Scottish Mortgage Investment Trust

Half-year Report

RNS Number : 5702R

Scottish Mortgage Inv Tst PLC

08 November 2021

RNS Announcement

Scottish Mortgage Investment Trust PLC

Legal Entity Identifier: 213800G37DCS3Q9IJM38

Results for the six months to 30 September 2021
The following is the unaudited Interim Financial Report for the six months to 30 September 2021 which was approved by the Board on 5 November 2021.

Interim management report

Philosophy:

We aim to identify, own and support the world's most exceptional growth companies whether public or private; companies that offer the potential of genuinely transformative returns. Over the long-run, it is such companies that drive stock-market returns. They make equity investing truly worthwhile.

We see our role as partners to these companies. Supporting them through the provision of both capital and patience and backing them to do incredible things. Their path will rarely be a straight-line. All great companies face periods of difficulty and market doubt, if not outright hostility. These periods can be difficult to endure but great returns cannot be achieved without such testing journeys.

This requires us to be resolutely long-term through both good times and bad. The road ahead will have its fair share of bumps, some companies will not work out as hoped but it is through supporting and holding onto just a small number of extraordinary companies that exceptional returns can be achieved.

Returns:

This approach has driven our returns. Over ten years Scottish Mortgage's net asset value per share with debt at fair value (NAV) has increased by 1,072% versus a 275% increase in the FTSE All-World index (both in total return terms). Over five years it has increased by 341% against 83%. Six months of data is always too short a period to infer much that is useful from stock prices. However, since the end of March our NAV rose by 16% compared to a 9% increase in the index.

Although our focus remains on long-term capital appreciation we are aware that a small but consistent dividend is of value to many shareholders. Acknowledging the Company's recent performance, the Board is recommending an interim dividend of 1.52p, an increase of 5% over last year's payment of 1.45p.

Portfolio:

Over short periods, such as the last six months, the market has naturally found various things to worry about. A long-term approach is helpful here. It enables us to focus not on the cacophony of the stock-markets but the more predictable drumbeat of deep underlying progress. It has been the long-term and exponential improvements in computing technologies, genomic sequencing and energy storage that continue to strike us as the most important determinates of long-term returns.

These long-term trends may be too slow to shape financial news headlines in a single period but they compound over time as they grow in impact. Moreover, the powerful trends in computing technologies appear to not just be continuing but broadening in utility and application beyond the narrow remits of consumer internet to industries larger and far more diverse.

This broadening is slowly being reflected in the changing shape of the portfolio. The Trust's investment in healthcare and biology companies for example has grown from 11.6% a year ago to 21.4% today. We are finding and supporting a growing number of businesses that we believe are benefiting from the intersection of biology and information technology.

Our largest holding, Moderna has been the greatest contributor to this change, writing what is effectively code in the form of RNA to program human cells. Moderna has helped the world to start escaping the tragedies and confinement of the last 18 months. However, it is the breadth and scalability of its mRNA technology platform rather than its Covid vaccine that holds the greatest promise. Its pipeline of programs is both large and growing, targeting diseases such as flu, Zika, HIV, cancer and many more.

Recursion Pharmaceuticals and Tempus are successfully leveraging growing quantities of big data combined with machine learning to powerful effect in drug discovery and cancer treatment. We took a new holding in 10x Genomics whose products enable the analysis of single cells complementing Illumina's next generation sequencing and enabling a more granular understanding of biology.

We continue to see opportunities for technology platforms to improve resource allocation in the economy across a growing range of areas such as freight, food and finance. At the same time the question of how to regulate big tech platforms continues to challenge law-makers across the globe. China has taken to this task with particular vigour. It has demonstrated far greater speed and forcefulness in approach than elsewhere. This sharp adjustment has naturally presented challenges both in market sentiment and for technology businesses that are having to adapt to a rapidly altering regulatory environment. At the same time there has been a push for the rewards of China's growing prosperity to be more evenly distributed. Together these shifts have negatively impacted the share prices of many of our Chinese holdings.

The underlying progress of the companies however remains surprisingly strong. Alibaba and Tencent both continue to grow revenue in excess of 20% whilst Meituan and Pinduoduo are both growing considerably faster. The companies themselves are keenly aware of their need to contribute not just to shareholder returns but to society to ensure true sustainability. We will continue to assess the long-term implications of the new regulatory approach as they apply to each of our holdings.

Outlook:

Our attention remains focused on maximising returns over the next ten years for Scottish Mortgage shareholders. We have no right to claim insight over the possible gyrations of stock markets over shorter time periods.

As we anticipate the next decade we are both optimistic and enthused. It strikes us that there are multiple drivers of change and thus opportunity. These include the continuing digitisation of our economy, the intersection of information technology and biology and the much-needed energy transition. Together they provide an opportunity set that is profound and diverse. We look forward to continuing to back the companies and visionaries that drive and take advantage of these powerful long-term trends.

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

5 November 2021

For a definition of terms see Glossary of Terms and Alternative Performance Measures at the end of this document.

Total return information sourced from Refinitiv/StatPro/Baillie Gifford.

See disclaimer at end of this document.

Past performance is not a guide to future performance.

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

Fiona McBain

Chair

5 November 2021

Income statement (unaudited)

	For the six months ended 30 September 2021			For the six months ended 30 September 2020

	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000
Gains on investments	-	2,721,589	2,721,589	-	6,376,063	6,376,063
Currency (losses)/gains	-	(15,778)	(15,778)	-	6,895	6,895
Income from investments and interest receivable	13,640	-	13,640	10,659	-	10,659
Investment management fee (note 3)	-	(27,179)	(27,179)	-	(18,727)	(18,727)
Other administrative expenses	(3,644)	-	(3,644)	(3,279)	-	(3,279)
Net return before finance costs and taxation	9,996	2,678,632	2,688,628	7,380	6,364,231	6,371,611
Finance costs of borrowings	-	(19,526)	(19,526)	-	(15,764)	(15,764)
Net return on ordinary activities before taxation	9,996	2,659,106	2,669,102	7,380	6,348,467	6,355,847
Tax on ordinary activities	(1,281)	(4,905)	(6,186)	(387)	-	(387)
Net return on ordinary activities after taxation	8,715	2,654,201	2,662,916	6,993	6,348,467	6,355,460
Net return per ordinary share (note 4)	0.62p	187.38p	188.00p	0.48p	433.36p	433.84p
Dividends proposed per ordinary share (note 5)	1.52p			1.45p

The accompanying notes on the following pages 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)

	At 30 September 2021 £'000	At 31 March 2021 (audited) £'000
Fixed assets
Investments held at fair value through profit or loss (note 6)	20,955,958	18,042,688
Current assets
Debtors	1,892	20,883
Shares sold from treasury awaiting settlement	12,213	-
Cash and cash equivalents	198,835	212,128
	212,940	233,011
Creditors
Amounts falling due within one year:
Bank loans (note 7)	(327,066)	(264,550)
Buybacks outstanding and related stamp duty	-	(25,418)
Other creditors and accruals	(24,162)	(21,020)
	(351,228)	(310,988)
Net current liabilities	(138,288)	(77,977)
Total assets less current liabilities	20,817,670	17,964,711
Creditors
Amounts falling due after more than one year:
Bank loans (note 7)	(504,220)	(362,289)
Loan notes (note 7)	(682,827)	(482,629)
Debenture stocks (note 7)	(127,711)	(127,864)
Provision for deferred tax liability	(4,029)	(2,459)
	(1,318,787)	(975,241)
	19,498,883	16,989,470
Capital and reserves
Share capital	74,239	74,239
Share premium account	784,946	781,771
Capital redemption reserve	19,094	19,094
Capital reserve	18,611,889	16,105,297
Revenue reserve	8,715	9,069
Shareholders' funds	19,498,883	16,989,470
Net asset value per ordinary share (after deducting borrowings at book)*	1,381.1p	1,195.1p
Ordinary shares in issue (note 9)	1,411,799,194	1,421,618,969

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

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

Statement of Changes in Equity (unaudited)

For the six months ended 30 September 2021

	Called up share capital £'000	Share premium account £'000	Capital redemption reserve £'000	Capital reserve* £'000	Revenue reserve £'000	Shareholders' funds £'000
Shareholders' funds at 1 April 2021	74,239	781,771	19,094	16,105,297	9,069	16,989,470
Net return on ordinary activities after taxation	-	-	-	2,654,201	8,715	2,662,916
Shares bought back	-	-	-	(137,732)	-	(137,732)
Shares sold from treasury (note 9)	-	3,175	-	9,038	-	12,213
Dividends paid during the period (note 5)	-	-	-	(18,915)	(9,069)	(27,984)
Shareholders' funds at 30 September 2021	74,239	784,946	19,094	18,611,889	8,715	19,498,883

For the six months ended 30 September 2020

	Called up share capital £'000	Share premium account £'000	Capital redemption reserve £'000	Capital reserve* £'000	Revenue reserve £'000	Shareholders' funds £'000
Shareholders' funds at 1 April 2020	74,239	764,521	19,094	7,363,915	22,865	8,244,634
Net return on ordinary activities after taxation	-	-	-	6,348,467	6,993	6,355,460
Shares bought back	-	-	-	(164,564)	-	(164,564)
Shares sold from treasury (note 9)	-	58,413	-	128,434	-	186,847
Dividends paid during the period (note 5)	-	-	-	(4,441)	(22,865)	(27,306)
Shareholders' funds at 30 September 2020	74,239	822,934	19,094	13,671,811	6,993	14,595,071

* The Capital Reserve balance at 30 September 2021 includes investment holding gains on fixed asset investments of £12,122,474,000 (30 September 2020 - gains of £9,878,399,000).

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

Cash flow statement (unaudited)

	Six months to 30 September 2021 £'000	Six months to 30 September 2020 £'000
Cash flows from operating activities
Net return on ordinary activities before taxation	2,669,102	6,355,847
Gains on investments	(2,721,589)	(6,376,063)
Currency losses/(gains)	15,778	(6,895)
Finance costs of borrowings	19,526	15,764
Overseas capital gains tax incurred	(3,335)	-
Overseas withholding tax incurred	(1,281)	(387)
Changes in debtors and creditors	1,657	10,634
Cash from operations	(20,142)	(1,100)
Interest paid	(18,518)	(16,477)
Net cash outflow from operating activities	(38,660)	(17,577)
Net cash (outflow)/inflow from investing activities	(172,338)	66,171
Equity dividends paid (note 5)	(27,984)	(27,306)
Shares bought back into treasury and stamp duty thereon	(163,149)	(164,534)
Shares sold from treasury	-	186,847
Debenture repaid	-	(20,000)
Bank loans drawn down and loan notes issued (note 7)	386,090	19,972
Net cash inflow/(outflow) from financing activities	194,957	(5,021)
(Decrease)/increase in cash and cash equivalents	(16,041)	43,573
Exchange movements	2,748	(4,143)
Cash and cash equivalents at start of period	212,128	38,526
Cash and cash equivalents at end of period^†	198,835	77,956

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

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

Holding period of investments as at 30 September 2021

More than 5 years		2-5 years		Less than 2 years
Name	% of total assets	Name	% of total assets	Name	% of total assets
Illumina¹⁰	5.8	NIO Inc^p	2.8	Moderna	9.2
ASML	5.5	Delivery Hero	2.6	MercadoLibre	1.9
Tesla Inc	4.7	ByteDance Ltd^U	1.8	Northvolt^U	1.8
Tencent Holdings¹⁰	4.1	Affirm Holdings Inc^p	1.7	Adyen	1.4
Ginkgo BioWorks Inc^p	3.2	Shopify	1.2	Stripe Inc^U	1.3
Meituan Dianping^p	2.9	Space Exploration Technologies^U	1.2	Carvana	1.0
Amazon.com¹⁰	2.6	Space Exploration Technologies^U	1.2	Wayfair	0.9
Alibaba Group^p	2.5	Recursion Pharmaceuticals Inc^p	1.1	Snowflake Inc^p	0.8
NVIDIA	2.2	Recursion Pharmaceuticals Inc^p	1.1	Ocado	0.7
Kering¹⁰	2.1	Tempus Labs Inc^U	1.1	DoorDash	0.7
Netflix	2.0	Zoom	0.9	Epic Games^U	0.7
Wise Plc^p	1.9	Ant International Ltd^U	0.9	Lilium NV^p	0.7
Zalando	1.6	Pinduoduo Inc	0.8	Blockstream Corporations Inc^U	0.4
HelloFresh^p	1.5	Zipline International Inc^U	0.7	GoPuff Inc^U	0.4
Spotify Technology SA^p	1.3	Vir Biotechnology Inc^p	0.6	Honor Technology Inc^U	0.4
You & Mr Jones^U	1.2	The Production Board^U	0.5	Blockchain.com^U	0.4
Denali Therapeutics^p	1.1	Tanium Inc^U	0.5	Solugen Inc^U	0.4
Ferrari	1.0	Sana Biotechnology Inc^p	0.4	Redwood Materials Inc^U	0.4
Housing Development Finance Corporation¹⁰	0.6	Indigo Agriculture Inc^U	0.4	Rappi Inc^U	0.4
Housing Development Finance Corporation¹⁰	0.6	Carbon Inc^U	0.4	Relativity Space Inc^U	0.3
Warby Parker Inc^p	0.5	Full Truck Alliance Ltd ^p	0.3	ChargePoint Holdings Inc	0.3
Kinnevik	0.5	Bolt Threads Inc^U	0.3	Databricks Inc^U	0.3
Atlas Copco¹⁰	0.5	HeartFlow Inc^U	0.2	Joby Aviation Inc^p	0.3
Thumbtack Inc^U	0.4	Rubius Therapeutics Inc^p	0.2	Jiangxiaobai Holdings Ltd^U	0.3
Airbnb Inc^p	0.3	Aurora Innovation Inc^U	0.2	Workrise Technologies Inc^U	0.3
Innovation Works Development Fund^{U 10}	0.2	JRSK Inc (Away)^U Uptake Technologies Inc^U	0.2 0.2	Capsule^U 10x Genomics	0.2 0.2
Essence Healthcare^U ARCH Ventures Fund IX^U Zocdoc Inc^U Sinovation Fund III^U WI Harper Fund VIII^U Udacity Inc^U WI Harper Fund VII^{U 10} Global AI Opportunities Fund Intarcia Therapeutics Inc^U	0.2 0.1 0.1 <0.1 <0.1 <0.1 <0.1 <0.1 -	KSQ Therapeutics Inc^U ARCH Ventures Fund X Overage ^U	<0.1 <0.1	Convoy Inc^U Horizon Robotics^U Nuro Inc^U	0.2 0.2 0.2
	0.2 0.1 0.1 <0.1 <0.1 <0.1 <0.1 <0.1 -	ARCH Ventures Fund X^U	<0.1	Clear Secure Inc Clover Health Investments^p KE Holdings Zymergen^p PsiQuantum^U Salt Pay Co Ltd^U ARCH Ventures Fund XI^U Beam Therapeutics	0.1 0.1 0.1 0.1 0.1 0.1 <0.1 <0.1
Total	50.6	Total	21.2	Total	27.3

^U^{Denotes unlisted (private company) security.}

^p^{Denotes listed security previously held in the portfolio as an unlisted (private company) security}^.

¹⁰^{Denotes security held for more than 10 years.}

^{Net liquid assets represent 0.9% of total assets. See Glossary of Terms and Alternative Performance Measures at the end of this announcement.}

List of investments at 30 September 2021 (unaudited)

Name	Business	Fair value 30 September 2021 £'000		% of total assets		Contribution to absolute performance* %		Notes †		Fair value 31 March 2021 £'000
Moderna	Clinical stage biotechnology company	1,943,247		9.2		7.2				646,271
Illumina	Biotechnology equipment	1,221,406		5.8		0.6				1,059,297
ASML	Lithography	1,163,871		5.5		1.4				923,130
Tesla Inc	Electric cars, autonomous driving and solar energy	983,770		4.7		0.7				828,668
Tencent Holdings	Internet services	858,577		4.1		(1.4)				1,110,755
Ginkgo BioWorks Inc^p	Bio-engineering company	674,515		3.2		2.1		Significant addition to investment		259,544
Meituan Dianping^p	Local services aggregator	606,440		2.9		(0.7)				717,711
NIO Inc^p	Designs and manufactures electric and autonomous vehicles	593,453		2.8		(0.1)				634,335
Delivery Hero	Online food delivery service	549,846		2.6		-				544,212
Amazon.com	Online retailer and cloud computing	546,650		2.6		0.4		Significant reduction to investment		910,847
Alibaba Group^p	Online retailing and financial services	525,851		2.5		(1.5)				792,539
NVIDIA	Visual computing	471,257		2.2		1.2				334,991
Kering	Luxury goods producer and retailer	446,133		2.1		0.3				422,631
Netflix	Subscription service for TV shows and movies	420,171		2.0		0.3				351,135
MercadoLibre	Latin American e-commerce platform	404,568		1.9		0.2				303,802
Wise Plc^p	Online platform to send and receive money	403,024		1.9		1.1				189,200
ByteDance Ltd Series E Pref.^U	Social media	199,017		0.9		0.1				173,187
ByteDance Ltd Series E-1 Pref.^U	Social media	179,042		0.9		0.1				155,805
		378,059		1.8		0.2				328,992
Northvolt AB Series E1 Pref.^U	Battery developer and manufacturer, specialised in lithium-ion technology for electric vehicles	233,679		1.1		0.1				218,459
Northvolt AB Series E2 Pref.^U	Battery developer and manufacturer, specialised in lithium-ion technology for electric vehicles	115,663		0.5		-		New purchase		-
Northvolt AB Series A Ord.^U	Battery developer and manufacturer, specialised in lithium-ion technology for electric vehicles	17,499		0.1		-		Significant addition to investment		362
Name	Business		Fair value 30 September 2021 £'000		% of total assets		Contribution to absolute performance* %		Notes †		Fair value 31 March 2021 £'000
Northvolt AB MIP 1 Warrants^U	Battery developer and manufacturer, specialised in lithium-ion technology for electric vehicles		4,381		0.1		-				4,094
Northvolt AB MIP 4 Warrants^U	Battery developer and manufacturer, specialised in lithium-ion technology for electric vehicles		1,495		<0.1		-		Significant addition to investment		364
Northvolt AB MIP 3 Warrants^U	Battery developer and manufacturer, specialised in lithium-ion technology for electric vehicles		1,301		<0.1		-				1,214
Northvolt AB MIP 2 Warrants^U	Battery developer and manufacturer, specialised in lithium-ion technology for electric vehicles		780		<0.1		-				729
Northvolt AB Series D1 Pref.^U	Battery developer and manufacturer, specialised in lithium-ion technology for electric vehicles		551		<0.1		-		New purchase		-
Northvolt AB MIP 5 Warrants^U	Battery developer and manufacturer, specialised in lithium-ion technology for electric vehicles		473		<0.1		-		New purchase		-
Northvolt AB Series D Pref.^U	Battery developer and manufacturer, specialised in lithium-ion technology for electric vehicles		300		<0.1		-				280
			376,122		1.8		0.1				225,502
Affirm Holdings Inc Class A^p	Online platform which provides lending and consumer credit services		198,608		0.9		0.4				114,837
Affirm Holdings Inc Class B^p	Online platform which provides lending and consumer credit services		163,749		0.8		0.3				94,681
			362,357		1.7		0.7				209,518
Zalando	International online clothing retailer		334,539		1.6		-				290,851
HelloFresh^p	Grocery retailer		318,390		1.5		0.5				253,246
Adyen	Global payment company		304,010		1.4		0.4				237,488
Spotify Technology SA^p	Online music streaming service		276,378		1.3		(0.3)				321,399
Stripe Inc Series G Pref.^U	Online payment platform		179,483		0.9		0.2				149,651
Stripe Inc Series Class B Common^U	Online payment platform		63,191		0.3		0.1		New purchase		-
Stripe Inc Series H Pref.^U	Online payment platform		26,330		0.1		-				21,954
			269,004		1.3		0.3				171,605

Name	Business	Fair value 30 September 2021 £'000	% of total assets	Contribution to absolute performance* %	Notes †	Fair value 31 March 2021 £'000
Shopify	Cloud-based commerce platform provider	262,154	1.2	0.3		209,270
Space Exploration Technologies Corp Series J Pref.^U	Designs, manufactures and launches rockets and spacecraft	109,142	0.5	0.1		98,196
Space Exploration Technologies Corp Series N Pref.^U	Designs, manufactures and launches rockets and spacecraft	87,718	0.4	-		78,921
Space Exploration Technologies Corp Class A Common^U	Designs, manufactures and launches rockets and spacecraft	42,790	0.2	-	Significant addition to investment	17,404
Space Exploration Technologies Corp Class C Common^U	Designs, manufactures and launches rockets and spacecraft	13,198	0.1	-		11,875
		252,848	1.2	0.1		206,396
You & Mr Jones Class A Units^U	Digital advertising	185,412	0.9	0.3		135,899
You & Mr Jones Class C Units^U	Digital advertising	60,743	0.3	0.1		42,971
		246,155	1.2	0.4		178,870
Recursion Pharmaceuticals Inc^p	Uses image recognition/machine learning and automation to improve drug discovery	238,359	1.1	1.1	Significant addition to investment	55,509
Denali Therapeutics^p	Biotechnology	230,020	1.1	-		253,963
Tempus Labs Inc Series E Pref.^U	Offers molecular diagnostics tests for cancer and aggregates clinical oncology records	131,682	0.6	-		128,690
Tempus Labs Inc Series F Pref.^U	Offers molecular diagnostics tests for cancer and aggregates clinical oncology records	48,066	0.2	-		46,974
Tempus Labs Inc Series G-2 Pref.^U	Offers molecular diagnostics tests for cancer and aggregates clinical oncology records	37,082	0.2	-		36,240
Tempus Labs Inc Series G Pref.^U	Offers molecular diagnostics tests for cancer and aggregates clinical oncology records	7,758	0.1	-		7,581
		224,588	1.1	-		219,485
Ferrari	Luxury automobiles	211,390	1.0	-	Significant reduction to investment	304,315
Carvana	Online platform for buying used cars	205,342	1.0	0.2		174,501

Name	Business	Fair value 30 September 2021 £'000		% of total assets	Contribution to absolute performance* %		Notes †		Fair value 31 March 2021 £'000
Zoom	Remote conferencing service provider	199,386		0.9	(0.1)				239,408
Wayfair	Online household goods retailer	198,493		0.9	(0.2)				239,353
Ant International Ltd Class C Ord.^U	Online financial services platform	194,666		0.9	(0.2)				240,306
Pinduoduo Inc	Chinese e-commerce	178,774		0.8	(0.4)				258,258
Snowflake Inc^p	Developer of a SaaS-based cloud data warehousing platform	174,885		0.8	0.3		Significant addition to investment		74,865
Zipline International Inc Series D Pref.^U	Logistics company that designs, manufactures and operates drones to deliver medical supplies	58,975		0.3	-				61,116
Zipline International Inc Series C Pref.^U	Logistics company that designs, manufactures and operates drones to deliver medical supplies	50,362		0.2	-				52,190
Zipline International Inc Series E Pref.^U	Logistics company that designs, manufactures and operates drones to deliver medical supplies	44,499		0.2	-				46,114
		153,836		0.7	-				159,420
Ocado	Online grocery retailer and technology provider	145,372		0.7	(0.2)		Significant addition to investment		124,357
DoorDash	Provides restaurant food delivery services	140,757		0.7	0.3				87,606
Epic Games Inc^U	Gaming platform	139,741		0.7	(0.1)				155,065
Lilium NV^p	On demand air transportation	137,831		0.7	-		Significant addition to investment		54,226
Vir Biotechnology Inc^p	Biotechnology company developing anti-infective therapies	120,578		0.6	(0.1)				136,754
Housing Development Finance Corporation	Indian mortgage provider	116,832		0.6	0.1				105,134
The Production Board Series A-2 Pref.^U	Holding company for food technology companies	88,998		0.4	0.3				35,080
The Production Board Series A-3 Pref.^U	Holding company for food technology companies	25,958		0.1	-		New purchase		-
		114,956		0.5	0.3				35,080
Warby Parker Inc ^p	Online and physical glasses retailer	111,482		0.5	0.3				59,165
Kinnevik	Investment company	111,214		0.5	0.2				150,313
Name	Business		Fair value 30 September 2021 £'000	% of total assets	Contribution to absolute performance* %		Notes †		Fair value 31 March 2021 £'000
Tanium Inc Class B Common^U	Provides security and systems management solutions		107,333	0.5		-				106,961
Atlas Copco	Engineering		97,185	0.5		-		Significant reduction to investment		154,175
Sana Biotechnology Inc^p	Biotechnology company creating and delivering engineered cells as medicine		93,260	0.4		(0.3)				134,828
Indigo Agriculture Inc Series D Pref. ^U	Analyses plant microbiomes to increase crop yields		33,570	0.2		-				32,807
Indigo Agriculture Inc Series F Pref. ^U	Analyses plant microbiomes to increase crop yields		17,120	0.1		-				16,731
Indigo Agriculture Inc Series E Pref. ^U	Analyses plant microbiomes to increase crop yields		17,064	0.1		-				17,187
Indigo Agriculture Inc Series G Pref.^U	Analyses plant microbiomes to increase crop yields		11,125	<0.1		-		New purchase		-
Indigo Agriculture Inc Common^U	Analyses plant microbiomes to increase crop yields		3,770	<0.1		-				3,685
			82,649	0.4		-				70,410
Thumbtack Inc Series G Pref.^U	Online directory service for local businesses		47,802	0.2		0.1				40,115
Thumbtack Inc Series I Pref.^U	Online directory service for local businesses		14,121	0.1		-		New purchase		-
Thumbtack Inc Series H Pref.^U	Online directory service for local businesses		9,560	0.1		-				8,023
Thumbtack Inc Class A Common^U	Online directory service for local businesses		5,274	<0.1		-		New purchase		-
Thumbtack Inc Series A Pref.^U	Online directory service for local businesses		3,110	<0.1		-		New purchase		-
Thumbtack Inc Series C Pref.^U	Online directory service for local businesses		910	<0.1		-		New purchase		-
Thumbtack Inc Series B Pref.^U	Online directory service for local businesses		211	<0.1		-		New purchase		-
			80,988	0.4		0.1				48,138
Carbon Inc Series D Pref.^U	Manufactures and develops 3D printers		49,001	0.2		-				45,876
Carbon Inc Series E Pref.^U	Manufactures and develops 3D printers		30,655	0.2		-				28,700
			79,656	0.4		-				74,576
Blockstream Corporation Inc Series B-1 Pref.^U	Financial software developer		78,207	0.4		-		New purchase		-
GoPuff Inc (GoBrands) Series G Pref.^U	On demand retail delivery service		77,881	0.4		0.1				54,360

Name	Business	Fair value 30 September 2021 £'000	% of total assets	Contribution to absolute performance* %	Notes †	Fair value 31 March 2021 £'000
Honor Technology Inc Series D Pref.^U	Provider of home-care services	48,683	0.3	0.1		36,240
Honor Technology Inc Series E Pref.^U	Provider of home-care services	27,802	0.1	-	New purchase	-
		76,485	0.4	0.1		36,240
Blockchain.com Series C-1 Pref.^U	Software platform for digital assets	74,694	0.4	-	New purchase	-
Rappi Inc. Series F Pref.^U	Provider of an on-demand delivery platform designed to connect consumers with local stores	74,165	0.4	-	New purchase	-
Redwood Materials Inc. Series C Pref.^U	Environmental battery recycling	74,165	0.4	-	New purchase	-
Solugen Inc. Series C-1 Pref.^U	Specialty chemicals manufacturer	74,165	0.4	-	New purchase	-
Full Truck Alliance Ltd^p	Freight-truck matching platform	71,162	0.3	0.1		51,854
Relativity Space Inc Series D Pref.^U	Designs and builds rockets using 3D printers	48,786	0.2	-		34,930
Relativity Space Inc Series E Pref.^U	Designs and builds rockets using 3D printers	22,249	0.1	0.1	New purchase	-
		71,035	0.3	0.1		34,930
ChargePoint Holdings Inc	Electric vehicle charging solutions	67,792	0.3	(0.1)		77,408
Airbnb Inc Class B Common^p	Online market place for travel accommodation	66,852	0.3	(0.1)		73,048
Databricks Inc Series H Pref.^U	Data software solutions	66,526	0.3	-	New purchase	-
Joby Aviation Inc Series C Pref.^p	Electric aircraft	56,421	0.3	-	Significant addition to investment	18,438
Jiangxiaobai Holdings Ltd Series C Pref.^U	Producer of alcoholic beverages	56,267	0.3	0.1		45,632
Workrise Technologies Inc Series E Pref.^U	Online platform connecting contractors with work	56,250	0.3	-		47,112
Bolt Threads Inc Series D Pref.^U	Natural fibres and fabrics manufacturer	30,668	0.2	-		32,360
Bolt Threads Inc Series E Pref.^U	Natural fibres and fabrics manufacturer	24,006	0.1	-	New purchase	-
		54,674	0.3	-		32,360
HeartFlow Inc Series E Pref.^U	Develops software for cardiovascular disease diagnosis and treatment	53,552	0.2	0.1		37,644
Capsule Corp Series D Pref.^U	Digital platform providing home delivery of prescription medication	52,201	0.2	-	New purchase	-
Name	Business	Fair value 30 September 2021 £'000	% of total assets	Contribution to absolute performance* %	Notes †	Fair value 31 March 2021 £'000
10x Genomics	Life science and diagnostics company	45,776	0.2	-	New purchase	-
Rubius Therapeutics Inc^p	Biotechnology	45,506	0.2	(0.1)		65,822
Aurora Innovation Inc Series B Pref.^U	Developer of driverless vehicle technology	43,141	0.2	-		38,552
JRSK Inc (Away) Series D Pref.^U	Manufactures luggage	16,752	0.1	-		15,197
JRSK Inc (Away) Series Seed Pref.^U	Manufactures luggage	9,137	0.1	-		7,113
JRSK Inc (Away) Convertible Promissory Note^U	Manufactures luggage	8,716	<0.1	-		8,531
JRSK Inc (Away) Convertible Promissory Note 2021^U	Manufactures luggage	8,158	<0.1	-	New purchase	-
		42,763	0.2	-		30,841
Convoy Inc Series D Pref.^U	Marketplace for truckers and shippers	27,110	0.1	-		25,871
Convoy Inc Series E Pref.^U	Marketplace for truckers and shippers	14,833	0.1	-	New purchase	-
		41,943	0.2	-		25,871
Uptake Technologies Inc Series D Pref.^U	Designs and develops enterprise software	39,792	0.2	-		35,598
Innovation Works Development Fund^U	Venture capital fund	39,697	0.2	0.1		20,622
Essence Healthcare Series 3 Pref.^U	Cloud-based health provider	39,631	0.2	-		45,950
Horizon Robotics Series C Pref.^U	Designer and developer of AI chips and algorithms principally for advanced driving assistance systems and autonomous vehicles	37,082	0.2	-		36,240
Nuro Inc Series C Pref.^U	Delivery business, using self-driving purpose-built electric vehicles	37,082	0.2	-		36,240
Clear Secure Inc	Biometric security firm	30,445	0.1	-	New purchase	-
Clover Health Investments Corp^p	Healthcare insurance provider	28,107	0.1	-		28,214
KE Holdings	Chinese real estate platform	25,392	0.1	(0.3)		77,434
ZocDoc Inc Series D-2 Pref.^U	Online platform for searching for doctors and booking appointments	22,029	0.1	-		16,421

Name	Business	Fair value 30 September 2021 £'000	% of total assets	Contribution to absolute performance* %	Notes †	Fair value 31 March 2021 £'000
ARCH Ventures Fund IX^U	Venture capital fund to invest in biotech start-ups	21,759	0.1	0.1	Return of capital	18,556
Zymergen Inc^p	Developer of molecular technology	21,613	0.1	(0.1)	Significant addition to investment	25,368
PsiQuantum Series D Pref.^U	Developer of commercial quantum computing	18,541	0.1	-	New purchase	-
Salt Pay Co Ltd Non- Voting Ordinary Shares^U	Payment and management solutions	18,540	0.1	-	New purchase	-
Salt Pay Co Ltd Voting Ordinary Shares^U	Payment and management solutions	1	<0.1	-	New purchase	-
		18,541	0.1	-		-
KSQ Therapeutics Inc Series C Pref.^U	Biotechnology	13,947	<0.1	-		13,630
Sinovation Fund III^U	Venture capital fund	11,000	<0.1	-		8,613
WI Harper Fund VIII^U	Venture capital fund	9,549	<0.1	-		9,174
Udacity Inc Series D Pref.^U	Online education	8,988	<0.1	-		8,928
WI Harper Fund VII^U	Venture capital fund	7,319	<0.1	-		6,404
ARCH Ventures Fund X Overage^U	Venture capital fund to invest in biotech start-ups	6,564	<0.1	-		4,144
ARCH Ventures Fund X^U	Venture capital fund to invest in biotech start-ups	6,126	<0.1	-		3,750
Global AI Opportunities Fund	Artificial intelligence based algorithmic trading	5,275	<0.1	-		5,107
ARCH Ventures Fund XI^U	Venture capital fund to invest in biotech start-ups	2,825	<0.1	-	Additional investment		652
Beam Therapeutics	Biotechnology	663	<0.1	-	New purchase	-
Intarcia Therapeutics Inc Common^‡^U	Implantable drug delivery system	-	-	-		-
Intarcia Therapeutics Inc Convertible Bond^‡^U	Implantable drug delivery system	-	-	-		-
Intarcia Therapeutics Inc Series EE Pref.^‡^U	Implantable drug delivery system	-	-	-		-
		-	-	-		-
Total Investments		20,955,958	99.1
Net Liquid Assets#		188,778	0.9
Total Assets#		21,144,736	100.0

^*^{Contribution to absolute performance has been calculated on a total return basis over the period 1 April 2021 to 30 September 2021. For a definition of total return please see the Glossary of Terms and Alternative Performance Measures at the end of this announcement.}

† ^{Significant additions and reductions to investments have been noted where the change is at least a 20% movement from the value of the holding at 31 March 2021. The change in value over the period also reflects the share price performance and the movement in exchange rates}.

# ^{See Glossary of Terms and Alternative Performance Measures at the end of this announcement.}

^‡^{The Intarcia Therapeutics holdings are valued at nil at 30 September 2021.}

^U ^{Denotes unlisted (private company) security.}

^p^{Denotes listed security previously held in the portfolio as an unlisted (private company) security.}

^{The following investments were completely sold during the period: Alnylam Pharmaceuticals, Auto1 Group, CureVac, Eventbrite, Lyft, Unity Biotechnology and Workday. Grail was acquired by Illumina in exchange for cash proceeds and Illumina shares.}

^{Source: Baillie Gifford/StatPro. See disclaimer at the end of this announcement.}

^{Past performance is not a guide to future performance.}

Distribution of assets (unaudited)

Geographical Analysis

		At 30 September 2021 %	At 31 March 2021 %
North America		57.1	50.0
	United States	55.4	48.9
	Canada	1.6	1.1
	Caymen Islands	0.1	-
Europe		23.5	24.0
	United Kingdom	2.6	1.6
	Eurozone	16.4	17.7
	Developed Europe (non Euro)	4.5	4.7
South America		1.9	1.7
	Brazil	1.9	1.7
Asia		17.5	24.3
	China	16.9	23.7
	India	0.6	0.6
Total assets *		100.0	100.0

Sectoral Analysis

	At 30 September 2021 %	At 31 March 2021 %
Consumer Staples	3.4	3.0
Consumer Discretionary	32.1	39.0
Technology	23.3	25.5
Healthcare	21.4	17.2
Financials	4.8	4.1
Industrials	9.0	7.4
Basic Materials	4.4	1.7
Real Estate	0.1	0.4
Energy	0.6	0.7
Net Liquid Assets	0.9	1.0
Total assets *	100.0	100.0

^*See Glossary of Terms and Alternative Performance Measures at end of this announcement.

Listed equities

Unlisted (private company) securities^†

Unlisted (private company)

bonds

Net liquid assets

Total

30 September 2021

79.7

19.3

0.1

0.9

100.0

31 March 2021

78.7

20.2

0.1

1.0

100.0

† Includes holdings in preference shares and ordinary shares.

http://www.rns-pdf.londonstockexchange.com/rns/5702R_1-2021-11-7.pdf

Absolute Performance to 30 September 2021


	Total return (%)^# for five years	Total return (%)^# For ten years	Total return (%)^# since inception (2 June 2010)^‡

Overall investment portfolio	339.9	1,057.8	1,084.7
Private and previously private companies	205.6	1,386.3	1,033.3
FTSE All-World Index (in sterling terms)	83.1	274.8	274.2

# For a definition of total return please see Glossary of Terms and Alternative Performance Measures at the end of this announcement.

‡ Date of investment in first private company security. Source: StatPro/Baillie Gifford and underlying index providers.

Notes to the condensed financial statements (unaudited)

1.	The condensed Financial Statements for the six months to 30 September 2021 comprise the statements set out in the previous pages 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 October 2019 and April 2021 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 2021 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 2021.
	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 market volatility during the Covid-19 pandemic 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 are 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.	The financial information contained within this Interim Financial Report does not constitute statutory accounts as defined in sections 424 to 436 of the Companies Act 2006. The financial information for the year ended 31 March 2021 has been extracted from the statutory accounts which have been filed with the Registrar of Companies. The Auditor's Report on those accounts was not qualified, did not include a reference to any matter 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.	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.	Net return per ordinary share	Six months to 30 September 2021 £'000	Six months to 30 September 2020 £'000
	Revenue return on ordinary activities after taxation	8,715	6,993
	Capital return on ordinary activities after taxation	2,654,201	6,348,467
	Total net return	2,662,916	6,355,460
	Weighted average number of ordinary shares in issue	1,416,515,214	1,464,928,674
	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.

Notes to the condensed financial statements (unaudited) (ctd)

5.	Dividends			Six months to 30 September 2021 £'000		Six months to 30 September 2020 £'000
	Amounts recognised as distributions in the period:
	Previous year's final dividend of 1.97p (2020 - 1.86p), paid 1 July 2021			27,984		27,306
				27,984		27,306
	Dividends proposed in the period:
	Interim dividend for the year ending 31 March 2022 of 1.52p (2021 - 1.45p)			21,459		21,167
				21,459		21,167
	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 3 December 2021 to shareholders on the register at the close of business on 19 November 2021. The ex-dividend date is 18 November 2021. The Company's Registrars offer a Dividend Reinvestment Plan and the final date for elections for this dividend is 22 November 2021.
6.	Fair Value 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
	As at 30 September 2021	Level 1 £'000	Level 2 £'000		Level 3 £'000		Total £'000
	Equities/funds	16,846,771	-		-		16,846,771
	Private company ordinary shares	-	-		587,463		587,463
	Private company preference shares	-	-		3,391,581		3,391,581
	Private company convertible note	-	-		16,874		16,874
	Warrants	-	-		8,430		8,430
	Limited partnership investments	-	-		104,839		104,839
	Total financial asset investments	16,846,771	-		4,109,187		20,955,958

Notes to the condensed financial statements (unaudited) (ctd)

		As at 31 March 2021 (audited)	Level 1 £'000	Level 2 £'000		Level 3 £'000		Total £'000
		Equities/funds	14,345,430	-		-		14,345,430
		Private company ordinary shares	-	-		597,839		597,839
		Private company preference shares	-	-		3,004,792		3,004,792
		Private company convertible note	-	-		15,949		15,949
		Warrants	-	-		6,764		6,764
		Limited partnership investments	-	-		71,914		71,914
		Total financial asset investments	14,345,430	-		3,697,258		18,042,688
		During the period, investments with a book cost of £281,364,000 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.
		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 2018 ('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 in 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).
7.		The total value of the borrowings (at book) is £1,641,824,000 (31 March 2021 - £1,237,332,000). The bank loans falling due within one year are a US$391 million revolving 3 year loan with National Australia Bank Limited ('NAB') and a US$50 million revolving 5 year loan with The Royal Bank of Scotland International Limited ('RBS') (31 March 2021 - US$200 million revolving 3 year loan with NAB, a US$80 million revolving 3 year loan with RBS and a US$85 million revolving 2 year loan with RBS). The bank loans falling due after more than one year are a US$200 million fixed rate loan and a US$180 million fixed rate loan with RBS and a US$300 million fixed rate loan with The Bank of Nova Scotia. During the period, the US$200 million revolving 3 year loan with NAB was refinanced with a US$391 million revolving 3 year loan with NAB, the US$80 million revolving 3 year loan with RBS was refinanced on expiry with a US$180 million 5 year fixed rate credit facility with RBS and the US$85 million revolving 2 year loan with RBS was part refinanced with a US$50 million revolving 5 year loan with RBS. During the period the Company issued the following private placement unsecured loan notes: - £100 million at a coupon of 2.03% maturing on 10 August 2036 - £100 million at a coupon of 2.30% maturing on 10 August 2046 Following the period end, on 12 October 2021, a US$120 million revolving 3 year loan was drawn down from Industrial and Commercial Bank of China Limited ('ICBC').
8.		The fair value of the borrowings at 30 September 2021 was £1,674,997,000 (31 March 2021 - £1,309,443,000).
9.					At 30 September 2021 Number of shares		At 31 March 2021 (audited) Number of shares
	Share capital: Ordinary shares of 5p each
	Allotted, called up and fully paid				1,411,799,194		1,421,618,969

	In the six months to 30 September 2021, the Company sold 850,000 ordinary shares from treasury with a nominal value of £42,500 at a premium to net asset value raising net proceeds of £12,213,000 (year to 31 March 2021 - issued 24,725,000 ordinary shares, with a nominal value of £1,236,250, at a premium to net asset value, raising net proceeds of £193,559,000). In the six months to 30 September 2021, 10,669,775 ordinary shares with a nominal value of £533,000 were bought back at a total cost of £137,731,000 and held in treasury (year to 31 March 2021 - 56,365,839 shares with a nominal value of £2,818,000 were bought back at a total cost of £613,920,000 and held in treasury). At 30 September 2021 the Company had authority remaining to buy back 208,586,466 ordinary shares.
10.	Transaction costs on acquisitions within the portfolio amounted to £382,000 (30 September 2020 - £1,364,000) and transaction costs on sales amounted to £190,000 (30 September 2020 - £88,000). These costs are included in the book cost of acquisitions and in the net proceeds of disposals.
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.

Glossary of Terms and Alternative Performance Measures (APM) Total Assets Total assets less current liabilities, before deduction of all 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)/Shareholders' Funds Borrowings are valued at adjusted net issue proceeds. The value of the borrowings at book is set out in note 7 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 8 above and a reconciliation to Net Asset Value with borrowings at book value is provided below.
	30 September 2021	31 March 2021
Net Asset Value per ordinary share (borrowings at book value)	1,381.1p	1,195.1p
Shareholders' funds (borrowings at book value)	£19,498,883k	£16,989,470k
Add: book value of borrowings	£1,641,824k	£1,237,332k
Less: fair value of borrowings	(£1,674,997k)	(£1,309,443k)
Net Asset Value (borrowings at fair value)	£19,465,710k	£16,917,359k
Shares in issue at year end (excluding treasury shares)	1,411,799,194	1,421,618,969
Net Asset Value per ordinary share (borrowings at fair value)	1,378.8p	1,190.0p
Liquid Assets Net liquid assets comprise current assets less current liabilities (excluding borrowings). Discount/Premium (APM) As stockmarkets 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. 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. Turnover (APM) Annual turnover is calculated on a rolling 12 month basis. The lower of purchases and sales for the 12 months is divided by the average assets, with average assets being calculated on assets as at each month's end. 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. 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.

		30 September 2021			30 September 2020
		NAV (book)	NAV (fair)	Share price	NAV (book)	NAV (fair)	Share price
Closing NAV per share/share price	(a)	1,381.1p	1,378.8p	1,428.0p	999.8p	992.0p	991.0p
Dividend adjustment factor*	(b)	1.0020	1.0012	1.0016	1.0026	1.0025	1.0023
Adjusted closing NAV per share/share price	(c = a x b)	1,383.9p	1,380.4p	1,430.3p	1,002.4p	994.5p	993.3p
Opening NAV per share/share price	(d)	1,195.1p	1,190.0p	1,137.0p	567.3p	565.7p	573.5p
Total return	(c ÷ d) - 1	15.8%	16.0%	25.8%	76.7%	75.8%	73.2%

* The dividend adjustment factor is calculated on the assumption that the final dividend of 1.97p (2020 - 1.86p) 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.

Principal Risks and Uncertainties

The principal risks facing the Company are financial risk, private company investments risk, investment strategy risk, discount risk, regulatory risk, custody and depositary risk, operational risk, leverage risk and political risk. An explanation of these risks and how they are managed is set out on pages 9 and 10 of the Company's Annual Report and Financial Statements for the year to 31 March 2021 which is available on the Company's website: scottishmortgageit.com.‡

The principal risks and uncertainties have not changed since the date of that report with the exception of the ongoing situation regarding Covid-19.

Shareholders will be notified on or around 17 November 2021 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 £363 billion under management and advice in active equity and bond portfolios for clients in the UK and throughout the world (as at 5 November 2021).

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.

5 November 2021

For further information please contact:

Catharine Flood, Baillie Gifford & Co

Tel: 0131 275 2718

Mark Knight, Director, Four Communications

Tel: 0203 761 4438 or 07803 758810

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. 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/government/publications/exchange-of-information-account-holders.

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