RNS Announcement

Scottish Mortgage Investment Trust PLC

Legal Entity Identifier: 213800G37DCS3Q9IJM38

Results for the six months to 30 September 2024

The following is the unaudited Interim Financial Report for the six months to 30 September 2024 which was approved by the Board on 7 November 2024.

Interim management report

Performance

Since the end of March, our net asset value per share ('NAV'), with debt at fair value, has increased by 1.9%, compared to a rise of 3.6% for the FTSE All-World Index (both in total return terms). Over the past five years, our NAV has gained 88.9%, outpacing the index's 66.9% rise. Looking further back, over the last decade, our NAV has grown by 347.8%, compared with 211.3% for the index.

While our primary focus remains long-term capital appreciation, we recognise the importance of providing a consistent dividend to our shareholders. In light of this, the Board is recommending an interim dividend of 1.60p per share, consistent with last year's interim payment.

Portfolio

AI

Writing the interim report this year was notably different. I didn't start by sitting down with a blank page. Instead, AI systems competed to provide me with summaries of the most significant events over the past six months. They tried to explain stock price movements and even suggested topics that might resonate with readers. The rising quality of their insights could be unsettling, yet I share Professor Ethan Mollick's belief in "Co-intelligence." Rather than replacing human creativity, these systems are enhancing our productivity, efficiency, and imagination. Even without further breakthroughs, their impact on business will be profound.

Understanding the implications of this technology wave will be our task for the next decade. Despite growing conviction that generative AI will be a transformative general-purpose technology, we reduced our position in NVIDIA, the leading designer of semiconductors for AI. The primary challenge hindering large-scale AI adoption remains the high cost. Companies must find ways to offer competitively priced AI systems while managing the skyrocketing costs of training them. This raises concerns about the sustainability of current capital equipment spending, including NVIDIA chips.

Our investment in the AI ecosystem is not limited to NVIDIA. We've increased our exposure to Meta Platforms, the parent company of Facebook, Instagram, and WhatsApp. AI will improve Meta's products and its business model provides many options for funding the necessary computing capacity. Its leadership team has a strong track record of successfully integrating technology innovations, giving us confidence in their strategy moving forward.

Highlights and Challenges

SpaceX has made remarkable progress with its reusable Starship launch platform. Designed for rapid reusability, Starship dramatically reduces launch costs, making space more accessible for a variety of missions. This capability doesn't just open new doors for SpaceX, it could redefine what humanity can achieve in space by making projects like lunar exploration, Mars missions, and space tourism more feasible.

One of Starship's primary impacts will be its support for Starlink, SpaceX's satellite communication network. With Starship's high payload capacity, SpaceX can deploy and maintain a vast constellation of Starlink satellites at an accelerated pace. The company has been steadily increasing the number and capabilities of these satellites, recently adding more powerful models to improve coverage, speed, and reliability.

In parallel, SpaceX has introduced a more affordable Starlink ground terminal, lowering the barrier for users to access high-speed internet in remote or underserved areas. This combination of enhanced satellite infrastructure and accessible ground equipment is set to accelerate the growth of the space-based communications market, potentially connecting millions of people worldwide who previously had limited or no internet access.

While many of our portfolio companies performed well in both operational and stock price terms, two larger positions dampened our overall NAV growth. Moderna, the drug developer, has been underperforming. Its COVID vaccine franchise is in decline, and its new vaccine for respiratory syncytial virus has struggled to compete with established providers. This is disappointing, and we're engaging with management to improve execution. However, we remain optimistic about Moderna's differentiated pipeline of new therapies, which we expect to drive long-term improvement.

Northvolt, the European battery manufacturer has struggled with production delays. It has announced it will lay off 1,600 staff and scale back its expansion plans, cancelling a project to increase its factory's capacity. The company will need to deliver significant improvements if it is to retain the confidence of its stakeholders and capitalise on the vast opportunity that electrification of our transport system will present over the next decade.

In contrast, Redwood Materials, which focuses on battery recycling, is making encouraging progress. The company is successfully scaling operations in the U.S. and finding enthusiastic buyers for its intermediate products as it builds towards full recycling. We have added to our investments in electrification by acquiring a stake in Chinese electric vehicle ('EV') manufacturer BYD. Despite fierce competition in China's EV market, BYD's vertical integration and focus on hybrid vehicles have positioned it as a dominant player with significant international potential. We believe its business will continue to internationalise.

China

Global investors remain hesitant about Chinese companies due to domestic economic struggles and geopolitical concerns. However, we've taken a different approach, backing exceptional Chinese companies where we believe the upside justifies the risk. Our Chinese holdings have been performing well. Meituan, the food delivery company, has been growing at over 20%, improving margins, and Pinduoduo, the ecommerce platform, has achieved explosive growth in export markets. Bytedance, the owner of the Tiktok social media platform, is growing strongly with a big user base and strong monetisation. As Chinese authorities signal more substantive steps to support consumption, we've seen a rally in Chinese assets, though they remain significantly undervalued compared to their Western counterparts.

Emerging Growth Opportunities

Beyond the largest positions in our portfolio, several smaller holdings are making steady progress toward transformational change. Joby Aviation, the electric aircraft company, expects to deliver its second vehicle to the U.S. Air Force by the end of 2024, bolstered by a $500 million investment from Toyota. Meanwhile, Aurora Innovation, an autonomous trucking company, is on track to launch commercially by the end of the year, with partnerships already in place to scale the business thereafter.

In the quantum computing space, PsiQuantum has secured deals with governments to build its first quantum computers in Australia and Illinois. These advancements illustrate the exciting potential of our younger holdings.

Capital Allocation

We exited several smaller holdings where our growth outlook has changed. These include HelloFresh, as the meal-kit market's potential seems more limited now, and Zalando, which is facing increased competition from companies leveraging the Chinese supply chain. While Zoom remains best-in-class in communication software, Microsoft Teams' fierce competition has diminished Zoom's market opportunity.

We've initiated a position in Nu Holdings, a digital bank in Latin America that is rapidly becoming essential infrastructure for customers underserved by traditional banks. It complements our holdings in Sea, Coupang and MercadoLibre, giving us exposure to growing consumption from the world's emerging middle class. Our new holding in Hermes International, the French luxury goods company, has the potential to significantly expand its small market share over the next decade while further strengthening its brand and global appeal.

We have reduced our position in ASML, the lithography equipment maker, while initiating a new position in its close partner, TSMC. Both companies are essential to the semiconductor ecosystem, with clear technical and operational advantages over their competitors. This strategic shift reflects our evolving view of the semiconductor landscape and our belief in TSMC's long‑term potential.

Private Companies: Patience and Impact

Our portfolio includes 23.3% allocation to private companies. No longer included in this allocation is our holding in Tempus AI, which recently went public through an IPO, even in the challenging environment for new listings. Tempus AI focuses on improving cancer outcomes by characterising patients' disease and recommending personalised treatments and clinical trials. It received substantial funding from Scottish Mortgage while still private - an example of how patient capital can drive impactful change.

While we can't predict when the funding environment for private companies will improve, we are confident in our portfolio of high-quality growth companies. Many of these companies are self-sustaining, and we remain patient, supportive investors.

Looking Forward

Our world is evolving rapidly, and with change comes opportunity. The founders and entrepreneurs leading our portfolio companies are well-positioned to seize these opportunities. Over the long term, earnings growth drives stock prices, and our portfolio consists of holdings growing much faster than the broader market. We believe that potential is not fully reflected in stock prices today, and we are excited about the returns they can deliver for our shareholders.

The principal risks and uncertainties facing the Company are set out at the end of this announcement.

Tom Slater

Baillie Gifford & Co Limited

Managers and Secretaries

For a definition of terms see Glossary of terms and Alternative Performance Measures below.

Total return information sourced from LSEG/Baillie Gifford.

See disclaimer below.

Past performance is not a guide to future performance.

Chair's interim update

Capital Allocation

On 15 March 2024, the Board announced that it would make available at least £1 billion for the purpose of purchasing its own shares over the following two years.  During the first half of this financial year the Company repurchased 100.6m shares, at a total cost of £880.1m. This activity has had a meaningful impact on the rating. The average discount was 8.9% over the period, which compares well to 16.2% over the previous financial year.  

Over the past few months, Directors held useful meetings with representatives of several shareholders, whose clients represent a large portion of the register in percentage terms. Some advocate for increased buyback activity, whilst others feel capital is best deployed into long-term investments. Balance is required. We take a pragmatic approach in making capital allocation calls between buying back shares and other uses of capital such as making new investments and reducing debt. Together, the Board and the Managers remain committed to the continuation of the buyback.

Board Composition

The Board is pleased to announce the appointment of Christopher Samuel as an independent Non-executive Director of the Company, with effect from 1 January 2025. Christopher's appointment is subject to shareholder approval at our Annual General Meeting in 2025. I will retire from the Board at the Annual General Meeting in 2025, following which Christopher Samuel will become the Chair. Professor Maxwell, Senior Independent Director, intends to retire from the Board a year after me, at the AGM in 2026. The Board will communicate his successor as Senior Independent Director in due course.

Christopher Samuel is an experienced Chair and non-executive director with financial services expertise. Formerly the Chief Executive of Ignis Asset Management, Christopher also held board-level executive positions at several asset management businesses including Gartmore, Hill Samuel Asset Management and Cambridge Place Investment Management. Prior to that he worked at Prudential-Bache and KPMG, where he qualified as a chartered accountant. Christopher is the Chair of BlackRock Throgmorton Trust plc and a non-executive director of Quilter plc, having previously been Chair of Quilter Financial Planning Limited. He was previously Chair of JP Morgan Japanese Investment Trust plc and a director of Alliance Trust, Sarasin, UIL and UIL Finance Limited.

Justin Dowley

Chair

Responsibility statement

We confirm that to the best of our knowledge:

a)       the condensed set of Financial Statements has been prepared in accordance with FRS 104 'Interim Financial Reporting';

b)       the Interim Management Report includes a fair review of the information required by Disclosure and Transparency Rule 4.2.7R (indication of important events during the first six months, their impact on the condensed set of Financial Statements and a description of the principal risks and uncertainties for the remaining six months of the year); and

c)       the Interim Financial Report includes a fair review of the information required by Disclosure and Transparency Rule 4.2.8R (disclosure of related party transactions and changes therein).

By order of the Board
Justin Dowley
Chair
7 November 2024

Valuing private companies

We aim to hold our private company investments at 'fair value', i.e. the price that would be paid in an open-market transaction. Valuations are adjusted both during regular valuation cycles and on an ad hoc basis in response to 'trigger events'. Our valuation process ensures that private companies are valued in both a fair and timely manner.

The valuation process is overseen by a valuations group at Baillie Gifford, which takes advice from an independent third party (S&P Global). The valuations group is independent from the investment team with all voting members being from different operational areas of the firm, and the investment managers only receive final valuation notifications once they have been applied.

We revalue the private holdings on a three-month rolling cycle, with one-third of the holdings reassessed each month. During stable market conditions, and assuming all else is equal, each investment would be valued two times in a six-month period. For Scottish Mortgage as well as all other investment trusts, the prices are also reviewed twice per year by the respective boards and are subject to the scrutiny of external auditors in the annual audit process.

Beyond the regular cycle, the valuations team also monitors the portfolio for certain 'trigger events'. These may include changes in fundamentals, a takeover approach, an intention to carry out an Initial Public Offering ('IPO'), company news which is identified by the valuation team or by the portfolio managers, or meaningful changes to the valuation of comparable public companies. Any ad hoc change to the fair valuation of any holding is implemented swiftly and reflected in the next published net asset value ('NAV'). There is no delay.

The valuations team also monitors relevant market indices on a weekly basis and updates valuations in a manner consistent with our external valuer's (S&P Global) most recent valuation report where appropriate.

Continued market volatility has meant that recent asset pricing has moved much more frequently than during stable market conditions. The data below quantifies the revaluations carried out during the six months to 30 September 2024, however doesn't reflect the ongoing monitoring of the private investment portfolio that hasn't resulted in a change in valuation.

Year to date, most revaluations have been decreases, with a small number of companies successfully raising capital, and in some cases easing short-term liquidity pressures. The average movement in company valuations and share prices for those are shown below.

Scottish Mortgage Investment Trust*

*    Each private holding valuation is assessed at least once in a six-month period, in accordance with the Baillie Gifford valuation policy.

Performance, Portfolio executive summary, and List of Investments at 30 September 2024

http://www.rns-pdf.londonstockexchange.com/rns/4389L_1-2024-11-7.pdf

Income statement (unaudited)

For the six months ended 30 September

The accompanying notes below are an integral part of the Financial Statements.

The total column of this statement is the profit and loss account of the Company. The supplementary revenue and capital return columns are prepared under guidance published by the Association of Investment Companies.

All revenue and capital items in this statement derive from continuing operations.

A Statement of Comprehensive Income is not required as all gains and losses of the Company have been reflected in the above statement.

Balance sheet (unaudited)

*    See Glossary of terms and Alternative Performance Measures at the end of this announcement.

The accompanying notes below are an integral part of the Financial Statements.

Statement of changes in equity (unaudited)

For the six months ended 30 September 2024

For the six months ended 30 September 2023

*    The capital reserve balance at 30 September 2024 includes investment holding gains on fixed asset investments of £3,446,573,000 (30 September 2023 - gains of £2,933,324,000).

The accompanying notes on the following pages are an integral part of the Financial Statements.

Cash flow statement (unaudited)

For the six months ended 30 September

*    Cash and cash equivalents represent cash at bank and short term money market deposits repayable on demand.

The accompanying notes on the following pages are an integral part of the Financial Statements.

Notes to the financial statements (unaudited)

1        Basis of accounting

          The condensed Financial Statements for the six months to 30 September 2024 comprise the statements set out above together with the related notes below. They have been prepared in accordance with FRS 104 'Interim Financial Reporting' and the AIC's Statement of Recommended Practice issued in November 2014 and updated in July 2022 with consequential amendments. They have not been audited or reviewed by the Auditor pursuant to the Auditing Practices Board Guidance on 'Review of Interim Financial Information'. The Financial Statements for the six months to 30 September 2024 have been prepared on the basis of the same accounting policies as set out in the Company's Annual Report and Financial Statements at 31 March 2024.

          Going concern

          In accordance with the Financial Reporting Council's guidance on going concern and liquidity risk, the Directors have undertaken a rigorous review of the Company's ability to continue as a going concern. The Directors have considered the nature of the Company's assets, its liabilities, projected income and expenditure together with its investment objective and policy, dividend policy and principal risks and uncertainties, as set out at the end of this document. The Board has, in particular, considered the impact of heightened macroeconomic and geopolitical concerns including the ongoing Russia-Ukraine war, heightened tensions between China and both the US and Taiwan and the conflict in the Middle East. It has reviewed the results of specific leverage and liquidity stress testing but does not believe the Company's going concern status is affected. The Company's assets, the majority of which are in quoted securities which are readily realisable, exceed its liabilities significantly. All borrowings require the prior approval of the Board. Gearing levels and compliance with borrowing covenants is reviewed by the Board on a regular basis.

          The Company has continued to comply with the investment trust status requirements of section 1158 of the Corporation Tax Act 2010 and the Investment Trust (Approved Company) Regulations 2011. Accordingly, the Directors considered it appropriate to adopt the going concern basis of accounting in preparing these Financial Statements and confirm that they are not aware of any material uncertainties which may affect the Company's ability to continue in operational existence for a period of at least twelve months from the date of approval of these Financial Statements.

2        Financial information

          The financial information contained within this Interim Financial Report does not constitute statutory accounts as defined in sections 434 to 436 of the Companies Act 2006. The financial information for the year ended 31 March 2024 has been extracted from the statutory accounts which have been filed with the Registrar of Companies. The Auditors' Report on those accounts was not qualified, did not include a reference to any matters to which the Auditors drew attention by way of emphasis without qualifying its report and did not contain statements under sections 498 (2) or (3) of the Companies Act 2006.

3        Investment manager

          Baillie Gifford & Co Limited, a wholly owned subsidiary of Baillie Gifford & Co, has been appointed by the Company as its Alternative Investment Fund Manager ('AIFM') and Company Secretary. The investment management function has been delegated to Baillie Gifford & Co. The management agreement can be terminated on six months' notice. The annual management fee is 0.30% on the first £4 billion of total assets less current liabilities (excluding short term borrowings for investment purposes) and 0.25% thereafter, calculated and payable quarterly.

4        Other administrative expenses

          Other administrative expenses includes an impairment provision of £4,409,000 in relation to Northvolt AB. See the Interim management report above for further details.

5        Net return per ordinary share

          The net return per ordinary share figures are based on the above totals of revenue and capital and the weighted average number of ordinary shares in issue during each period.

          There are no dilutive or potentially dilutive shares in issue.

6        Dividends

          The interim dividend was declared after the period end date and has therefore not been included as a liability in the Balance Sheet. It is payable on 13 December 2024 to shareholders on the register at the close of business on 22 November 2024. The ex-dividend date is 21 November 2024. The Company's Registrars offer a Dividend Reinvestment Plan and the final date for elections for this dividend is 26 November 2024.

7        Fair value hierarchy

          The fair value hierarchy used to analyse the basis on which the fair values of financial instruments held at fair value through the profit and loss account are measured is described below. The levels are determined by the lowest (that is the least reliable or least independently observable) level of input that is significant to the fair value measurement for the individual investment in its entirety as follows:

          Level 1 - using unadjusted quoted prices for identical instruments in an active market;

          Level 2 - using inputs, other than quoted prices included within Level 1, that are directly or indirectly observable (based on market data); and

          Level 3 - using inputs that are unobservable (for which market data is unavailable).

          The Company's investments are financial assets designated at fair value through profit or loss. An analysis of the Company's financial asset investments based on the fair value hierarchy described above is shown below.

          Investments held at fair value through profit or loss

          During the period, Bolt Projects Holdings and Tempus AI Inc were transferred from Level 3 to Level 1 on becoming listed. The fair value of listed investments is bid value or, in the case of holdings on certain recognised overseas exchanges, last traded price. Listed Investments are categorised as Level 1 if they are valued using unadjusted quoted prices for identical instruments in an active market and as Level 2 if they do not meet all these criteria but are, nonetheless, valued using market data.

*   The investments in preference shares are not classified as equity holdings as they include liquidation preference rights that determine the repayment (or multiple thereof) of the original investment in the event of a liquidation event such as a take-over.

          Private company investments

          The Company's holdings in unlisted (private company) investments are categorised as Level 3. Private company investments are valued at fair value by the Directors following a detailed review and appropriate challenge of the valuations proposed by the Managers. The Managers' private company investment policy applies techniques consistent with the International Private Equity and Venture Capital Valuation Guidelines 2022 ('IPEV'). The techniques applied are predominantly market-based approaches. The market-based approaches available under IPEV are set out below and are followed by an explanation of how they are applied to the Company's private company portfolio:

-        Multiples;

-        Industry Valuation Benchmarks; and

-        Available Market Prices.

          The nature of the private company portfolio will influence the valuation technique applied. The valuation approach recognises that, as stated in the IPEV Guidelines, the price of a recent investment, if resulting from an orderly transaction, generally represents fair value as at the transaction date and may be an appropriate starting point for estimating fair value at subsequent measurement dates. However, consideration is given to the facts and circumstances as at the subsequent measurement date, including changes in the market or performance of the investee company. Milestone analysis is used where appropriate to incorporate the operational progress of the investee company into the valuation. Additionally, the background to the transaction must be considered. As a result, various multiples-based techniques are employed to assess the valuations particularly in those companies with established revenues. Discounted cashflows are used where appropriate. An absence of relevant industry peers may preclude the application of the Industry Valuation Benchmarks technique and an absence of observable prices may preclude the Available Market Prices approach. All valuations are cross-checked for reasonableness by employing relevant alternative techniques.

          The private company investments are valued according to a three monthly cycle of measurement dates. The fair value of the private company investments will be reviewed before the next scheduled three monthly measurement date on the following occasions:

-        At the year end and half year end of the Company; and

-        Where there is an indication of a change in fair value as defined in the IPEV guidelines (commonly referred to as 'trigger' events).

          Further information on the private company valuation process in provided above.

8        Financial liabilities

          The total value of the borrowings (at book) is £1,590,249,000 (31 March 2024 - £1,644,456,000).

          The bank loans falling due within one year are a US$100 million revolving 3 year loan with Scotiabank and a US$170 million revolving 3 year loan with Royal Bank of Scotland International 'RBSI'. (31 March 2024 - US$100 million revolving 3 year loan with Scotiabank and a US$170 million revolving 3 year loan with RBSI.).

          The bank loans falling due after more than one year are a US$180 million fixed rate loan with RBSI and a US$300 million fixed rate loan with Scotiabank (31 March
2024 - US$180 million fixed rate loan with RBSI and a US$300 million fixed rate loan with Scotiabank).

          Debenture stocks include a £50 million debenture redeeming in 2026 and a £675,000 irredeemable debenture.

          Loan notes are unsecured with redemptions from 2036 to 2062.

          The weighted average cost of the borrowings as at 30 September 2024 is 3.11% (31 March 2024 - 3.22%)

9        Fair value of financial liabilities

          The fair value of the borrowings at 30 September 2024 was £1,281,780,000 (31 March 2024 - £1,293,632,000).

10      Share capital: ordinary shares of 5p each

          In the six months to 30 September 2024, the Company sold no ordinary shares from treasury (year to 31 March 2024 - nil).

          In the six months to 30 September 2024, 100,622,059 ordinary shares with a nominal value of £5,031,103 were bought back at a total cost of £880,114,000 and held in treasury (year to 31 March 2024 - 21,750,035 shares with a nominal value of £1,088,000 were bought back at a total cost of £176,490,000 and held in treasury). At 30 September 2024 the Company had authority remaining to buy back 160,896,994 ordinary shares.

11      Related party transactions

          There have been no transactions with related parties during the first six months of the current financial year that have materially affected the financial position or the performance of the Company during that period and there have been no changes in the related party transactions described in the last Annual Report and Financial Statements that could have had such an effect on the Company during that period.

None of the views expressed in this document should be construed as advice to buy or sell a particular investment.

Glossary of terms and Alternative Performance Measures ('APM')

An alternative performance measure ('APM') is a financial measure of historical or future financial performance, financial position, or cash flows, other than a financial measure defined or specified in the applicable financial reporting framework. The APMs noted below are commonly used measures within the investment trust industry and serve to improve comparability between investment trusts.

Total assets

This is the Company's definition of adjusted total assets, being the total value of all assets held less all liabilities (other than liabilities in the form of borrowings).

Net asset value

Also described as shareholders' funds. Net asset value ('NAV') is the value of total assets less liabilities (including borrowings). Net asset value is calculated on the basis of borrowings stated at book value or fair value. An explanation of each basis is provided below. The NAV per share is calculated by dividing this amount by the number of ordinary shares in issue (excluding treasury shares).

Net asset value (borrowings at book)

Borrowings are valued at adjusted net issue proceeds. The value of the borrowings at book is set out in note 8 above.

Net asset value (borrowings at fair value) (APM)

Borrowings are valued at an estimate of their market worth. The value of the borrowings at fair is set out in note 9 above and a reconciliation to net asset value with borrowings at book value is provided below.

Net liquid assets

Net liquid assets comprise current assets less current liabilities, excluding borrowings.

Discount/premium (APM)

As stock markets and share prices vary, an investment trust's share price is rarely the same as its NAV. When the share price is lower than the NAV per share it is said to be trading at a discount. The size of the discount is calculated by subtracting the share price from the NAV per share and is usually expressed as a percentage of the NAV per share. If the share price is higher than the NAV per share, it is said to be trading at a premium.

Active share (APM)

Active share, a measure of how actively a portfolio is managed, is the percentage of the portfolio that differs from its comparative index. It is calculated by deducting from 100 the percentage of the portfolio that overlaps with the comparative index. An active share of 100 indicates no overlap with the index and an active share of zero indicates a portfolio that tracks the index.

Gearing (APM)

At its simplest, gearing is borrowing. Just like any other public company, an investment trust can borrow money to invest in additional investments for its portfolio. The effect of the borrowing on the shareholders' assets is called 'gearing'. If the Company's assets grow, the shareholders' assets grow proportionately more because the debt remains the same, but if the value of the Company's assets falls, the situation is reversed. Gearing can therefore enhance performance in rising markets but can adversely impact performance in falling markets. Gearing represents borrowings at book value less cash and cash equivalents (including any outstanding trade settlements) expressed as a percentage of shareholders' funds.

Gross gearing is the Company's borrowings expressed as a percentage of shareholders' funds.

Turnover (APM)

Turnover is calculated as the minimum of purchases and sales in a month, divided by the average market values of the portfolio, summed to get rolling 12 months turnover data.

Total return (APM)

The total return is the return to shareholders after reinvesting the net dividend on the date that the share price goes ex-dividend.

*    The dividend adjustment factor is calculated on the assumption that the final dividend of 2.64p (2023 - 2.50p) paid by the Company during the period was reinvested into shares of the Company at the cum income NAV per share/share price, as appropriate, at the ex-dividend date.

Unlisted (private) company

An unlisted or private company means a company whose shares are not available to the general public for trading and are not listed on a stock exchange.

Principal risks and uncertainties

The principal risks facing the Company are financial risk, private company investments risk, investment strategy risk, climate and governance risk, discount risk, regulatory risk, custody and depositary risk, operational risk, cyber security risk, leverage risk, political risk and emerging risks. An explanation of these risks and how they are managed is set out on pages 44 to 47 of the Company's Annual Report and Financial Statements for the year to 31 March 2024 which is available on the Company's website: scottishmortgage.com.

The principal risks and uncertainties have not changed since the date of that report.

Shareholders will be notified on or around 18 November 2024 that the Interim Financial Report has been published and will be available on the Scottish Mortgage page of the Managers' website scottishmortgageit.com. ‡

None of the views expressed in this document should be construed as advice to buy or sell a particular investment.

Scottish Mortgage Investment Trust PLC is an actively managed, low cost investment trust, investing in a concentrated global portfolio of companies with the aim of maximising its total return over the long term. It looks for strong businesses with above-average returns and aims to achieve a greater return than the FTSE All-World Index (in sterling terms) over a five year rolling period.

You can find up to date performance information about Scottish Mortgage on the Scottish Mortgage page of the Managers' website at 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.

Scottish Mortgage is managed by Baillie Gifford & Co, the Edinburgh based fund management group with over £221 billion under management and advice in active equity and bond portfolios for clients in the UK and throughout the world (as at 7 November 2024).

Investment Trusts are UK public limited companies and are not authorised or regulated by the Financial Conduct Authority.

Past performance is not a guide to future performance.  The value of an investment and any income from it is not guaranteed and may go down as well as up and investors may not get back the amount invested. This is because the share price is determined by the changing conditions in the relevant stock markets in which the Company invests and by the supply and demand for the Company's shares.

7 November 2024

For further information please contact:

Stewart Heggie, Baillie Gifford & Co

Tel: 0131 275 5117

Jonathan Atkins, Four Communications

Tel: 0203 920 0555 or 07872 495396

Automatic Exchange of Information

In order to fulfil its obligations under UK tax legislation relating to the automatic exchange of information, Scottish Mortgage Investment Trust PLC is required to collect and report certain information about certain shareholders.

The legislation requires investment trust companies to provide personal information to HMRC on certain investors who purchase shares in investment trusts. Accordingly, Scottish Mortgage Investment Trust PLC will have to provide information annually to the local tax authority on the tax residencies of a number of non-UK based certificated shareholders and corporate entities. New shareholders, excluding those whose shares are held in CREST, who come on to the share register will be sent a certification form for the purposes of collecting this information.

For further information, please see HMRC's Quick Guide: Automatic Exchange of Information - information for account holders gov.uk/guidance/automatic-exchange-of-information-account-holders.

Third party data provider disclaimer

No third party data provider ('Provider') makes any warranty, express or implied, as to the accuracy, completeness or timeliness of the data contained herewith nor as to the results to be obtained by recipients of the data. No Provider shall in any way be liable to any recipient of the data for any inaccuracies, errors or omissions in the index data included in this document, regardless of cause, or for any damages (whether direct or indirect) resulting therefrom.

No Provider has any obligation to update, modify or amend the data or to otherwise notify a recipient thereof in the event that any matter stated herein changes or subsequently becomes inaccurate.

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FTSE Index Data

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