TIDMMNTN TIDMMNTC
RNS Number : 0215M
Schiehallion Fund Limited (The)
11 September 2023
RNS Announcement
The Schiehallion Fund Limited
Legal Entity Identifier: 213800NQOLJA1JCWXQ56
Regulated Information Classification: Interim Financial
Report
The following is the unaudited Interim Financial Report for the
six months to 31 July 2023 which was approved by the Board on 8
September 2023.
Summary of Unaudited Results*
31 January
2023
Ordinary shares 31 July 2023 (audited) % change
----------------------------------- ------------- ----------- ---------
Shareholders' funds US$547.96$m US$597.61m
Net asset value per ordinary share 109.50c 119.42c (8.3%)
Share price 66.00c 92.00c (28.3%)
Discoun t (39.9%) (23.0%)
Number of shares in issue 500,430,002 500,430,002
Market capitalisation US$330.28m US$460.40m
----------------------------------- ------------- ----------- ---------
Six months Six months
to to
31 July 2023 31 July 2022
--------------------------- ------------- -------------
Revenue earnings per share (0.30c) (0.57c)
--------------------------- ------------- -------------
31 January
2023
C shares 31 July 2023 (audited) % change
---------------------------- ------------- ----------- ---------
Shareholders' funds US$557.26m US$555.57m
Net asset value per C share 79.61c 79.37c 0.3%
Share price 39.50c 49.00c (19.4%)
Discount (50.4%) (38.3%)
Number of shares in issue 700,000,000 700,000,000
Market capitalisation US$276.50m US$343.00m
---------------------------- ------------- ----------- ---------
Six months
to Six months to
31 July 2023 31 July 2022
--------------------------- ------------- --------------------
Revenue earnings per share 0.06c (0.31c)
--------------------------- ------------- --------------------
Notes
* For a definition of terms see Glossary of Terms and
Alternative Performance Measures below.
Alternative performance measure, see Glossary of Terms and
Alternative Performance Measures below.
All investment strategies have the potential for profit and
loss. Past performance is not a guide to future performance.
Periods High and Low
Six months to 31 Year to 31 January
July 2023 2023
===================================
Ordinary shares High Low High Low
=================================== ========== ========== ============ ============
Net asset value per ordinary share 117.98c 103.94c 153.18c 116.84c
=================================== ========== ========== ============ ============
Share price 87.00c 59.50c 214.00c 91.50c
=================================== ========== ========== ============ ============
(Discount)/premium (22.5%) (44.9%) 40.5% (26.9%)
=================================== ========== ========== ============ ============
Six months to 31 Year to 31 January
July 2023 2023
============================
C shares High Low High Low
============================ ========== ========== ============ ============
Net asset value per C share 79.60c 73.83c 97.20c 77.32c
============================ ========== ========== ============ ============
Share price 48.00c 39.50c 129.00c 49.00c
============================ ========== ========== ============ ============
(Discount)/premium (39.2%) (50.4%) 36.1% (41.1%)
============================ ========== ========== ============ ============
Performance since inception
Ordinary shares 31 July 27 March 2019++ % change
2023
Net asset value per ordinary share 109.50c 99.66c 9.9
Share price 66.00c 100.00c (34.0)
------------------------------------ -------- ---------------- ---------
C shares 31 July 26 April 2021# % change
2023
Net asset value per C share 79.61c 99.25c (19.8)
Share price 39.50c 124.00c (68.2)
----------------------------- -------- --------------- ---------
Notes
* For a definition of terms see Glossary of Terms and
Alternative Performance Measures below.
Alternative performance measure, see Glossary of Terms and
Alternative Performance Measures below.
++ 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.
# 26 April 2021, the date the Company's C shares were admitted
to trading on the Specialist Fund Segment of the Main Market of the
London Stock Exchange.
Investment Objective
The Company's 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.
Principal risks and uncertainties
The principal and emerging risks facing the Company are:
Investment and strategic risks - liquidity of investments;
market, economic, political and environmental risks; valuation
risk; investment strategy risk; discount risk; and Environmental,
Social and Governance (ESG).
External risks - political and associated economic risk; legal
and regulatory risk.
Operational risks - performance and reliance on third party
service providers; cyber security threats; and key
professionals.
Emerging risks - geopolitical tensions, including the
Russia-Ukraine conflict and US-China tensions, high energy prices,
inflation and interest rates; cyber risk; and Environmental Social
and Governance issues (ESG).
An explanation of these risks and how they are managed is set
out on pages 7 to 10 of the Company's Annual Report and Financial
Statements for the year to 31 January 2023 which is available on
the Company's website: schiehallionfund.com.
The principal risks and uncertainties have not changed since the
date of that report.
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 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 six months 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 six months 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
8 September 2023
Interim Management Report
The six months to 31 July 2023 saw a reduction in the asset
price volatility of 2022. The NAV Total Return was -8.3% for the
Ordinary Shares and 0.3% for the C Shares, which retained material
exposure to US Treasury Bills during the period. The share price
discounts to NAV of both the Ordinary Shares and the C Shares
widened during the period to 39.9% and 50.4% respectively.
Public markets performed relatively strongly over the period,
and the largest positive contributors to NAV performance of each of
the share classes included public holdings Wise, Affirm, Airbnb as
well as a new holding, Oddity, which is described in more detail in
the Portfolio section below. Private company valuations lagged
public markets over the period, and the largest detractors from NAV
performance of the Ordinary Shares were Scopely and Indigo
Agriculture.
The operational performance within your portfolio remained
solid. Mean average revenue growth was 30%. By capital weighting,
22% of your portfolio comprised profitable companies, and 4% of
companies with less than a year of cash runway remaining. Of the
remaining companies, the mean average years of remaining cash
runway was over four years. In practice, we are seeing companies
across the board make strong progress towards becoming financially
self-sustaining, through a mix of cost-cutting and top-line growth
delivering operating leverage benefits.
We have continued to prospect globally for the best long-term
growth investment opportunities in the later stages of the private
markets. This has involved thematic work in supply chains, large
language models, semiconductor design and emerging sports formats.
Team members have also been spending time on the ground in
South-East and East Asia, Australia, Israel, mainland Europe,
Mexico, Brazil and of course the USA.
Following the Silicon Valley Bank crisis and Stripe's very
public 50% down-round in the first quarter of 2023, pricing
expectations among management teams have begun to normalise. This
has been uneven between geographies. The US remains the market with
the widest price expectations gap between companies and investors.
We have seen more reasonable pricing expectations in Europe, Israel
and Korea. China is its own story, with a continued forced sell-off
of the more liquid names by American investors. We are trying to
strike a balance between understanding our limited ability to
assess geopolitical black swan risks, and the increasingly
bargain-basement prices we are being offered for stakes in
remarkable businesses.
Portfolio
During the six months to 31 July, we made one new investment in
Oddity. We committed to another in Bending Spoons, which completed
shortly after the period end.
Oddity is an Israeli-American company in the skincare space.
This has been a sector that has resisted the attack of
direct-to-consumer online brands, in no small part due to the large
role try-before-you-buy plays in the shopping journey. Where
direct-to-consumer brands have emerged, they have struggled with
reliable product matching and hence have had to endure high return
rates. Advances in cameras and image recognition technology have
now begun to enable purely online channels to challenge the
department store paradigm. Oddity has additionally been developing
expertise in personalised medical skincare, with significant
current investment in custom acne creams.
Bending Spoons is an Italian company that specialises in
identifying American software-as-a-service businesses with
under-monetised products and expensive cost bases. They acquire
them, integrate them into their own technology systems, and then
work to grow them using much cheaper and higher quality Italian
software talent. Their track record of restoring slow-growing
American consumer apps to rapid and profitable growth is
remarkable.
There are some common features to these businesses. Neither was
on the venture capital ecosystem's radar. Both have capital frugal
cultures that have enabled them to create profitable businesses
without relying on regular infusions of venture capital. Both chose
to partner with Baillie Gifford as part of their planned journey to
public markets. Indeed, Oddity went public in July, with an IPO at
a higher price than our investment in private markets, making it
the largest contributor to NAV performance for the C Shares.
We have also continued to strategically reinvest in holdings. In
January 2022, we set aside a sleeve of capital to ensure we would
be able to support companies through the approaching period of
market turbulence. At the end of the reporting period, a third of
this sleeve remains. As ever, follow-on financing for portfolio
companies is not guaranteed. It is conditional on continued
operating performance and is price sensitive. There have been hard
conversations during the period. In some cases, this has led
holdings to recapitalise at much lower valuations; in other cases,
it has driven them to seek strategic options. However, where
performance has warranted, we have continued to support. During the
period, we topped up your positions in McMakler, Stripe and
Heartflow.
The period also saw the acquisition announcement for Scopely,
the American mobile games company in your portfolio. We first
invested in Scopely in October 2019 at a $1.8bn valuation. Savvy
Games agreed to acquire it for a $4.9bn valuation in April
2023.
Private Company Valuations
Whilst the Scopely sale was clearly a good investment result,
the acquisition price was beneath our NAV carrying value estimate,
making it among the largest detractors to performance from the
Ordinary Shares during the six-month period. Over the reporting
period, there were 236 revaluation events, with 41% of holdings
being revalued three or more times. The average movement at the
private company level was -10.9%.
Unlike many of our peers, who often hold investments at last
transaction value, we adjust our estimated carrying values using
live market data from public market companies deemed comparable by
an independent third party. The net effect of this is to estimate a
NAV for Schiehallion that is 18% below where it would be, if we
were recording values as-at-last-transaction.
This leads to questions of how predictive our NAV estimates are.
We look to undertake back-testing work whenever there is a real
price discovery event. When these events occur, our aim is to
achieve a balance of increases and decrease in carrying valuations,
since this would indicate unbiased estimation.
Since the start of 2022, we have had fifteen real price
discovery events across all Baillie Gifford private holdings. On
five occasions this has led to the need to mark down a valuation,
and on ten it has led to the need to increase. This suggests that
our valuation estimation process is at present marginally
conservative. The overall average movement was +10%, with the
distribution of moves being fairly evenly distributed at +/- 30%.
This is wider than the +/- 20% margin the valuations team aims for
in their estimates. (However, if one strips out the two furthest
outliers, they would have landed within the target range, despite
the last eighteen months of greatly increased market
volatility).
C Share Conversion
In August, the Board announced that the C Shares proceeds were
86.6% deployed. The calculation date for the conversion of the C
Shares into Ordinary Shares was 31 August, and the conversion ratio
of 0.7601 Ordinary Shares for each C Share was announced on 7
September. The new Ordinary Shares will be admitted to trading on
12 September.
Looking Forward
Following the conversion of the C Shares, Schiehallion will have
total net assets of approximately $1,095m, diversified across 46
companies, with cash and Treasury Bills of approximately $162m. We
believe that this leaves the Company well placed to support and
build positions in companies that are executing well and where we
see attractive valuations.
The principal risks and uncertainties facing the Company are set
out above.
Peter Singlehurst
Robert Natzler
Valuing Private Companies
We aim to hold our private company investments at 'fair value',
i.e. the price that would be paid in an open-market transaction.
Valuations are adjusted both during regular valuation cycles and on
an ad hoc basis in response to 'trigger events'. Our valuation
process ensures that private companies are valued in both a fair
and timely manner.
The valuation process is overseen by a valuations group at
Baillie Gifford, which takes advice from an independent third party
(S&P Global). The valuations group is independent from the
investment team with all voting members being from different
operational areas of the firm, and the investment managers only
receive final valuation notifications once they have been
applied.
We revalue the private holdings on a three-month rolling cycle,
with one-third of the holdings reassessed each month. During stable
market conditions, and assuming all else is equal, each investment
would be valued two times in a 6-month period. For Schiehallion and
our investment trusts, the prices are also reviewed twice per year
by the respective boards and are subject to the scrutiny of
external auditors in the annual audit process.
Beyond the regular cycle, the valuations team also monitors the
portfolio for certain 'trigger events'. These may include changes
in fundamentals, a takeover approach, an intention to carry out an
Initial Public Offering ('IPO'), company news which is identified
by the valuation team or by the portfolio managers, or meaningful
changes to the valuation of comparable public companies. Any ad hoc
change to the fair valuation of any holding is implemented swiftly
and reflected in the next published net asset value ('NAV'). There
is no delay.
The valuations team also monitors relevant market indices on a
weekly basis and updates valuations in a manner consistent with our
external valuer's (S&P Global) most recent valuation report
where appropriate.
Continued market volatility has meant that recent pricing has
moved much more frequently than would have been the case with the
quarterly valuations cycle. The data below quantifies the
revaluations carried out during the 6 months to 31 July 2023,
however doesn't reflect the ongoing monitoring of the private
investment portfolio that hasn't resulted in a change in
valuation.
The Schiehallion Fund *
---------------------------------- ----
Instruments held 74
Percentage of portfolio revalued
up to 2 times 56%
Percentage of portfolio revalued
up to 4 times 97%
Percentage of portfolio revalued
5+ times 3%
---------------------------------- ----
* Data reflecting period 1 February 2023 to 31 July 2023 a
period of increased valuations due to ongoing market
volatility.
Year to date, most revaluations have been decreases, with a
small number of companies raising capital at an increased
valuation. The average movement in company valuations and share
prices for those are shown below.
Average movement Average movement
in company valuation in share price
--------------- ---------------------- -----------------
Schiehallion* (10.9%) (30.0%)
--------------- ---------------------- -----------------
* Data reflecting period from 1 February 2023 to 31 July
2023.
During the 6 month period ended 31 July 2023 we've written down
some of the valuations as a result of company specific
circumstances which have challenged the economic reality of the
liquidation preferences. This has contributed to the divergence in
the average movement in valuation at instrument level in comparison
to the underlying company value.
Baillie Gifford statement on stewardship
Baillie Gifford's overarching ethos is that we are 'Actual'
investors. We have a responsibility to behave as supportive and
constructively engaged long-term investors. We invest in companies
at different stages of their evolution, across many different
industries and geographies, and we focus on their unique
circumstances and opportunities. Consequently, we are wary of
prescriptive policies and rules, believing that these often run
counter to thoughtful and beneficial corporate stewardship. Our
approach favours a small number of simple principles which help
shape our interactions with companies and give appropriate latitude
to diverse processes of our different investment teams. The
following principles do not all have to be positively reflected in
each holding our teams acquire.
Our stewardship principles for public companies
Prioritisation of long-term value creation
We encourage our holdings to be ambitious, focusing on long-term
value creation and capital deployment for growth. Helping
management to resist demands from shareholders with shorter
horizons than ours can at times be an important way to achieve
better investment outcomes. We regard it as our responsibility to
encourage holdings away from destructive financial engineering and
towards activities that create genuine economic and stakeholder
value over the long run. We are happy that our value will often be
in supporting management when others don't.
A constructive and purposeful board
We believe that boards play a key role in supporting corporate
success and representing the interests of all capital providers.
There is no fixed formula, but we expect boards to have the
resources, information, cognitive and experiential diversity they
need to fulfil these responsibilities. We believe good governance
works best when there are diverse skill sets and perspectives,
paired with an inclusive culture and strong independent
representation with sufficient time to assist, advise and
constructively challenge the thinking of management.
Long-term focused remuneration with stretching targets
We look for remuneration policies that are simple, transparent
and reward superior strategic and operational endeavour. We believe
incentive schemes can be important drivers of behaviour, and
encourage policies which create genuine long-term alignment with
external capital providers. We are accepting of significant payouts
to executives if these are commensurate with outstanding long-run
value creation, but plans should not reward mediocre outcomes or
short-termism. We generally think that performance hurdles should
be skewed towards long-term results and that remuneration plans
should be subject to shareholder approval.
Fair treatment of stakeholders
We believe it is in the long-term interests of all companies to
maintain strong relationships with stakeholders - including
employees, customers, suppliers, regulators and the communities
they work within. We do not believe in one-size-fits-all policies
and recognise that operating policies, governance and ownership
structures may need to vary according to circumstance. Nonetheless,
we believe the principles of fairness, transparency and
accountability should be prioritised at all appropriate times.
Sustainable business practices
We believe an entity's long-term success is dependent on
maintaining its social licence to operate and look for holdings to
work within the spirit and not just the letter of the laws and
regulations that govern them. We expect all holdings to consider
how their actions impact society, both directly and indirectly, and
how such actions may impact their long-term success. Environmental
practices should recognise the current pace of change in
opportunities, risks and societal expectations. Climate change,
environmental impact, social inclusion, tax and fair treatment of
workers should be addressed at board level, with appropriately
ambitious policies and targets focused on the relevant material
dimensions. Boards and senior management with superior prospects
for long-term value creation should understand, regularly review
and disclose information relevant to such targets publicly,
alongside plans for ongoing improvement.
List of Investments as at July 2023 (unaudited)
2023
2023 2023
2023 Ordinary C shares Total
shares value value % of
Name Business Country value US$'000 US$'000 US$'000 net assets
Designs, manufactures
and launches
Space Exploration advanced rockets
Technologies Corp and spacecraft United States 70,113 - 70,113 6.3
Online platform to send
and receive
Wise PLC - Listed money United Kingdom 45,115 14,996 60,111 5.4
Social media and news
aggregation
ByteDance Limited company China 45,561 - 45,561 4.1
Combines enzymes and
metal catalysts
to
Solugen Inc make chemicals United States - 39,947 39,947 3.6
Lithium-ion battery
Northvolt AB manufacturer Sweden 22,780 16,418 39,198 3.5
McMakler GmbH Real estate services Germany - 38,166 38,166 3.5
Online platform which
provides
Affirm Holdings point of sale consumer
Inc - Listed finance United States 17,279 20,858 38,137 3.5
Corporate credit cards
Brex Inc for startups United States 10,903 23,599 34,502 3.1
European mobility
Flix SE GmbH provider Germany 15,660 15,716 31,376 2.8
Daily Hunt Telephone voice, data,
(Ver se Innovation text messaging,
Limited) and roaming services India 30,975 - 30,975 2.8
Faire Wholesale Online wholesale
Inc marketplace United States - 29,836 29,836 2.7
Stripe Inc Online payment platform United States 24,148 1,977 26,125 2.4
Chime Financial Digital current account
Inc provider United States 6,982 18,525 25,507 2.3
Oncological records
aggregator
and diagnostic testing
Tempus Labs Inc provider United States 20,998 4,329 25,327 2.3
Direct to Consumer
Oddity - Listed Cosmetics United States - 24,810 24,810 2.2
Online platform for
checking grammar,
spelling and
improving written
Grammarly Inc communication United States - 23,804 23,804 2.2
Databricks Inc Data software solutions United States - 22,791 22,791 2.1
Kepler Computing
Inc Semiconductor company United States - 22,302 22,302 2.0
Genki Forest Technology
Group Holdings
Limited Non-alcoholic beverages China - 21,894 21,894 2.0
Epic Games Inc Video game developer United States 21,455 - 21,455 1.9
Provider of an on-demand
delivery
platform designed to
connect consumers with
Rappi, Inc local stores United States - 21,114 21,114 1.9
Online and physical
Warby Parker Inc corrective
- Listed eyewear retailer United States 19,229 - 19,229 1.7
Jobs marketplace for the
Workrise Technologies energy
Inc sector United States 15,683 - 15,683 1.4
Online security
Tanium Inc management United States 14,924 - 14,924 1.4
Silicon photonic quantum
PsiQuantum computing United States - 13,641 13,641 1.2
Loft Holdings Ltd Online property platform Brazil - 13,602 13,602 1.2
Autonomous flight
Merlin Labs Inc technology United States - 13,406 13,406 1.2
Travel and lifestyle
Away (JRSK Inc) brand United States 13,164 - 13,164 1.2
Online market place for
travel
Airbnb Inc - Listed accommodation United States 11,704 - 11,704 1.1
Developer of autonomous
delivery
Nuro Inc vehicles United States 5,056 6,524 11,580 1.1
Pet Circle (Millell
Pty Limited) Pet food and accessories Australia - 11,065 11,065 1.0
AI based software for
Wayve Technologies self-driving
Ltd cars United States - 10,667 10,667 1.0
Manufactures and
Carbon Inc Series develops 3D printers United States 9,881 - 9,881 0.9
Marketplace for truckers
Convoy Inc and shippers United States 6,455 3,094 9,549 0.9
Jiangxiaobai Holdings Producer of alcoholic
Ltd beverages China 9,321 - 9,321 0.8
Develops software for
cardiovascular
disease diagnosis
HeartFlow Inc and treatment United States 2,084 7,100 9,184 0.8
Cohesity Inc Data storage United States 8,719 - 8,719 0.8
Gene sequencing
equipment and
Illumina - Listed consumables United States 6,761 - 6,761 0.6
Oscar Health Inc Healthcare insurance
- Listed provider United States 6,174 - 6,174 0.6
Blockstream Corp Financial software
Inc developer United States - 5,300 5,300 0.5
MasterClass
(Yanka Industries Online education
Inc) platform United States 4,806 - 4,806 0.4
Sustainable
Allbirds Inc - direct-to-customer
Listed footwear brand United States 2,551 799 3,350 0.3
Graphcore Limited Computer chip developer United Kingdom 2,836 - 2,836 0.3
Honor Technology Provider of home-care
Inc services United States 944 1,225 2,169 0.2
Ginkgo Bioworks Genetic engineering for
Holdings Inc - industrial
Listed applications United States 1,404 - 1,404 0.1
Microbial seed
treatments to increase
Indigo Agriculture crop yields and grain
Inc marketplace United States 802 - 802 0.1
------------------------ ------------------------ --------------- -------------- --------- -------- ------------
Total investments 474,467 447,505 921,972 83.4
------------------------------------------------------------------- -------------- --------- -------- ------------
2023 2023 2023 2023
Ordinary C shares Total % of
shares value value value net assets
Name US$'000 US$'000 US$'000 *
----------------------------- ----------------- ---------- ---------- ------------
US Treasury Bill 18/04/2024 - 14,249 14,249 1.3
US Treasury Bill 07/09/2023 - 14,096 14,096 1.3
US Treasury Bill 02/11/2023 - 14,053 14,053 1.3
US Treasury Bill 13/06/2024 - 14,049 14,049 1.3
US Treasury Bill 22/02/2024 - 14,025 14,025 1.2
US Treasury Bill 28/12/2023 - 13,873 13,873 1.2
----------------------------- ----------------- ---------- ---------- ------------
Total US Treasury Bills - 84,345 84,345 7.6
----------------------------- ----------------- ---------- ---------- ------------
Cash 73,618 36,931 110,549 10.1
Other current assets and
liabilities (127) (11,523) (11,650) (1.1)
----------------------------- ----------------- ---------- ---------- ------------
Net current assets 73,491 25,408 98,899 9.0
----------------------------- ----------------- ---------- ---------- ------------
Total net assets 547,958 557,258 1,105,216 100.0
----------------------------- ----------------- ---------- ---------- ------------
Allocation of net assets (unaudited)
2023 2023
Ordinary C shares Total
shares Value value % of
value US$'000 US$'00 US$'00 net assets
Listed investments 110,218 61,462 171,680 15.5
Private company investments 364,249 386,043 750,292 67.9
US Treasury Bills - 84,345 84,345 7.6
Cash and cash equivalents 73,618 36,931 110,549 10.1
Net current assets (127) (11,523) (11,650) (1.1)
----------------------------- --------------- ---------- ----------- ------------
Total net assets 547,958 557,258 1,105,216 100.0
----------------------------- --------------- ---------- ----------- ------------
* See Glossary of Terms and Alternative Performance Measures
below.
The Company may hold various classes of shares in investee
companies, some of which may have a preference on winding up.
Distribution of total net assets (unaudited)
Ordinary Shares
Geographical as at 31 July
Geographical % at % at
31 July 31 January
2023 2023
-------------------- --------- ------------
United States 55.1 65.2
China 10.0 10.6
United Kingdom 8.7 6.4
India 5.7 5.4
Sweden 4.2 3.8
Germany 2.9 2.2
Net Current Assets 13.4 6.4
-------------------- --------- ------------
Sectoral as at 31 July
Sectoral % at % at
31 July 31 January
2023 2023
------------------------ --------- ------------
Industrials 20.6 19.9
Financials 20.2 15.7
Communication Services 14.8 14.9
Consumer Discretionary 12.7 11.6
Information Technology 10.6 21.0
Healthcare 5.6 5.5
Consumer Staples 1.8 4.8
Materials 0.3 0.2
Net Current Assets 13.4 6.4
------------------------ --------- ------------
C shares
Geographical as at 31 July
Geographical % at % at
31 July 31 January
2023 2023
-------------------- --------- ------------
United States 56.6 50.7
US Treasury Bills 15.1 24.7
Germany 9.7 6.8
China 3.9 5.4
United Kingdom 2.7 3.6
Sweden 2.9 2.9
Brazil 2.5 2.8
Australia 2.0 2.0
Net Current Assets 4.6 1.1
-------------------- --------- ------------
Sectoral as at 31 July
Sectoral % at % at
31 July 31 January
2023 2023
------------------------ --------- ------------
Information Technology 21.4 20.5
US Treasury Bills 15.1 24.7
Financials 14.4 12.8
Consumer Discretionary 10.4 10.4
Real Estate 9.3 7.2
Consumer Staples 8.4 5.4
Materials 7.2 8.6
Industrials 7.0 7.8
Healthcare 2.3 1.5
Net Current Assets 4.5 1.1
------------------------ --------- ------------
Income Statement (unaudited)
For the six months For the six months to For the year ended 31
to 31 July 2023 31 July 2022 January 2023
--------------- ----- ---------------------------- ------------------------------ --------------------------------
Revenue Capital Total Revenue Capital Total Revenue Capital Total
Notes US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
--------------- ----- -------- -------- -------- -------- --------- --------- -------- ---------- ----------
Losses on
investments - (46,896) (46,896) - (209,332) (209,332) - (311,938) (311,938)
Currency losses - (9) (9) - (33) (33) - (17) (17)
Income 2 3,512 - 3,512 218 - 218 2,800 - 2,800
Investment
management fee 3 (3,937) - (3,937) (4,611) - (4,611) (8,931) - (8,931)
Other
administrative
expenses 4 (637) - (637) (595) - (595) (1,233) - (1,233)
--------------- ----- -------- -------- -------- -------- --------- --------- -------- ---------- ----------
Operating loss
before finance
costs and
taxation (1,062) (46,905) (47,967) (4,988) (209,365) (214,353) (7,364) (311,955) (319,329)
--------------- ----- -------- -------- -------- -------- --------- --------- -------- ---------- ----------
Finance cost of
borrowings - - - (9) - (9) (10) - (10)
--------------- ----- -------- -------- -------- -------- --------- --------- -------- ---------- ----------
Operating loss
before
taxation (1,062) (46,905) (47,967) (4,997) (209,365) (214,362) (7,374) (311,955) (319,329)
--------------- ----- -------- -------- -------- -------- --------- --------- -------- ---------- ----------
Tax on ordinary - - - - - - - - -
activities
--------------- ----- -------- -------- -------- -------- --------- --------- -------- ---------- ----------
Loss and total
comprehensive
loss for the
period (1,062) (46,905) (47,967) (4,997) (209,365) (214,362) (7,374) (311,955) (319,329)
--------------- ----- -------- -------- -------- -------- --------- --------- -------- ---------- ----------
For the six months For the six months For the year to 31
to 31 July 2023 to 31 July 2022 January 2023
Revenue Capital Total Revenue Capital Total Revenue Capital Total
Notes US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
---------------- ----- -------- -------- -------- ------- --------- --------- -------- ---------- ----------
Total comprehensive
(loss)/income
for the period
analysed as follows:
Attributable to
ordinary
shareholders 5 (1,483) (48,168) (49,651) (2,835) (136,408) (139,243) (4,923) (189,131) (194,054)
Attributable to
C shareholders 5 421 1,263 1,684 (2,162) (72,957) (75,119) (2,451) (122,824) (125,275)
---------------- ----- -------- -------- -------- ------- --------- --------- -------- ---------- ----------
Loss and total
comprehensive
loss for the
period (1,062) (46,905) (47,967) (4,997) (209,365) (214,362) (7,374) (311,955) (319,329)
---------------- ----- -------- -------- -------- ------- --------- --------- -------- ---------- ----------
Earnings/(loss)
per ordinary
share 5 (0.30c) (9.62c) (9.92c) (0.57c) (27.26c) (27.83c) (0.98c) (37.79c) (38.77c)
Earnings/(loss)
per C share 5 0.06c 0.18c 0.24c (0.31c) (10.42c) (10.73c) (0.35c) (17.55c) (17.90c)
---------------- ----- -------- -------- -------- ------- --------- --------- -------- ---------- ----------
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)
At 31 At 31
July July At 31 January At 31 January
2023 2023 2023 2023
Notes US$'000 US$'000 US$'000 US$'000
------------------------------- ----- -------- ----------- ------------- -------------
Fixed assets
Investments held at fair value
through profit or loss 7 921,972 972,032
------------------------------- ----- -------- ----------- ------------- -------------
Current assets
US Treasury Bills 84,345 136,797
Cash and cash equivalents 110,549 45,799
Debtors 22,149 884
------------------------------- ----- -------- ----------- ------------- -------------
217,043 183,480
------------------------------- ----- -------- ----------- ------------- -------------
Current liabilities
Amounts falling due within one
year (33,799) (2,329)
------------------------------- ----- -------- ----------- ------------- -------------
Net current assets 183,244 181,151
------------------------------- ----- -------- ----------- ------------- -------------
Net assets 1,105,216 1,153,183
------------------------------- ----- -------- ----------- ------------- -------------
Capital and reserves
Share capital 8 1,216,503 1,216,503
Capital reserve (98,441) (51,536)
Revenue reserve (12,846) (11,784)
------------------------------- ----- -------- ----------- ------------- -------------
Shareholders' funds 1,105,216 1,153,183
------------------------------- ----- -------- ----------- ------------- -------------
Shareholders' funds - ordinary
shares 547,957 597,608
Net asset value per ordinary
share 109.50c 119.42c
Number of ordinary shares in
issue 500,430,002 500,430,002
------------------------------- ----- -------- ----------- ------------- -------------
Shareholders' funds - C shares 557,257 555,575
Net asset value per C share 79.61c 79.37c
Number of C shares in issue 700,000,000 700,000,000
------------------------------- ----- -------- ----------- ------------- -------------
Statement of changes in equity (unaudited)
Six months to 31 July 2023
Share Capital Revenue Shareholders'
capital reserve* reserve funds
US$'000 US$'000 US$'000 US$'000
Shareholders' funds at 31 January
2023 1,216,503 (51,536) (11,784) 1,153,183
Total comprehensive loss for the
period - ordinary shares - (48,168) (1,483) (49,651)
Total comprehensive income/(loss)
for the period - C shares - 1,263 421 1,684
----------------------------------- ----------- ---------- --------- --------------
Shareholders' funds at 31 July
2023 1,216,503 (98,441) (12,846) 1,105,216
----------------------------------- ----------- ---------- --------- --------------
Six months to 31 July 2022
Share Capital Revenue Shareholders'
capital reserve* reserve funds
US$'000 US$'000 US$'000 US$'000
Shareholders' funds at 31 January
2022 1,216,503 260,419 (4,410) 1,472,512
Total comprehensive loss for the
period - ordinary shares - (136,408) (2,835) (139,243)
Total comprehensive loss for the
period - C shares - (72,957) (2,162) (75,119)
----------------------------------- ---------- ---------- --------- --------------
Shareholders' funds at 31 July
2022 1,216,503 51,054 (9,407) 1,258,150
----------------------------------- ---------- ---------- --------- --------------
*Includes investment holdings loss of US$113,452,000 (31 July
2022 - gains of US$133,855,000).
Statement of cash flows (unaudited)
Six months to 31 Six months to 31
July 2023 July 2022
US$'000 US$'000 US$'000 US$'000
------------------------------------------ ----------- ---------- ----------- ----------
Cash flows from operating activities
Operating loss before taxation (47,967) (214,362)
US Treasury Bills interest (2,236) (60)
Net losses on investments 46,896 209,332
Currency losses 9 33
Changes in debtors and creditors (592) (422)
------------------------------------------ ----------- ---------- ----------- ----------
Net cash outflow in operating activities
* (3,890) (5,479)
------------------------------------------ ----------- ---------- ----------- ----------
Cash flows from investing activities
Acquisitions of US Treasury Bills (53,111) (93,886)
Disposals of US Treasury Bills 118,826 214,739
Acquisitions of investments (45,621) (158,358)
Disposals of investments 48,555 1,848
------------------------------------------ ----------- ---------- ----------- ----------
Net cash inflow/(outflow) in investing
activities 68,649 (35,657)
------------------------------------------ ----------- ---------- ----------- ----------
Net increase/(decrease) in cash
and cash equivalents 64,759 (41,136)
Effect of exchange rate fluctuations
on cash and cash equivalents (9) (33)
Cash and cash equivalents at start
of period 45,799 86,898
------------------------------------------ ----------- ---------- ----------- ----------
Cash and cash equivalents at 31
July 110,549 45,729
------------------------------------------ ----------- ---------- ----------- ----------
* Cash from operations includes interest received of US$878,000
(2022 - US$33,000).
Notes to the financial statements (unaudited)
1. Basis of accounting
The condensed Financial Statements for the six months to 31 July
2023 comprises the statements set out above together with the
related notes below. They have been prepared in accordance with
International Financial Reporting Standards (IFRS). The Financial
Statements for the six months to 31 July 2023 have been prepared on
the basis of the same accounting policies as set out in the
Company's Annual Report and Financial Statements at 31 January
2023.
Equity investment
The ordinary shares and C shares of the Company are classified
as equity in accordance with the definition of equity instruments
under IAS 32 Financial Instruments: presentation (IAS 32). The
proceeds from the issue of shares are recognised in the Statement
of Changes in Equity net of incremental issuance costs.
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 Board has considered the
Company's principal risks and uncertainties, as set out on the
inside front cover, and in particular considered the impact of
heightened market volatility due to macroeconomic and geopolitical
concerns, including the Russia-Ukraine war and heightened tensions
between China and both the USA and Taiwan. Liquidity stress testing
has been carried out and having done so the Board does not believe
the Company's going concern status is affected. The Company
maintains sufficient cash balances to enable it to meet its
liabilities as they fall due.
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.
Accordingly, the Financial Statements have been prepared on the
going concern basis as it is the Directors' opinion, having
assessed the principal risks and uncertainties, 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.
2. Income
Six months Six months Year to
to 31 July to 31 July 31 January
2023 2022 2023
US$'000 US$'000 US$'000
---------------------------- ------------ ------------ ------------
US Treasury Bills interest 2,236 60 1,618
Overseas interest 398 124 482
Deposit interest 878 34 700
---------------------------- ------------ ------------ ------------
Total income 3,512 218 2,800
---------------------------- ------------ ------------ ------------
3. Investment Management Fee
Six months Six months Year to
to 31 July to 31 July 31 January
2023 2022 2023
US$'000 US$'000 US$'000
--------------------------- ------------ ------------ ------------
Investment management fee 3,937 4,611 8,931
--------------------------- ------------ ------------ ------------
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 ('AIFM'). Baillie
Gifford & Co Limited has delegated portfolio management
services to Baillie Gifford Overseas Limited. The Investment
Management Agreement is terminable on not less than six months'
notice.
Under the terms of the Investment Management Agreement, 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 of the Company 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$1.3 billion. Management fees
are calculated and
payable quarterly.
Cash equivalents include US Treasury Bills.
4. Other administrative expenses
Six months Six months Year to
to 31 July to 31 July 31 January
2023 2022 2023
US$'000 US$'000 US$'000
------------------------ ------------ ------------ ------------
General administrative
expenses 228 202 517
Administrator's fee 28 74 86
Auditor's remuneration
for audit services 154 121 236
Directors' fees 227 198 394
------------------------ ------------ ------------ ------------
637 595 1233
------------------------ ------------ ------------ ------------
Expenses relating directly to a share class are charged directly
to that share class. Expenses pertaining to both ordinary and C
shares are split equally between the share classes.
5. Earnings per share
Six months to Six months to Year to 31
31 July 2023 31 July 2022 January 2023
Ordinary shares US$'000 c US$'000 c US$'000 c
------------------------------ --------- -------- ---------- -------- ---------- --------
Revenue return on ordinary
activities after taxation (1,483) (0.30c) (2,835) (0.57) (4,923) (0.98)
Capital return on ordinary
activities after taxation (48,168) (9.62c) (136,408) (27.26) (189,131) (37.79)
------------------------------ --------- -------- ---------- -------- ---------- --------
Loss and total comprehensive
loss for the period (49,651) (9.92c) (139,243) (27.83) (194,054) (38.77)
------------------------------ --------- -------- ---------- -------- ---------- --------
Weighted average number of
ordinary shares in issue 500,430,002 500,430,002 500,430,002
------------------------------ ------------------- -------------------- --------------------
Six months Six months Year to
to to 31 January
31 July 31 July 2022 2023
2023
Ordinary shares US$'000 c US$'000 c US$'000 c
--------------------------------------- ---------- ------- ----------- -------- ---------- --------
Revenue return on ordinary activities
after taxation 421 0.06c (2,162) (0.31) (2,451) (0.35)
Capital return on ordinary activities
after taxation 1,263 0.18c (72,957) (10.42) (122,824) (17.55)
--------------------------------------- ---------- ------- ----------- -------- ---------- --------
Profit/(loss) and total comprehensive
(loss) for the period 1,684 0.24c (75,119) (10.73) (125,275) (17.90)
--------------------------------------- ---------- ------- ----------- -------- ---------- --------
Weighted average number of C
shares in issue 700,000,000 700,000,000 700,000,000
--------------------------------------- ------------------- --------------------- --------------------
Net return per share is based on the above totals of revenue and
capital and the weighted average number of shares in issue during
each period. There are no dilutive or potentially dilutive shares
in issue.
6. Ordinary dividends
There were no dividends paid or proposed in respect of the six
months for either the ordinary shares or for the C shares (2022 -
nil).
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).
Level Level Level 3 Total
As at 31 July 2023 1 US$'000 2 US$'000 US$'000 US$'000
--------------------------------------- ----------- ----------- --------- ---------
Listed equities 171,680 - - 171,680
--------------------------------------- ----------- ----------- --------- ---------
Unlisted ordinary shares - - 102,223 102.223
--------------------------------------- ----------- ----------- --------- ---------
Unlisted preference shares* - - 635,916 635,916
--------------------------------------- ----------- ----------- --------- ---------
Unlisted convertible promissory notes - - 12,143 12,143
--------------------------------------- ----------- ----------- --------- ---------
Total financial asset investments 171,680 - 750,292 921,972
--------------------------------------- ----------- ----------- --------- ---------
Level Level Level 3 Total US$'000
As at 31 January 2023 1 US$'000 2 US$'000 US$'000
--------------------------------------- ----------- ----------- --------- --------------
Listed equities 119,018 - - 119,018
--------------------------------------- ----------- ----------- --------- --------------
Unlisted ordinary shares - - 131,977 131,977
--------------------------------------- ----------- ----------- --------- --------------
Unlisted preference shares* - - 708,914 708,914
--------------------------------------- ----------- ----------- --------- --------------
Unlisted convertible promissory notes - - 12,123 12,123
--------------------------------------- ----------- ----------- --------- --------------
Total financial asset investments 119,018 - 853,014 972,032
--------------------------------------- ----------- ----------- --------- --------------
* 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.
During the six months to 31 July 2023, the investment in Oddity
was transferred from Level 3 to Level 1 on becoming listed. During
the year ended 31 January 2023, no investments were transferred
from Level 3 to Level 1 on becoming listed.
The valuation techniques used by the Company are explained in
the accounting policies on page 49 of the Company's Annual Report
and Financial Statements for the year to 31 January 2023. Listed
investments are categorised as Level 1 if they are valued using
unadjusted quoted prices for identical instruments in an active
market and as Level 2 if they do not meet all these criteria but
are, nonetheless, valued using market data. The Company's holdings
in unlisted investments are categorised as Level 3 unobservable
data is a significant input to their fair value measurements.
8. Share Capital
31 July 31 July 31 January 31 January
2023 2023 2023 2023
Number US$'000 Number US$'000
--------------------------------------------- ------------ --------- ------------ -----------
Alloted, called up and fully paid ordinary
shares of US$1 each 500,430,002 521,701 500,430,002 521,701
Allotted, called up and fully paid C shares
of US$1 each 700,000,000 694,802 700,000,000 694,802
--------------------------------------------- ------------ --------- ------------ -----------
By way of a special resolution dated 15 March 2019 the Directors
have a general authority to allot up to 720,000,000 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, with a further 23,180,002 ordinary
shares subsequently issued, the Company has the ability to issue a
further 219,569,998 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).
By way of a special resolution dated 18 March 2021 the Directors
have a general authority to allot up to 700,000,000 C shares. On 26
April 2021, the Company issued 700,000,000 C shares of US$1 each
and raised gross proceeds of US$700,000,000. The issue costs in
respect of the C share issue were US$5,198,000. These costs
consisted of mainly broker commission (US$4,066,000), legal fees
(US$601,000) and listing fees (US$396,000).
During the six months to 31 July 2023 the Company did not issue
any ordinary shares or C shares. In the period from 1 August 2023
to 7 September 2023 the Company issued no ordinary shares or C
shares.
By way of ordinary resolutions passed on 12 May 2023 the
Directors of the Company have general authority to make market
purchases of up to 75,014,457 ordinary shares and 104,930,000 C
shares, being 14.99% of the ordinary and C shares in issue as at 24
March 2023, being the latest practicable date prior to the
publication of the Company's Annual Report and Financial Statements
for the year ended 31 January 2023. These authorities will expire
at the conclusion of the Annual General Meeting of the Company to
be held in respect of the year ending 31 January 2024. No ordinary
shares or C shares have been bought back during the six months
ended 31 July 2023 (31 July 2022 - nil) hence the authorities
remain at 75,014,457 ordinary shares and 104,930,000 C shares. In
the period from 1 August 2023 to 7 September 2023 no ordinary
shares or C shares were bought back.
Holders of ordinary shares have the right to receive income and
capital from assets attributable to such share class. Ordinary
shareholders have the right to receive notice of general meetings
of the Company and have the right to attend and vote at all general
meetings.
Holders of C shares have the right to receive income and capital
from assets attributable to such share class. C shareholders have
the right to receive notice of general meetings of the Company and
have the right to attend and vote at all general meetings.
9. Transaction Costs
During the period the Company incurred transaction costs on
purchases of investments of US$nil (31 July 2022 - US$57,000; 31
January 2023 - US$57,000) and transaction costs on sales of US$nil
(31 July 2022- US$nil; 31 January 2023 - US$nil).
10. Transactions with related parties and the investment manager and administrator
There have been no transactions with related parties during the
first six months of the current financial year that have materially
affected the financial position or the performance of the Company
during that period and there have been no changes in the related
party transactions described in the last Annual Report and
Financial Statements that could have such an effect on the Company
during that period.
None of the views expressed in this document should be construed
as advice to buy or sell a particular investment.
Glossary of terms and alternative performance measures
('APM')
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 held less all liabilities, with
borrowings deducted at either fair value or par value. Per share
amounts are calculated by dividing the relevant figure by the
number of ordinary shares in issue.
Net current assets
Net current assets comprise current assets less current
liabilities (excluding borrowings).
(Discount)/premium (APM)
As stock markets and share prices vary, an investment company'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.
31 July 31 January
Ordinary shares 2023 2023
--------------------------------------------- ------- ----------
Closing NAV per share (a) 109.50c 119.42c
----------------------------------- -------- ------- ----------
Closing share price (b) 66.00c 92.00c
----------------------------------- -------- ------- ----------
(b - a)
÷
Discount expressed as a percentage a (39.9%) (23.0%)
----------------------------------- -------- ------- ----------
31 July 31 January
C shares 2023 2023
--------------------------------------------- ------- ----------
Closing NAV per share (a) 79.61c 79.37c
----------------------------------- -------- ------- ----------
Closing share price (b) 39.50c 49.00c
----------------------------------- -------- ------- ----------
(b - a)
÷
Discount expressed as a percentage a (50.4%) (38.3%)
----------------------------------- -------- ------- ----------
Other shareholder information
Automatic Exchange of Information
In order to fulfil its legal obligations under the Guernsey
Common Reporting Standard Legislation relating to the Automatic
Exchange of Information, the Company is required to collect and
report certain information about certain shareholders.
The legislation will require investment companies to provide
personal information to the Guernsey authorities on certain
investors who purchase shares in investment funds. As an affected
company, The Schiehallion Fund Limited will have to provide
information annually to the local authority on the tax residencies
of non-UK based certificated shareholders and corporate
entities.
Foreign Account Tax Compliance Act
Pursuant to the reciprocal information sharing
inter-governmental agreement entered into by the States of Guernsey
and the US Treasury, and for the purposes of the US Foreign Account
Tax Compliance Act ('FATCA') of the Company registered with the
Internal Revenue Service ('IRS') as a Foreign Financial Institution
('FFI') and received a Global Intermediary Identification Number
(R2NXXB.9999.SL.831). The Company can be located on the
IRS FFI list.
Sustainable finance disclosure regulation ('SFDR')
The EU Sustainable Finance Disclosure Regulation ('SFDR') does
not have a direct impact in the UK due to Brexit, however, it
applies to third-country products marketed in the EU. As The
Schiehallion Fund Limited is marketed in the EU by the AIFM, BG
& Co Limited, via the National Private Placement Regime (NPPR)
the following disclosures have been provided to comply with the
high-level requirements of SFDR.
The AIFM has adopted Baillie Gifford & Co's ESG Principles
and Guidelines as its policy on integration of sustainability risks
in investment decisions.
Baillie Gifford & Co's approach to investment is based on
identifying and holding high quality growth businesses that enjoy
sustainable competitive advantages in their marketplace. To do this
it looks beyond current financial performance, undertaking
proprietary research to build an in-depth knowledge of an
individual company and a view on its long-term prospects. This
includes the consideration of sustainability factors
(environmental, social and/or governance matters) which it believes
will positively or negatively influence the financial returns of an
investment.
More detail on the Managers' approach to sustainability can be
found in the Governance and Sustainability Principles and
Guidelines document, available publicly on the Baillie Gifford
website bailliegifford.com
The underlying investments established under the EU Taxonomy
Regulation do not take into account the EU criteria for
environmentally sustainable economic activities.
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 schiehallionfund.com++
The Schiehallion Fund Limited is managed by Baillie Gifford, the
Edinburgh based fund management group with around GBP226 billion
under management and advice in active equity and bond portfolios
for clients in the UK and throughout the world (as at 5 September
2023). 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.
8 September 2023
For further information please contact:
Alex Blake, Baillie Gifford & Co
Tel: 0131 275 2859 or 07773 246035
Jonathan Atkins, Four Communications
Tel: 0203 920 0555 or 07872 495396
- ends -
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END
IR SFESUFEDSEEU
(END) Dow Jones Newswires
September 11, 2023 05:25 ET (09:25 GMT)
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