Interim Management Statement

RNS Number : 3321Y

Scottish Mortgage Inv Tst PLC

04 July 2008

SCOTTISH MORTGAGE INVESTMENT TRUST PLC

Interim Management Statement - 3 months to 30 June 2008

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 of equities. 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 1.3% and the share price rose by 4.7%. The FTSE All World Index in sterling terms (the benchmark) fell by 1.8%. All figures are total return.
	During the period 1 million shares were bought back at a cost of £6.5m, enhancing NAV per share by 0.03%.
	Additional purchases of Nintendo and Google resulted in their joining the Top Twenty Equity holdings, while a part sale of Standard Chartered meant that it dropped out of the Top Twenty.
	At the AGM on 26 June all resolutions were passed and a final dividend of 5.3p per share was approved by shareholders, which was paid on 2 July 2008.
	A US$100m multi-currency loan was repaid and a US$99m multi-currency loan was drawn down with maturity of 20 April 2009.

Top Twenty Equity Holdings
Name	% of total assets at 30/06/08	% of total assets at 31/03/08	Name	% of total assets at 30/06/08	% of total assets at 31/03/08
Petrobras	5.9	4.2	Schlumberger	2.4	1.9
Gazprom	4.7	3.8	China Mobile	2.2	2.0
Atlas Copco	3.8	4.4	Monsanto	2.1	1.8
Vale (CVRD)	3.5	4.4	Norilsk Nickel	2.0	2.3
Porsche	3.3	4.0	Deere	1.8	2.0
Vestas Windsystems	3.0	3.4	Nintendo	1.7	0.7
Sandvik	2.9	3.6	Google	1.5	0.7
Amazon.com	2.8	2.7	eBay	1.5	3.1
Canon	2.6	2.3	Unicredito Italiano	1.4	1.6
EOG Resources	2.6	2.3	US Steel	1.4	1.0
			Total	53.1	52.2

Total Return Performance

	%
	3 Months	1 Year	3 Years	5 Years
Share Price	4.7	5.9	79.0	154.8
NAV	1.3	0.4	56.0	122.0
Benchmark*	(1.8)	(8.0)	26.5	68.5

Source: Fundamental Data Ltd/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
	30/06/08	31/03/08
Share price	623.0p	600.0p

Net asset value per share † (after deducting borrowings at fair value)	653.5p	651.4p
Net asset value per share † (after deducting borrowings at par)	671.1p	672.5p

Discount (borrowings at fair value)	4.7%	7.9%
Discount (borrowings at par)	7.2%	10.8%

Total assets (before deduction of borrowings)	£2,256.9m	£2,276.1m

Total borrowings (at fair value)	£472.9m	£491.4m
Total borrowings (at par)	£424.8m	£433.5m

Potential Gearing (borrowings at fair value)	26.5%	27.5%
Actual Gearing (borrowings at fair value)	20.4%	21.8%

Potential Gearing ( borrowings at par)	23.2%	23.5%
Actual Gearing (borrowings at par)	17.2%	18.0%