Share Name Share Symbol Market Type Share ISIN Share Description
The Schiehallion Fund Limited LSE:MNTN London Ordinary Share GG00BJ0CDD21 ORD NPV
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 1.175 1.15 1.20 1.175 1.175 1.175 0.00 00:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Equity Investment Instruments - - - - 561

Schiehallion Fund Limited (The) Half-year Report

06/09/2019 7:00am

UK Regulatory (RNS & others)


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RNS Number : 4146L

Schiehallion Fund Limited (The)

06 September 2019

RNS Announcement

The Schiehallion Fund Limited

Legal Entity Identifier: 213800NQOLJA1JCWXQ56

Regulated Information Classification: Half Yearly Financial Report

The following is the unaudited Interim Financial Report for the period from incorporation on 4 January 2019 to 31 July 2019 which was approved by the Board on 5 September 2019.

Message from the Chairperson

It is with pleasure that I present the Board's first Interim Report for The Schiehallion Fund Limited (the 'Company' or 'Schiehallion') for the period from incorporation on 4 January 2019 to 31 July 2019. The Company raised gross proceeds of US$477 million at launch on 27 March 2019 .

During the period from 27 March 2019 to 31 July 2019, the Company's share price and NAV returned 17.5% and 1.2% respectively.

Since shares opened for trading on the London Stock Exchange they have climbed steadily, on thin trading volume, to a premium of approximately 16.5%. The premium is a function of supply and demand for the Company's shares in the secondary market. The Company has authority to issue further shares if the Directors determine such issues to be in the best interests of shareholders and the Company as a whole.

Further information about the Company's portfolio is covered by our portfolio managers, Peter Singlehurst and Mark Urquhart, in their Interim Management Report.

Linda Yueh

Chairperson

5 September 2019

Summary of Results (unaudited)

For the period from 27 March 2019, launch and first day of trading, to 31 July 2019

 
                                                                                   % 
                                       31 July 2019     27 March              change 
                                                            2019 
===================================  ==============  ===========  ================== 
Shareholders' funds                      US$481.25m   US$475.64m 
Net asset value per ordinary share          100.84c       99.66c                 1.2 
Share price                                 117.50c      100.00c                17.5 
Premium                                       16.5%         0.3% 
Number of shares in issue               477,250,002  477,250,002 
Market capitalisation                    US$560.77m   US$477.25m 
 
 
                             Period from 
                               4 January 
                                 2019(#) 
                              to 31 July 
                                    2019 
===========================  =========== 
Revenue earnings per share       (0.04c) 
===========================  =========== 
 

Notes

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

27 March 2019, the date the Company's ordinary shares were admitted to trading on the Specialist Fund Segment of the Main Market of the London Stock Exchange.

(#) Date of incorporation of the Company.

Past performance is not a guide to future performance.

Interim Management Report

Our Approach

The Schiehallion Fund Limited (Schiehallion) was conceived because many of the world's most exciting companies are choosing to remain private for longer. In our view, this has led to a concentration of exceptional and rapidly growing companies in the later stages of private markets. It is also causing a shift in where shareholder value might accrue. Schiehallion was also founded on a belief that these companies could arise anywhere in the world. The portfolio we have assembled to date supports both hypotheses. Furthermore, by breaking down the artificial divide between private and public company investing, the Company's shareholders are in a strong position to benefit from these changes.

Portfolio Update

As at the date of this report, we have invested in eight private companies, based in China, the United States, the United Kingdom and Germany. These holdings represent a diverse range of businesses - from space travel to bus travel, and from luggage to low cost foreign exchange. However, what they all have in common is their potential to become many times bigger over our investment horizon. Of these eight companies, five will have revenues in excess of US$100 million in 2019, three of which will be greater than US$1 billion. Between 2017 and 2018 their combined revenues more than doubled in US dollar terms. Our contention that there is a wide variety of exciting and high-growth businesses in the late-stages of private markets is borne out in the portfolio we have built over this initial short period.

We are bottom-up stock pickers - every company in which we invest must have excellent prospects on a fundamental basis. However, we do observe how wider changes are altering companies' operating environments and opportunity sets. One of the major trends we have seen over recent years is the extension of the disruption that has transformed media and retail into other industries. Many of these fields are both large and relatively untouched by the technological change of the last few decades. This presents enormous opportunities, but also inevitable complexity in navigating the vested interests of the status quo.

Looking to examples in the portfolio, something as traditional as bus travel has been given a new lease of life by Flix, as it uses technology to make booking tickets easier and route planning better. The result is a greatly enhanced customer experience. Luggage is an industry that, like so many others, might have been thought immune to the disruptive power of the internet. Yet today we see Away using online distribution and savvy social media strategies to create a new brand with high-quality products in a market that has not evolved in decades. Carbon is following where many others have failed, in trying to use 3D printing to disrupt the US$12 trillion industrial manufacturing market. However, it is doing so with an offering that is cheaper, faster and more versatile. As such its technology is being enthusiastically adopted by an ever-growing number of partners. We believe that investing in companies working to transform these relatively unchanged industries should be a rich seam for Schiehallion.

The nature of our investment approach means that we see these types of companies first in the private markets and can support, and benefit from, their rapid growth years before they become public companies. Our pipeline of opportunities continues to grow and contains companies operating in an increasingly diverse range of sectors.

Outlook

When Schiehallion was launched we stated it would be reasonable to expect that we could invest at least two-thirds of the capital raised within the first two years. Our current pace of investment puts the Company well on track to meet this milestone, but it would be a mistake to view it as an objective. Rather, the rate of investment will be an output of the number of high-quality companies we find worthy of the capital entrusted to Schiehallion by its shareholders.

Private companies have the luxury of choosing their shareholders and our ability to access high-quality businesses remains of fundamental importance. Several of the investments we have made for Schiehallion have been in private companies in which Baillie Gifford is already a shareholder. As a result, we have good relationships with management and have been following the businesses' progress closely. These include SpaceX, Carbon, TransferWise, Tempus and HeartFlow.

Furthermore, we continue to be encouraged by the new deal flow we are experiencing. We have looked at approximately 150 private financing rounds in the first months of Schiehallion's existence. This provides fantastic opportunities and brings a welcome challenge - selecting only the very best investments for the Company's shareholders.

In addition to the holdings sourced from Baillie Gifford's existing relationships, the three brand new investments that we deemed worthy of shareholders' capital are Away, ByteDance and Flix. Whenever we look at a private financing round we ask ourselves whether we have a competitive advantage, either in accessing or analysing the businesses in question. These three companies nicely encapsulate the access advantages we believe we have as private market investors. The opportunity to invest in Away came from an introduction by the CEO of another Baillie Gifford-sourced private investment. We invested in ByteDance following a direct approach from 77the company, after a few years of getting to know the business and team. Likewise, we first began research on Flix in 2016 and the company subsequently approached us directly when planning its most recent financing. These relationships reflect the attractiveness of Baillie Gifford's approach as a long-term supportive investor, and the rare access it provides for our shareholders to invest in exceptional growth businesses.

We are optimistic about the outlook from this point, both for the companies in which the Company has already invested and the pipeline of opportunities that we are working on. Thank you for being a shareholder in Schiehallion.

The principal risks and uncertainties facing the Company are set out in note 15.

Investment Objective and Policy

Investment Objective

The Company's investment objective is to generate capital growth for investors through making long-term minority investments in later stage private businesses that the Company considers to have transformational growth potential and to have the potential to become publicly traded.

Investment Policy

In making its initial investment in a business, the Company will seek to invest in private businesses which it considers have the potential to become admitted to trading on a public stock exchange. Those investments will typically take the form of equity or equity-related instruments (which may include, without limitation, preference shares, convertible debt instruments, equity-related and equity-linked notes and warrants) issued by investee companies.

The Company will only invest in private businesses that are considered to have some or all of the following features:

3/4 the potential to grow revenue and earnings multiple fold over the long term;

3/4 scalable business models that should enable those businesses to grow into their opportunity;

3/4 robust competitive advantages;

3/4 exceptional management teams;

3/4 an entry price which significantly undervalues the long-term opportunity for the business; and

3/4 an ambition and ability to become stand-alone public companies.

Investee companies may be from any sector and any geography (save as set out below). While there are no specific limits placed on exposure to any one sector, the Company will at all times seek to invest and manage the portfolio in a manner consistent with spreading investment risk.

With prior approval of the Board, the Company may permit the use of derivatives for the purpose of currency hedging, though it currently does not expect to do so. Save for this and for investments made using equity-related instruments as described above, the Company may not engage in derivative transactions for any purpose.

The Board does not intend to use structural gearing with a view to enhancing equity returns on investments. The Company may employ gearing on a short-term basis for the purpose of bridging investments and general working capital purposes. The Company may in aggregate borrow amounts equalling up to 10% of net asset value, calculated at the time of drawdown.

The Company is subject to the following investment restrictions:

3/4 an investee company must be a private investee company at the time of the Company's initial investment in that investee company. The Company may, however, make subsequent investments in the investee company, even if the investee company has been admitted to trading on a public stock exchange in the period since the Company's initial investment;

3/4 a private investee company must have a value of at least US$500 million at the time of the Company's initial investment in the private investee company. This restriction will not apply to the Company's subsequent investments in the investee company, if any;

3/4 the Company may not make an initial investment in a private investee company which exceeds in value 10% (calculated at the time of investment) of the most recently published net asset value (save to the extent that breach of this 10% limit is due to a change in the value of the Company's invested assets or currency fluctuations from the time of the Company's firm commitment to make the investment to the time of investment);

3/4 the Company may not make any investment in a private investee company that would cause the value of the Company's holding in that private investee company to exceed 19.9% (calculated at the time of investment) of the most recently published net asset value; and

3/4 the Company may not make any investment in an investee company that would cause the Company's holding in that investee company to exceed 20% (calculated at the time of investment) of the total issued share capital of the investee company.

A reference to the value of assets of the Company (including investee companies) referred to in the restrictions above shall be to value as determined in accordance with the Company's valuation policy from time to time.

The Company does not currently expect the portfolio to be majority invested in public investee companies at any point in time, but it has not set a limit on the percentage of the portfolio which can be invested in public investee companies at a given time.

It is intended that the Company will, subsequent to the initial investment period of two years from the date of Admission, be substantially invested in normal market conditions. However, the Company may at any time hold overnight or term deposits or, pending investment in investee companies, invest in a range of cash equivalent instruments such as US Treasury Bills or money market funds. There is no restriction on the amount of cash or cash equivalent instruments that the Company may hold.

Responsibility Statement

The Directors of The Schiehallion Fund Limited confirm that to the best of their knowledge:

a) the Interim Financial Report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Directors have elected to prepare financial statements that comply with International Financial Reporting Standards as issued by the International Accounting Standards Board;

b) the Interim Management Report and the Principal Risks section includes a fair review of the information required by:

i) DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first period of the financial year and 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 financial year; and

ii) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first period of the current financial year and that have materially affected the financial position or the performance of the enterprise during that period.

By Order of the Board

Linda Yueh

Chairperson

5 September 2019

Statement of Comprehensive Income (unaudited)

For the period from 4 January 2019 to 31 July 2019

 
                                               Revenue   Capital     Total 
                                       Notes   US$'000   US$'000   US$'000 
============================================  ========  ========  ======== 
Gains on investments                       7         -     1,896     1,896 
Gains on US Treasury Bills                 7         -     3,936     3,936 
Currency gains                            11         -         7         7 
Income                                     2       128         -       128 
Investment management fee                  3     (203)         -     (203) 
Other administrative expenses              4     (154)         -     (154) 
========================================      ========  ========  ======== 
Operating profit before taxation                 (229)     5,839     5,610 
============================================  ========  ========  ======== 
Tax on ordinary activities                           -         -         - 
============================================  ========  ========  ======== 
Profit and total comprehensive income for 
 the period                                      (229)     5,839     5,610 
============================================  ========  ========  ======== 
Earnings per ordinary share                5   (0.04c)     1.22c     1.18c 
========================================      ========  ========  ======== 
 

The total column of this Statement represents the Statement of Comprehensive Income of the Company. The supplementary revenue and capital columns are prepared under guidance published by the Association of Investment Companies.

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

Statement of Financial Position (unaudited)

As at 31 July 2019

 
                                            2019      2019 
                                 Notes   US$'000   US$'000 
======================================  ========  ======== 
Fixed assets 
Investments held at fair value 
 through profit or loss              7              82,442 
==================================      ========  ======== 
Current assets 
Cash and cash equivalents           14   399,029 
Debtors                              8        15 
==================================      ========  ======== 
                                         399,044 
======================================  ========  ======== 
Current liabilities 
======================================  ========  ======== 
Amounts falling due within one year 
 9                                         (233) 
======================================  ========  ======== 
Net current assets                                 398,811 
======================================  ========  ======== 
Net assets                                         481,253 
======================================  ========  ======== 
Capital and reserves 
Share capital                       10             475,643 
Capital reserve                     11               5,839 
Revenue reserve                     11               (229) 
==================================      ========  ======== 
Equity shareholders' funds                         481,253 
======================================  ========  ======== 
Net asset value per ordinary 
 share                              12             100.84c 
==================================      ========  ======== 
 

Statement of changes in equity (unaudited)

For the period from 4 January 2019 to 31 July 2019

 
                                             Share   Capital   Revenue  Shareholders' 
                                           capital   reserve   reserve          funds 
                                   Notes   US$'000   US$'000   US$'000        US$'000 
========================================  ========  ========  ========  ============= 
Equity shareholders' funds at 4 January          -         -         -              - 
 2019 
Ordinary shares issued 10/11               475,643         -         -        475,643 
Total comprehensive income for the 
 period                                          -     5,839     (229)          5,610 
========================================  ========  ========  ========  ============= 
Equity shareholders' funds at 31 July 
 2019                                      475,643     5,839     (229)        481,253 
========================================  ========  ========  ========  ============= 
 

Statement of Cash Flows (unaudited)

For the period from 4 January 2019 to 31 July 2019

 
                                                                                        2019                     2019 
                                     Notes                                           US$'000                  US$'000 
==========================================  ================================================  ======================= 
Cash flows from operating activities 
Operating profit before taxation                                                                                5,610 
Net gains on investments                                                                                      (1,896) 
Currency gains                                                                                                    (7) 
Changes in debtors and creditors                                                                                  218 
==========================================  ================================================  ======================= 
Net cash used in operating activities*                                                                          3,925 
==========================================  ================================================  ======================= 
Cash flows from investing activities 
Acquisitions of investments 7                                                       (80,546) 
Disposals of investment 7                                                                  - 
==========================================  ================================================  ======================= 
Net cash used in investing activities                                                                        (80,546) 
==========================================  ================================================  ======================= 
Cash flows from financing activities 
Ordinary shares issued 10/11                                                         475,643 
==========================================  ================================================  ======================= 
Net cash inflow from financing activities                                                                     475,643 
==========================================  ================================================  ======================= 
Net increase in cash and cash equivalents                                                                     399,022 
Effect of exchange rate fluctuations on 
 cash and cash equivalents                                                                                          7 
Cash and cash equivalents at 4 January                                                                              - 
 2019 
==========================================  ================================================  ======================= 
Cash and cash equivalents at 31 July 2019                                                                     399,029 
==========================================  ================================================  ======================= 
 
   *      Cash from operations includes interest received of US$128,000. 
 
List of Investments as at 31 July 2019 (unaudited) 
================================================== 
 
 
                                                                                        2019      2019      2019 
                                                                                       Value     Value      % of 
                                                                                                             net 
                                                                                                          assets 
 Name                             Business                                 Country   US$'000   US$'000 
===============================  ===============================  ================  ========  ========  ======== 
                                 Oncological records aggregator 
Tempus Labs Inc Series            and 
 E Preferred                      diagnostic testing provider        United States     4,387 
                                 Oncological records aggregator 
Tempus Labs Inc Series            and 
 F Preferred                      diagnostic testing provider        United States     7,043 
                                                                                    ======== 
                                                                                                11,430       2.4 
FlixMobility GmbH Series 
 F2 Preferred                    European mobility provider                Germany              11,148       2.3 
Space Exploration Technologies 
 Corp                              Rocket and spacecraft 
 Series K Preferred                company                           United States              10,490       2.2 
                                 Online money transfer 
TransferWise Limited Ordinary     service                           United Kingdom     5,123 
TransferWise Limited Seed        Online money transfer 
 Preferred                        service                           United Kingdom     1,761 
TransferWise Limited Series      Online money transfer 
 A Preferred                      service                           United Kingdom     2,082 
TransferWise Limited Series      Online money transfer 
 B Preferred                      service                           United Kingdom       598 
TransferWise Limited Series      Online money transfer 
 C Preferred                      service                           United Kingdom       334 
TransferWise Limited Series      Online money transfer 
 D Preferred                      service                           United Kingdom        92 
TransferWise Limited Series      Online money transfer 
 E Preferred                      service                           United Kingdom        10 
                                                                                    ======== 
                                                                                                10,000       2.1 
                                 Social media and news 
ByteDance Limited Series          aggregation 
 E Preferred                      company                                    China              10,000       2.1 
                                 Manufactures and develops 
Carbon Inc Series E Preferred     3D printers                        United States              10,000       2.1 
                                 Develops software for 
                                  cardiovascular 
HeartFlow Inc Series E            disease diagnosis and 
 Preferred                        treatments                         United States               9,999       2.1 
Away (JRSK Inc) Series           Travel and lifestyle 
 D Preferred                      brand                              United States     5,625 
Away (JRSK Inc) Series           Travel and lifestyle 
 Seed Preferred                   brand                              United States     3,750 
                                                                                    ======== 
                                                                                                 9,375       1.9 
  ================================================================================  ========  ========  ======== 
Total unlisted securities                                                                       82,442      17.2 
==================================================================================  ========  ========  ======== 
US Treasury Bill 26/09/2019                                                                     64,665      13.4 
US Treasury Bill 05/12/2019                                                                     64,740      13.4 
US Treasury Bill 30/01/2020                                                                     64,825      13.5 
US Treasury Bill 26/03/2020                                                                     64,908      13.5 
US Treasury Bill 21/05/2020                                                                     66,446      13.8 
US Treasury Bill 16/07/2020                                                                     64,433      13.4 
Net current assets                                                                               8,794       1.8 
================================================================  ================  ========  ========  ======== 
Total cash and cash equivalents                                                                398,811      82.8 
================================================================  ================  ========  ========  ======== 
Net assets                                                                                     481,253     100.0 
================================================================  ================  ========  ========  ======== 
 

Distribution of net assets (unaudited)

Geographical

 
                                    As at 
                             31 July 2019 
                                        % 
====================  =================== 
 US Treasury Bills                   81.0 
 United States                       10.7 
 Germany                              2.3 
 United Kingdom                       2.1 
 China                                2.1 
 Net Current Assets                   1.8 
                                    100.0 
====================  =================== 
 

Sectoral

 
                                        As at 
                                 31 July 2019 
                                            % 
========================  =================== 
 Communication Services                   2.1 
 Consumer Discretionary                   1.9 
 Financials                               2.1 
 Health Care                              4.5 
 Industrials                              4.5 
 Information Technology                   2.1 
 US Treasury Bills                       81.0 
 Net Current Assets                       1.8 
                                        100.0 
========================  =================== 
 

The above sectoral distribution is not derived from any index.

 
Notes to the financial statements (unaudited) 
============================================= 
 
 
          The Schiehallion Fund Limited is a non-cellular investment company limited by shares, registered 
           and incorporated in Guernsey under the Companies (Guernsey) Law, 2008 (the 'Companies Law') 
           on 4 January 2019, with registration number 65915. The company is a registered closed-ended 
           collective investment scheme registered pursuant to the Protection of Investors (Bailiwick 
           of Guernsey) Law, 1987 as amended, and the Registered Collective Investment Scheme Rules 2018 
           issued by the Guernsey Financial Services Commission. 
           The Company's shares are listed on the Specialist Fund Segment of the Main Market of the London 
           Stock Exchange. 
           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. In undertaking this review, the Directors have considered the Company's 
           principal risks including market risk, liquidity risk and credit risk. An explanation of these 
           risks and how they are managed is contained on pages 8 and 21 to 24 of the Interim Report. 
           In managing the Company's assets the Investment Manager will seek to ensure that the Company 
           holds at all times a proportion of assets that is sufficiently liquid to enable it to discharge 
           its payment obligations. After making enquiries and considering the future prospects of the 
           Company, the Financial Statements have been prepared on the going concern basis as it is the 
           Directors' opinion that the Company will continue in operational existence for a period of 
           at least 12 months from the date of approval of these Financial Statements. 
      1.    Principal Accounting Policies 
             The Financial Statements for the period from 4 January 2019 to 31 July 2019 have been prepared 
             in accordance with International Financial Reporting Standards (IFRS). The Company was incorporated 
             on 4 January 2019 and therefore no comparative information has been provided. 
             (a) Basis of Accounting 
             The Financial Statements have been prepared in accordance with IAS 34 Interim Financial Reporting 
             and the Directors have elected to prepare Financial Statements that comply with International 
             Financial Reporting Standards ('IFRS'). Where presentational guidance set out in the Statement 
             of Recommended Practice ('SORP') for investment companies issued by the Association of Investment 
             Companies ('AIC') updated in February 2018 (the 'AIC SORP') is consistent with the requirements 
             of IFRS, the Directors have sought to prepare the Financial Statements on a basis compliant 
             with the recommendations of the SORP. 
             (b) Functional Currency 
             The Company's functional and presentational currency is the United States Dollar (US$). US$ 
             is the functional currency as the Company has issued its share capital in US$, its shareholders 
             are based globally and the Company's investment policy has global reach. The Company's performance 
             is evaluated and its liquidity is managed in US$. Therefore, US$ is considered the currency 
             that most closely represents the economic effects of the underlying transactions, events and 
             conditions. 
             (c) Basis of Measurement 
             The Financial Statements have been prepared under the historical cost convention, adjusted 
             for the revaluation of fixed asset investments at fair value through profit or loss. 
             (d) Accounting Estimates, Assumptions and Judgements 
             The preparation of the Financial Statements requires the use of estimates, assumptions and 
             judgements. These estimates, assumptions and judgements affect the reported amounts of assets 
             and liabilities, at the reporting date. While estimates are based on best judgement using 
             information and financial data available, the actual outcome may differ from these estimates. 
             The key sources of estimation and uncertainty relate to the fair valuation of the unlisted 
             investments. 
 

Notes to the financial statements (unaudited)

 
        Judgements 
         The Directors consider that the preparation of the Financial Statements involves the following 
         key judgements: 
         i) the determination of the functional currency of the Company as US dollars (see rationale 
         in 1(b) above); and 
         ii) the fair valuation of the unlisted investments. 
         The key judgements in the fair valuation process are: 
         i) the Investment Manager's determination of the appropriate application of the International 
         Private Equity and Venture Capital Valuation ('IPEV') Guidelines 2018 to each unlisted investment; 
         and 
         ii) the Directors' consideration of whether each fair value is appropriate following detailed 
         review and challenge. The judgement applied in the selection of the methodology used (see1(e) 
         below) for determining the fair value of each unlisted investment can have a significant impact 
         upon the valuation. 
         Estimates 
         The key estimate in the Financial Statements is the determination of the fair value of the 
         unlisted investments by the Investment Manager for consideration by the Directors. This estimate 
         is key as it significantly impacts the valuation of the unlisted investments at the date of 
         the Statement of Financial Position. The fair valuation process involves estimation using 
         subjective inputs that are unobservable (for which market data is unavailable). The main estimates 
         involved in the selection of the valuation process inputs are: 
         i) the selection of appropriate comparable companies in order to derive revenue multiples 
         and meaningful relationships between enterprise value, revenue and earnings growth. Comparable 
         companies are chosen on the basis of their business characteristics and growth patterns; 
         ii) the selection of a revenue metric (either historical or forecast); 
         iii) the application of an appropriate discount factor to reflect the reduced liquidity of 
         unlisted companies versus their listed peers; 
         iv) the estimation of the probability assigned to an exit being through an initial public 
         offering ('IPO') or a company sale; 
         v) the selection of an appropriate industry benchmark index to assist with the valuation validation 
         or the application of valuation adjustments, particularly in the absence of established earnings 
         or closely comparable peers; and 
         vi) the calculation of valuation adjustments derived from milestone analysis (i.e. incorporating 
         operational success against the plan/forecasts of the business into the valuation). 
         Fair value estimates are cross-checked to alternative estimation methods where possible to 
         improve the robustness of the estimates. As the valuation outcomes may differ from the fair 
         value estimates a price sensitivity analysis is provided in Other Price Risk Sensitivity in 
         note 14 to illustrate the effect on the Financial Statements of an over or under estimation 
         of fair values. The risk of an over or under estimation of fair values is greater when methodologies 
         are applied using more subjective inputs. 
         Assumptions 
         The determination of fair value by the Investment Manager involves key assumptions dependent 
         upon the valuation technique used. As explained in 1(e) below, the primary technique applied 
         under the IPEV Guidelines is the Multiples approach. Where the Multiples approach is used 
         the valuation process recognises also, as stated in the IPEV Guidelines, that the price of 
         a recent investment may be an appropriate calibration for estimating fair value. The Multiples 
         approach involves subjective inputs and therefore presents a greater risk of over or under 
         estimation and particularly in the absence of a recent transaction. The key assumptions for 
         the Multiples approach are that the selection of comparable companies provides a reasonable 
         basis for identifying relationships between enterprise value, revenue and growth to apply 
         in the determination of fair value. 
 
 Notes to the financial statements (unaudited) (Ctd) 
============================================================================================================= 
 
 
 
 
    Other assumptions include: 
     i) the discount applied for reduced liquidity versus listed peers; 
     ii) the probabilities assigned to an exit being through either an IPO or a company sale; and 
     that the application of milestone analysis and industry benchmark indices are a reasonable 
     basis for applying appropriate adjustments to the valuations. 
     Valuations are cross-checked for reasonableness to alternative Multiples-based approaches 
     or benchmark index movements as appropriate. 
     (a) Investments 
     The Company's investments are classified, recognised and measured at fair value through profit 
     or loss in accordance with IFRS 9. Changes in fair value of investments and gains and losses 
     on disposal are recognised as capital items in the Statement of Comprehensive Income. 
     Recognition and Initial Measurement 
     Purchases and sales of investments are accounted for on a trade date basis. Expenses incidental 
     to purchase and sale are written off to capital at the time of acquisition or disposal. All 
     investments are designated as valued at fair value through profit or loss upon initial recognition 
     and are measured at subsequent reporting dates at fair value. 
     Measurement and Valuation 
     Listed Investments 
     The fair value of listed security investments is the last traded price on recognised overseas 
     exchanges. 
     Unlisted Investments 
     Unlisted investments are valued at fair value by the Directors following a detailed review 
     and appropriate challenge of the valuations proposed by the Investment Manager. The Investment 
     Manager's unlisted investment valuation policy applies techniques consistent with the IPEV 
     Guidelines. 
     The techniques applied are predominantly market-based approaches. The market-based approaches 
     available under IPEV Guidelines are set out below and are followed by an explanation of how 
     they are applied to the Company's unlisted portfolio: 
      *    iples; 
 
 
      *    Industry Valuation Benchmarks; and 
 
 
      *    Available Market Prices. 
 
 
     The nature of the unlisted portfolio currently 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. 
 
 
Notes to the financial statements (unaudited)(Ctd) 
================================================== 
 
 
  The unlisted investments are valued according to a three monthly cycle of measurement dates. 
   The fair value of the unlisted investments will be reviewed before the next scheduled three 
   monthly measurement date on the following occasions: 
    *    at the period 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). 
        Derecognition 
         Financial assets are derecognised when the contractual rights to cash flows from the asset 
         expire or the Company transfers the financial assets and substantially all of the risks and 
         rewards of ownership have been transferred. 
         On derecognition of a financial asset, the difference between the weighted average carrying 
         amount of the asset (or the carrying amount allocated to the proportion of the asset derecognised), 
         and the consideration received (including any new asset obtained less any liability assumed), 
         is recognised in profit and loss. 
         Financial liabilities are derecognised when the contractual obligations are discharged, cancelled 
         or expired. 
         Gains and Losses 
         Gains and losses on investments, including those arising from foreign currency exchange differences, 
         are recognised in the Statement of Comprehensive Income as capital items. 
         The Investment Manager monitors the investment portfolio on a fair value basis and uses the 
         fair value basis for investments in making investment decisions and monitoring financial performance. 
         (a) Cash and Cash Equivalents 
         Cash and cash equivalents include cash in hand, US Treasury Bills and deposits repayable on 
         demand. Deposits are repayable on demand if they can be withdrawn at any time without notice 
         and without penalty or if they have a maturity or period of notice of not more than one working 
         day. 
         (b) Financial Liabilities 
         Bank loans and overdrafts are classified as loans and are initially recorded at the proceeds 
         received net of direct costs and subsequently measured at amortised cost. 
         (c) Income 
         i) Income from equity investments is brought into account on the date on which the investments 
         are quoted ex-dividend or, where no ex-dividend date is quoted, when the Company's right to 
         receive payment is established. 
         ii) If scrip dividends are taken in lieu of dividends in cash, the net amount of the cash 
         dividend declared is credited to the revenue account. Any excess in the value of the shares 
         received over the amount of the cash dividend foregone is recognised as capital. 
         iii) Special dividends are treated as repayments of capital or income depending on the facts 
         of each particular case. 
         iv) Overseas dividends include the taxes deducted at source. 
         v) Interest receivable on bank deposits is recognised on an accruals basis. 
         (d) Expenses 
         All expenses are accounted for on an accruals basis. Expenses are charged through the revenue 
         column of the Statement of Comprehensive Income except where: (i) they relate directly to 
         the acquisition or disposal of an investment (transaction costs), in which case they are recognised 
         as capital within losses/gains on investments; and (ii) they relate directly to the buy-back/issuance 
         of shares, in which case they are added to the buy-back cost or deducted from the share issuance 
         proceeds. 
 
 
Notes to the financial statements (unaudited) (Ctd) 
=================================================== 
 
 
            (e) Taxation 
             The Company has applied for and been granted exemption from liability to income tax in Guernsey 
             under the Income Tax (Exempt Bodies) (Guernsey) Ordinance, 1989 in Guernsey for the current 
             period. The exemption must be applied for annually and will be granted, subject to the payment 
             of an annual fee, which is currently fixed at GBP1,200 per applicant, provided the Company 
             qualifies for exemption under the applicable legislation. 
             It is the intention of the Directors to conduct the affairs of the Company so as to ensure 
             that it continues to qualify for exempt company status for the purposes of Guernsey taxation. 
             (f) Foreign Currencies 
             Transactions involving foreign currencies other than US dollars are converted at the rate 
             ruling at the time of the transaction. Assets and liabilities in such currencies are translated 
             at the closing rates of exchange at the date of the Statement of Financial Position. Any gain 
             or loss arising from a change in exchange rate subsequent to the date of the transaction is 
             included as an exchange gain or loss in the capital reserve or revenue reserve as appropriate. 
             Foreign exchange movements on investments are included in the Statement of Comprehensive Income 
             within gains or losses on investments. 
             (g) Capital Reserve 
             Gains and losses on disposal of investments, changes in the fair value of investments held 
             and realised and unrealised foreign exchange differences of a capital nature are dealt with 
             in this reserve after being recognised in the Statement of Comprehensive Income. Purchases 
             of the Company's own shares may be funded from this reserve. 
             (h) Single Segment Reporting 
             The Company is engaged in a single segment of business, being investment business, being investment 
             business, consequently no segmental analysis is presented. 
      ============================================================================================================== 
 2.   Income                                                                                                    2019 
                                                                                                             US$'000 
      ==================================================================================   ========================= 
      Other income 
 Deposit interest                                                                                                128 
 ===================================================================================  ===  ========================= 
 Total income                                                                                                    128 
 ===================================================================================  ===  ========================= 
 3.   Investment Management Fee 
      ==================================================================================   ========================= 
                                                                                                                2019 
                                                                                                             US$'000 
      ==================================================================================   ========================= 
 Investment Management Fee                                                                                       203 
 ===================================================================================  ===  ========================= 
 The Company has appointed Baillie Gifford & Co Limited as its Investment Manager (the 'Investment 
  Manager'). as the entity appointed to be responsible for risk management and portfolio management, 
  the Investment Manager has also been appointed as the Company's Alternative Investment Fund 
  Manager. Baillie Gifford & Co Limited has delegated portfolio management services to Baillie 
  Gifford Overseas Limited. 
  Under the terms of the Investment Management Agreement and with effect from the date of the 
  Company's ordinary shares were admitted to trading on the Specialist Fund Segment of the Main 
  Market of the London Stock Exchange, the Investment Manager will be entitled to an annual 
  fee (exclusive of VAT, which shall be added where applicable) of: 0.9% on the net asset value 
  excluding cash or cash equivalent assets up to and including US$650 million; 0.8% on the net 
  asset value excluding cash or cash equivalent assets exceeding US$650 million up to and including 
  US$1.3 billion; and 0.7% on the net asset value excluding cash or cash equivalent assets exceeding 
  US$1.3 billion. Management fees are calculated and payable quarterly. 
 =================================================================================================================== 
 
 
Notes to the financial statements (unaudited) (Ctd) 
=================================================== 
 

A.

 
 4.   Other Administrative Expenses 
      ============================================================================================================= 
                                                                                                               2019 
                                                                                                            US$'000 
      ========================================================================  =================  ================ 
 General administrative expenses                                                                                 79 
 Administrator's fee                                                                                             28 
      Auditor's remuneration for audit services                                                                   - 
 Directors' Fees                                                                                                 47 
 =============================================================================  =================  ================ 
                                                                                                                154 
 =============================================================================  =================  ================ 
      In the period from 4 January 2019 to 31 July 2019 non-audit fees paid to KPMG Channel Islands 
       Limited amounted to US$74,000 in respect of procedural services related to the initial listing 
       of the Company. As these costs related to the initial listing of the Company, they are capital 
       in nature and included within the costs of issuing shares (see note 11). There were no other 
       non-audit fees incurred during the period from 4 January 2019 to 31 July 2019. 
      ============================================================================================================= 
 5.   Earnings per Ordinary Share                                         2019               2019              2019 
                                                                       Revenue            Capital             Total 
      =============================================  =========================  =================  ================ 
 Earnings per ordinary share                                           (0.04c)              1.22c             1.18c 
 Revenue earnings per ordinary share is based on the net revenue loss on ordinary activities 
  after taxation of US$229,000 and on 477,250,002 ordinary shares, being the number of ordinary 
  shares in issue during the period from 4 January 2019 to 31 July 2019. 
  Capital earnings per ordinary share is based on the net capital gain for the financial period 
  of US$5,839,000 and on 477,250,002 ordinary shares, being the number of ordinary shares in 
  issue during the period from 4 January 2019 to 31 July 2019. 
  Total earnings per ordinary share is based on the total gain for the financial period of US$5,610,000 
  and on 477,250,002 ordinary shares, being the number of ordinary shares in issue during the 
  period from 4 January 2019 to 31 July 2019. 
  There are no dilutive or potentially dilutive shares in issue. 
 ================================================================================================================== 
6.    Ordinary Dividends 
       There were no dividends paid or proposed in respect of the period from 4 January 2019 to 31 
       July 2019. 
      ============================================================================================================= 
7.    Financial Instruments 
      ============================================================================================================= 
 Fair Value Hierarchy 
 The fair value hierarchy used to analyse the fair values of financial assets 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 valuation techniques used by the Company are explained in the accounting policies above. 
 ================================================================================================================== 
 
 
Notes to the financial statements (unaudited) (Ctd) 
=================================================== 
 
 
                                                      Level 1                   Level 2   Level 3        Total 
               As at 31 July 2019                     US$'000                   US$'000   US$'000      US$'000 
 ================================  ==========================  ========================  ========  =========== 
 US Treasury Bills                                    390,017                         -         -      390,017 
 Unlisted ordinary shares                                   -                         -     5,123        5,123 
 Unlisted preference shares*                                -                         -    77,319       77,319 
 ================================  ==========================  ========================  ========  =========== 
 Total financial asset 
  investments                                         390,017                         -    82,442      472,459 
 ================================  ==========================  ========================  ========  =========== 
   * 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. 
    There have been no transfers between levels of fair value hierarchy during the period from 
    4 January 2019 to 31 July 2019. 
    Investments in securities are financial assets held at fair value through profit or loss. 
    In accordance with IFRS 9, the tables above provide an analysis of these investments based 
    on the fair value hierarchy described below, which reflects the reliability and significance 
    of the information used to measure their fair value. 
 ============================================================================================================= 
                                                                   Unlisted securities* 
                                            US Treasury Bills                   US$'000                  Total 
                                                      US$'000                                          US$'000 
 ================================  ==========================  ========================  ===================== 
 Cost of investments at 4 January                           -                         -                      - 
 2019 
 Investment holding gains and                               -                         -                      - 
 losses at 4 January 2019 
 ================================  ==========================  ========================  ===================== 
 Fair value of investments at 4                             -                         -                      - 
 January 2019 
 Movements in the period: 
 Purchases at cost                                    583,906                    80,546                664,452 
 Sales - proceeds                                   (197,825)                         -              (197,825) 
          - gains on sales                              1,012                         -                  1,012 
 Changes in investment holding 
  gains and losses                                      2,924                     1,896                  4,820 
 ================================  ==========================  ========================  ===================== 
 Fair value of investments at 31 
  July 2019                                           390,017                    82,442                472,459 
 ================================  ==========================  ========================  ===================== 
 Cost of investments at 31 July 
  2019                                                387,093                    80,546                467,639 
 Investment holding gains and 
  losses at 31 July 2019                                2,924                     1,896                  4,820 
 Fair value of investments at 31 
  July 2019                                           390,017                    82,442                472,459 
 ================================  ==========================  ========================  ===================== 
 * Includes holdings in preference shares and ordinary shares. 
  The Company incurred transaction costs on purchases of US$50,000 and on sales of US$nil, being 
  US$50,000 in total. 
 Significant Holdings 
  Details of significant holdings are noted below in accordance with the disclosure requirements 
  of paragraph 82 of the AIC Statement of Recommended Practice 'Financial Statements of Investment 
  Trust Companies and Venture Capital Trusts' (updated in February 2018), in relation to the 
  unlisted investments. As required, this disclosure includes turnover, pre-tax profits and 
  net assets attributable to investors, as reported within the most recently audited financial 
  statement of the investee companies. 
 
 
 
Notes to the financial statements (unaudited) (Ctd) 
=================================================== 
 
 
 As at 31 July 2019                                                             Income                               Net assets 
                                                                            recognised                             attributable 
                                                                                  from                                       to 
                                                                            holding in                             shareholders 
                                                                            the period                                     '000 
                                 ===========  ==========  =======  =======  ==========  ==========                 ============ 
                                              Proportion 
                                      Latest  of capital     Book   Market                                Pre-tax 
                                   Financial       owned     Cost    Value                Turnover  profit/(loss) 
   Name           Business        Statements           %  US$'000  US$'000                    '000           '000 
 =============  ===============  ===========  ==========  =======  =======  ==========  ==========  =============  ============ 
                Oncological 
                 records 
                 aggregator 
                 and diagnostic 
                 testing 
 Tempus Labs     provider            n/a            0.37    9,968   11,430         Nil     Information not publicly available 
 =============  ===============  ===========  ==========  =======  =======  ==========  ======================================= 
                European 
                 mobility 
 FlixMobility    provider            n/a            0.48   11,153   11,148         Nil     Information not publicly available 
 =============  ===============  ===========  ==========  =======  =======  ========== 
 Space          Rocket and 
  Exploration    spacecraft 
  Technologies   company             n/a            0.03   10,000   10,490         Nil     Information not publicly available 
 =============  ===============  ===========  ==========  =======  =======  ==========  ======================================= 
                Online money 
                 transfer 
 TransferWise    service            31/03/18        0.28   10,050   10,000         Nil  GBP117,280       GBP7,860    GBP107,450 
 =============  ===============  ===========  ==========  =======  =======  ==========  ==========  =============  ============ 
                Social media 
                 and news 
                 aggregation 
 ByteDance       company             n/a            0.01   10,000   10,000         Nil     Information not publicly available 
 =============  ===============  ===========  ==========  =======  =======  ==========  ======================================= 
                Manufactures 
                 and develops 
 Carbon          3D printers         n/a            0.42   10,000   10,000         Nil     Information not publicly available 
 =============  ===============  ===========  ==========  =======  =======  ==========  ======================================= 
                Develops 
                 software for 
                 cardiovascular 
                 disease 
                 diagnosis and 
 HeartFlow       treatment           n/a            0.70   10,000    9,999         Nil     Information not publicly available 
 =============  ===============  ===========  ==========  =======  =======  ==========  ======================================= 
                Travel and 
                 lifestyle 
 Away (JRSK)     brand               n/a            0.74    9,375    9,375         Nil     Information not publicly available 
 =============  ===============  ===========  ==========  =======  =======  ==========  ======================================= 
 
 
 
Notes to the financial statements (unaudited) (Ctd) 
=================================================== 
 
 
 8.    Debtors                                                                                                2019 
                                                                                                           US$'000 
       ================================================================================   ===========  =========== 
       Amounts falling due within one year: 
       Income accrued (net of withholding taxes)                                                                 - 
 Other debtors and prepayments                                                                                  15 
 =================================================================================  ====  ===========  =========== 
                                                                                                                15 
  ======================================================================================  ===========  =========== 
       None of the above debtors are financial assets designated at fair value through profit or 
        loss. The carrying amount of debtors is a reasonable approximation of fair value. There were 
        no debtors that were past due or impaired at 31 July 2019. 
       =========================================================================================================== 
 9.    Creditors - Amounts falling due within one year                                                        2019 
                                                                                                           US$'000 
       ================================================================================   ===========  =========== 
 Investment management fee                                                                                     185 
 Administrator's fee                                                                                             7 
 Other creditors and accruals                                                                                   41 
 =================================================================================  ====  ===========  =========== 
                                                                                                               233 
  ======================================================================================  ===========  =========== 
       None of the above creditors at 31 July 2019 are financial liabilities designated at fair value 
        through profit or loss. 
       =========================================================================================================== 
 10.   Share Capital                                                                             2019         2019 
                                                                                               Number      US$'000 
       =================================================================================  ===========  =========== 
 Allotted, called up and fully paid ordinary shares of US$1 each                          477,250,002      475,643 
 =================================================================================        ===========  =========== 
 On incorporation, the share capital of the Company was US$2 represented by two ordinary shares 
  with a nominal value of US$1, which were held by Baillie Gifford & Co Limited to allow the 
  Company to commence business and to exercise its borrowing powers. 
  On 27 March 2019, the date the Company's ordinary shares were admitted to trading on the Specialist 
  Fund Segment of the Main Market of the London Stock Exchange, the Company issued 477,250,000 
  ordinary shares of US$1 and raised gross proceeds of US$477,250,000 which was used to finance 
  the initial investments of the Company. The issue costs in respect of the initial investment 
  were US$1,607,000, which were made up of set up costs. 
  By way of a special resolution dated 15 March 2019 the Directors have a general authority 
  to allot up to 720 million ordinary shares or C shares, such figure to include the ordinary 
  shares issued at the initial placing. 477,250,000 ordinary shares were issued at the Company's 
  initial placing hence the Company has the ability to issue a further 272,750,000 shares under 
  this existing authority which expires at the end of the period concluding immediately prior 
  to the Annual General Meeting of the Company to be held in 2024 (or, if earlier five years 
  from the date of the resolution). In the period 27 March 2019 to 31 July 2019, no further 
  shares have been issued, nor have any in the period from 31 July 2019 to 4 September 2019. 
  By way of an ordinary resolution passed on 15 March 2019 the Directors of the Company have 
  general authority to make market purchases of up to 44,725,000 ordinary shares, being 10% 
  of the ordinary shares in issue immediately following the initially placed shares being admitted 
  to trading on the Specialist Fund Segment of the Main Market of the London Stock Exchange 
  at a price not exceeding the last reported net asset value per ordinary share at the time 
  of purchase. This authority will expire at the end of the period concluding immediately prior 
  to the first Annual General Meeting of the Company. No shares have been bought back during 
  the period ended 31 July 2019 hence the authority remains at 44,725,000 ordinary shares. 
 ================================================================================================================= 
Notes to the financial statements (unaudited) (Ctd) 
======================================================================================== 
 
 
 
 11.   Capital and Reserves                               Capital reserve        Revenue reserve         Shareholders' 
                                     Share capital                US$'000                US$'000                 funds 
                                           US$'000                                                             US$'000 
       =====================  ====================  =====================  =====================  ==================== 
       At 4 January 2019                         -                      -                      -                     - 
 Net gains on sales of US 
  Treasury Bills                                 -                  1,012                      -                 1,012 
 Changes in investment 
  holding gains and losses                       -                  1,896                      -                 1,896 
 Changes in holding gains on 
  US Treasury Bills                              -                  2,924                      -                 2,924 
 Exchange differences                            -                      7                      -                     7 
 Ordinary shares issued at 
  initial offering                         477,250                      -                      -               477,250 
 Costs in relation to issue 
  of ordinary shares                       (1,607)                      -                      -               (1,607) 
 Revenue earnings on 
  ordinary activities after 
  taxation                                       -                      -                  (229)                 (229) 
 ===========================  ====================  =====================  =====================  ==================== 
 At 31 July 2019                           475,643                  5,839                  (229)               481,253 
 ===========================  ====================  =====================  =====================  ==================== 
       The capital reserve includes holding gains on investments and US Treasury Bills of US$4,820,000 
        as disclosed in note 7. 
        The revenue reserve and the capital reserve (to the extent it constitutes realised profits) 
        may be distributed by way of dividend. 
       =============================================================================================================== 
 12.   Net Asset Value per 
       Ordinary Share 
       =====================  ====================  =====================  =====================  ==================== 
       The net asset value per ordinary share and the net assets attributable to the ordinary shareholders 
        at 31 July 2019 calculated in accordance with the Articles of Association were as follows: 
       =============================================================================================================== 
                                                                                            2019                  2019 
                                                                                 Net asset value            Net assets 
                                                                                       per share  attributable US$'000 
       =====================  ====================  =====================  =====================  ==================== 
 Ordinary shares                                                                         100.84c               481,253 
 ===========================  ====================  =====================  =====================  ==================== 
 The change in assets attributable to the ordinary shares during the period is shown in note 
  11. 
  Net asset value per ordinary share is based on the net assets as shown above and 477,250,002 
  ordinary shares, being the number of ordinary shares in issue at 31 July 2019. 
 ===================================================================================================================== 
 
 
Notes to the financial statements (unaudited) (Ctd) 
=================================================== 
 
 
 13.                                                 Transactions with Related Parties and the Investment Manager and 
                                                     Administrator 
                                                     Each of the Directors is entitled to receive a fee from the 
                                                     Company at such rate as may be 
                                                     determined in accordance with the Articles. The Directors' level 
                                                     of remuneration during the 
                                                     period 4 January 2019 to 31 July 2019 was GBP30,000 per annum for 
                                                     each Director other than 
                                                     the Chairperson, who is entitled to receive an additional 
                                                     GBP15,000 per annum, and Chairperson 
                                                     of the Audit Committee, who is entitled to receive an additional 
                                                     GBP5,000 per annum. In addition 
                                                     to the above each Director received a one off fee of GBP7,500 
                                                     (US$9,815) which was to cover 
                                                     services related to the initial listing of the Company. As these 
                                                     costs related to the initial 
                                                     listing of the Company, they were included within the costs of 
                                                     issuing shares (see note 11). 
                                                     All of the Directors will also be entitled to be paid all 
                                                     reasonable expenses properly incurred 
                                                     by them in connection with the performance of their duties. These 
                                                     expenses will include those 
                                                     associated with attending general Board or committee meetings and 
                                                     legal fees. The Board may 
                                                     determine that additional remuneration may be paid, from time to 
                                                     time, to any one or more 
                                                     Directors in the event such Director or Directors are requested 
                                                     by the Board to perform extra 
                                                     or special services on behalf of the Company. 
                                                     None of the Directors has a shareholding or other interest in the 
                                                     share capital of the Company. 
                                                     No Director has a contract of service with the Company. 
                                                     Details of the management contract are set out in note 3. The 
                                                     management fee payable to the 
                                                     Investment Manager by the Company for the period from 27 March 
                                                     2019, the date the Company's 
                                                     ordinary shares were admitted to trading on the Specialist Fund 
                                                     Segment of the Main Market 
                                                     of the London Stock Exchange, to 31 July 2019, as disclosed in 
                                                     note 3, was US$203,000 of which 
                                                     US$185,000 was outstanding at 31 July 2019, as disclosed in note 
                                                     9. 
                                                     The fee payable to Alter Domus, the Company's Administrator, for 
                                                     the period to 27 March 2019, 
                                                     the date of admission to trading of the Company's ordinary shares 
                                                     on the Specialist Fund Segment 
                                                     of the Main Market of the London Stock Exchange, to 31 July 2019 
                                                     as disclosed in note 4, was 
                                                     US$28,000 of which US$7,000 was outstanding at 31 July 2019 as 
                                                     disclosed in note 9. 
 14.                                                 Risk Management 
                                                     The Company predominantly invests in long-term minority 
                                                     investments in later stage private 
                                                     businesses. Pending investment in unlisted companies the Company 
                                                     may invest in a range of 
                                                     cash equivalent instruments. The Company may borrow money when 
                                                     the Board and Investment Manager 
                                                     have sufficient conviction that the assets funded by borrowed 
                                                     monies will generate a return 
                                                     in excess of the cost of borrowing. In pursuing its investment 
                                                     objective, the Company is exposed 
                                                     to various types of risk that are associated with the financial 
                                                     instruments and markets in 
                                                     which it invests. 
                                                     These risks are categorised as market risk (comprising currency 
                                                     risk, interest rate risk and 
                                                     other price risk), liquidity risk and credit risk. The Board 
                                                     monitors closely the Company's 
                                                     exposures to these risks but does so in order to reduce the 
                                                     likelihood of a permanent loss 
                                                     of capital rather than to minimise short-term volatility. Risk 
                                                     provides the potential for 
                                                     both losses and gains. In assessing risk, the Board encourages 
                                                     the Investment Manager to exploit 
                                                     the opportunities that risk affords. 
                                                     Market Risk 
                                                     The fair value or future cash flows of a financial instrument or 
                                                     other investment held by 
                                                     the Company may fluctuate because of changes in market prices. 
                                                     This market risk comprises 
                                                     three elements - currency risk, interest rate risk and other 
                                                     price risk. The Board of Directors 
                                                     reviews and agrees policies for managing these risks and the 
                                                     Company's Investment Manager 
                                                     both assesses the exposure to market risk when making individual 
                                                     investment decisions and 
                                                     monitors the overall level of market risk across the investment 
                                                     portfolio on an ongoing basis. 
                                                     Details of the Company's investment portfolio are shown in note 
                                                     7. The Company may, from time 
                                                     to time, enter into derivative transactions to hedge specific 
                                                     market, currency or interest 
                                                     rate risk. In the period from 4 January 2019 to 31 July 2019 no 
                                                     such transactions were entered 
                                                     into. The Company's Investment Manager may not enter into 
                                                     derivative transactions without 
                                                     the prior approval of the Board. 
Notes to the financial statements (unaudited) (Ctd) 
===================================================== 
 
 
 
 i) Currency Risk 
  The Company's assets, liabilities and income are principally denominated in US dollars, the 
  Company's functional currency and that in which it reports. Consequently, movements in the 
  exchange rate of its functional currency relative to other foreign currencies will affect 
  the US dollar value of those items. 
  The Investment Manager monitors the Company's exposure and reports to the Board on a regular 
  basis. The Investment Manager assesses the risk to the Company of the foreign currency exposure 
  by considering the effect on the Company's net asset value and income of a movement in the 
  rates of exchange to which the Company's assets, liabilities, income and expenses are exposed. 
  However, the country in which a company is listed is not necessarily where it earns its profits. 
  The movement in exchange rates on overseas earnings may have a more significant impact upon 
  a company's valuation than a simple translation of the currency in which the company is quoted. 
  US dollar borrowings can limit the Company's exposure to anticipated future changes in exchange 
  rates which might otherwise adversely affect the value of the portfolio of investments. 
  Exposure to currency risk through asset allocation, which is calculated by reference to the 
  currency in which the asset or liability is quoted, is shown below. 
 ======================================================================================================================= 
          At 31 July 2019                             Cash, US Treasury Bills and                    Other 
                                         Investments                     deposits   debtors and creditors*  Net exposure 
                                             US$'000                      US$'000                  US$'000       US$'000 
          ============================  ============  ===========================  =======================  ============ 
          Sterling                                 -                            -                    (218)         (218) 
          Euros                               11,148                            -                        -        11,148 
          ============================  ============  ===========================  =======================  ============ 
          Total exposure to currency 
           risk                               11,148                            -                    (218)        10,930 
          US dollar                           71,294                      399,029                        -       470,323 
          ============================  ============  ===========================  =======================  ============ 
                                              82,442                      399,029                    (218)       481,253 
          ============================  ============  ===========================  =======================  ============ 
          * Includes net non-monetary 
           assets of US$15,000. 
          Currency Risk Sensitivity 
           At 31 July 2019, if the US dollar had strengthened by 5% in relation to all other currencies, 
           with all other variables held constant, total net assets and the profit and total comprehensive 
           income for the period from 4 January 2019 to 31 July 2019 would have decreased by US$546,000. 
           A 5% weakening of the US dollar to other currencies, with all other variables held constant, 
           would have had an equal but opposite effect on the Financial Statement amounts. 
           A change of 5% in foreign currency rates has been considered to be a reasonably plausible 
           change. 
           (ii) Interest Rate Risk 
           Interest rate movements may affect directly the level of income receivable on cash deposits 
           and treasury bills and the interest payable on any variable rate borrowings. 
           They may also impact upon the market value of investments as the effect of interest rate movements 
           upon the earnings of a company may have a significant impact upon the valuation of that company's 
           equity. 
           The possible effects on fair value and cash flows that could arise as a result of changes 
           in interest rates are taken into account when making investment decisions and when entering 
           borrowing agreements. 
           The Board reviews on a regular basis the amount of investments in cash and the income receivable 
           on cash deposits. 
           The Company may finance part of its activities through borrowings at approved levels. The 
           amount of any such borrowings and the approved levels are monitored and reviewed regularly 
           by the Board. 
           The interest rate risk profile of the Company's financial assets and liabilities at 31 July 
           2019 is shown below. 
Notes to the financial statements (unaudited) (Ctd) 
==================================================== 
 
 
 
 Financial Assets                                2019 
                                           Fair value                                                   2019 
                                              US$'000                         Weighted average interest rate 
 =============================    ===================  ===================================================== 
 Cash 
 US dollar                                      9,012                                                   0.8% 
 ===============================  ===================  ===================================================== 
 The cash deposits generally comprise overnight call or short-term money market deposits and 
  earn interest at floating rates based on prevailing bank base rates. 
  Financial Liabilities 
  The Company currently has no financial liabilities. 
  Interest Rate Risk Sensitivity 
  An increase of 100 basis points in interest rates, with all other variables being held constant, 
  would have increased the Company's total net assets and profit and total comprehensive income 
  for the period from 4 January 2019 to 31 July 2019 by US$160,000. This is mainly due to the 
  Company's exposure to interest rates on its cash balances. A decrease of 100 basis points 
  would have had an equal but opposite effect. 
  (iii) Other Price Risk 
  Changes in market prices other than those arising from interest rate risk or currency risk 
  may also affect the value of the Company's net assets. The Board manages the market price 
  risks inherent in the investment portfolio by ensuring full and timely access to relevant 
  information from the Investment Manager. The Company's portfolio of unlisted Level 3 investments 
  is not necessarily affected by market performance, however the valuations are affected by 
  the performance of the underlying securities in line with the valuation criteria in note 1(e). 
  The Board meets regularly and at each meeting reviews investment performance, the investment 
  portfolio and the rationale for the current investment portfolio positioning to ensure consistency 
  with the Company's objectives and investment policies. Investments are selected based upon 
  the merit of individual companies. The portfolio does not seek to reproduce any index. 
  Other Price Risk Sensitivity 
  A full list of the Company's investments is given above. In addition, an analysis of the investment 
  portfolio by broad geographical, industrial or commercial sector is shown above. 
  81.0% of the Company's net assets are invested in US Treasury Bills. A 5% increase in valuations 
  at 31 July 2019 would have increased net assets and profit and total comprehensive income 
  for the period from 4 January 2019 to 31 July 2019 by US$19,500,000. A decrease of 5% would 
  have had an equal but opposite effect. 
  17.2% of the Company's net assets are invested in unlisted investments. The fair valuation 
  of the unlisted investments is influenced by the estimates, assumptions and judgements made 
  in the fair valuation process (see note 1(d)). A sensitivity analysis is provided below which 
  recognises that the valuation methodologies employed involve different levels of subjectivity 
  in their inputs. The sensitivity analysis below applies a wider range of input variable sensitivity 
  to the Multiples methodology as it involves more significant subjective estimation than the 
  recent Transaction method (the risk of over or under estimation is higher due to the greater 
  subjectivity involved, for example, in selecting the most relevant measure of sustainable 
  revenues and identifying appropriate comparable companies). 
 
 
Notes to the financial statements (unaudited) (Ctd) 
=================================================== 
 
 
 As at 31 July 2019 
 
 
  Valuation Approach                                                                                 Impact 
 =====================  =====================  ====================  ===================== 
                                Fair value of                               Variable input 
                                  investments                                  sensitivity 
                                      US$'000  Key variable input*                     (%)  US$'000  % of net assets 
 =====================  =====================  ====================  =====================  =======  =============== 
                                               Selection of 
                                               appropriate 
                                               benchmark 
                                               Selection of 
                                               comparable companies 
                                               Probability 
                                               estimation of 
 Trading Multiples and                         liquidation event(#) 
  adjusted Recent                              Application of 
  Transaction                          82,442  valuation basis                       +/-10    8,244              1.7 
 =====================  =====================  ====================  =====================  =======  =============== 
 Total                                 82,442                                                 8,244              1.7 
 =====================  =====================  ====================  =====================  =======  =============== 
      Impact on net assets and profit and total comprehensive income for the period 4 January 2019 
       to 31 July 2019. 
       # A liquidation event is typically a company sale or an initial public offering ('IPO'). In 
       assessing fair value the Company has determined the likely enterprise value attributed to 
       the different investment classes held by the Company. 
       * Key Variable Inputs 
       The variable inputs applicable to each broad category of valuation basis will vary dependent 
       on the particular circumstances of each unlisted company valuation. An explanation of each 
       of the key variable inputs is provided below and includes an indication of the range in value 
       for each input, where relevant. The assumptions made in the production of the inputs are described 
       in note 1(d). 
       Selection of Appropriate Benchmarks 
       The selection of appropriate benchmarks is assessed individually for each investment. The 
       industry and geography of each company are key inputs to the benchmark selection. 
       Selection of Comparable Companies 
       The selection of comparable companies is assessed individually for each investment at the 
       point of investment, and the relevance of the comparable companies is continually evaluated 
       at each valuation. The key criteria used in selecting appropriate comparable companies are 
       the industry sector in which they operate, the geography of the company's operations, the 
       respective revenue and earnings growth rates and the operating margins. Typically, between 
       4 and 10 comparable companies will be selected for each investment, depending on how many 
       relevant comparable companies are identified. The resultant revenue or earnings multiples 
       derived will vary depending on the companies selected and the industries they operate in and 
       can vary in the range of 1x to 10x. 
       Probability Estimation of Liquidation Events 
       The probability of a liquidation event such as a company sale, or alternatively an initial 
       public offering ('IPO'), is a key variable input in the Transaction-based and Multiples-based 
       valuation techniques. The probability of an IPO versus a company sale is typically estimated 
       from the outset to be 50:50 if there has been no indication by the company of pursuing either 
       of these routes. If the company has indicated an intention to IPO, the probability is increased 
       accordingly to 75% and if an IPO has become a certainty the probability is increased to 100%. 
       Likewise, in a scenario where a company is pursuing a trade sale the weightings will be adjusted 
       accordingly in favour of a sale scenario, or in a situation where a company is underperforming 
       expectations significantly and therefore deemed very unlikely to pursue an IPO. 
 
 
Notes to the financial statements (unaudited) (Ctd) 
=================================================== 
 
 
  Application of Valuation Basis 
   Each investment is assessed independently, and the valuation basis applied will vary depending 
   on the circumstances of each investment. When an investment is pre-revenue, the focus of the 
   valuation will be on assessing the recent transaction and the achievement of key milestones 
   since investment. Adjustments may also be made depending on the performance of comparable 
   benchmarks and companies. For those investments where a trading Multiples approach can be 
   taken, the methodology will factor in revenue, earnings or net assets as appropriate for the 
   investment, and where a suitable correlation can be identified with the comparable companies 
   then a regression analysis will be performed. Discounted cash flows will also be considered 
   where appropriate forecasts are available. 
   Estimated Sustainable Earnings 
   The selection of sustainable revenue or earnings will depend on whether the company is sustainably 
   profitable or not, and where it is not then sustainable revenues will be used in the valuation. 
   The valuation approach will typically assess companies based on the last twelve months of 
   revenue or earnings, as they are the most recent available and therefore viewed as the most 
   reliable. Where a company has reliably forecasted earnings previously or there is a change 
   in circumstance at the business which will impact earnings going forward, then forward estimated 
   revenue or earnings may be used instead. 
   Application of Liquidity Discount 
   The application of a liquidity discount will be applied either through the calibration of 
   a valuation against the most recent transaction, or by application of a specific discount. 
   The discount applied where a calibration is not appropriate is typically 10%, reflecting that 
   the majority of the investments held are substantial companies with some secondary market 
   activity. 
   Liquidity Risk 
   This is the risk that the Company will encounter difficulty in meeting obligations associated 
   with financial liabilities. Investments in private businesses are expected to comprise a material 
   proportion of the Company's portfolio. Interests in private businesses are highly illiquid 
   and have no public market, which may affect the Company's ability to vary its portfolio or 
   dispose of or liquidate part of its portfolio in a timely fashion, or at all, and at satisfactory 
   prices in response to changes in economic or other conditions. The Board provides guidance 
   to the Investment Manager as to the maximum exposure to any one holding and to the maximum 
   aggregate exposure to substantial holdings. 
   The Company has the power to take out borrowings, which give it access to additional funding 
   when required. There are no borrowings as at 31 July 2019. 
   Credit Risk 
   This is the risk that a failure of a counterparty to a transaction to discharge its obligations 
   under that transaction could result in the Company suffering a loss. This risk is managed 
   as follows: 
    *    where the Investment Manager makes an investment in a 
         bond or other security with credit risk, that credit 
         risk is assessed and then compared to the prospective 
         investment return of the security in question; 
 
 
    *    the Depositary is liable for the loss of financial 
         instruments held in custody. The Depositary will 
         ensure that any delegate segregates the assets of the 
         Company. The Investment Manager monitors the 
         Company's risk by reviewing the Custodian's internal 
         control reports and reporting its findings to the 
         Board; 
 
 
    *    investment transactions are carried out with brokers 
         whose creditworthiness is reviewed by the Investment 
         Manager. Transactions are ordinarily undertaken on a 
         delivery versus payment basis whereby the Company's 
         custodian bank ensures that the counterparty to any 
         transaction entered into by the Company has delivered 
         on its obligations before any transfer of cash or 
         securities away from the Company is completed; 
 
 
    *    the creditworthiness of the counterparty to 
         transactions involving derivatives, structured notes 
         and other arrangements, wherein the creditworthiness 
         of the entity acting as broker or counterparty to the 
         transaction is likely to be of sustained interest, 
         are subject to rigorous assessment by the Investment 
         Manager; and 
 
 
    *    cash is only held at banks that are regularly 
         reviewed by the Investment Manager. At 31 July 2019 
         all cash deposits were held with the custodian bank. 
Notes to the financial statements (unaudited) (Ctd) 
===================================================================================================== 
 
 
 
       Credit Risk Exposure 
        The exposure to credit risk at 31 July 2019 was: 
       ========================================================================================================= 
                                                                                                            2019 
                                                                                                         US$'000 
       ==============================================================================     ====================== 
 US Treasury Bills                                                                                       390,017 
 Cash and short-term deposits                                                                              9,012 
 Debtors and prepayments                                                                                      15 
 =================================================================================        ====================== 
                                                                                                         399,044 
    ====================================================================================  ====================== 
 The maximum exposure in cash and cash equivalents during the period from 4 January 2019 to 
  31 July 2019 was US$477,250,000 and the minimum was US$2. None of the Company's financial 
  assets are past due or impaired. 
  Fair Value of Financial Assets and Financial Liabilities 
  The Directors are of the opinion that the carrying amount of financial assets and liabilities 
  of the Company in the Statement of Financial Position approximate their fair value. 
  Capital Management 
  The capital of the Company is its share capital and reserves as set out in note 11. The objective 
  of the Company is to invest predominantly in long-term minority investments in later stage 
  private businesses in order to achieve capital growth. The Company's investment policy is 
  set out above. In pursuit of the Company's objective, the Board has a responsibility for ensuring 
  the Company's ability to continue as a going concern and details of the related risks and 
  how they are managed are set out below. The Company has the authority to issue and buy back 
  its shares and changes to the share capital during the period are set out in note 10. 
 =============================================================================================================== 
 15.   Principal Risks 
        There is a process for identifying, evaluating and managing the risks faced by the Company 
        on a regular basis. The Directors have carried out a robust assessment of the principal risks 
        facing the Company, including those that would threaten its business model, future performance, 
        solvency or liquidity. A description of these risks and how they are being managed or mitigated 
        is set out below: 
        Financial Risk - the Company's assets consist mainly of Private Investee Companies' securities 
        and its principal financial risks are therefore market-related and include market risk (comprising 
        currency risk, interest rate risk and other price risk), liquidity risk and credit risk. An 
        explanation of those risks and how they are managed is contained in note 14 above. As oversight 
        of this risk, the Board considers at each meeting various metrics including top and bottom 
        stock contributors to performance along with sales and purchases of investments. Individual 
        investments are discussed with the portfolio managers together with their general views on 
        the various investment markets and sectors. 
        Investee Companies - the Company's investments in private investee companies will not be liquid 
        and there may be restrictions on transfer of those investments. This may limit the Company's 
        ability to realise investments at short notice, at a fair value or at all. A large proportion 
        of the overall value of the portfolio may at any time be accounted for by a relatively limited 
        number of investee companies. If the value of one or more such investee companies were to 
        be adversely affected, it could have a material adverse impact on the overall value of the 
        portfolio and the Company's financial condition, results of operations and prospects, with 
        a consequential adverse effect on the market value of the ordinary shares. Risk is diversified 
        by having a portfolio of investments which at the end of the Initial Investment Period, two 
        years from the date of admission of the ordinary shares to trading on the Specialist Fund 
        Segment of the Main Market of the London Stock Exchange, is expected to number between 20 
        and 60 holdings in investee companies. 
       ========================================================================================================= 
 
 
Notes to the financial statements (unaudited) (Ctd) 
 
Investment Strategy Risk - pursuing an investment strategy to fulfil the Company's objective 
which the market perceives to be unattractive or inappropriate, or the ineffective implementation 
of an attractive or appropriate strategy, may lead to reduced returns for shareholders and, 
as a result, a decreased demand for the Company's shares. This may lead to the Company's shares 
trading at a widening discount to their net asset value. To mitigate this risk, the Board 
regularly reviews and monitors the Company's objective and investment policy and strategy, 
the investment portfolio and its performance, the level of discount/premium to net asset value 
at which the shares trade and movements in the share register. A strategy meeting is held 
annually. 
Discount Risk - the discount/premium at which the Company's shares trade relative to its net 
asset value can change. The risk of a widening discount is that it may undermine investor 
confidence in the Company. The Board monitors the level of discount/premium at which the shares 
trade and the Company has authority to buy back its existing shares, when deemed by the Board 
to be in the best interests of the Company and its shareholders. 
Legal and Regulatory Risk - failure to comply with applicable legal and regulatory requirements 
such as the tax rules for applicable to Guernsey domiciled investment funds, the laws and 
regulations applicable to Guernsey and the continuing obligations imposed on all investment 
companies whose shares are admitted to trading on the Specialist Fund Segment of the Main 
Market of the London Stock Exchange could lead to suspension of trading in the Company's shares 
on the Specialist Fund Segment of the Main Market of the Stock Exchange listing, financial 
penalties, a qualified audit report or the Company being subject to tax on capital gains. 
To mitigate this risk, Baillie Gifford's Business Risk, Internal Audit and Compliance Departments 
and Alter Domus, the designated manager, provide regular reports to the Audit Committee on 
their monitoring programmes. Major regulatory change could impose disproportionate compliance 
burdens on the Company. Shareholder documents and announcements, including the Company's published 
Interim and Annual Report and Financial Statements, are subject to stringent review processes 
and procedures are in place to ensure adherence to the Transparency Directive and the Market 
Abuse Directive with reference to inside information. 
Custody and Depositary Risk - safe custody of the Company's assets may be compromised through 
control failures by the Depositary, including breaches of cyber security. To monitor potential 
risk, the Audit Committee receives six monthly reports from the Depositary confirming safe 
custody of the Company's assets held by the Custodian. Cash and portfolio holdings are independently 
reconciled to the Custodian's records by the Investment Manager. The Custodian's audited internal 
controls reports are reviewed by Baillie Gifford's Business Risk Department and a summary 
of the key points is reported to the Audit Committee and any concerns investigated. 
Operational Risk - failure of Baillie Gifford's systems or those of other third party service 
providers could lead to an inability to provide accurate reporting and monitoring or a misappropriation 
of assets. To mitigate this risk, Baillie Gifford has a comprehensive business continuity 
plan which facilitates continued operation of the business in the event of a service disruption 
or major disaster. The Audit Committee reviews Baillie Gifford's Report on Internal Controls 
and the reports by other key third party providers are reviewed by Baillie Gifford on behalf 
of the Board. 
Political and Associated Economic Risk - the Board is of the view that political change in 
areas in which the Company invests or may invest may have practical consequences for the Company. 
Political developments are closely monitored and considered by the Board. The Board has noted 
the UK Government's intention that the UK should leave the European Union. Whilst there is 
considerable uncertainty at present, the Board will continue to monitor developments as they 
occur and assess the potential consequences for the Company's future activities. 
============================================================================================================ 
16. Subsequent Events 
 Up to the date of this report the Company is not aware of any subsequent events. 
============================================================================================================ 
17. The Interim Report and Financial Statements will be available on the Managers' website 
 www.schiehallionfund.com++ on or around 16 September 2019. 
============================================================================================================ 
Glossary of Terms and Alternative Performance Measures ('APM') 
 Total Assets 
 The total value of all assets held less all liabilities (other than liabilities in the form 
 of borrowings). 
 Shareholders' Funds and Net Asset Value 
 Shareholders' funds is the value of all assets held less all liabilities, with borrowings 
 deducted at book cost. Net Asset Value (NAV) is the value of all assets less all liabilities, 
 with borrowings deducted at either fair value or par value as described below. Per share amounts 
 are calculated by dividing the relevant figure by the number of ordinary shares in issue. 
 Net 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. 
 Total Return (APM) 
 The total return is the return to shareholders after reinvesting the dividend on the date 
 that the share price goes ex-dividend. 
 Ongoing Charges (APM) 
 The total recurring expenses (excluding the Company's cost of dealing in investments and borrowing 
 costs) incurred by the Company as a percentage of the average net asset value (with debt at 
 fair value). 
============================================================================================================== 
 
 

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

You can find up to date performance information about The Schiehallion Fund on the Schiehallion Fund page of the Managers' website at wwww.schiehallionfund.com(++)

The Schiehallion Fund Limited is managed by Baillie Gifford, the Edinburgh based fund management group with around GBP205 billion under management and advice in active equity and bond portfolios for clients in the UK and throughout the world (as at 5 September 2019). The Administrator, Secretary and Designated Manager is alter Domus (Guernsey) Limited.

++ 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.

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.

6 September 2019

For further information please contact:

Alex Blake, Baillie Gifford & Co

Tel: 0131 275 2859

Roland Cross, Director, FourBroadgate Marketing

Tel: 0207 776 0512 or 07831 401309

- ends -

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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