REG - Schiehallion Fund Schiehallion - MNTN - The Schiehallion Fund Interim Financial Report
06/10/2025 07:00
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RNS Number : 0657C Schiehallion Fund Limited (The) 06 October 2025
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 2025 which was approved by the Board on 3 October 2025.
Chairperson's statement
The Schiehallion Fund Limited (the 'Company' or 'Schiehallion') seeks to
generate capital growth for investors through 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 performance
During the six months to 31 July 2025, the Company's ordinary share net asset
value* ('NAV') returned 9.9% and share price returned 11.1%. The share price
discount† to NAV narrowed from 19.2% to 18.3%. Further commentary on
performance is included in the Managers' report below.
Capital allocation
In November 2023, the Company announced that it intended to allocate up to
US$20 million towards share repurchases, and that the Board would keep its
capital allocation and associated share buyback policy under review. Since
then, the Company has bought back 13.4 million shares for consideration of
$12.1 million as at 31 July 2025. These repurchases have largely been funded
from cash and the sale of listed investments. The discount narrowed from 46.8%
to 18.3% over that period.
The Board intends to continue to allocate capital towards share repurchases.
In considering whether to repurchase shares, the Board will take into account
any supply and demand imbalance in the Company's shares, the discount at which
the Company's shares trade, working capital requirements and the pipeline of
investment opportunities.
Any share repurchases will be funded from the sale of listed investments or
from partial returns of capital from material realisations from the Company's
private company investments.
Tax residency & trading segment
As announced in May, the Board has begun the process to enable the Company to
become UK tax resident and to be able to join the UK's investment trust
regime. It is anticipated that this would take effect during the first quarter
of 2026.
The Board also intends to apply to transfer the Company's ordinary shares of
no par value (the "Shares") from trading on the Specialist Fund Segment of the
London Stock Exchange (the "LSE") to trading on the LSE's Closed-Ended
Investment Funds category of the Main Market, which would be expected to take
effect at broadly the same time as any change in tax residency.
The Board intends to post a circular to shareholders later this month to
convene a general meeting to seek the necessary shareholder approvals.
Dr Linda Yueh CBE
Chairperson
3 October 2025
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.
Summary of unaudited results*
31 January 2025
Ordinary shares 31 July 2025 (audited) % change
Shareholders' funds US$1,497.53m US$1,369.96m
Net asset value per Ordinary share 146.95¢ 133.69¢ 9.9%
Share price 120.00¢ 108.00¢ 11.1%
Discount(†) (18.3%) (19.2%)
Number of shares in issue 1,019,078,907 1,024,738,907
Market capitalisation US$1,222.89m US$1,106.72m
Six months to Six months to
31 July 2025 31 July 2024
Revenue earnings per Ordinary share (0.57¢) (0.04¢)
Period's high and low
Six months to 31 July 2025 Six months to 31 July 2024
Ordinary shares High Low High Low
Net asset value per Ordinary share 147.31¢ 125.08¢ 120.57¢ 114.61¢
Share price 122.00¢ 83.00¢ 103.00¢ 57.00¢
Discount(†) (35.10%) (10.49%) (51.23%) (11.66%)
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.
Investment objective
The Schiehallion Fund Limited seeks 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') risk.
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 - the Board has regular discussions on principal risks and
uncertainties, including any risks which are not an immediate threat but could
arise in the longer term.
An explanation of these risks and how they are managed is set out on pages 41
to 45 of the Company's Annual Report and Financial Statements for the year to
31 January 2025 which is available on the Company's website:
schiehallionfund.com
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.
On behalf of the Board
Dr Linda Yueh CBE
Chairperson
3 October 2025
The Directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Company's website, and for
the preparation and dissemination of financial statements. Legislation in
Guernsey governing the preparation and dissemination of financial statements
may differ from legislation in other jurisdictions.
Interim management report
Reflections
The end of the Company's financial period coincided with the conclusion of the
2025 Tour de France which was won by the Slovenian rider, Tadej Pogacar, now a
four-time champion. Only one other rider, Denmark's Jonas Vingegaard (a
two-time champion), has consistently been able to match Pogacar's level in
recent years. Together, these two riders have covered the top two steps of the
podium (in different orders) in each of the last five Tours de France.
This sort of outsized impact by a very small subset of riders has been common
throughout the history of the race. In fact, this does not merely apply to
cycling, or sport in general, but can be observed in a range of everyday
phenomena encapsulated by the so-called Pareto principle. The latter is named
after the 19th century Italian economist Vilfredo Pareto, who at the time
observed that a small percentage of Italy's population owned a large
percentage of the country's wealth - roughly 80% of the wealth was controlled
by 20% of the people. This then gave rise to the so-called 80/20 rule - or
Pareto principle more formally - which states that roughly 80% of outcomes
result from 20% of causes, highlighting the imbalance between inputs and
results.
Similar asymmetric distributions are observed in fields as diverse as
geosciences (where a minority of large earthquakes are responsible for the
majority of damage), demographics (where country populations tend to be
concentrated in a small number of large cities), and even Renaissance art
(where a handful of painters commanded most of the recognition and value in
the market). This principle also extends into the world of investing, where a
small number of exceptional companies have historically delivered the majority
of returns.
Which brings us to The Schiehallion Fund. Over the past six months we have
seen the continued maturing of the vehicle as it has reached full deployment
for the first time, coupled with the emergence of an increasingly asymmetric
return profile within the Company. This has been driven by the three largest
holdings, namely Bending Spoons (12.5% weight within the Company), SpaceX
(9.9%) and ByteDance (7.8%) - all of which continue to showcase remarkable
operational execution within their respective domains - true champions, if you
will. Given the global nature of the Company, it is unsurprising to see the
wide geographic spread across three different continents among these three
names - an indication of the Company's ability to pursue the best private
growth opportunities wherever they might be located.
As with the Tour de France, the bar for entry into the Schiehallion portfolio
is similarly high. In 2024 only six of the more than 600 financing rounds we
considered ultimately resulted in new investments, and over the course of the
most recent six months we have seen three further names become new holdings
within the Company. We continue to judiciously deploy capital only into those
companies that we regard to represent the very best private growth
opportunities on offer.
In addition to the champions of today - the large holdings that have already
delivered strong returns - we also believe that there are potential future
champions positioned within the proverbial peloton, ready to take their place
in the spotlight in the coming years. Pogacar's dominance is set to continue
for a while yet, but new rivals will inevitably emerge. We would expect the
same to be true from the Company's wider portfolio of holdings, and we remain
excited by the possibilities in this regard.
Market update
The first half of 2025 has seen a steady rebound in fundraising across private
markets, coupled with increased optimism more recently despite continued macro
and geopolitical uncertainty. There has also been an encouraging thawing of
the IPO market, which has seen two Company holdings list so far this year.
Chime, the US neobank, listed on the Nasdaq in June, and this was followed by
HeartFlow - the California-based cardiovascular disease testing company -
which also listed on the Nasdaq after the end of the reporting period. These
developments give us cautious optimism regarding the direction of travel for
the IPO market as we head into the second half of the year.
Performance
Performance over the first six months of the current financial year has been
encouraging, with both the NAV (+9.9%) and share price (+11.1%) showing double
digit gains despite encapsulating a period characterised by further
macroeconomic turbulence - mostly relating to the current US administration's
trade policy. As ever we cast our gaze over a longer time horizon, steadfast
in our pursuit of finding private businesses capable of scaling to multiples
of their current size through continued operational execution. Here we have
broadly been encouraged by the performance of the majority of holdings within
the Company - an aspect which has translated into the NAV performance over the
period so far. Over a longer 12-month lookback performance has been similarly
positive, with both NAV (+28.2%) and share price (+16.5%) returns being
strong.
At a company level the NAV returns over the latest six months have primarily
been driven by private holdings within the Company, most notably Bending
Spoons, the Italian digital consumer product company. The company has
continued to deliver on its strategy of applying its proprietary in-house
tools and expertise across an expanding portfolio of exciting products, which
now also includes recent acquisition, MileIQ, a US-based mileage‑tracking
application. Another strong contributor to absolute performance was Tekever,
the Portuguese unmanned aerial systems maker. First purchased for Schiehallion
during the third quarter of 2024, the company recently completed a new funding
round at a valuation approximately twice the size of our initial valuation.
The main detractor to absolute NAV performance over the period was Dailyhunt
(VerSe Innovation), the Indian media holding company known for its
applications Dailyhunt (news aggregation) and Josh (short form video). The
company has recently seen a deterioration in its overall trajectory, including
a decline in revenues, which led us to make a notable downward revaluation
during the period. Among the listed names in the portfolio Warby Parker, the
corrective eyewear retailer, was another detractor. The company's first
quarter earnings and revenue fell short of analyst expectations, likely
explaining the share price decline heading into April - although this
recovered partially towards the end of the reporting period. Overall, the
company has rebounded well over the last twelve months with the share price up
approximately 50% since August 2024.
Activity
We have made three new additions to the Company so far this year, comprising
the UK-based multinational neobank, Revolut, the US autonomous defence systems
maker, Anduril, and US workforce management system company, Rippling. Revolut
is a business which we had met on multiple occasions throughout its growth
journey, and we recently made the decision to invest as we have been impressed
by the rate at which the company has evolved its product offering, how it has
scaled as a business and matured as an operation. In the case of Anduril,
we see a company with a proven product-market fit, having established clear
water between themselves and other startup competitors, and disrupting an
industry - namely defence - that has remained largely unchanged for decades.
Rippling is similarly exhibiting impressive growth, winning a wide array of
customers in a range of sectors through its innovative modular product
solution across three product clouds, namely HR, IT and Finance.
We made two complete sales over the course of the reporting period, namely
that of online accommodation platform, Airbnb (listed), and online education
platform, Masterclass (through a secondary transaction). While we still
regard Airbnb as a good business, we had to consider potential upside from
here as well as position sizing. We ultimately decided to use it as a source
of funds for new investments. Airbnb generated a 135% return over the course
of our holding period since December 2019. Masterclass, on the other hand, had
not played out the way we had hoped, and we also decided to release this
capital towards new opportunities that we are seeing. Elsewhere we made a
reduction in the listed UK cross border payments provider, Wise, reducing its
position size from 6.1% to 4.4% of net assets. It remains a top five holding
within the Company and one where we continue to have a high degree of
conviction.
Outlook
We continue to be enthused by the operational execution we are seeing across
the portfolio. At an aggregate level revenue growth among holdings is strong -
45% on a trailing 12-month basis as at June 2025. This is more than double the
20% on offer within the Nasdaq 100 public market index, which serves as a
useful reference point given the latter's US composition and growth technology
bias. Existing holdings are therefore growing rapidly, and doing so with
impressive gross margins (59% at an aggregate level, which is comparable to
that of the Nasdaq 100). The cash runway for the private cohort of holdings
with the Company also remains robust, with nearly 80% of this cohort having a
runway of at least four years.
More broadly we remain optimistic about the opportunity for growth equity
investing. We are excited by the breadth of the opportunities we are being
presented with, both in terms of sector and geography, and we believe that the
businesses growing up in the slightly more capital constrained environment of
today (compared to recent years) will ultimately be better businesses for it
due to the more disciplined and focused approach that the current environment
commands.
The Schiehallion Fund continues to offer a compelling path for shareholders to
gain exposure to some of the most important private growth businesses of our
time, and some of the future champions of tomorrow.
Peter Singlehurst
Robert Natzler
Notes
For a definition of terms 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.
The principal risks and uncertainties facing the Company are set out above.
Portfolio executive summary
Performance
6 months 1 year 3 years 5 years Since inception
% % % % % *
NAV 9.9% 28.2% 12.7% 36.3% 47.5%
Share price 11.1% 16.5% (4.0%) (8.7%) 20.0%
* Inception date: 27 March 2019.
All figures are stated on a total return basis† for periods to 31 July 2025.
† Alternative Performance Measure - see Glossary of terms and
Alternative Performance Measures below.
Source: Baillie Gifford/LSEG. See disclaimer below.
Key contributors to and detractors from Company performance - six months to 31 July 2025
Contributors(†) Contribution Absolute
to absolute return #
performance * (%)
(%)
Bending Spoons 5.9 68.7
ByteDance 2.5 37.7
Tekever 2.0 99.3
Space Exploration Technologies 1.3 14.6
Oddity(P) 0.9 46.8
Detractors† Contribution Absolute
to absolute return #
performance * (%)
(%)
Dailyhunt (VerSe Innovation) (1.5) (55.6)
Brex (0.7) (27.8)
Warby Parker(P) (0.5) (13.6)
Rappi (0.5) (25.7)
Solugen (0.5) (15.8)
* Alternative Performance Measure - see Glossary of terms and Alternative
Performance Measures below.
# Absolute performance (in US$ terms) has been calculated on a total
return basis (including reinvestment of any dividends paid by portfolio
holdings) over the period 1 February 2025 to 31 July 2025.
† The contributors to and detractors from Company performance are listed
in descending order.
P Denotes listed investment previously held in the portfolio as a private
company investment.
Source: Revolution.
Distribution of total net assets* (unaudited)
Geographical as at 31 July 2025
Geographical % at % at Number of
31 July 31 January investments
2025 2025 at 31 July
2025
1 United States 55.1 56.8 32
2 Italy 12.5 8.1 1
3 China 9.9 8.4 3
4 United Kingdom 9.0 8.7 3
5 Portugal 2.9 1.5 1
6 India 2.3 3.9 2
7 Lithuania 2.0 1.7 1
8 Germany 1.6 2.0 2
9 Singapore 1.4 1.5 1
10 Australia 0.7 1.0 1
11 Brazil 0.4 0.6 1
12 Canada 0.0 0.0 1
13 Sweden 0.0 0.0 1
14 Net current assets 2.2 5.8
Sectoral as at 31 July 2025
Sectoral % at % at Number of
31 July 31 January investments
2025 2025 at 31 July
2025
1 Information technology 34.6 30.6 17
2 Financials 15.5 17.0 6
3 Industrials 19.0 15.9 7
4 Communication services 8.8 8.8 2
5 Consumer discretionary 7.3 8.6 6
6 Healthcare 4.8 5.1 4
7 Consumer staples 4.2 3.8 4
8 Materials 3.0 3.6 2
9 Real estate 0.4 0.8 2
10 Net current assets 2.2 5.8
The above sectoral distribution is not derived from any index.
*For a definition of terms see Glossary of terms and Alternative Performance
Measures below.
Baillie Gifford - 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'. Baillie Gifford's 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.
Baillie Gifford revalues 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 four times in a twelve‑month period. The valuations are also reviewed
twice per year by the Board, which receives copies of Baillie Gifford's
proposed valuations as well as the latest valuation reports from its external
valuer. The valuations 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 improvements in market conditions have sustained an increase in deal
activity, but isolated pockets of heightened volatility remain. The data below
quantifies the revaluations carried out during the six months to 31 July 2025,
however, it does not reflect the ongoing monitoring of the private investment
portfolio which has not resulted in a change in valuation.
The Schiehallion Fund*
Instruments valued 258
Instruments held 75
Percentage of portfolio revalued up to 2 times 32.9%
Percentage of portfolio revalued 3+ times 67.1%
* Data reflecting period 1 February 2025 to 31 July 2025.
List of investments
as at 31 July 2025 (unaudited)
2025 2025
Total value % of net
Name Business Country US$'000 assets *
Bending Spoons Mobile application software developer Italy 187,709 12.5
Space Exploration Technologies Designs, manufactures and launches advanced rockets and spacecraft United States 147,611 9.9
ByteDance Social media and news aggregation company China 117,254 7.8
Affirm(P) Fintech providing lending and consumer credit services United States 88,985 5.9
Wise(P) Online platform to send and receive money United Kingdom 66,151 4.4
Tempus AI(P) Oncological records aggregator and diagnostic testing provider United States 45,780 3.1
Wayve Technologies AI based software for self-driving cars United Kingdom 45,716 3.1
Stripe Online payment platform United States 44,733 3.0
Tekever Unmanned systems technology and services manufacturer Portugal 43,325 2.9
Databricks Data software solutions United States 39,029 2.6
Oddity(P) Direct to consumer cosmetics United States 32,575 2.2
Warby Parker(P) Online and physical corrective eyewear retailer United States 30,801 2.1
Vinted Online marketplace Lithuania 29,469 2.0
Faire Wholesale Online wholesale marketplace United States 29,334 2.0
Epic Games Video game developer United States 26,949 1.8
Solugen Combines enzymes and metal catalysts to make chemicals United States 25,527 1.7
Flix European mobility provider Germany 23,813 1.6
PsiQuantum Silicon photonic quantum computing United States 23,524 1.6
Chime Financial(P) Digital current account provider United States 23,334 1.6
Chi Forest Technology Non-alcoholic beverages United States 23,272 1.6
Nuro Developer of autonomous delivery vehicles United States 22,876 1.5
Revolut Digital banking services UK 22,199 1.5
Bolttech Global insurance platform services Singapore 21,232 1.4
Grammarly Online platform for checking grammar, spelling and improving written United States 21,066 1.4
communication
Brex Corporate credit cards for startups United States 20,219 1.4
Kepler Computing Semiconductor company United States 20,043 1.3
Anduril Industrial United States 20,000 1.3
Zetwerk Manufacturing Fabricated metal products India 19,270 1.3
Rippling (People Center) Workforce management platform United States 18,304 1.2
HeartFlow Develops software for cardiovascular disease diagnosis and treatment United States 18,039 1.2
Rappi Provider of an on-demand delivery platform designed to connect consumers with United States 17,230 1.2
local stores
Dailyhunt (VerSe Innovation) Telephone voice, data, text messaging, and roaming services India 15,242 1.0
Merlin Labs Autonomous flight technology United States 14,073 0.9
Tanium Online security management United States 13,499 0.9
Workrise Technologies Jobs marketplace for the energy sector United States 12,710 0.8
Cohesity Global Data storage United States 12,270 0.8
Oscar Health(P) Healthcare insurance provider United States 11,550 0.8
Pet Circle (Millell) Pet food and accessories Australia 11,178 0.7
Runway AI Artificial Intelligence based applications developer United States 11,151 0.7
Tenstorrent Processor architecture and software solutions United States 10,000 0.7
Away (JRSK) Travel and lifestyle brand United States 8,524 0.6
Honor Technology Provider of home-care services United States 8,428 0.6
Bottle Planet Producer of alcoholic beverages China 7,654 0.5
Loft Online property platform Brazil 6,622 0.4
Carbon Manufactures and develops 3D printers United States 6,341 0.4
Illumina CVR Gene sequencing equipment and consumables United States 75 <0.1
Indigo Agriculture Microbial seed treatments to increase crop yields and grain marketplace United States 27 <0.1
Blockstream Financial software developer Canada 0.0 0.0
McMakler Real estate services Germany 0.0 0.0
Northvolt Lithium ion battery manufacturer Sweden 0.0 0.0
Total investments 1,464,713 97.8
Cash 36,798 2.5
Other current assets and liabilities (3,982) (0.3)
Net current assets 32,816 2.2
Total net assets 1,497,529 100.0
Name Listed Private Net current Net assets *
investments company assets * %
% investments %
%
31 July 2025 20.0 77.8 2.2 100.0
31 January 2025 21.3 72.9 5.8 100.0
Name 2025 2025
Total value % of net
US$'000 assets *
Listed investments 299,176 20.0
Private company investments 1,165,462 77.8
Contingent value rights 75 <0.1
Cash and cash equivalents 36,798 2.5
Net current assets (3,982) (0.3)
Total net assets 1,497,529 100.0
P Denotes listed investment previously held in the portfolio as a private
company investment.
* 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.
Statement of comprehensive income (unaudited)
For the six months to 31 July 2025 For the six months to 31 July 2024 For the year to 31 January 2025
Notes Revenue Capital Total Revenue Capital Total Revenue Capital Total
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Gains/(losses) on investments - 138,912 138,912 - (39,662) (39,662) - 158,543 158,543
Currency gains/(losses) - 176 176 - 27 27 - 15 15
Income 2 1,191 - 1,191 4,670 - 4,670 7,509 - 7,509
Investment management fee 3 (5,794) - (5,794) (4,471) - (4,471) (9,562) - (9,562)
Other administrative expenses 4 (1,199) - (1,199) (577) - (577) (1,956) - (1,956)
Operating profit/(loss) before taxation (5,802) 139,088 133,286 (378) (39,365) (40,013) (4,009) 158,558 154,549
Tax on ordinary activities - 316 316 - 486 486 - 517 517
(Loss)/profit and total comprehensive income/(loss) (5,802) 139,404 133,602 (378) (39,149) (39,527) (4,009) 159,075 155,066
for the period attributable to ordinary shareholders
Earnings/(loss) per ordinary share (0.57¢) 13.65¢ 13.08¢ (0.04¢) (3.81¢) (3.85¢) (0.39¢) 15.49¢ 15.10¢
The total column of this Statement represents the Statement of Comprehensive
Income of the Company.
The supplementary revenue and capital columns are prepared under guidance
published by the Association of Investment Companies.
All revenue and capital items in this statement derive from continuing
operations.
The accompanying notes below are an integral part of the Financial Statements.
Statement of financial position
(unaudited)
Notes At 31 July At 31 July At 31 January At 31 January
2025 2025 2025 2025
US$'000 US$'000 US$'000 US$'000
Fixed assets
Investments held at fair value through profit or loss 7 1,464,713 1,290,450
Current assets
US Treasury Bills - 77,334
Cash and cash equivalents 36,798 6,118
Debtors 1,641 1,427
38,439 84,879
Current liabilities
Amounts falling due within one year (5,623) (5,055)
Net current assets 32,816 79,824
Non-current liabilities
Amounts falling due after more than one year:
Provision for tax liability* - (317)
Net assets 1,497,529 1,369,957
Capital and reserves
Share capital 8 1,209,208 1,209,208
Capital reserve 303,824 170,450
Capital redemption reserve 7,296 7,296
Revenue reserve (22,799) (16,997)
Shareholders' funds 1,497,529 1,369,957
The accompanying notes below are an integral part of the Financial Statements.
* There is no tax liability provision at 31 July 2025. The tax liability
provision at 31 January 2025 relates to a potential liability for Indian
capital gains tax that may arise on the Company's Indian investments should
they be sold in the future, based on the net unrealised taxable capital gain
at the period end and on enacted Indian tax rates. The amount of any future
tax amounts payable may differ from this provision, depending on the value and
timing of any future sales of such investments and future Indian tax rates.
Statement of changes in equity (unaudited)
Six months to 31 July 2025
Notes Share Capital Capital Revenue Shareholders'
capital reserve * redemption reserve funds
US$'000 US$'000 reserve US$'000 US$'000
US$'000
Shareholders' funds at 1 February 2025 1,209,208 170,450 7,296 (16,997) 1,369,957
Ordinary shares bought back 8 - (6,030) - - (6,030)
Total comprehensive income/(loss) - 139,404 - (5,802) 133,602
Shareholders' funds at 31 July 2025 1,209,208 303,824 7,296 (22,799) 1,497,529
Six months to 31 July 2024
Share Capital Capital Revenue Shareholders'
capital reserve * redemption reserve funds
US$'000 US$'000 reserve US$'000 US$'000
US$'000
Shareholders' funds at 1 February 2024 1,213,903 15,621 2,601 (12,988) 1,219,137
Ordinary shares bought back and cancelled 8 (1,925) (1,439) 1,925 - (1,439)
Total comprehensive loss - (39,149) - (378) (39,527)
Shareholders' funds at 31 July 2024 1,211,978 (24,967) 4,526 (13,366) 1,178,171
* Includes investment holdings gains of US$354,824,000 (31 July 2024 -
gains of US$1,188,000).
The accompanying notes below are an integral part of the Financial Statements.
Statement of cash flows (unaudited)
Six months to 31 July 2025 Six months to 31 July 2024
US$'000 US$'000 US$'000 US$'000
Cash flows from operating activities
Operating profit/(loss) before taxation 133,286 (40,013)
US Treasury Bills interest (825) (3,958)
Net (gains)/losses on investments (138,912) 39,662
Currency (gains) (176) (27)
Changes in debtors and creditors 461 (525)
Net cash outflow in operating activities* (6,166) (4,861)
Cash flows from investing activities
Acquisitions of US Treasury Bills - (78,936)
Disposals of US Treasury Bills 78,159 115,206
Acquisitions of investments (60,985) (31,782)
Disposals of investments 25,634 9,772
Net cash inflow from investing activities 42,808 14,260
Cash flows from financing activities
Ordinary shares bought back (6,138) (1,439)
Net cash outflow from financing activities (6,138) (1,439)
Net increase in cash and cash equivalents 30,504 7,960
Effect of exchange rate fluctuations on cash and cash equivalents 176 27
Cash and cash equivalents at 1 February 6,118 11,306
Cash and cash equivalents at 31 July 36,798 19,293
* Cash from operations includes interest received of US$165,000 (2024 -
US$263,000).
The accompanying notes below are an integral part of the Financial Statements.
Notes to the Financial Statements (unaudited)
01 Basis of accounting
The condensed Financial Statements for the six months to 31 July 2025
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 2025
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 2025.
Equity investment
The ordinary 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 trade tariffs, the wars in
Ukraine and the Middle East 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.
02 Income
Six months Six months Year to
to 31 July to 31 July 31 January
2025 2024 2025
US$'000 US$'000 US$'000
US Treasury Bills interest 825 3,958 6,705
Overseas interest 201 449 392
Deposit interest 165 263 412
Total income 1,191 4,670 7,509
03 Investment management fee
Six months Six months Year to
to 31 July to 31 July 31 January
2025 2024 2025
US$'000 US$'000 US$'000
Investment management fee 5,794 4,471 9,562
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$1.3 billion. Management
fees are calculated and payable quarterly.
Cash equivalents include US Treasury Bills.
04 Other administrative expenses
Six months to Six months to Year to
31 July 2025 31 July 2024 31 January 2025
US$'000 US$'000 US$'000
General administrative expenses 613 62 944
Administrator's fee 63 48 112
Auditor's remuneration for audit services 214 151 260
Directors' fees 209 206 395
Depositary and custody fees 38 58 144
Registrar fees 29 20 39
Marketing* 33 32 62
1,199 577 1,956
* The Company is part of a marketing programme which includes all the
investment trusts managed by the Investment Manager. The marketing strategy
has an ongoing objective to stimulate demand for the Company's shares. The
cost of this marketing strategy is borne in partnership by the Company and the
Investment Manager. The Investment Manager matches the Company's marketing
contribution and provide the resource to manage and run the programme.
05 Earnings per share
Six months to Six months to Year to
31 July 2025 31 July 2024 31 January 2025
Ordinary shares US$'000 ¢ US$'000 ¢ US$'000 ¢
Revenue return on ordinary activities after taxation (5,802) (0.57) (378) (0.04) (4,009) (0.39)
Capital return on ordinary activities after taxation 139,404 13.65 (39,149) (3.81) 159,075 15.49
Profit/(loss) and total comprehensive income/(loss) for the period 133,602 13.08 (39,527) (3.85) 155,066 15.10
Weighted average number of Ordinary shares in issue 1,021,130,924 1,028,445,885 1,027,245,710
Net return per share is based on the above totals of revenue and capital and
the weighted average number of shares in issue during each period. There are
no dilutive or potentially dilutive shares in issue.
06 Ordinary dividends
There were no dividends paid or proposed in respect of the six months to 31
July 2025 (2024 - nil).
07 Financial instruments
Fair value hierarchy
The fair value hierarchy used to analyse the fair values of financial assets
is described below. The levels are determined by the lowest (that is the least
reliable or least independently observable) level of input that is significant
to the fair value measurement for the individual investment in its entirety as
follows:
Level 1 - using unadjusted quoted prices for identical instruments in an
active market;
Level 2 - using inputs, other than quoted prices included within Level 1, that
are directly or indirectly observable (based on market data); and
Level 3 - using inputs that are unobservable (for which market data is
unavailable).
Level 1 Level 2 Level 3 Total
As at 31 July 2025 US$'000 US$'000 US$'000 US$'000
Listed equities 299,176 - - 299,176
Private company ordinary shares - - 443,774 443,774
Private company preference shares* - - 713,841 713,841
Private company convertible promissory notes - - 7,847 7,847
Contingent value rights(†) - - 75 75
Total financial asset investments 299,176 - 1,165,537 1,464,713
Level 1 Level 2 Level 3 Total
As at 31 January 2025 US$'000 US$'000 US$'000 US$'000
Listed equities 290,436 - - 290,436
Private company ordinary shares - - 280,083 280,083
Private company preference shares* - - 712,041 712,041
Private company convertible promissory notes - - 7,483 7,483
Contingent value rights(†) - - 407 407
Total financial asset investments 290,436 - 1,000,014 1,290,450
* 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.
† See Glossary of terms and Alternative Performance Measures below.
During the six months to 31 July 2025, the investment in Chime Financial with
a fair value (IPO price) of US$18,325,000 was transferred from Level 3 to
Level 1 on becoming listed.
The valuation techniques used by the Company are explained in the accounting
policies on pages 85 and 86 of the Company's Annual Report and Financial
Statements for the year to 31 January 2025. Listed investments are categorised
as Level 1 if they are valued using unadjusted quoted prices for identical
instruments in an active market and as Level 2 if they do not meet all these
criteria but are, nonetheless, valued using market data. The Company's
holdings in unlisted investments are categorised as Level 3 unobservable data
is a significant input to their fair value measurements.
08 Share capital
31 July 31 July 31 January 31 January
2025 2025 2025 2025
Number US$'000 Number US$'000
Allotted, called up and fully paid Ordinary shares of US$1 each 1,019,078,907 1,203,083 1,024,738,907 1,208,743
Treasury shares of US$1 each 6,125,000 6,125 465,000 465
1,025,203,907 1,209,208 1,025,203,907 1,209,208
By way of a Special Resolution passed on 10 May 2024 the Directors of the
Company were granted a general authority to allot or sell from treasury,
without regard to the pre-emption rights contained in the Articles of
Incorporation of the Company, up to 102,882,390 Ordinary shares or C shares
(as defined in the Articles of Incorporation). This authority will expire at
the end of the period concluding immediately prior to the Annual General
Meeting of the Company to be held in 2029 (or, if earlier, five years from the
date of the passing of the resolution).
During the six months to 31 July 2025 the Company did not issue any Ordinary
shares or C shares. In the period from 1 August 2025 to 1 October 2025 the
Company issued no Ordinary shares or C shares.
By way of a Special Resolution passed on 22 May 2025 the Directors of the
Company have general authority to make market purchases of up to 153,037,243
Ordinary shares, being 14.99% of the Ordinary shares in issue as at 22 May
2025, being the date of the passing of the resolution. This authority will
expire at the conclusion of the Annual General Meeting of the Company to be
held in respect of the year ending 31 January 2026.
5,660,000 Ordinary shares were bought back and held in treasury during the six
months to 31 July 2025 (31 July 2024 - 1,925,000 shares were bought back and
cancelled). In the period from 1 August 2025 to 1 October 2025 3,570,000
Ordinary shares were bought back and held in treasury.
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.
09 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.
Further 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.
Third party data providers disclaimer
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implied, as to the accuracy, completeness or timeliness of the data contained
herewith nor as to the results to be obtained by recipients of the data. No
Provider shall in any way be liable to any recipient of the data for any
inaccuracies, errors or omissions in the index data included in this document,
regardless of cause, or for any damages (whether direct or indirect)
resulting therefrom.
No Provider has any obligation to update, modify or amend the data or to
otherwise notify a recipient thereof in the event that any matter stated
herein changes or subsequently becomes inaccurate.
Without limiting the foregoing, no Provider shall have any liability
whatsoever to you, whether in contract (including under an indemnity), in tort
(including negligence), under a warranty, under statute or otherwise, in
respect of any loss or damage suffered by you as a result of or in connection
with any opinions, recommendations, forecasts, judgements, or any other
conclusions, or any course of action determined, by you or any third party,
whether or not based on the content, information or materials contained
herein.
Glossary of terms and Alternative Performance Measures ('APM')
An alternative performance measure is a financial measure of historical or
future financial performance, financial position, or cash flows, other than a
financial measure defined or specified in the applicable financial reporting
framework.
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.
Total Return
The total return is the return to shareholders after reinvesting the net
dividend on the date that the share price goes ex-dividend. The Company does
not pay a dividend, therefore, the total returns for the share price and NAV
per share are the same as the percentage movements in the share price and NAV
per share as detailed above.
Capital deployed (APM)
Capital deployed reflects cumulative amounts invested since inception of the
Company.
Contingent value rights
'CVR' after an instrument name indicates a security, usually arising from a
corporate action such as a takeover or merger, which represents a right to
receive potential future value, should the continuing company achieve certain
milestones.
Total net assets
Total value of all assets held less current liabilities, other than
liabilities in the form of borrowings.
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.
Ordinary shares 31 July 31 January
2025 2025
Closing NAV per share (a) 146.95¢ 133.69¢
Closing share price (b) 120.00¢ 108.00¢
(Discount)/premium expressed as a percentage (b - a) ÷ a (18.3%) (14.9%)
6 October 2025
For further information please contact:
Alex Blake, Baillie Gifford & Co
Tel: 0131 275 2000
Jonathan Atkins, Four Communications
Tel: 0203 920 0555 or 07872 495396
- ends -
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