REG - Schiehallion Fund Schiehallion - MNTN - Schiehallion Fund Annual Financial Report
08/04/2026 07:00
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RNS Number : 5336Z Schiehallion Fund Limited (The) 08 April 2026
RNS Announcement
The Schiehallion Fund Limited
Regulated Information Classification: Annual Financial and Audit Reports
Legal Entity Identifier: 213800NQOLJA1JCWXQ56
Results for the year to 31 January 2026
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
8 April 2026
The following text is extracted from the Annual Report and Financial Statements of the Company for the year ended 31 January 2026 which was approved by the Board on 7 April 2026. All page numbers below refer to the Annual Report and Financial Statements which will be made available on the Company's website.
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 financial year to 31 January 2026, the Company's ordinary share net
asset value ('NAV') returned 32.6% and share price returned 64.8%. The share
price discount to NAV moved from a discount of 19.2% to a premium of 0.4% at
the year-end. Further commentary on performance is included in the Investment
Manager's report on page 9.
Over the period from 27 March 2019 (launch date) to 31 January 2026, the
Company's ordinary share NAV returned 77.9% and share price returned 78.0%.
Capital allocation
Over the year to 31 January 2026, the Company bought back 11.7 million shares
at a cost of approximately US$13.2 million. These buybacks all took place in
the first 10 months of the financial year, with the discount narrowing
materially at the end of the period.
Should the premium move to a widening discount, 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 selected secondary trades from the Company's private company investments.
The Company will be seeking authority to renew the buyback authority for the
ordinary shares at the forthcoming Annual General Meeting ('AGM'). This
authority will expire at the conclusion of the AGM in 2027.
Shareholders may recall that, at the AGM in 2024, authority was granted to
allot or sell from treasury up to 102,882,390 ordinary shares. This authority
expires at the AGM to be held in 2029. Further issues of ordinary shares will
only be made if the Directors determine such issues to be in the best
interests of shareholders and the Company as a whole.
Listing migration and tax residency
In December 2025, the Company's shares migrated from the Specialist Fund
Segment and were admitted to the Closed-ended Investment Funds ('CEIF')
Category of the Official List of the FCA and to trading on the Main Market of
the London Stock Exchange. This is expected to broaden the appeal and
accessibility of the shares to a wider range of investors. The migration is
expected to improve the Company's ability to market the shares to retail
investors (where appropriate) and improve the liquidity in the shares as a
result of having access to a larger pool of capital.
With effect from 1 February 2026 the Company has become tax resident in the UK
and has UK investment trust status for UK tax purposes. The Company's election
into the United Kingdom investment trust regime is expected to benefit the
Company by aligning the Company's location more closely to its place of
listing as well as to take advantage of the double taxation agreements in the
UK thereby preventing future tax leakage on some of the Company's holdings. In
addition, this election will also make the Company more attractive to
investors who may otherwise be tax sensitive to investing in a vehicle that is
tax resident outside the United Kingdom.
Costs and charges
The ongoing charges for the ordinary shares as at 31 January 2026 were 0.96%
(2025 - 0.92%). The Company has a tiered management fee, which means that the
benefits of scale are shared with investors. In addition, no management fee is
charged on cash. The Investment Manager absorbs the majority of the valuation
costs and legal costs associated with making private company investments.
Earnings and dividend
The Company's priority is to generate capital growth over the long-term. The
Company therefore has no dividend target and will not seek to provide
shareholders with a particular level of distribution. This year the net
revenue return per ordinary share was negative 1.35 cents (year to 31 January
2025, negative 0.39 cents). The Board is recommending that no final dividend
be paid.
Board
Members of the Board come from a broad variety of backgrounds, and the Board
can draw on a very extensive pool of knowledge and experience. Directors'
biographies can be found on pages 55 and 56. All the Directors are subject to
annual re‑election at the AGM in May.
The Board continues to place significant emphasis on robust succession
planning and the ongoing refreshment of its composition. As part of this
succession planning, the Directors reviewed the skills and experience of the
Board; considered recent and anticipated developments in the commercial and
regulatory landscape; and appointed Fletcher Jones and Trust Associates to
commence the search for two new Directors.
Annual General Meeting
The AGM will be held at 12.00pm GMT on Thursday 14 May 2026 at the offices of
Herbert Smith Freehills Kramer LLP, Exchange House, Primrose Street, London
EC2A 2EG. Shareholders are reminded that they are able to submit proxy voting
forms before the applicable deadline on Tuesday 12 May 2026 and also to direct
any questions for the Board or Investment Manager in advance by email to
adgg-aafa-f@alterdomus.com or call Alter Domus (Guernsey) Limited on +44 (0)
1481 742 250.
The Board is seeking approval for amendments to the Company's Articles of
Incorporation. Resolution 12 of the Notice of Annual General Meeting, which
will be proposed as a special resolution, seeks shareholder approval for the
adoption of new Articles of Incorporation (the 'New Articles'). As permitted
by The Companies (Guernsey) Law, 2008, the Board is proposing to amend article
116(1) of the existing Articles of Incorporation so as to increase the
aggregate annual limit on directors' fees from £430,000 per annum to
£473,000 per annum to allow for an interim increase in the number of
Directors to ensure a smooth transition is conducted. No other changes are
being proposed.
Information on the resolutions can be found on pages 61 and 62. The Directors
consider that all resolutions to be put to shareholders are in their and the
Company's best interests as a whole and recommend that shareholders vote in
their favour.
Investment outlook
There is a prospect of some potentially generational IPOs later in 2026,
including a few companies held in the portfolio. If this transpires, it would
be an important marker for some of the most sought‑after private growth
companies transitioning into public markets and would also offer further
liquidity for the Company to continue pursuing an attractive opportunities set
across the private growth landscape.
Dr Linda Yueh CBE
Chairperson
7 April 2026
For a definition of terms see Glossary of terms and Alternative Performance
Measures on pages 122 and 123.
Past performance is not a guide to future performance.
Investment Manager's review
Reflections
Schiehallion takes its name from the mountain in Perthshire, Scotland, chosen
by scientists in 1774 for a Royal Society experiment that used the mountain's
gravitational pull to help estimate the mean density (and therefore mass) of
the Earth - an early attempt to "weigh the world". This remains an apt
starting point for a portfolio seeking to hold the best private growth
companies globally. We spend our time trying to take the measure of businesses
that are still, by definition, not fully observable through the daily verdicts
of public markets. The task is less about precision in any single moment than
about building conviction over time - testing assumptions, triangulating
evidence, and distinguishing enduring progress from passing noise.
If the 2026 reporting year had a defining feature for Schiehallion, it was
that several of those signals aligned at once. The Company delivered a strong
year in NAV terms (+32.6% for the year ended 31 January 2026) alongside an
even stronger showing in the share price (+64.8% for the period). The final
quarter of 2025 was particularly strong (NAV +9%; share price +23%), and this
positive sentiment continued into January 2026. Consequently, by the end of
the reporting year the discount to NAV in Schiehallion had been completely
eliminated, with the Company trading at a slight premium of 0.4%. This was the
first time this has occurred since October 2022.
These developments coincided with an important corporate milestone: the
Company completed a change in listing segment on the London Stock Exchange in
December 2025, moving away from the Specialist Fund Segment - reserved for
professional investors and where it had traded since inception - and now being
available to a wider set of shareholders. This marks an important inflection
point in Schiehallion's evolution that broadens the potential shareholder base
and reflects the Company's continuing maturation.
Schiehallion was established to give shareholders access to the subset of
private companies that have outgrown venture capital as their natural backers
yet still retain the potential to become large standalone public businesses
over time. Many of the world's most innovative businesses continue to stay
private for longer. A decade ago, the typical company reached the stock market
in under seven years. Now that figure is closer to eleven. The result has been
the emergence of private 'mega-caps' - the likes of SpaceX, ByteDance or
Anthropic - companies valued in the hundreds of billions of dollars and which
would rank among some of the largest public companies in their respective
geographies were they to be listed.
The portfolio increasingly exhibits the natural characteristics of this
evolution, providing access to a set of genuine private champions driving an
emerging asymmetric return profile within the Company. We remain greatly
enthused by the broader opportunity set on offer within private growth markets
and are excited about providing shareholders with continued access to
tomorrow's champions today.
Performance
Schiehallion's NAV progress through the financial year was driven
predominantly by valuation uplifts in several of the Company's largest private
holdings, alongside a more mixed experience among listed positions as public
market sentiment oscillated. The three largest contributors to absolute NAV
performance were Italian digital product company Bending Spoons, space
infrastructure giant SpaceX, as well as the Chinese social media company
ByteDance. The three largest detractors to absolute NAV performance were
Indian digital media and content platform Dailyhunt (Ver Se Innovation), the
sustainable chemicals business Solugen, and corporate spend management
platform Brex.
Among the contributors, Bending Spoons continued to execute its
acquisition-led strategy and ended the year with momentum, including announced
agreements to acquire the digital internet media and content brand, AOL, as
well as the shared experience marketplace, Eventbrite. The company also
completed its latest funding round during the fourth quarter to support
ongoing investment and future acquisitions.
SpaceX's contribution was driven most directly by secondary market signals. It
was reported in December that the company would be commencing a secondary
share sale that would potentially value it at US$800 billion. This ultimately
resulted in a notable valuation uplift, making it the second largest holding
within the portfolio (behind Bending Spoons). The company continues to exhibit
arguably one of the strongest competitive advantages that we have ever seen.
After the reporting period SpaceX also announced the acquisition of artificial
intelligence company, xAI, potentially further strengthening the advantage
around the core infrastructure it has already built in its launch and Starlink
satellite businesses.
ByteDance similarly finished the year strongly, supported by a reported share
auction valuation and evolving clarity around the future structure of TikTok
in the US. It continues to serve as a reminder of the fertile growth
opportunities on offer in a geography like China.
The detractors reflected a mix of company-specific execution challenges and
the market's repricing of relevant public comparables. Dailyhunt (Ver Se
Innovation) faced operational pressures in 2025, with operating revenue
reported to have declined and a sharper focus on cost control and reducing
burn as it tried to stabilise the business. These developments led to
valuation reductions during the year.
Solugen also experienced operational headwinds during the year as it continues
to work towards scaling its Bioforge facilities. Brex suffered its most
material impact earlier in the year following a valuation markdown, attributed
to a sharp decline in peer group valuations alongside slowing top-line growth.
Shortly before the end of the reporting period it was also announced that Brex
is set to be acquired by Capital One, with the transaction expected to close
in the middle of 2026.
Portfolio
The fundamental health of the portfolio remains robust. Weighted average
revenue growth stood at 54% for the overall portfolio at 31 December 2025 -
more than two and a half times that of the Nasdaq 100 public market index -
with the top ten holdings growing faster still (66%). Furthermore, 62% of the
portfolio is invested in companies that were profitable on a net income basis
at 31 December 2025, while only 17% of the portfolio is exposed to holdings
with a cash runway of less than two years, thereby giving us confidence about
the overall financial resilience across the portfolio.
By the end of the year the portfolio comprised 53 holdings, six of which are
listed (11.9% of net assets). The geographic breakdown also continues to
showcase the truly global nature of our opportunity set. While 54.3% of the
portfolio is invested in US businesses, there are also notable allocations to
Europe (20.6%), China (11.2%) and the UK (9.4%). The three largest sector
exposures within the Company are Information Technology (42.3%), Industrials
(21.8%) and Financials (11.9%). The ten largest companies in the portfolio
comprised 58.9% of total net assets, with such concentration expected given
the asymmetric return profile that we would expect to continue seeing
over time.
Activity
During the year we continued to balance three capital deployment options,
namely bringing new investments into the portfolio, supporting existing
investments, as well as conducting share buybacks at points where we believed
the prevailing discount offered an attractive deployment opportunity. Overall,
the pace of deployment remained steady over the course of the year, with eight
new investments entering the portfolio (compared to six in the previous
reporting year). This also meant that Schiehallion reached full deployment for
the first time in its history, having sold all treasury bills by the midpoint
of the year. We also made seven follow-on investments in existing holdings,
further supporting these names on their growth journeys. There were three
complete sales of listed names, coupled with one complete sale via a secondary
transaction - evidence of the continued strong competition for capital within
the Company. We also utilised secondary markets to trim two positions during
the period.
In 2025 we saw the public markets begin to re-engage, in a selective way, with
the kind of scaled private businesses that Schiehallion targets. Within the
portfolio there were two IPOs during the year, namely the US neobank, Chime
Financial (in June 2025), as well as the AI-powered cardiac imaging company,
HeartFlow (in August 2025). While Chime Financial has had a bumpy ride since
its listing so far with the share price coming under some pressure, HeartFlow
has been more resilient and proved to be a positive contributor to absolute
NAV performance during the reporting year.
Separately, one of the most striking features of today's private markets is
the speed with which disruption can compound once a technology shift finds
genuine product and market fit. Our own investment in the AI model developer,
Anthropic, during 2025 sits squarely in this context: advanced AI is changing
how companies build and defend their advantage, speeding up product
development, and driving greater investment in computing infrastructure and
specialist talent across the economy. This is merely one example of how
private growth companies are at the forefront of some of the most disruptive
change we are currently seeing around us.
This is also evident among our other new investments during the period. These
included: UK fintech Revolut, which is exhibiting an impressive pace of
product iteration while rapidly scaling; Anduril, the US autonomous defence
systems maker, which is disrupting an industry that has remained largely
unchanged for decades; and Rippling, a US workforce management company
exhibiting impressive growth driven by an innovative modular platform spanning
HR, IT and finance. Other new US investments included Avanci (a patent
licensing platform), Clear Street (a cloud-based financial infrastructure
company), and Cellares (a biopharmaceutical company automating and scaling
cell therapy manufacturing).
We also made one new investment in China, namely in the lifestyle content
community and consumer decision-making platform, Inspire (more widely known as
RedNote). This business has built high-end brand equity with affluent users
and is well placed to benefit from long-term Chinese consumption trends and
developments in AI.
Having reached full deployment during the period - and with competition for
capital remaining strong - we also made four complete sales to help fund the
aforementioned new investments. These moves comprised three listed sales,
namely the online accommodation platform, Airbnb, the technology-driven health
insurance provider, Oscar Health, as well as the corrective eyewear retailer,
Warby Parker. We also sold online learning platform, Masterclass, via a
secondary transaction.
Finally, additional portfolio activity during the year consisted of periodic
listed reductions in financial technology companies Wise and Affirm, as well
as precision medicine company, Tempus AI. This was coupled with reductions
through secondary transactions in SpaceX (once during the reporting period and
once thereafter) as well as data security and management company, Cohesity.
These reductions were made for portfolio management reasons, and it is worth
noting that the likes of SpaceX (second largest), Wise and Affirm (both within
the top ten) remain as significant holdings within the portfolio.
Looking Forward
Despite continued geopolitical and macroeconomic uncertainty around the globe,
we enter the coming year with three reasons for significant optimism. Firstly,
the portfolio's fundamentals remain strong: delivering high growth, improving
profitability, and having robust cash runways across the private cohort,
allowing these companies to continue capitalising on their respective
opportunities. Secondly, we are seeing an increasing maturity in the
portfolio's largest holdings, several of which now sit among the world's most
significant private companies, and continue to generate external datapoints
that help validate intrinsic value. By 31 January 2026 Schiehallion held
investments in six of the ten largest private growth companies in the world
(by publicly available estimates). The Company therefore continues to offer an
exceptionally compelling pathway for shareholders to benefit from the
incredible amount of growth and innovation occurring within private markets.
Finally, we cast our eyes towards our broader opportunity set, which makes us
excited about pursuing new investments within the portfolio in the coming
year. While the bar for entry remains high - particularly given the level of
full deployment - we retain multiple avenues to create capacity over time,
including the disciplined recycling of capital as liquidity events arise
across the portfolio (such as IPOs or secondary transactions) and through
ongoing portfolio management, ensuring we can act when truly exceptional
opportunities present themselves.
Peter Singlehurst
Robert Natzler
7 April 2026
For a definition of terms see Glossary of terms and Alternative Performance
Measures on pages 122 and 123.
Past performance is not a guide to future performance.
Environmental, social and governance ('ESG') considerations
Baillie Gifford's integrated approach towards the consideration of
Environmental, Social and Governance ('ESG') factors when pursuing investments
in high growth private companies is articulated below:
ESG in our philosophy
The Schiehallion Fund invests in companies with a minimum time horizon of five
years. Using a genuine long-term approach to investment means looking beyond
the narrow scope of traditional financial analysis to consider a range of
factors that may affect the ability of the fund's holdings to thrive over the
long term. In this regard good governance is crucial towards enabling
companies to deliver on their potential. Over our investment horizon, we also
believe that scalability and profitability depend not only on a company's
ability to serve customers well and execute on its business model, but also on
its ability to do this without jeopardising its social licence to operate. As
such, we do not separate consideration of a company's role in the broader
investment ecosystem from our investment work, under ESG or any other rubric.
These considerations are core to long-term investing. It is the long-term
nature of the growth ambition within our investment philosophy that leads us
to pay special attention to the external effects of a company's operations,
both positive and negative. Over periods of five years or longer these can
have a profound impact on a company's relationship with customers, regulators
and staff, ultimately serving as either a significant contributor or detractor
to the growth of a business. Our approach is not about being a moral
conscience for our clients. Instead, it is a vital part of practising the
philosophy that we believe will grow the value of their capital over the long
term.
ESG in our process
The consideration of material ESG factors - those that are likely to affect
the financial condition or operating performance of portfolio companies - is
well-suited to Baillie Gifford's approach to investing in private markets due
to its long-term investment horizon and emphasis on active ownership. Baillie
Gifford's Private Companies Team focuses its research into potential
investments through a proprietary 10-Question research framework. These
questions aim to address issues such as the scale of the opportunity, the
competitive edge and potential returns, while others focus specifically on
ESG-related elements.
For example, Question Four of the framework ("How will the leadership and
cultural attributes help this business achieve its long-term business
vision?") considers company leadership, the broader stakeholders within the
workplace and whether the company cultivates an effective organisational
mindset capable of delivering the mission. Question Five then focuses on
external stakeholders ("Do the company's customers like them?"). This question
is geared towards broader ecosystem impact and considers, among other aspects,
whether the company is listening and responding well to the developing needs
of a growing and changing customer base. Question Six of the framework
specifically explores any material environmental and social factors in greater
depth ("How do environmental and social factors create opportunities and
risks?").
Beyond the research framework we also consider how we can assist specific
companies, with the focus often being on governance. While we do not take
active board seats, we occasionally take observer seats and frequently provide
encouragement, input and introductions as companies look to evolve a stronger
governance structure that is better suited for public markets.
The Private Companies Team is also supported by a wider network within and
outside of Baillie Gifford. As far as ESG topics are concerned specifically,
we benefit from the research and expertise of Baillie Gifford's broader team
of ESG professionals, academic networks and impact and climate-focused
investment teams.
ESG engagement
The Company has given discretionary voting powers to Baillie Gifford. For
public holdings within the Company, the Investment Manager votes against
resolutions they consider may damage shareholders' rights or economic
interests.
The Company believes that it is in the shareholders' interests to consider
environmental, social and governance ('ESG') factors when selecting and
retaining investments and has asked the Investment Manager to take these
issues into account. The Investment Manager does not exclude companies from
their investment universe purely on the grounds of ESG factors but adopts a
positive engagement approach whereby matters are discussed with management
with the aim of improving the relevant policies and management systems and
enabling the Investment Manager to consider how ESG factors could impact
long-term investment returns. The Investment Manager considers governance
factors across the portfolio as part of the investment case and addresses
environmental and social factors in terms of material risks and opportunities.
The Investment Manager's Statement of Compliance with the UK Stewardship Code
can be found on the Investment Manager's website: bailliegifford.com. The
Investment Manager's policy has been reviewed and endorsed by the Board. The
Investment Manager, Baillie Gifford & Co, are signatories to the United
Nations Principles for Responsible Investment.
By engaging with both the private and public companies within the Company's
portfolio, the Investment Manager seeks to build constructive relationships
with these companies to better inform investment activities and, where
necessary, effect changes within holdings, ultimately with the goal of
achieving better returns for shareholders. As owners of these companies at an
earlier point in their overall growth journey - i.e. while they are still
private - the Investment Manager is able to gain deeper and longer-term
insight due to the length of these relationships. The potential continuation
of these relationships through the Initial Public Offering ('IPO') and into
public markets is a key reason why these companies choose Schiehallion as a
partner.
Engagement topics
Due to the private nature of the majority of companies within the portfolio,
we are unable to disclose the exact nature of our discussions with specific
management teams. That said, there are common themes that we engage companies
on, and these are pursued in line with our approach to adding value to
portfolio holdings, namely around governance, capital structuring and
providing network support.
• Governance
Where the Investment Manager can add value is on board
composition and, more specifically, board transition. Companies within the
portfolio are often transitioning from an investor-led board to an independent
board as they grow. The Investment Manager supports companies to build a board
of directors that is useful in the long term, including by introducing
prospective independent director candidates and supporting board evolution
(for example, through board observer roles, where appropriate). Owing to
Baillie Gifford's decades-long experience investing in and engaging with
public companies, the Investment Manager has access to a network of potential
board members that can be introduced to relevant companies and can engage our
internal Governance team to advise on good board composition more broadly.
During the year, this included specific board-building introductions for
selected portfolio holdings. At a practical level, Baillie Gifford continues
to convene forums that help companies prepare for the governance demands of
life in public markets, sharing learnings from across our global network and
supporting the transition from investor-led to independent boards. Events in
2025 comprised CFO-focused gatherings in Scotland and Palo Alto, California,
as well as Baillie Gifford's Private Companies AGM event in New York.
• Capital Structuring
The Investment Manager has continued to discuss capital
structures with investee companies that have been exploring a range of
different options in this regard. The Company's long‑term horizon enables
the Investment Manager to offer well-aligned advice with the intention of
limiting unintended and potentially destructive consequences that can arise
from complicated capital structures. Across the year, engagement topics
included share class structures (including dual-class considerations),
non-dilutive and debt-related financing options (including venture debt and
public bond considerations), and transaction structures such as SPACs/PIPEs,
where relevant. When negotiating terms, the Investment Manager seeks clean
terms that are well aligned with the long-term interests of shareholders.
• The IPO Process
The Investment Manager often engages with portfolio
companies that are thinking about the IPO process. From a practical
perspective Baillie Gifford is well placed to advise on aspects such as where
to list, the range of reporting that is necessary, and employee stock options,
for example. More generally advice also pertains to what kind of public
company these private companies eventually want to be. During the year, this
support also included acting as a sounding board on listing strategy and
implementation considerations (including share class structures), and helping
companies prepare for the requirements of public market investor engagement by
sharing insights on public markets "storytelling" and investor relations
readiness.
One year summary
The following information illustrates how The Schiehallion Fund Limited
performed over the year ended 31 January 2026.
31 January 31 January
Ordinary shares 2026 2025 % change
Shareholders' funds US$1,795.91m US$1,369.96m
Net asset value* 177.28¢ 133.69¢ 32.6% *
Share price* 178.00¢ 108.00¢ 64.8% *
Premium/(discount)(†)* 0.4% (19.2%)
Number of shares in issue 1,013,033,907 1,024,738,907
Market capitalisation US$1,803.20m US$1,106.72m
Ongoing charges(†)* 0.96% 0.92%
Year ended Year ended
31 January 31 January
2026 2025
Revenue loss per share (1.35¢) (0.39¢)
Period's high and low
Year ended 31 January 2026 Year ended 31 January 2025
Ordinary shares High Low High Low
Net asset value per ordinary share 177.28¢ 125.08¢ 133.89¢ 112.90¢
Share price 180.00¢ 83.00¢ 120.00¢ 57.00¢
Premium/(discount)(†) 0.4% (35.1%) (7.3%) (52.4%)
For a definition of terms see Glossary of terms and Alternative Performance
Measures on pages 122 and 123.
* Key performance indicator.
† Alternative Performance Measure, see Glossary of terms and Alternative
Performance Measures on pages 122 and 123.
Source: Baillie Gifford/LSEG. See disclaimer on page 120.
Review of investments
A review of the Company's ten largest investments as at 31 January 2026.
Bending Spoons
Bending Spoons is an Italian owner and operator of leading digital products
around the globe. It is an acquisitive business that has built a world class
team and a set of tools to integrate acquired businesses into their
infrastructure, improve product features and optimise pricing. The revenue
from their existing stable of products in turn provides capital for further
acquisitions.
Geography Italy
Valuation at 31 January 2026 US$261,386,000
% of net assets 14.6%
Valuation at 31 January 2025 US$111,244,000
% of net assets 8.1%
Net purchases/(sales) in the year US$9,965,000
SpaceX
SpaceX is a space transportation and satellite communications company. It
designs, manufactures, and launches advanced reusable rockets and spacecraft,
while also operating a satellite constellation for global internet
connectivity, known as Starlink. By embracing innovation and vertical
integration, it has opened a series of cost and capability improvements which
are transforming the space industry.
Geography United States
Valuation at 31 January 2026 US$243,490,000
% of net assets 13.6%
Valuation at 31 January 2025 US$128,811,000
% of net assets 9.4%
Net purchases/(sales) in the year (US$24,999,000)
ByteDance
ByteDance is a leading technology company offering online social media and
entertainment services - primarily in China - with a growing international
presence. Its flagship products include Toutiao, a newsfeed, and Douyin, a
short-form video platform known as TikTok outside China. ByteDance excels in
customising content for users through advanced artificial intelligence. This
approach allows ByteDance to drive user engagement and advertising revenue.
Geography China
Valuation at 31 January 2026 US$139,178,000
% of net assets 7.7%
Valuation at 31 January 2025 US$85,177,000
% of net assets 6.2%
Net purchases/(sales) in the year -
Databricks
Databricks - a data and AI company - helps organisations unlock the power of
their own data through the use of analytics and artificial intelligence. Every
business today generates vast amounts of information, including customer
records, transactions, website activity or even sensor data from machines. The
challenge is making sense of it all. Databricks provides a single platform
where companies can bring this information together, organise it, and use it
to make better decisions.
Geography United States
Valuation at 31 January 2026 US$80,168,000
% of net assets 4.5%
Valuation at 31 January 2025 US$39,029,000
% of net assets 2.8%
Net purchases/(sales) in the year -
Wayve
Wayve is a UK-based autonomous driving technology company founded in 2017. It
takes a novel approach to self-driving, using affordable cameras and AI rather
than expensive sensors and detailed maps. By relying on end-to-end deep
learning, its cars can learn the rules of the road directly from experience,
rather than from hand-coded instructions.
Geography United Kingdom
Valuation at 31 January 2026 US$72,762,000
% of net assets 4.1%
Valuation at 31 January 2025 US$36,275,000
% of net assets 2.6%
Net purchases/(sales) in the year -
Wise(P)
Wise is an international money transfer business. Wise tackles the problem of
high fees and low transparency faced by consumers sending money
internationally. Its approach of matching flows in countries at the prevailing
exchange rate enables Wise to significantly reduce costs while offering
consumers a better exchange rate.
Geography United Kingdom
Valuation at 31 January 2026 US$63,730,000
% of net assets 3.5%
Valuation at 31 January 2025 US$83,229,000
% of net assets 6.1%
Net purchases/(sales) in the year (US$13,571,000)
Stripe
Stripe is a technology company that helps businesses handle money online. It
lets companies accept payments from customers, manage recurring subscriptions,
issue payment cards, prevent fraud, connect to bank accounts, calculate taxes,
and more - all through easy-to-use software tools.
Geography United States
Valuation at 31 January 2026 US$51,874,000
% of net assets 2.9%
Valuation at 31 January 2025 US$39,796,000
% of net assets 2.9%
Net purchases/(sales) in the year -
Affirm(P)
Affirm is a financial technology company offering flexible payment solutions
for larger ticket purchases. Operating primarily in the United States, Affirm
provides a "Buy Now, Pay Later" (BNPL) service that allows customers to split
a payment into manageable instalments. This service is seamlessly integrated
at the point of sale, making it easy for consumers to choose a payment plan
that suits their budget.
Geography United States
Valuation at 31 January 2026 US$49,857,000
% of net assets 2.8%
Valuation at 31 January 2025 US$79,224,000
% of net assets 5.9%
Net purchases/(sales) in the year (US$35,047,000)
Tekever
Tekever is a Portuguese start-up aspiring to be Europe's leading aerial
intelligence company, transforming maritime surveillance and critical
infrastructure monitoring whilst proving indispensable in modern defence
operations. It utilises a software-first and machine-centric approach to their
product and service design, and offers a high degree of flexibility for
customers.
Geography Portugal
Valuation at 31 January 2026 US$46,245,000
% of net assets 2.6%
Valuation at 31 January 2025 US$20,790,000
% of net assets 1.5%
Net purchases/(sales) in the year US$1,671,000
Anthropic
Anthropic is an AI company that builds enterprise-focused frontier models and
products, best known for its Claude assistant and the Claude Code tool. Claude
is used by organisations to support knowledge work and software development,
including tackling longer, multi-step tasks and helping coordinate work across
tools and documents. Anthropic has reported growing enterprise adoption, and
Claude Code has gained attention as a practical coding-focused offering used
to assist with real-world development workflows.
Geography United States
Valuation at 31 January 2026 US$45,957,000
% of net assets 2.6%
Valuation at 31 January 2025 -
% of net assets -
Net purchases/(sales) in the year US$25,000,000
(P) Denotes listed investments previously held in the portfolio as a
private company investment.
Baillie Gifford's approach to valuing private companies
We 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 portfolio
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 four times in a
twelve‑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 benchmarks 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.
The data below quantifies the revaluations carried out during the twelve
months to 31 January 2026, 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 Limited*
Instruments valued 492
Instruments held 90
Percentage of portfolio revalued up to 4 times 34.4%
Percentage of portfolio revalued 5 or more times 65.6%
* Data reflecting year to 31 January 2026.
List of investments
As at 31 January 2026
2026 2026 2025 2025
Name Business Country Total value % of net Total value % of net
US$'000 assets US$'000 assets
Bending Spoons Mobile application software operator Italy 261,386 14.6 111,244 8.1
Space Exploration Technologies Designs, manufactures and launches rockets, spacecraft and satellites United States 243,490 13.6 128,811 9.4
ByteDance Social media company China 139,178 7.7 85,177 6.2
Databricks Data software solutions United States 80,168 4.5 39,029 2.8
Wayve AI based software for self-driving cars United Kingdom 72,762 4.1 36,275 2.6
Wise(P) Online provider of cross-border money transfer services United Kingdom 63,730 3.5 83,229 6.1
Stripe Online payment platform United States 51,874 2.9 39,796 2.9
Affirm(P) Fintech providing lending and consumer credit services United States 49,857 2.8 79,224 5.9
Tekever Surveillance-as-a-service technology Portugal 46,245 2.6 20,790 1.5
Anthropic AI safety and research United States 45,957 2.6 - -
Vinted Online marketplace Lithuania 37,110 2.1 23,430 1.7
HeartFlow(P) Medical technology company United States 33,619 1.9 15,925 1.2
Chi Forest Technology Non-alcoholic beverages China 33,139 1.8 21,973 1.6
Tempus AI(P) Offers molecular diagnostics tests for cancer and aggregates clinical oncology United States 32,637 1.8 46,435 3.4
records
Revolut Neobank and fintech company that offers a wide range of financial services United Kingdom 31,915 1.8 - -
Anduril Industries Software and hardware based defence systems United States 30,199 1.7 - -
Clear Street Group Financial technology company United States 30,000 1.7 - -
PsiQuantum Silicon photonic quantum computing United States 27,827 1.5 23,536 1.7
Epic Games Gaming platform United States 27,404 1.5 27,018 2.0
Faire Wholesale Online wholesale marketplace United States 26,864 1.5 27,997 2.0
Flix European long-distance bus and train provider Germany 24,140 1.3 24,114 1.8
Inspire Social networking and e-commerce platform China 24,000 1.3 - -
Bolttech Global insurance platform services Singapore 23,941 1.3 20,000 1.5
Nuro Delivery business, using self-driving purpose-built electric vehicles United States 23,568 1.3 14,870 1.1
Rappi Provider of an on-demand delivery platform designed to connect consumers with United States 20,745 1.2 23,190 1.7
local stores
Kepler Computing Semiconductor company United States 20,043 1.1 20,221 1.5
Avanci Application software United States 20,000 1.1 - -
Zetwerk Manufacturing Fabricated metal products India 19,320 1.1 19,488 1.4
Brex Corporate credit cards for startups United States 19,075 1.1 28,014 2.1
Rippling (People Center) US software company United States 18,304 1.0 - -
Chime Financial(P) Digital banking platform United States 17,246 1.0 24,987 1.9
Superhuman Platform (Grammarly) Online platform for checking grammar, spelling and improving written United States 16,705 0.9 25,435 1.9
communication
Solugen Solugen exists to scale synthetic biology and bring green chemicals to the United States 15,651 0.9 30,301 2.2
world
Oddity(P) Online direct-to-customer skincare and cosmetics United States 15,270 0.9 22,180 1.6
Cellares Biotech company providing robust and reproducible cell therapy United States 15,000 0.8 - -
Merlin Labs Autonomous flight technology United States 14,654 0.8 13,483 1.0
Tanium Provides security and systems management solutions United States 14,274 0.8 15,698 1.2
Runway AI Artificial Intelligence based applications developer United States 13,494 0.8 10,000 0.7
Dailyhunt Telephone voice, data, text messaging, and roaming services India 10,257 0.6 34,314 2.5
(Ver Se Innovation)
Tenstorrent Processor architecture and software solutions United States 9,619 0.5 10,000 0.7
Workrise Technologies Online platform connecting contractors with work United States 9,527 0.5 14,467 1.1
Pet Circle (Millell) Pet food and accessories Australia 9,445 0.5 12,945 1.0
Away (JRSK) Manufactures luggage United States 9,059 0.5 8,411 0.6
Honor Technology Provider of home-care services United States 8,376 0.5 7,877 0.5
Loft Online property platform Brazil 8,010 0.4 9,763 0.6
Cohesity Global Storage provider United States 7,752 0.4 11,302 0.8
Bottle Planet Producer of alcoholic beverages China 7,695 0.4 8,756 0.6
Carbon Manufactures and develops 3D printers United States 4,453 0.2 6,701 0.5
Illumina CVR Gene sequencing equipment and consumables United States 75 <0.1 407 <0.1
Indigo Agriculture Agricultural technology company United States 15 <0.1 100 <0.1
Blockstream Financial software developer Canada - - 339 <0.1
McMakler Digital real estate broker Germany - - 2,079 0.2
Northvolt Battery developer and manufacturer Sweden - - 600 <0.1
Total investments 1,785,074 99.4
Cash 13,001 0.7
Other current assets and liabilities (2,167) (0.1)
Net current assets 10,834 0.6
Total net assets 1,795,908 100.0
Listed Private Net current Net
investments company assets assets
% investments % %
%
31 January 2026 11.9 87.5 0.6 100.0
31 January 2025 21.3 72.9 5.8 100.0
(P) Denotes listed investments previously held in the portfolio as a
private company investment.
Allocation of net assets
Name 2026 2026 2025 2025
Total value % of net Total value % of net
US$'000 assets US$'000 assets
Listed investments 212,434 11.9 290,843 21.3
Private company investments 1,572,640 87.5 999,607 72.9
US Treasury Bills - - 77,334 5.6
Cash and cash equivalents 13,001 0.7 6,118 0.5
Net current assets less capital gains tax provision (2,167) (0.1) (3,945) (0.3)
Total net assets 1,795,908 100.0 1,369,957 100.0
Company metrics Capital Number Number of Gross Gross
deployed * of private IPOs/listings Internal Multiple on
company Rate of Invested
acquisitions Return Capital
(IRR) * (MOIC) *
Since launch US$1,376m 63 11 10.6% 1.5
* Alternative Performance Measure, see Glossary of terms and Alternative
Performance Measures on pages 122 and 123.
Portfolio executive summary
Performance
1 year 3 years 5 years Since inception
% % % % *
Share price 64.8% 93.5% (1.1%) 78.0%
NAV 32.6% 48.5% 20.6% 77.9%
* Inception date: 27 March 2019.
All figures are stated on a total return basis† for periods to 31 January
2026.
† Alternative Performance Measure - see Glossary of terms and
Alternative Performance Measures on pages 122 and 123.
Source: Baillie Gifford/LSEG. See disclaimer on page 120.
Key contributors to and detractors from Company performance - year to 31 January 2026
Contributors† Contribution to Absolute return
absolute performance (%) (#)
(%) *
Bending Spoons 11.7 125.8
Space Exploration Technologies 9.5 127.6
ByteDance 4.4 63.4
Databricks 2.8 105.4
Tekever 2.6 112.7
Detractors† Contribution to Absolute return
absolute performance (%) (#)
(%) *
Dailyhunt (Ver Se Innovation) (2.1) (70.1)
Solugen (1.3) (48.4)
Brex (0.9) (31.9)
Superhuman Platform (Grammarly) (0.8) (34.3)
Chime Financial(P) (0.7) (31.0)
* Alternative Performance Measure - see Glossary of terms and Alternative
Performance Measures on pages 122 and 123.
# Absolute performance (in US$ 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 January 2026.
† The contributors to and detractors from Company performance are listed
in descending order.
Source: Revolution.
(P) Denotes listed investment previously held in the portfolio as a
private company investment.
Distribution of net assets
Geographical as at 31 January 2026
Geographical % at % at Number of
31 January 31 January investments
2026 2025 at 31 January
2026
United States 54.3 56.8 34
Italy 14.6 8.1 1
China 11.2 8.4 4
United Kingdom 9.4 8.7 3
Portugal 2.6 1.5 1
Lithuania 2.1 1.7 1
India 1.7 3.9 2
Germany 1.3 2.0 2
Singapore 1.3 1.5 1
Australia 0.5 1.0 1
Brazil 0.4 0.6 1
Canada - <0.1 1
Sweden - <0.1 1
Net current assets 0.6 5.8
Sectoral as at 31 January 2026
Sectoral % at % at Number of
31 January 31 January investments
2026 2025 at 31 January
2026
Information technology 42.3 30.6 20
Industrials 21.8 15.9 7
Financials 11.9 17.0 6
Communication services 8.3 8.8 2
Healthcare 5.0 5.1 5
Consumer discretionary 4.6 8.6 5
Consumer staples 3.1 3.8 4
Materials 2.0 3.6 2
Real estate 0.4 0.8 2
Net current assets 0.6 5.8
Principal and emerging risks
As explained on pages 68 and 69, there is a process for identifying,
evaluating and managing the risks, including emerging risks, faced by the
Company on a regular basis. The Directors have carried out a robust assessment
of the principal and emerging risks facing the Company, including those that
would threaten its business model, future performance, solvency or liquidity.
A description of these risks and how they are being managed or mitigated is
set out in the table below.
Investment and strategic risk
Liquidity of investments What is the risk? How is it managed? Rating and change Current assessment of risk
The Company's investments are predominantly in private investee companies or By diversification of the portfolio, in accordance with the Company's ─ Risk Level: Moderate
companies which have recently completed an IPO. Such investments may not be investment limits and risk diversification policies.
liquid or may have restrictions on sale or transfer of shares. This may limit Stable: The Company has not seen any significant impact on underlying
the Company's ability to realise investments at short notice or at all. liquidity of investments, however, there are signs that the IPO market is
opening up.
Market, economic, political and environmental risks What is the risk? How is it managed? Rating and change Current assessment of risk
From time to time a large proportion of the total value of the Company's The Board assesses this risk by considering, at each meeting, metrics which ↑ Risk Level: High
portfolio could be concentrated in a limited number of investee companies, have contributed to performance as well as discussion with the portfolio
which could be adversely affected by an unexpected change in their markets, by managers on specific conditions which the underlying investee companies face. Increasing: This risk is considered to be increasing as governments and
governmental intervention or by a reputational issue. This could have a This risk is also managed by the Company's investment diversification policy. consumers around the world continue to assess the impact of heightened
material impact on the overall value of the Company's portfolio and geopolitical tensions and conflicts as well as challenging macroeconomic
consequential adverse effects on the Company's share price. conditions.
Valuation What is the risk? How is it managed? Rating and change Current assessment of risk
risk
The Company invests in late stage private businesses which are valued in The Investment Manager has a robust valuation methodology, which is applied ─ Risk Level: Moderate
accordance with International Private Equity and Venture Capital Valuation consistently. The Investment Manager's valuation process revalues each of the
('IPEV') Guidelines using appropriate valuation methods. Such methods include private company investments every 3 months and additional valuations are Stable: This risk is seen as stable. In periods of market volatility the
an element of judgement which may lead to a material mis-statement of the carried out in response to trigger events to ensure the investments are Private Company Valuations Group will perform trigger analyses and,
valuation and consequently of the Company's net asset value. carried at fair value. The valuation process is overseen by the Private if appropriate, revalue the affected investments, as described in the report
Companies Valuations Group at Baillie Gifford which is independent from the on page 27.
portfolio managers and which takes advice from an independent third party
(S&P Global). The valuations are subject to review and challenge by the
Board every 6 months and are subject to scrutiny annually by the external
Auditor.
Investment strategy risk What is the risk? How is it managed? Rating and change Current assessment of risk
Pursuing an investment strategy to fulfil the Company's objective which the The Board regularly reviews and monitors the Company's investment policy and ─ Risk Level: Moderate
market perceives to be unattractive or inappropriate, or ineffective strategy, the investment portfolio and its performance, the level of
implementation of the Company's investment strategy, may lead to reduced discount/premium to net asset value at which the shares trade and movements in Stable: This risk is considered to be stable as there are signs that the
returns for shareholders and, as a result, decreased demand for the Company's the share register. A strategy meeting is also held annually. In addition, market's appetite for growth stocks, typically held by the Company, is
shares. This may lead to the Company's shares trading at a widening discount the Investment Manager keeps in close contact with key shareholders and recovering. The listing migration in December lead to the shares being
to their net asset value. provides regular feedback to the Board. accessible to a wider pool of investors and consequently demand for the
Company's shares increased.
Discount What is the risk? How is it managed? Rating and change Current assessment of risk
risk
The discount/premium at which the Company's shares trade relative to its net The Board monitors the level of discount/premium at each Board meeting. The ↓ Risk Level: Moderate
asset value can change. Such an imbalance can diminish the attractiveness of Company has authorities in place to buy back or issue shares, when deemed to
the Company's shares to existing investors and lead to a lack of liquidity in be in the best interests of the Company and its shareholders. Decreasing: The discount narrowed over the year to 31 January 2026. The
the Company's share trading. Directors continue to buy back shares when it is deemed to be in the best
interests of the Company and its shareholders.
Climate and governance risk What is the risk? How is it managed? Rating and change Current assessment of risk
Perceived problems on environmental, social and governance ('ESG') matters in This is mitigated by the Investment Manager's ESG stewardship and engagement ─ Risk Level: Low
an investee company could lead to that company's shares being less attractive policies, which are integrated into the investment process, as well as the
to investors, adversely affecting its share price, in addition to potential extensive upfront and ongoing due diligence which the Investment Manager Stable: The Investment Manager continues to employ strong ESG stewardship and
valuation issues arising from any direct impact of the failure to address the undertakes on each investee company. This includes the risk inherent engagement policies. Active engagement with portfolio companies and increased
ESG weakness on the operations or management of the investee company (for in climate change (see page 70). focus on climate and governance strategy implementation lead to a decrease in
example in the event of an industrial accident or spillage). Repeated failure the rating to low.
by the Investment Manager to identify ESG weaknesses in investee companies
could lead to the Company's own shares being less attractive to investors,
adversely affecting its own share price. In addition, the valuation of
investments could be impacted by climate change due to climate-related
operational challenges, changes in end demand or failure to identify a pathway
to Net Zero.
External risks
Political and associated economic risk What is the risk? How is it managed? Rating and change Current assessment of risk
Global political changes resulting in policy changes in areas in which the Political developments and other social trends are closely monitored by the ↑ Risk Level: High
Company invests or may invest may have practical consequences for the Company Board and are regularly discussed at Board meetings.
and impact financial performance. Increasing: This risk is increasing as governments and consumers around the
world continue to assess the impact of ongoing conflicts and global economic
and political tensions.
Legal and regulatory What is the risk? How is it managed? Rating and change Current assessment of risk
risk
Changes to the regulatory environment could negatively impact the Company. To mitigate this risk, Baillie Gifford's Business Risk, Internal Audit and ─ Risk Level: Low
Failure to comply with applicable legal, regulatory and tax requirements could Compliance Departments provide regular reports to the Audit Committee on
lead to suspension of the Company's Stock Exchange listing, financial Baillie Gifford's monitoring programmes. The Administrator provides regular Stable: All control procedures are deemed to be working effectively. There
penalties, a qualified Audit Report or the Company being subject to tax on compliance reports to the Audit Committee to confirm the relevant Guernsey have been no material regulatory changes that have occurred during the year.
capital gains. submissions are made to protect the legal and tax status of the Company. Major
regulatory change could impose disproportionate compliance burdens on the
Company. In such circumstances representation is made to ensure that the
special circumstances of investment companies are recognised. Shareholder
documents and announcements, including the Company's published Interim and
Annual Report and Financial Statements, are subject to stringent review
processes and procedures are in place to ensure adherence to the Transparency
Rules and the Market Abuse Regulations with reference to inside information.
Operational risks
Performance and reliance on third party service providers What is the risk? How is it managed? Rating and change Current assessment of risk
In common with most other investment companies the Company has no direct The Audit Committee receives six monthly reports from the Investment Manager's ─ Risk Level: Low
employees and relies entirely for its operations on third party service Business Risk Department on their monitoring programme of internal controls.
providers. Failure of the Investment Manager's systems or those of another The Audit Committee also receives ISAE 3402 or equivalent reports on the Stable: All control procedures are deemed to be working effectively. Portfolio
service provider, such as the Custodian and Depositary, could lead to Investment Manager and other service providers. These reports are reviewed by management and all regulatory and administrative tasks have continued
an inability to accurately report or lead to a misappropriation of assets. Baillie Gifford's Business Risk Department and a summary of the key points is uninterrupted during the year.
reported to the Audit Committee and any concerns are investigated.
Cyber What is the risk? How is it managed? Rating and change Current assessment of risk
security
threats Errors, fraud or control failures by the Company's key service providers or The Audit Committee receives confirmation that key service providers have ↑ Risk Level: High
loss of data through increasing cyber threats or business continuity appropriate cyber/IT policies to ensure that controls are in place including
interruptions could damage the Company's reputation or investors' interests or business continuity and disaster recovery arrangements. Increasing: This risk is seen as increasing due to recent indications that the
result in losses. continuation of geopolitical tensions could lead to more cyber attacks.
Emerging technologies, including AI, could potentially increase information
security risks. In addition, service providers operate a hybrid approach
of remote and office working, thereby increasing the potential of a cyber
security threat.
Key professionals What is the risk? How is it managed? Rating and change Current assessment of risk
Loss of key professionals, particularly in relation to the Investment Manager The Board reviews the Investment Manager's performance annually as well as the ─ Risk Level: Low
could impact the Company's ability to implement its investment strategy. resources of the Investment Manager for attracting and retaining talent.
Stable: All procedures are satisfactory.
Emerging As explained on pages 68 to 69 the Board has regular discussions on principal
risks risks and uncertainties, including any risks which are not an immediate threat
but could arise in the longer term. Emerging risks are considered under the
categories noted above rather than included as discrete risks.
↑ Increasing Risk ↓ Decreasing Risk ─ Stable Risk
Relations with Stakeholders
Although the Company is domiciled in Guernsey, the Board has considered the
guidance set out in the AIC Code in relation to section 172 of the Companies
Act 2006 in the UK. Section 172 of the Companies Act requires that the
Directors of a Company must act in the way they consider, in good faith, would
be most likely to promote the success of the Company for the benefit of its
stakeholders as a whole and in doing so have regard (amongst other matters and
to the extent applicable) to:
a. the likely consequences of any decision in the long term;
b. the interests of the Company's employees;
c. the need to foster the Company's business relationships with
suppliers, customers and others;
d. the impact of the Company's operations on the community and the
environment;
e. the desirability of the Company maintaining a reputation for
high standards of business conduct; and
f. the need to act fairly between stakeholders of the Company.
In this context and having regard to Schiehallion being an externally managed
investment company with no employees, the Board considers that the Company's
key stakeholders are its existing and potential new shareholders, its
externally-appointed Investment Manager, Baillie Gifford & Co Limited, and
other service providers (Administrator, Corporate Broker, Registrar, Auditor,
Custodian and Depositary), as well as wider society and the environment.
The Board considers that the Company's key stakeholders are aligned, in terms
of wishing to see the Company deliver sustainable long-term growth, in line
with the Company's stated objective and strategy, and meet the highest
standards of legal, regulatory, and commercial conduct, with the differences
between stakeholders being merely a matter of emphasis on those elements.
The Board's methods for assessing the Company's progress in the context of its
stakeholders' interests are set out below.
Stakeholder Why we engage How we engage and what we do
Shareholders Shareholders are, collectively, the Company's owners: providing them with a The Board places great importance on communication with shareholders. The
return for their investment in accordance with the Company's investment policy Annual General Meeting provides an opportunity for the Board and Investment
and objective is the reason for its existence. Manager to present to shareholders on the Company's performance, future plans
and prospects. It also allows shareholders the opportunity to meet with the
Board and Investment Manager and raise questions and concerns. The Chairperson
and Senior Independent Director are available to meet with shareholders as
appropriate and met with major shareholders during the year. The Investment
Manager meets regularly with shareholders and their representatives, reporting
their views back to the Board. Directors also attend certain shareholder
presentations, in order to gauge shareholder sentiment first hand.
Shareholders may also communicate with members of the Board at any time by
writing to them at the Company's registered office or to the Company's broker.
These communication opportunities help inform the Board when considering how
best to promote the success of the Company for the benefit of all
shareholders over the long term.
Stakeholder Why we engage How we engage and what we do
Baillie Gifford, Investment Manager and Alter Domus, Administrator The Company's Board has delegated the management of the Company's portfolio to The Board seeks to engage with its Investment Manager, Administrator and other
and Secretaries Baillie Gifford and the administration of the Company's operations including service providers in a collaborative and collegiate manner, encouraging open
fulfilment of regulatory and taxation reporting requirements to Alter Domus. and constructive discussion and debate, while also ensuring that appropriate
Baillie Gifford and Alter Domus are therefore responsible for the substantial and regular challenge is brought and evaluation conducted. This approach aims
activities of the Company and have the most immediate influence on its conduct to enhance service levels and strengthen relationships with the Company's
towards the other stakeholders, subject to the oversight and strategic providers, with a view to ensuring the interests of the Company's shareholders
direction provided by the Board. are best served by keeping cost levels proportionate and competitive, and by
maintaining the highest standards of business conduct.
Portfolio companies As all of the Company's operations are conducted by third party professional The Board is cognisant of the need to consider the impact of the Company's
providers, it is the companies held in its investment portfolio which have the investment strategy and policy on wider society and the environment. The Board
primary real-world impact in terms of social and environmental change, both considers that its oversight of environmental, social and governance ('ESG')
positively and negatively, as well as generating, through their commercial matters is an important part of its responsibility to all stakeholders. The
success, the investment growth sought by the Company's shareholders. The Board's review of the Investment Manager includes an assessment of their ESG
investee companies have an interest in understanding their shareholders' approach and its application in making investment decisions. The Board reviews
investment rationale in order to assure themselves that long-term business Governance Engagement reports, which document the Investment Manager's
strategies will be supported. interactions with investee companies on ESG matters (see pages 29 to 31). The
portfolio managers regularly report to the Board on discussions with portfolio
companies on operational and strategic matters.
Broker The Company's brokers provide an interface between the Company's Board and its The Company's brokers regularly attend Board meetings, and provide reports to
institutional shareholders. those meetings, in order to keep the Board apprised of shareholder and wider
market sentiment regarding the Company. They also arrange opportunities for
shareholders to meet the Chairperson outside the normal general meeting cycle.
Registrar The Company's registrars provide an interface with those shareholders who The Investment Manager liaises with the registrars to ensure the frequency and
hold the Company's shares directly. accuracy of communications to shareholders is appropriate, and monitor
shareholder correspondence to ensure that the level of service provided by the
registrar is acceptable. The Investment Manager's risk function reviews the
registrar's internal controls report and reports on the outcome of this review
to the Board.
Auditor The Company's Auditor has a responsibility to provide an opinion on whether The Company's Auditor meets with the Audit Chair and the Audit Committee, in
the Company's Financial Statements present a true and fair view of the state the absence of the Investment Manager where deemed necessary, and the
of affairs of the Company and its profit or loss for the period, and as a Investment Manager, Company Secretary and Administrator undertake to provide
whole are free from material misstatement, as set out in more detail in the all information requested by the Auditor in connection with the Company's
Auditor's report to the Members on page 79. annual audit promptly and to ensure that it is complete and accurate in all
respects.
Depositary The Depositary is responsible for the safekeeping of the Company's financial The Depositary provides the Audit Committee with a report on its monitoring
and Custodian instruments, as set out in more detail on page 59. activities. The Investment Manager's Business Risk team reviews the relevant
Bank of New York Mellon internal controls report and reports any relevant
matters to the Audit Committee. The Board and Investment Manager seeks to
engage with the Depositary and Custodian in a collaborative and collegiate
manner, encouraging open and constructive discussion and debate, while also
ensuring that appropriate and regular challenge is brought and evaluation
conducted. This approach aims to enhance service levels and strengthen
relationships, with a view to ensuring the interests of the Company's
shareholders are best served by keeping cost levels proportionate and
competitive, and by maintaining the highest standards of business conduct.
AIC/industry peers The Association of Investment Companies ('AIC') and the Company's investment The Company is a member of the AIC, and the Directors and or the Investment
trust industry peers have an interest in the Company's conduct and Manager and Secretaries (as appropriate) participate in technical reviews,
performance, as adverse market sentiment towards one investment trust can requests for feedback on proposed legislation or regulatory developments,
affect attitudes towards the wider industry. corporate governance discussions and/or training.
Investment platforms Investment platforms provide an interface with shareholders who invest in the The Investment Manager liaises with the various investment platforms on
Company indirectly. strategies for improving communications with the Company's shareholders who
hold their shares via these platforms. An annual timetable of key dates is
published on the Company's website, for the ease of reference of such
shareholders.
Wider society and the environment No entity, corporate or otherwise, can exist without having an influence on The Board and Investment Manager's interactions with the various stakeholders
the society in which it operates or utilising the planet's resources. Through as noted above form the principal forms of direct engagement with wider
its third-party relationships, as noted above, the Company seeks to be a society and in respect of the environment (commercial, financial, and in terms
positive influence and, in circumstances where that is not possible, to of planetary health and resources).
mitigate its negative impacts insofar as is possible.
The primary real-world impact of the Company's operations are through the
companies held in its investment portfolio - please refer to 'Portfolio
companies' section above.
Regulatory bodies Engagement with regulatory bodies is important to ensure effective compliance The Investment Manager engages regularly with the Financial Reporting Council
with law and regulation. Failure to maintain good relations with regulatory ('FRC') and where required the Guernsey Financial Services Commission ('GFSC')
bodies, or comply with relevant law and regulation, could lead to penalties and reports to the Board.
and damage the Company's reputation. Regulatory risk can be mitigated by
making representations to regulators regarding the specific circumstances of
investment companies.
The Board recognises the importance of keeping the interests of the Company's
shareholders, and of acting fairly towards them, firmly front of mind in its
key decision making and the Investment Manager is at all times available to
the Board to ensure that suitable consideration is given to the range of
factors to which the Directors should have regard.
In addition to ensuring that the Company's stated investment objective was
being pursued, key decisions and actions during the year which have required
the Directors to have regard to applicable section 172 factors include:
• In a commitment to uphold the highest standards of
corporate governance and enhance board performance, the Board undertook a
Board evaluation during the year. This was aimed at providing an objective
assessment of the Board's effectiveness and identifying areas for improvement.
By addressing the identified areas for improvement, the Board aims to further
enhance its governance practices and better serve the interests of
shareholders. The Board is committed to maintaining transparency,
accountability, and excellence in governance. More information on the
evaluation process can be found on page 68;
• The Board also performed an annual evaluation of all
service providers and reviewed their remuneration. This process supports value
for money, cost control and high standards of service delivery, while
promoting accountability and transparency in the Company's governance
arrangements. By doing so, the Board seeks to protect and enhance long-term
shareholder value;
• The Company bought back 11,705,000 of its own shares into
treasury at a discount to net asset value, for subsequent reissue. The
Company's buy-back strategy takes into account a broad range of factors,
carefully considering and balancing the positives (in particular, providing
shareholders with additional liquidity for their shares on terms that enhance
net asset value for remaining shareholders) and any negatives (in particular,
the impact on portfolio composition and diversification), as well as having
regard to shareholder feedback regarding discount management. The discount
narrowed from 19.2% at 31 January 2025 to a premium of 0.4% at the period end;
and
• The Board has kept the Company's trading segment and tax
domicile under regular review to ensure they support the delivery of long-term
shareholder value. During the year, the Board took the decision to migrate the
Company's shares to the Closed-ended Investment Funds Category of the Main
Market, which is expected to broaden investor appeal and improve share
liquidity. With effect from 1 February 2026, the Company became UK tax
resident and obtained UK investment trust status, aligning the Company more
closely with the location of its place of listing as well as to take advantage
of the double taxation agreements in the UK thereby preventing future tax
leakage on some of the Company's holdings. In addition, this election will
also make the Company more attractive to investors who may otherwise be tax
sensitive to investing in a vehicle that is tax resident outside the United
Kingdom.
Responsibility Statement of the Directors in Respect of the Annual Report and Financial Statements
We confirm to the best of our knowledge:
• the Financial Statements, prepared in accordance with the
applicable set of accounting standards, give a true and fair view of the
assets, liabilities, financial position and profit or loss of the Company; and
• the Strategic report includes a fair review of the
development and performance of the business and the position of the issuer,
together with a description of the principal risks and uncertainties they
face.
We consider the Annual Report and Financial Statements, taken as a whole, is
fair, balanced and understandable and provides the information necessary for
shareholders to assess the Company's position and performance, business model
and strategy.
On behalf of the Board
Dr Linda Yueh CBE
7 April 2026
Statement of comprehensive income
For the year ended 31 January
Notes 2026 2026 2026 2025 2025 2025
Revenue Capital Total Revenue Capital Total
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Gains on investments 7 - 452,482 452,482 - 158,543 158,543
Currency gains - 117 117 - 15 15
Income 2 1,716 - 1,716 7,509 - 7,509
Investment management fee 3 (12,712) - (12,712) (9,562) - (9,562)
Other administrative expenses 4 (2,794) - (2,794) (1,956) - (1,956)
Operating profit/(loss) before taxation (13,790) 452,599 438,809 (4,009) 158,558 154,549
Tax on ordinary activities - 317 317 - 517 517
Profit/(loss) and total comprehensive income/(loss) for the year attributable (13,790) 452,916 439,126 (4,009) 159,075 155,066
to ordinary shareholders
Earnings/(loss) per (1.35¢) 44.49¢ 43.14¢ (0.39¢) 15.49¢ 15.10¢
ordinary share
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
As at 31 January
Notes 2026 2026 2025 2025
US$'000 US$'000 US$'000 US$'000
Non-current assets
Investments held at fair value through profit or loss 7 1,785,074 1,290,450
Current assets
US Treasury Bills - 77,334
Cash and cash equivalents 13,001 6,118
Debtors 1,922 1,427
14,923 84,879
Current liabilities
Amounts falling due within one year (4,089) (5,055)
Net current assets 10,834 79,824
Non-current liabilities
Amounts falling due after more than one year:
Provision for tax liability - (317)
Net assets 1,795,908 1,369,957
Capital and reserves
Share capital 8 1,209,208 1,209,208
Capital reserve 610,191 170,450
Capital redemption reserve 7,296 7,296
Revenue reserve (30,787) (16,997)
Ordinary shareholders' funds 1,795,908 1,369,957
Net asset value per ordinary share 177.28¢ 133.69¢
Number of ordinary shares in issue 8 1,013,033,907 1,024,738,907
The Financial Statements of The Schiehallion Fund Limited (Company
registration number 65915) were approved and authorised for issue by the Board
of Directors and were signed on 7 April 2026.
Dr Linda Yueh CBE
Chairperson
The accompanying notes below are an integral part of the Financial Statements.
Statement of changes in equity
For the year ended 31 January 2026
Notes Share Capital Capital Revenue Shareholders'
capital reserve redemption reserve funds
US$'000 US$'000 reserve US$'000 US$'000
US$'000
Shareholders' funds at 1 February 2025 1,209,208 170,450 7,296 (16,997) 1,369,957
Ordinary shares bought back - (13,175) - - (13,175)
Total comprehensive income/(loss) - 452,916 - (13,790) 439,126
Shareholders' funds at 31 January 2026 1,209,208 610,191 7,296 (30,787) 1,795,908
For the year ended 31 January 2025
Notes Share Capital Capital Revenue Shareholders'
capital reserve redemption reserve funds
US$'000 US$'000 reserve US$'000 US$'000
US$'000
Shareholders' funds at 1 February 2024 1,213,903 15,621 2,601 (12,988) 1,219,137
Ordinary shares bought back (4,695) (4,246) 4,695 - (4,246)
Total comprehensive income/(loss) - 159,075 - (4,009) 155,066
Shareholders' funds at 31 January 2025 1,209,208 170,450 7,296 (16,997) 1,369,957
The accompanying notes below are an integral part of the Financial Statements.
Statement of cash flows
For the year ended 31 January
Notes 2026 2026 2025 2025
US$'000 US$'000 US$'000 US$'000
Cash flows from operating activities
Operating profit before taxation 438,809 154,549
US Treasury Bills interest 2 (824) (6,705)
Net gains on investments (452,482) (158,543)
Currency gains (117) (15)
Changes in debtors and creditors (1,353) 910
Net cash used in operating activities* (15,967) (9,804)
Cash flows from investing activities
Acquisitions of US Treasury Bills - (151,064)
Disposals of US Treasury Bills 78,159 247,928
Acquisitions of investments 7 (194,966) (121,914)
Disposals of investments 7 152,824 33,788
Net cash used in investing activities 36,017 8,738
Cash flows from financing activities
Ordinary shares bought back (13,284) (4,137)
Net cash outflow from financing activities (13,284) (4,137)
Net decrease in cash and cash equivalents 6,766 (5,203)
Effect of exchange rate fluctuations on cash and cash equivalents 117 15
Cash and cash equivalents at 1 February 6,118 11,306
Cash and cash equivalents at 31 January 13,001 6,118
* Cash from operations includes interest received of US$367,000 (2025 -
US$412,000).
2026 2025
US$'000 US$'000
Cash and cash equivalents comprise the following:
Cash at bank 13,001 6,118
The accompanying notes below are an integral part of the Financial Statements.
Notes to the Financial Statements
1. Principal accounting policies
The Financial Statements for the year ended 31 January 2026
have been prepared in accordance with International Financial Reporting
Standards ('IFRS') as issued by the International Accounting Standards Board
('IASB').
2. Income
2026 2025
US$'000 US$'000
US Treasury Bill interest 824 6,705
Overseas interest 525 392
Deposit interest 367 412
Total income 1,716 7,509
3. Investment management fee
2026 2025
US$'000 US$'000
Investment Management fee 12,712 9,562
Details of the Investment Management Agreement are set out
on pages 58 and 59. Under the terms of the Investment Management Agreement and
with effect from the date the Company's ordinary shares were admitted to
trading on the London Stock Exchange, the Investment Manager is entitled to an
annual fee (exclusive of VAT, which shall be added where applicable) of: 0.9%
on the net asset value excluding cash or cash equivalent assets up to and
including US$650 million; 0.8% on the net asset value excluding cash or cash
equivalent assets exceeding US$650 million up to and including US$1.3 billion;
and 0.7% on the net asset value excluding cash or cash equivalent assets
exceeding US$1.3 billion. Management fees are calculated and payable
quarterly. For the purpose of calculating the investment management fee, cash
equivalents include US Treasury Bills.
4. Other administrative expenses
2026 2025
US$'000 US$'000
General administrative expenses 1,485 944
Administrator's fee 119 112
Auditor's remuneration for audit and non-audit services* 504 260
Directors' fees 446 395
Depositary and custody fees 115 144
Registrar fees 52 39
Marketing(†) 73 62
2,794 1,956
* In the year to 31 January 2026, non-audit fees of US$66,000 (31 January
2025 - nil) were paid to the Auditor, KPMG Advisory Limited, in respect of
non-audit services (included within 'Other administrative expenses' above).
The non-audit fees incurred in the year to 31 January 2026 of US$66,000 were
related to the engagement of KPMG to provide a Financial Position and
Prospects Procedures ("FPPP") report in connection with the proposed admission
of the Company's Ordinary Shares to listing on the closed-ended investment
funds category of the Official List of the Financial Conduct Authority and the
transfer of the admission to trading of the Ordinary Shares from the
Specialist Fund Segment to the listed segment of the Main Market of the London
Stock Exchange. There were no non-audit fees incurred in the year to
31 January 2025.
† The Company is part of a marketing programme which includes all the
investment trusts managed by the Investment Manager. The marketing strategy
has an ongoing objective to stimulate demand for the Company's shares. The
cost of this marketing strategy is borne in partnership by the Company and the
Investment Manager. The Investment Manager matches the Company's marketing
contribution and provides the resource to manage and run the programme.
5. Earnings per share
Year ended Year ended
31 January 2026
31 January 2025
Ordinary shares US$'000 ¢ US$'000 ¢
Revenue return on ordinary activities after taxation (13,790) (1.35) (4,009) (0.39)
Capital return on ordinary activities after taxation 452,916 44.49 159,075 15.49
Profit and total comprehensive income for the year 439,126 43.14 155,066 15.10
Weighted average number of ordinary shares in issue 1,018,052,112 1,027,245,710
6. Ordinary dividends
There were no dividends paid or proposed in respect of the
year to 31 January 2026 (2025 - nil).
7. Financial instruments
Fair value hierarchy
The fair value hierarchy used to analyse the fair values of
financial assets is described below. The levels are determined by the lowest
(that is the least reliable or least independently observable) level of input
that is significant to the fair value measurement for the individual
investment in its entirety as follows:
Level 1 - using unadjusted quoted prices for identical instruments in an
active market;
Level 2 - using inputs, other than quoted prices included within Level 1, that
are directly or indirectly observable (based on market data); and
Level 3 - using inputs that are unobservable (for which market data is
unavailable).
The valuation techniques used by the Company are explained
in the accounting policies on pages 90 and 91. Transfers between levels of
the fair value hierarchy take place when the criteria for recognition in
another level are met, such as the listing of an investment.
As at 31 January 2026 Level 1 Level 2 Level 3 Total
US$'000 US$'000 US$'000 US$'000
Listed equities 212,434 - - 212,434
Private company ordinary shares/warrants - - 481,655 481,655
Private company preference shares* - - 1,065,201 1,065,201
Private company convertible promissory notes - - 25,784 25,784
Total financial asset investments 212,434 - 1,572,640 1,785,074
As at 31 January 2025 Level 1 Level 2 Level 3 Total
US$'000 US$'000 US$'000 US$'000
Listed equities 290,843 - - 290,843
Private company ordinary shares/warrants - - 280,083 280,083
Private company preference shares* - - 712,041 712,041
Private company convertible promissory notes - - 7,483 7,483
Total financial asset investments 290,843 - 999,607 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.
During the year ended 31 January 2026, the investments in
Chime Financial and HeartFlow with a book cost of US$40,000,000 and
US$17,100,000 and a fair value (IPO price) of US$16,968,000 and US$21,430,000
respectively were transferred from Level 3 to Level 1 on becoming listed.
During the year ended 31 January 2025, the investment in Tempus AI with a book
cost of US$18,468,000 and a fair value (IPO price) of US$32,858,000 was
transferred from Level 3 to Level 1 on becoming listed.
Investments in securities are financial assets held at fair
value through profit or loss. In accordance with IFRS 13, the table above
provides an analysis of these investments based on the fair value hierarchy
described above, which reflects the reliability and significance of the
information used to measure their fair value.
Listed Private Total
securities company US$000
US$000 securities
US$000
Cost of investments at 1 February 2025 134,094 935,572 1,069,666
Investment holding gains and losses at 1 February 2025 156,749 64,035 220,784
Fair value of investments at 1 February 2025 290,843 999,607 1,290,450
Movements in the period:
Purchases at cost(†) - 194,966 194,966
Sales - proceeds(†) (120,684) (32,140) (152,824)
- profit on disposal 55,728 15,603 71,331
Changes in categorisation at cost 57,100 (57,100) -
Changes in investment holding gains and losses (70,553) 451,704 381,151
Fair value of investments at 31 January 2026 212,434 1,572,640 1,785,074
Cost of investments at 31 January 2026 126,238 1,056,901 1,183,139
Investment holding gains and losses at 31 January 2026 86,196 515,739 601,935
Fair value of investments at 31 January 2026* 212,434 1,572,640 1,785,074
* Includes holdings in preference shares, promissory notes, ordinary
shares and warrants.
† The purchases and sales figures above include transaction costs of
US$167,000 (2025 - nil).
8. Ordinary share capital
2026 2026 2025 2025
Number US$'000 Number US$'000
Allotted, called up and fully paid ordinary shares of US$1 each 1,013,033,907 1,197,038 1,024,738,907 1,208,743
Treasury shares of US$1 each 12,170,000 12,170 465,000 465
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 issue or sell
from treasury, ordinary or C shares, without regard to pre-emption rights up
to 102,882,390 shares. This authority will expire immediately prior to the
2029 Annual General Meeting (or, if earlier, five years from the date of the
passing of the resolution). During the year to 31 January 2026 no shares were
issued (2025 - nil). In the period from 1 February 2026 to 6 April 2026
1,250,000 shares were issued.
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 the resolution passed. This will expire at
the conclusion of the Annual General Meeting to be held on 14 May 2026.
11,705,000 ordinary shares were bought back during the year ended 31 January
2026 at a cost of US$13,175,000 (31 January 2025 - 5,160,000 ordinary shares
at a cost of US$4,246,000) hence the remaining authority is 145,142,243
ordinary shares. At 31 January 2026 the Company held 12,170,000 shares in
treasury (2025 - 465,000). In the period from 1 February 2026 to 6 April 2026
no ordinary shares were bought back to treasury. The total cost of shares
bought back is charged to the capital reserve. The nominal value of the shares
that were bought back and cancelled were transferred from the share capital to
the capital redemption reserve.
During the year to 31 January 2026 the Company issued one
Class B special voting share. The Company's B Share, which was issued to a
Guernsey purpose trust, whose trustee is Carey Olsen Client Services
(Guernsey) Limited, to implement the revised voting structure required for the
Company's proposed admission to listing on the CEIF category of the Official
List of the FCA currently carries no voting rights at general meetings of the
Company. However, in the event the level of ownership of Ordinary Shares by US
residents (excluding any Ordinary Shares held in treasury) exceeds 35% on any
date determined by the Directors (based on an analysis of share ownership
information available to the Company), the B Share will carry voting rights in
relation to `Director Resolutions' (as such term is defined in the Articles of
Incorporation). In this event, the B Share will automatically carry such
voting rights to dilute the voting power of the Ordinary Shareholders with
respect to Director Resolutions to the extent necessary to reduce the
percentage of votes exercisable by US residents in relation to the Director
Resolutions to not more than 35%.
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.
9. Transactions with related parties and the Investment Manager and Administrator
Each of the Directors is entitled to receive a fee from the Company at such
rate as may be determined in accordance with the Articles of Incorporation.
Directors' fees for the year are detailed in the Directors' remuneration
report on pages 74 to 76.
All of the Directors will also be entitled to be paid all reasonable expenses
properly incurred by them in connection with the performance of their duties.
These expenses will include those associated with attending general Board or
committee meetings and legal fees. The Board may determine that additional
remuneration may be paid, from time to time, to any one or more Directors in
the event such Director or Directors are requested by the Board to perform
extra or special services on behalf of the Company.
No Director has a contract of service with the Company.
Details of the investment management agreement are set out in note 3. The
management fee payable to the Investment Manager by the Company for the year
ended 31 January 2026, as disclosed in note 3, was US$12,712,000 (2025 -
US$9,562,000) of which US$3,611,000 was outstanding at 31 January 2026 (2025 -
US$2,743,000), as disclosed in note 9.
The fee payable to the Administrator, for the year to 31 January 2026 as
disclosed in note 4, was US$119,000 (2025 - US$112,000) of which US$10,000 was
outstanding at 31 January 2026 (2025 - US$9,000) as disclosed in note 9.
The financial information set out above does not constitute the Company's
statutory accounts for the year ended 31 January 2026 or the year ended 31
January 2025 but is derived from those accounts.
The Annual Report and Financial Statements is available on the Company website
schiehallionfund.com‡. The audited Annual Report and Financial Statements
will be posted to shareholders during April 2026 (including the Notice of AGM
and voting instructions). A copy of the annual financial report will
be submitted shortly to the National Storage Mechanism ('NSM') and will be
available for inspection at the NSM, which is situated
at https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) .
(‡) Neither the contents of the Company website nor the
contents of any website accessible from hyperlinks on the Company website (or
any other website) is incorporated into, or forms part of, this announcement.
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.
Total net assets
Total value of all assets held less current liabilities, other than
liabilities in the form of borrowings.
Net asset value
Also described as shareholders' funds, net asset value ('NAV') is the value of
total assets less liabilities (including borrowings). The NAV per share is
calculated by dividing this amount by the number of ordinary shares or C
shares, as applicable, in issue.
Net current assets
Net current assets comprise current assets less current liabilities excluding
borrowings.
Premium/(discount) (APM)
As stock markets and share prices vary, the 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 NAV per share from the share price and is usually expressed as a
percentage of the NAV per share. If the share price is higher than the NAV per
share, this situation is called a premium.
Ordinary shares 2026 2025
Closing NAV per share (a) 177.28¢ 133.69¢
Closing share price (b) 178.00¢ 108.00¢
Premium/(discount) ((b - a) ÷ (a) expressed as a percentage) 0.4% (19.2%)
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 one year 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 on page 14.
Capital deployed (APM)
Capital deployed reflects cumulative amounts invested since inception of the
Company.
Internal rate of return (IRR) (APM)
The IRR indicates the annualised rate of return for the Company's investment
portfolio.
Gross multiple on invested capital (MOIC) (APM)
The MOIC expresses, as a multiple, how much return the Company has made on
investment realisations and income, relative to its book cost.
Ongoing charges (APM)
The total recurring expenses (excluding the Company's costs of dealing in
investments and borrowing costs) incurred by the Company as a percentage of
the average net asset value.
Ordinary shares 2026 2025
US$'000 US$'000
Investment management fee 12,712 9,562
Other administrative expenses 2,794 1,956
Less: Non-recurring expenses* (1,219) -
Total recurring expenses (a) 14,287 11,518
Average net asset value (b) 1,495,174 1,248,889
Ongoing Charges ((a) ÷ (b) expressed as a percentage) 0.96% 0.92%
* Non-recurring expenses in the year to 31 January 2026 amounted to
US$1,219,000. These were the total costs incurred during the reporting period
in connection with the trading segment migration and tax residency move to the
UK.
Leverage (APM)
For the purposes of the Alternative Investment Fund Managers Regulations,
leverage is any method which increases the Company's exposure, including the
borrowing of cash and the use of derivatives. It is expressed as a ratio
between the Company's exposure and its net asset value and can be calculated
on a gross and a commitment method. Under the gross method, exposure
represents the sum of the Company's positions after the deduction of US dollar
cash balances, without taking into account any hedging and netting
arrangements. Under the commitment method, exposure is calculated without the
deduction of sterling cash balances and after certain hedging and netting
positions are offset against each other.
Average revenue growth rate (APM)
Calculated by taking an average of each investee company's last twelve months
revenue growth (as a percentage).
Average movement in company valuation/share price (APM)
Calculated by taking an average of all valuation movements (as a percentage)
by portfolio company and by line of portfolio company share class.
Contribution (APM)
Contribution to absolute performance (in US$ terms) is used to illustrate how
an individual stock has contributed to the overall return. It is calculated by
taking the average portfolio company weight for the period multiplied by the
absolute return. This is calculated on a daily basis and compounded to provide
the overall contribution of a portfolio company to the performance of the full
portfolio. The absolute return of a portfolio company is determined by
calculating the share price movements in that holding whilst taking into
account any purchase or sale transactions that have occurred in the period.
The absolute return is in US$ terms and therefore takes into account the
foreign exchange movement between the portfolio company's local currency and
US dollar.
Weighted average revenue growth (APM)
The average revenue growth rate of the portfolio's underlying companies,
weighted by each holding's proportion of the portfolio.
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 Schiehallion is marketed in the EU by the
AIFM, Baillie Gifford & 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 Stewardship Principles and
Guidelines as its policy on integration of sustainability risks in investment
decisions.
More detail on the Investment Manager's approach to sustainability can be
found in the Stewardship Principles and Guidelines document, available
publicly on the Baillie Gifford website bailliegifford.com.
Third party data provider disclaimer
No third party data provider ('Provider') makes any warranty, express or
implied, as to the accuracy, completeness or timeliness of the data contained
herewith nor as to the results to be obtained by recipients of the data.
No Provider shall in any way be liable to any recipient of the data for any
inaccuracies, errors or omissions in the index data included in this document,
regardless of cause, or for any damages (whether direct or indirect) resulting
therefrom. No Provider has any obligation to update, modify or amend the data
or to otherwise notify a recipient thereof in the event that any matter stated
herein changes or subsequently becomes inaccurate.
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