Interim Management Statement

RNS Number : 4310L

Scottish Mortgage Inv Tst PLC

09 January 2009

SCOTTISH MORTGAGE INVESTMENT TRUST PLC

Interim Management Statement - 3 months to 31 December 2008

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 fell by 18.8% and the share price fell by 19.8%. The FTSE All World Index in sterling terms (the benchmark) declined by 3.7%. All figures are total return.
	The interim dividend of 6.80p per share, which included a non-recurring 1.50p per share from the reimbursement of previous years' VAT, was paid on 28 November 2008.
	During the period bank loans of US$30m, ¥8,230m, CHF96m and Euro73m were repaid.
	Additional purchases of UBS, Progressive Ohio and Walgreen resulted in their joining the list of Top Twenty Equity holdings, while partial sales of EOG Resources and Monsanto meant that they dropped out of the Top Twenty.
	Professor John Kay has been appointed as a Director with effect from 11 December 2008 and Ms Fiona McBain will be appointed as a Director with effect from 26 February 2009.

Top Twenty Equity Holdings
Name	% of total assets at 31/12/08	% of total assets at 30/09/08	Name	% of total assets at 31/12/08	% of total assets at 30/09/08
Petrobras	4.9	5.5	Banco Santander	2.5	1.7
Atlas Copco	4.6	3.7	Gazprom	2.4	3.3
Amazon.com	4.2	3.7	UBS	2.4	1.3
Nintendo	3.9	2.1	Berkshire Hathaway	2.1	1.8
Porsche	3.6	3.0	Progressive Ohio	2.1	1.1
China Mobile	3.5	2.1	Walgreen	2.0	1.1
Vestas Windsystems	2.8	2.6	Deere	2.0	1.6
Sandvik	2.7	2.8	Schlumberger	2.0	2.3
Google	2.7	2.2	Brown-Forman	1.8	1.3
CVRD (or Vale)	2.6	2.6	Canon	1.8	2.4
			Total	56.6	48.2

Total Return Performance

	%
	3 Months	1 Year	3 Years	5 Years
Share Price	-19.8	-44.8	-19.3	31.0
NAV	-18.8	-42.4	-18.8	25.0
Benchmark*	-3.7	-19.5	-0.5	35.5

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
	31/12/08	30/09/08
Share price	361.0p	459.0p

Net asset value per share † (after deducting borrowings at fair value)	400.9p	520.3p
Net asset value per share † (after deducting borrowings at par)	424.3p	543.1p

Discount (borrowings at fair value)	10.0%	11.8%
Discount (borrowings at par)	14.9%	15.5%

Total assets (before deduction of borrowings)	£1,475.3m	£1,922.1m

Total borrowings (at fair value)	£382.8m	£504.2m
Total borrowings (at par)	£319.3m	£442.3m

Potential Gearing ( borrowings at par)	27.6%	29.9%
Actual Gearing (borrowings at par)	20.1%	23.7%

Potential Gearing (borrowings at fair value)	35.0%	35.6%
Actual Gearing (borrowings at fair value)	27.1%	29.1%