Interim Management Statement

RNS Number : 5157K

Scottish Mortgage Inv Tst PLC

15 July 2011

 

SCOTTISH MORTGAGE INVESTMENT TRUST PLC

 

Interim Management Statement - 3 months to 30 June 2011

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 total return was 2.5% and the share price total return was 3.3%. The FTSE All World Index in sterling terms (the benchmark) total return was 0.3%.
·	Performance is judged on a five year rolling period. Over the five years to 30 June 2011 the net asset value total return was 69.8% and the share price total return was 76.6% compared to a total return of 40.1% in the FTSE All World Index in sterling terms.
·	The £100 million Lloyds TSB Bank plc one year Multi-Currency Facility, which expired in May 2011 and had drawings of US$80 million and Euro59.8 million, was replaced with a three year £100 million facility with National Australia Bank Limited. The drawings on the new facility are US$163 million.
·	At the Annual General Meeting held on 30 June 2011 all resolutions were passed and a final dividend of 6.20p per share, which was approved by shareholders, was paid on 4 July 2011.

Top Twenty Equity Holdings *
Name	% of total assets at 30/06/11	% of total assets at 31/03/11		Name	% of total assets at 30/06/11	% of total assets at 31/03/11
Amazon.com	7.1	6.7		KGHM	1.8	1.1
Baidu	6.8	6.9		Intuitive Surgical	1.8	1.5
PPR	4.7	4.2		Inditex	1.7	1.0
Atlas Copco	3.9	4.0		New Oriental Education
Tencent Holdings	3.6	3.3		& Technology	1.7	1.5
Banco Santander	3.3	3.4		Schlumberger	1.5	1.6
Deere	2.4	2.9		salesforce.com	1.4	0.5
Vale (CVRD)	2.3	2.4		Brown-Forman	1.4	1.3
First Solar	2.2	2.5		ABB	1.4	1.3
Google	1.8	2.0		Garanti Bankasi	1.4	1.4
				Walgreen	1.4	1.3
				Total	53.6	50.8

*Additions to KGHM, Inditex and salesforce.com have brought them into the Top Twenty Equity Holdings and Telekomunikacja Polska and Meggitt have dropped out of the Top Twenty 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	3.3	39.0	31.0	76.6
NAV (at fair)	2.5	37.3	33.9	69.8
Benchmark	0.3	21.7	30.8	41.4*

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
	30/06/11	31/03/11
Share price	760.0p	742.0p
Net asset value per share † (after deducting borrowings at fair value)	830.8p	816.5p
Net asset value per share † (after deducting borrowings at par)	849.2p	833.5p
Discount (borrowings at fair value)	8.5%	9.1%
Discount (borrowings at par)	10.5%	11.0%
Total assets (before deduction of  borrowings)	£2,542.4m	£2,502.3m
Total borrowings (at fair value)	£411.2m	£407.9m
Total borrowings (at par)	£364.0m	£364.3m
Potential Gearing (borrowings at par)	16.7%	17.0%
Actual Gearing (borrowings at par)	9.8%	9.9%
Potential Gearing (borrowings at fair value)	19.3%	19.5%
Actual Gearing (borrowings at fair value)	12.2%	12.2%

† 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]

 

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