Interim Management Statement

RNS Number : 3424Z

Scottish Mortgage Inv Tst PLC

12 January 2011

 

SCOTTISH MORTGAGE INVESTMENT TRUST PLC

 

Interim Management Statement - 3 months to 31 December 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 rose by 9.1% and the share price increased by 11.6%. The FTSE All World Index in sterling terms (the benchmark) rose by 9.4%. All figures are total return.
·	Performance is judged on a five year rolling period. Over the five years to 31 December 2010 net asset value rose by 61.7% and the share price rose by 65.3% compared to a 35.6% increase in the FTSE All World Index in sterling terms. All figures are total return.
·	The interim dividend of 5.80p per share was paid on 3 December 2010.
·	The ¥6,712.5 million drawings with Lloyds TSB were switched to US$80 million to reflect the minimal level of Japanese assets.

Top Twenty Equity Holdings *
Name	% of total assets at 31/12/10	% of total assets at 30/09/10		Name	% of total assets at 31/12/10	% of total assets at 30/09/10
Amazon.com	7.1	6.3		New Oriental Education
Baidu.com	5.1	5.8		& Technology	1.7	1.6
Atlas Copco	4.1	3.7		Nintendo	1.6	2.1
Petrobras	4.0	4.0		Schlumberger	1.6	1.2
PPR	3.6	3.2		Meggitt	1.5	1.3
Banco Santander	3.3	4.1		Telekomunikacja Polska	1.5	1.8
Tencent Holdings	2.9	2.7		Garanti Bankasi	1.5	1.8
Deere	2.6	2.3		Berkshire Hathaway	1.5	1.6
Vale (CVRD)	2.6	2.5		Brown-Forman	1.4	1.3
Google	2.1	1.8		Progressive Insurance	1.3	1.5
				Walgreen	1.3	1.2
				Total	52.3	51.8

*Taiwan Semiconductor Manufacturing and Apple have dropped out of the Top Twenty Equity Holdings following partial sales. Other changes to the constituents of the Top Twenty Equity Holdings were attributable to market movements.

Total Return Performance

	%
	3 Months	1 Year	3 Years	5 Years
Share Price	11.6	33.9	13.0	65.3
NAV (at fair)	9.1	29.1	12.4	61.7
Benchmark	9.4	16.7	14.1	41.0*

Source: Morningstar/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).

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.

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

Past performance is not a guide to future performance

General Information
	31/12/10	30/09/10
Share price	708.0p	640.0p
Net asset value per share † (after deducting borrowings at fair value)	773.7p	714.7p
Net asset value per share † (after deducting borrowings at par)	792.3p	736.8p
Discount (borrowings at fair value)	8.5%	10.5%
Discount (borrowings at par)	10.6%	13.1%
Total assets (before deduction of  borrowings)	£2,408.3m	£2,265.6m
Total borrowings (at fair value)	£411.6m	£421.1m
Total borrowings (at par)	£363.5m	£364.1m
Potential Gearing (borrowings at par)	17.8%	19.2%
Actual Gearing (borrowings at par)	9.1%	11.2%
Potential Gearing (borrowings at fair value)	20.6%	22.8%
Actual Gearing (borrowings at fair value)	11.8%	14.7%

† These figures have been calculated using the AIC cum income basis (includes current financial year retained income). Dividends are not reinvested.

This interim management statement and up to date NAV and Share Price information are available at www.scottishmortgageit.com ‡

‡ Neither the contents of the Managers' website nor the contents of any website accessible from hyperlinks on the Managers' website (or any other website) is incorporated into, or forms part of, this announcement.

For further information, contact: Robert O'Riordan  0131 275 3181  [e-mail]

 

END

 

 

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