Interim Management Statement

RNS Number : 8883O

Scottish Mortgage Inv Tst PLC

06 July 2010

SCOTTISH MORTGAGE INVESTMENT TRUST PLC

Interim Management Statement - 3 months to 30 June 2010

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. 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 10.8% and the share price declined by 7.7%. The FTSE All World Index in sterling terms (the benchmark) fell by 10.7%. All figures are total return.
·	Performance is judged on a five year rolling period. Over the five years to 30 June 2010 net asset value rose by 59.1% and the share price rose by 68.7% compared to a 32.6% increase in the FTSE All World Index in sterling terms. All figures are total return.
·	During the period 1,450,000 shares were bought back at a cost of £9 million, enhancing NAV per share by 0.08%.
·	The £100 million ING Bank N.V. Long Term Multi-Currency Facility, which expired on 8 June 2010 and had drawings of ¥8,500 million and CHF60.5 million, was replaced with a one year £100 million facility with Lloyds TSB Bank plc. The drawings on the new facility are ¥6,712.5 million and Euro 59.8 million.
·	At the Annual General Meeting held on 28 June all resolutions were passed and a final dividend of 5.80p per share, which was approved by shareholders, was paid on 1 July 2010.

Top Twenty Equity Holdings *
Name	% of total assets at 30/06/10	% of total assets at 31/03/10	Name	% of total assets at 30/06/10	% of total assets at 31/03/10
Amazon.com	5.0	5.6	Tencent Holdings	2.1	1.4
Baidu.com	4.6	3.6	Standard Chartered	2.0	2.0
Petrobras	4.2	5.0	New Oriental Education
Banco Santander	4.1	3.9	& Technology	1.9	1.6
Atlas Copco	3.8	3.9	Berkshire Hathaway	1.9	1.7
Nintendo	3.3	3.3	Google	1.9	2.2
PPR	2.8	2.2	Telekomunikacja Polska	1.7	1.2
Vale (CVRD)	2.3	2.7	Progressive Insurance	1.6	1.7
Deere	2.3	2.2	Meggitt	1.6	1.4
Taiwan Semiconductor			First Solar	1.5	1.4
Manufacturing	2.1	1.9	Brown-Forman	1.5	1.4

			Total	52.2	50.3

*Walgreen and KGHM have dropped out of the Top Twenty Equity Holdings following partial sales.

Total Return Performance

	%
	3 Months	1 Year	3 Years	5 Years
Share Price	(7.7)	44.4	(0.2)	68.7
NAV	(10.8)	41.9	(1.2)	59.1
Benchmark	(10.7)	23.8	(1.2)	35.9*

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
	30/06/10	31/03/10
Share price	556.5p	609.0p

Net asset value per share † (after deducting borrowings at fair value)	614.8p	692.8p
Net asset value per share † (after deducting borrowings at par)	634.9p	711.2p

Discount (borrowings at fair value)	9.5%	12.1%
Discount (borrowings at par)	12.3%	14.4%

Total assets (before deduction of borrowings)	£1,950.0m	£2,154.6m

Total borrowings (at fair value)	£363.2m	£356.7m
Total borrowings (at par)	£311.5m	£314.7m

Potential Gearing (borrowings at par)	19.0%	16.7%
Actual Gearing (borrowings at par)	11.1%	9.2%

Potential Gearing (borrowings at fair value)	22.9%	19.8%
Actual Gearing (borrowings at fair value)	14.7%	12.1%