purpose of growing shareholders' capital by investing in carefully selected companies from around the world. This purpose is as relevant now as it was 100 years ago.

The latter part of 2008 and the beginning of 2009 have seen extremely challenging conditions as the historic magnitude of the financial crisis unfolded; however Scottish Mortgage's long term approach has held firm and the Trust has seen a significant increase in share price in recent months.

Scottish Mortgage's central investment thesis that China and other rapidly growing countries are likely to become increasingly influential in global terms in future has been reinforced by the events of the past year.

The scale of financial crisis, its effect on trade and the accompanying market dislocation was very considerable. However, over the past six months there has been a notable recovery in values accompanied by a return to more normal business conditions. It is encouraging that many of the companies in which Scottish Mortgage invests are actually in strengthened positions compared to a year ago both relative to competitors and also in absolute terms.

Rightly, the Managers, Baillie Gifford & Co, continue to concentrate on the long term prospects of these individual companies rather than trying to guess short term market movements. This reasoned approach has served shareholders well in the past and I trust it will continue to prove rewarding in the future.

I emphasise the cost advantage that Scottish Mortgage shareholders can enjoy the total expense ratio this year is 0.54% of shareholders' funds. Investors in funds are not always aware of the extent to which low charges can have a significant influence on long term returns due to the powerful effect of compounding.'

Performance is judged on a five year rolling period.

Over five years to the end of May 2009, the share price has increased by 56% and net asset value by 41%; by comparison the FTSE All World Index (in sterling terms) increased by 29% (these figures are on a total return basis).

The recovery and its impact on Scottish Mortgage is illustrated by the 32% increase in the share price and the 28% increase in net asset value over the six months to end May compared to a 7% increase in the FTSE All World Index (in sterling terms).

Scottish Mortgage's Top Twenty Equity Holdings as at 29 May 2009 were as follows:

	Name	% of total assets		Name	% of total assets
1	Petrobras	6.5	11	Vestas Windsystems	2.6
2	Atlas Copco	4.5	12	Porsche	2.3
3	Banco Santander	3.6	13	First Solar	2.2
4	Amazon.com	3.6	14	Taiwan Semiconductor Manufacturing	2.2
5	Nintendo	3.2	15	Walgreen	2.0
6	Vale (CVRD)	3.0	16	Deere	2.0
7	Google	3.0	17	Standard Chartered	1.9
8	China Mobile	3.0	18	BASF	1.9
9	Gazprom	2.8	19	Progressive Ohio	1.9
10	Sandvik	2.6	20	Berkshire Hathaway	1.6

The portfolio contains companies that are selected for their long term growth prospects in a global economy. There is an emphasis on countries outwith the mature developed world where there is likely to be significant and sustained growth in incomes and demand.

Past performance is not a guide to future performance. The value of an investment and any income from it is not guaranteed and may go down as well as up and investors may not get back the amount invested. You can find up to date performance information about Scottish Mortgage on the Baillie Gifford website at www.scottishmortgageit.com.

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