Interim Management Statement

SECURITIES TRUST OF SCOTLAND PLC

INTERIM MANAGEMENT STATEMENT

FROM 1 OCTOBER TO 31 DECEMBER 2009


Manager's commentary

After its strong performance in the third quarter, the UK market continued to
rise in quarter four, though at a slower pace. Leadership shifted markedly to
the larger-cap end of the market. This was due to a renewed focus on UK public
and private finances, and the extent to which larger UK companies earn their
profits overseas.

The Trust's NAV returned 4.4%. The best performers were mainly larger companies
like BHP Billiton, National Grid, Next, Smiths Group and BP. A number of our mid-
cap names also did well, including Micro Focus and Halfords. There were fewer
transactions this quarter. We funded purchases of Centrica, Britvic and
Prudential by reducing Scottish & Southern Energy, Unilever, Vodafone and Aviva.
It is an uncertain environment for investors. There is an ongoing struggle
between those who believe recovery is now evident and those who believe it will
take many years. For now, the bulls remain in the ascendency. There remains
pressure on dividends, particularly among companies raising equity. Thankfully,
however, many defensive companies continue to deliver dividend increases.

Ross Watson


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    30 Sep    31 Dec
Equities       106.6%    107.7%
Fixed interest   3.7%      3.5%
Cash             1.4%      1.2%
Borrowings     (11.7%)   (12.3%)


Equity allocation   30 Sep    31 Dec
Financials          23.6%      21.5%
Oil and gas         17.6%      18.0%
Consumer goods      11.3%      11.9%
Industrials         11.9%      11.7%
Healthcare           8.5%       8.6%
Consumer services    8.0%       8.4%
Basic materials      6.5%       7.0%
Utilities            5.1%       6.2%
Telecommunications   6.0%       5.1%
Technology           1.6%       1.4%

Top 10 equity holdings (50.4% of total portfolio)
BP 9.2%
Royal Dutch Shell 7.2%
British American Tobacco 5.5%
GlaxoSmithKline 5.3%
Vodafone 5.1%
BHP Billiton 4.5%
HSBC 4.3%
AstraZeneca 3.3%
Next 3.1%
Aviva 2.9%

Number of holdings 46

Key facts
Net assets £104.1m
Share price (p) 93.0
Net asset value per share (p)* 103.7
Discount (premium) 10.3%
Net yield † 5.9%

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

†The first interim dividend of 1.15p per share for the year to 31 March 2010 was
paid on 4 September 2009 to shareholders on the register as at 14 August 2009.
The second interim dividend of 1.15p was paid on 18 December 2009 to
shareholders on the register as at 27 November 2009

Performance

Discrete performance over 12 months to 31 December

          2009   2008   2007   2006   2005

Share    19.6% (31.1%) (6.1%)  26.1%    -
Price
NAV      29.9% (37.7%) (0.4%)  21.9%    -

Bench-   30.1% (29.9%)  5.3%   16.8%    -
mark

Cumulative performance over periods to 31 December 2009

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

Share        3.3%    4.6%    20.8%   19.6%   (22.7%)       -    11.9%
Price

NAV          5.8%    4.4%    32.5%   29.9%   (19.5%)       -    11.2%

Bench        4.3%    5.5%    29.1%   30.1%    (4.0%)       -    27.1%
mark

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 31 December 2009.

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

Material events and transactions
Gearing at the end of the period was 12.3% (11.7% as at 30 September 2009).

The second interim dividend of 1.15p was paid on 18 December 2009 to
shareholders on the register as at 27 November 2009.

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.

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%

Epic code STS

Reuters code STS.L

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

Net asset value and dividend history

As        Share     NAV      Discount/    Dividend
at 31     price     per      premium      per
March               share                 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.