Interim Management Statement

Securities Trust of Scotland plc
Interim Management Statement - 1 April to 30 June 2009

Growing long-term, delivering high income

Profile

Objective
To achieve rising income and long-term capital growth by investment in
the UK.

Benchmark
FTSE All-Share index

Sector
UK Growth & Income

Launch
28 June 2005

Portfolio
Asset class           31 Mar     30 June
Equities              104.9%      106.0%
Fixed interest          3.8%        4.0%
Cash                    2.9%        4.5%
Borrowings            (11.7%)     (14.6%)

Equity allocation     31 Mar     30 June
Financials             18.1%       22.1%
Oil and gas            20.0%       18.9%
Consumer goods         12.3%       11.9%
Industrials            10.0%       10.1%
Healthcare             10.0%        9.5%
Consumer services       9.6%        8.0%
Telecommunications      5.6%        6.2%
Basic materials         6.7%        6.0%
Utilities               6.2%        5.9%
Technology              1.5%        1.5%

Top 10 equity holdings (52.5% of total portfolio)
BP 9.4%
Royal Dutch Shell 7.9%
Vodafone 6.2%
British American Tobacco 5.9%
GlaxoSmithKline 5.6%
HSBC 4.0%
AstraZeneca 3.9%
BAE Systems 3.3%
Aviva 3.2%
Scottish & Southern Energy 3.1%

Number of holdings 45

Change in Equity Allocation
From 31 March to 30 June
Financials - +4.0%
Oil and Gas - (1.1%)
Consumer Goods - (0.4%)
Industrials - 0.1%
Healthcare - (0.5%)
Consumer services - (1.6%)
Telecommunications - 0.6%
Basic Materials - (0.7%)
Utilities - (0.3%)
Technology - 0%

note - changes due to market movements


Key facts
Net assets - £80.5m
Share price - 79.0p
Net asset value per share* - 80.6p
Discount (premium) - 2.0%
Net yield † - 6.9%

*Following a recent review by the AIC, the NAV stated in our reporting is
inclusive of current year revenue.

†The final dividend of 2.0p per share was paid to shareholders on the register
at 5 June 2009 on 30 June 2009, bringing the total dividend for the year to 31
March 2009 to 5.45p.

Manager's commentary
UK markets rallied sharply, posting their first positive quarter in two years.
The FTSE All-Share rose by 10.9%. Cyclical stocks led the rebound; the general
theme was `the more distressed the company, the greater the bounce'. There were
many rights issues - and most of the stocks involved actually rose.

The fund's NAV returned 10.2%. The top contributors were Aviva, Intermediate
Capital Group and Tullet Prebon, and avoiding BG Group. The biggest detractors
were not holding Barclays and Anglo American, and not owning enough of HSBC.
We bought Domino Printing, which boasts strong cashflow and an attractive yield.
We sold Tui Travel and Go-Ahead (to take profit) and Summit Germany (after a
takeover approach). As no dividends are likely for several years, we closed the
position in RBS.

Despite the recent rally, investor confidence remains fragile. Where
improvements in earnings have not materialised, share prices are beginning to
wobble. This indicates that fundamentals are starting to drive performance
again. Our stockpicking approach should thrive in this environment.

Ross Watson


Performance
Discrete performance over 12 months to 30 June

       Share Price        NAV       Benchmark
2009       (16.0%)     (27.2%)        (20.5%)
2008       (22.5%)     (20.4%)        (13.0%)
2007        17.5%       20.2%          18.4%
2006        15.4%       20.0%          19.7%
2005           -           -              -

Cumulative performance over periods to 30 June 2009

           One    Three    Six      One     Three     Five     Since
           month  months   months   year    years     years    Launch **

Share      (4.8%)  22.1%   (1.0%)  (16.0%)  (23.6%)    -       (7.4%)
Price

NAV        (0.8%)  10.2%   (2.0%)  (27.2%)  (30.4%)    -      (16.1%)

Benchmark  (3.2%)  10.9%    0.8%   (20.5%)  (18.1%)    -       (1.6%)


Source: Martin Currie and Fundamental Data. Bid to bid basis with net income
reinvested over the periods shown in sterling terms. These figures do not
include the costs of buying and selling shares in an investment trust. If these
were included, performance figures would be reduced.

**Launched on 28 June 2005.


Capital structure
Ordinary shares 101,970,223*

*Source: Martin Currie as at 30 June 2009.

Board of directors
Neil Donaldson (chairman)
Andrew Irvine
Charles Berry
Edward Murray
Anita Frew

Material events and transactions
In order to offset currency fluctuations the company has taken out forward
contracts to hedge the majority of expected revenue generated in US dollars.
During the three month period, no shares were bought back.

At the AGM on 22 July 2009, all resolutions were passed.

Gearing at the end of the period was 14.6% (11.7% as at 31 March 2009).

A final dividend of 2.0p was paid to shareholders on 30 June 2009, bringing the
total dividend for the year to 31 March to 5.45p. The dividend was maintained
from the previous year.

The first interim dividend of 1.15p per share for the year to 31 March 2010 will
be paid on 4 September 2009 to shareholders on the register as at 14 August
2009.

Key information
Year end - 31 March
Annual general meeting - July
Interim dividends paid March, June, September, December
Annual management fee as at 31 March 2009† - 0.3%
Total expense ratio 31 March 2009* - 0.7%

†Percentage of net assets.
*Percentage of shareholders' funds. Includes annual management fee.

Website
The trust has its own website at www.securitiestrust.com. There you will find
further details about the trust, information on Martin Currie, daily share
prices (and associated risks), and you can access regular webcasts by the
manager.


Net asset value and dividend history
As at           Share      NAV       Discount/    Dividend
31 March        price   per share    (premium)    per share

2006            125.5p     135.6p        7.4%        2.85p
2007            141.3p     148.4p        4.8%        5.05p
2008            116.0p     121.5p        3.8%        5.45p
2009             66.3p      75.4p*      12.2%        5.45p

*Following a recent review by the AIC, the NAV stated in our reporting is inclusive
of current year revenue.

Risk factors
Please note that, as the shares in investment trusts are traded on a
stockmarket, the share price will fluctuate in accordance with supply and demand
and may not reflect the underlying net asset value of the shares.

Depending on market conditions and market sentiment, the spread between the
purchase and sale price can be wide. As with all stock exchange investments the
value of investment trust shares purchases will immediately fall by the
difference between the buying and selling prices, the bid-offer spread.

Investment trusts may also borrow money in order to make further investments.
This is known as "gearing" and can enhance shareholder returns in rising markets
but, conversely, can reduce them in falling markets.

The value of investments and the income from them may go down as well as up and
is not guaranteed. An investor may not get back the amount originally invested.

The majority of charges will be deducted from the capital of the trust. This
will constrain the capital growth of the trust in order to maintain the income
streams.

Exposure to a single country market increases potential volatility.