Interim Management Statement

RNS Number : 3458V

Scottish Mortgage Inv Tst PLC

08 July 2009

SCOTTISH MORTGAGE INVESTMENT TRUST PLC

Interim Management Statement - 3 months to 30 June 2009

Scottish Mortgage is a low cost investment trust that aims to maximise total return over the long term from a focused and actively managed portfolio of equities. It invests globally, looking for strong businesses with above-average returns.

Review of the Period

	Over the 3 month period, the Company's net asset value rose by 17.7% and the share price rose by 12.9%. The FTSE All World Index in sterling terms (the benchmark) rose by 7.0%. All figures are total return.
	Performance is judged on a five year rolling period. Over the five years to 30 June 2009 net asset value rose by 35.4% and the share price rose by 45.3% compared to a 21.7% increase in the FTSE All World Index in sterling terms. All figures are total return.
	During the period 375,000 shares were bought back at a cost of £1.4m, enhancing NAV per share by 0.02%.
	A US$99m multi-currency loan was repaid and replaced by a US$99m revolving multi-currency loan facility.
	At the 100th Annual General Meeting held on 25 June all resolutions were passed and a final dividend of 5.50p per share was approved by shareholders, which was paid on 1 July 2009.
	At the conclusion of the Company's Annual General Meeting Mr Ball retired from the Board. Mr Gray replaces Mr Ball as the Senior Independent Director.

Top Twenty Equity Holdings *
Name	% of total assets at 30/06/09	% of total assets at 31/03/09	Name	% of total assets at 30/06/09	% of total assets at 31/03/09
Petrobras	6.3	6.2	Vestas Windsystems	2.4	2.3
Atlas Copco	4.6	4.3	Sandvik	2.4	2.7
Banco Santander	4.2	2.4	First Solar	2.1	1.8
Amazon.com	3.7	4.5	Walgreen	2.0	2.3
Nintendo	3.3	3.5	Deere	1.9	2.0
China Mobile	3.1	3.4	Taiwan Semiconductor
Google	3.1	3.2	Manufacturing	1.9	1.6
Vale (CVRD)	2.9	3.0	Standard Chartered	1.8	1.5
Porsche	2.6	2.3	Progressive Ohio	1.8	2.0
Gazprom	2.5	2.3	Canon	1.6	1.8
			Berkshire Hathaway	1.6	2.0
			Total	55.8	55.1

*Schlumberger dropped out of the Top Twenty Equity Holdings following a partial sale and is replaced by

Standard Chartered.

Total Return Performance

	%
	3 Months	1 Year	3 Years	5 Years
Share Price	12.9	(34.7)	(12.0)	45.3
NAV	17.7	(29.7)	(13.4)	35.4
Benchmark	7.0	(13.2)	(6.2)*	27.0*

Source: Thomson Financial Datastream/Baillie Gifford & Co

*Benchmark - On 1 April 2007 the Company changed its benchmark to 100% FTSE All World Index (in sterling terms) from 50% FTSE All-Share Index and 50% FTSE World Ex UK Index (in sterling terms).

The Company aims to achieve a greater return than the FTSE All World Index (in sterling terms) over a five year rolling period.

For the purposes of the performance data above, the returns for their respective periods have been calculated by sequentially linking the original benchmark data until 31 March 2007 with the new benchmark data from 1 April 2007.

Past performance is not a guide to future performance

General Information
	30/06/09	31/03/09
Share price	393.5p	353.0p

Net asset value per share † (after deducting borrowings at fair value)	441.9p	383.8p
Net asset value per share † (after deducting borrowings at par)	457.9p	399.3p

Discount (borrowings at fair value)	11.0%	8.0%
Discount (borrowings at par)	14.1%	11.6%

Total assets (before deduction of borrowings)	£1,537.1m	£1,398.3m

Total borrowings (at fair value)	£336.5m	£354.0m
Total borrowings (at par)	£293.1m	£311.9m

Potential Gearing (borrowings at par)	23.6%	28.7%
Actual Gearing (borrowings at par)	15.4%	18.1%

Potential Gearing (borrowings at fair value)	28.0%	33.9%
Actual Gearing (borrowings at fair value)	19.5%	22.8%