Interim Management Statement

RNS Number : 3874A

Scottish American Investment Co PLC

07 October 2009

THE SCOTTISH AMERICAN INVESTMENT COMPANY P.L.C.

Interim Management Statement - 3 months to 30 September 2009

SAINTS' objective is to increase capital and grow income in order to deliver real dividend growth. Its policy is to invest flexibly and actively across a broad range of assets and markets. Listed equities, both UK and overseas, form the largest part of the portfolio. Investments are also made in bonds, property and other asset classes.

Review of the Period

	Over the period, the Company's net asset value total return (with debt at fair value) was 22.8% and the share price total return was 21.6%. This compares to a total return on the benchmark of 22.0%.
	An interim dividend of 2.25p per share was paid on 30 September 2009 to shareholders on the register on 28 August 2009.
Asset Allocation				Top Ten Holdings
Category		% of total assets at 30/09/09	% of total assets at 30/06/09	Name	% of total assets at 30/09/09	% of total assets at 30/06/09
UK Quoted Equities*		27.1	24.9	Brazil CPI Linked 2045	4.2	4.1
Overseas Quoted Equities*		39.5	38.6	Cambium Global Timberland	3.3	3.5
Total Quoted Equities*		66.6	63.5	Athena Debt Opportunities Fund	3.1	3.1
Quoted Equity Forestry Investments		3.3	3.5	Baillie Gifford High Yield Bond Fund	2.6	2.5
Quoted Equity Property Investments		2.3	2.4	Baillie Gifford Greater China Fund	2.4	2.5
Direct Property		7.3	8.7	Bay Haven FRNs 2009/10	2.4	2.7
Unquoted		0.5	0.6	HSBC	2.1	2.0
Fixed Interest		19.1	18.5	Man Group 11% Perpetual Bond	1.8	1.6
Net Liquid Assets		0.9	2.8	Holiday Village in New Romney	1.8	2.1
				Quorum Oil and Gas	1.7	1.7

Total		100.0	100.0	Total	25.4	25.8

* Excludes quoted equity property and forestry investments

Total Return Performance

	%
	3 Months	1 Year	3 Years	5 Years
Share Price	21.6%	2.8%	-15.8%	31.2%
NAV (debt at book value)	24.7%	2.2%	-17.3%	22.7%
Benchmark*	22.0%	10.5%	-0.5%	40.0%

Source: Thomson Financial Datastream/Baillie Gifford & Co.

* On 1 January 2009 the Company changed its benchmark from 70% FTSE All-Share Index and 30% FTSE World Ex UK Index (in sterling terms) to 50% FTSE All-Share Index and 50% FTSE All World Ex UK Index (in sterling terms). For the purposes of the above table the returns on both benchmarks for their respective periods have been linked to form a single benchmark.

Past performance is not a guide to future performance

General Information
	30/09/09	30/06/09
Share price	170.0p	141.7p

Net asset value per share (after deducting debenture at fair value)*	190.0p	156.5p

Discount (debenture at fair value)	10.5%	9.5%

Total assets (before deduction of debenture)*	£347.4m	£299.4m

Debenture (at fair value)	£95.7m	£92.1m

Potential Gearing (debenture at fair value)	38.0%	44.4%
Gearing less cash (debenture at fair value)	36.5%	43.6%
Gearing less cash and fixed interest (debenture at fair value)	10.1%	16.6%

Potential Gearing (debenture at book)	33.9%	41.7%
Gearing less cash (debenture at book)	32.4%	40.9%
Gearing less cash and fixed interest (debenture at book)	6.8%	14.4%

*These figures have been calculated using the AIC cum income basis (includes current financial year retained income).

This interim management statement and up to date NAV and share price information is available on the SAINTS' page of the Managers' website www.saints-it.com.