Schiehallion Fund Schiehallion - MNTN Schiehallion - MNTC - The Schiehallion Fund Limited Final Results
28/03/2023 07:00
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RNS Number : 3740U Schiehallion Fund Limited (The) 28 March 2023
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 2023
‡ Neither the contents of the Managers' website nor the contents
of any website accessible from hyperlinks on the Managers' website (or any
other website) is incorporated into, or forms part of, this announcement.
27 March 2023
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
The following is the Preliminary Results Announcement for the year to 31
January 2023 which was approved by the Board on 27 March 2023.
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.
The last year has been a period of great public market share price volatility.
Public market prices are incorporated into the Company's private company
valuation process and have, therefore, impacted the Company's carrying values
of its investments. The Company's valuation policy is set out on page 14 of
the Annual Report and Financial Statements.
The Board meets quarterly with the Company's portfolio managers and holds
meetings to review the Company's investment valuations twice a year. We also
have regular contact with the Investment Manager outside of formal Board
meetings. Last week, I visited one of the Company's larger investments and two
potential investments with the portfolio manager. The Investment Manager has a
dedicated Private Companies investment team, supported by a specialist
operations team that ensures that investments are monitored at all stages.
Details of the Investment Manager's resources are set out on page 26.
The Board has complete confidence in the Investment Manager's ability to
scrutinise and oversee private company investments. In the view of the Board
which includes a director who has 40 years of private equity and venture
capital experience, the Investment Manager has the most rigorous process of
any investor in this area. The Board is wholly committed to the aim of the
company that seeks to generate returns of three times capital over a rolling
10 year period through long-term minority investments in later stage private
businesses.
Investment Performance
During the financial year to 31 January 2023, the Company's ordinary share
price and net asset value returned negative 56.6% and negative 24.5%,
respectively. Over the period from 27 March 2019 (launch date) to 31 January
2023, the Company's ordinary share price and net asset value returned negative
8.0% and positive 19.8%, respectively.
During the financial year to 31 January 2023, the Company's C share price and
net asset value returned negative 58.5% and negative 18.4%, respectively.
During the period from admission to trading on 26 April 2021 to 31 January
2023, the Company's C share price and net asset value returned negative 60.5%
and negative 20.0%, respectively.
Commentary on performance is included in the Investment Manager's review.
Share Price Discount
In each of the Company's previous Annual Reports, I noted the level of premium
to net asset value at which the Company's shares have traded and explained
that investors should bear in mind that shares bought at a high premium to net
asset value can quickly lose substantial value if the premium is eroded.
Unfortunately, this proved to be the case over the last 12 months as sentiment
turned against growth stocks and private company investments. The ordinary
shares derated from a 34.0% premium to net asset value at the start of 2022 to
a 23.0% discount to net asset value at the year end. The C shares also derated
from a 21.3% premium to net asset value to a 38.3% discount to net asset value
over the same period.
Although there is no current intention to exercise the authority to purchase
the Company's shares, the Company will be seeking authority to renew the
buy-back authority for the ordinary shares at the forthcoming Annual General
Meeting (AGM). The Company is also seeking authority at the AGM to purchase
the Company's C shares. No shares were bought back during the year ended 31
January 2023.
The Company has a general authority to issue further shares if the Directors
determine such issues to be in the best interests of shareholders and the
Company as a whole. At 31 January 2023, the Company had authority, which was
granted at the initial launch, to issue a further 242.75 million shares. This
authority expires at the end of the period concluding immediately prior to the
Annual General Meeting to be held in 2024 (or, if earlier five years from 15
March 2019, the date the special resolution was passed).
Deployment of Capital
The C shares will convert into ordinary shares once at least 85 per cent. of
the net placing proceeds of the C share issue have been deployed. When the C
shares were issued in April 2021, your Board said it would be reasonable to
expect that the C share proceeds would be two-thirds invested within two
years. As at 31 January 2023, approximately 79% of C share proceeds had been
invested in 25 companies. There is commentary on the Company's portfolio in
the Investment Manager's Review and Review of Investments on pages 12 to 24 of
the Annual Report and Financial Statements.
Cost
The ongoing charges for the ordinary shares as at 31 January 2023 were 0.87%.
Last year, the ongoing charges for the ordinary shares were 0.89%.
The ongoing charges for the C shares as at 31 January 2023 were 0.71%. Last
year, the ongoing charges, for the period from 26 April 2021 to 31 January
2022, for the C shares were 0.38%. Management fees are not charged on cash and
cash equivalents, so the ongoing charges have risen as the C share proceeds
have been deployed. As at 31 January 2023, the C share capital has been 79%
depoyed, increasing from 60% in the previous year.
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 period the net
revenue return per ordinary share was a negative 0.98 cents (year to 31
January 2022, negative 1.47 cents) and the net revenue return per C share was
negative 0.35 cents (period to 31 January 2022, negative 0.28 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 page 25 of the Annual Report and Financial
Statements.
The Board undertook an external evaluation during the year and has considered
its balance of skills, which was deemed to be suitable for the Company. All
the Directors are subject to annual re-election at the AGM in May.
Annual General Meeting
The AGM will be held at 12 noon on Friday 12 May 2023 at the offices of Alter
Domus in Guernsey. Shareholders are reminded that they are able to submit
proxy voting forms before the applicable deadline on Wednesday 10 May 2023 and
also to direct any questions for the Board or Manager in advance by email to
trustenquiries@bailliegifford.com or by calling 0800 917 2112. (Please note
that Baillie Gifford may record your call). Information on the resolutions can
be found on pages 67 and 68 of the Annual Report and Financial Statements. 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
The past year has been characterised by geo-political uncertainties,
inflationary pressures, higher interest rates, increased cost of borrowing,
and a recessionary environment. The macro context worsened the disruption
caused by supply chains stemming in part from the covid-19 pandemic. Although
inflationary pressures have begun to ease, these factors have collectively
contributed to a challenging economic and market environment.
Despite the considerable uncertainties, the Board and the Investment Manager
are optimistic about the outlook for the Company with its focus on the
long-term and investing in companies with transformational potential. The
Company solely invests in companies with exceptional growth potential which
are not widely accessible in public markets. The potential of the companies in
our portfolio is generally dependent on their ability to take advantage of
opportunities. Therefore, the Board is positive about the growth prospects of
these companies, and the pipeline of private companies that the Investment
Manager has access to. The Board and the Investment Manager are confident in
the investment outlook for the Company.
Dr Linda Yueh CBE
Chairperson
27 March 2023
Past performance is not a guide to future performance. For a definition of
terms used see Glossary of Terms and Alternative Performance Measures at the
end of this announcement.
Investment Managers' Review
The role of the annual Investment Managers' review is to look both backwards
and forwards. Looking backwards, we are disappointed with what we delivered
for shareholders over the last 12 months. However, looking forward to 2023 and
beyond, we feel a sense of profound optimism for the portfolio and new
opportunities.
Performance
Our aspiration is to generate a net return for the Company of approximately
three times invested capital over rolling 10 year periods, measured on the
basis of NAV total return on the portfolio. During the year to 31 January
2023, the NAV total return of the ordinary shares and the C shares was
negative 24.5% and negative 18.4% respectively. The path to long-term capital
growth is never straight, and periods of volatility and underperformance are
inevitable. However, even in this context, 2022 was a year in which we stepped
backwards rather than forwards. We are conscious that this has been
particularly felt by newer investors, who did not experience the strong
performance of the ordinary shares in the previous two financial years.
Across The Schiehallion Fund, poor NAV performance was driven by significant
declines in the value of our holdings that had entered the public markets,
markdowns in the carrying values of our private company investments due to
reductions in the valuations of comparable public companies and indices, and
poor operational performance from some portfolio companies. Pain for both
ordinary and C shareholders was exacerbated by share price swings from
significant premiums to NAV to discounts to NAV.
Portfolio
Whilst we can feel gloomy looking at investment returns over the last 12
months, we only need to look at the companies in The Schiehallion Fund to
start feeling more optimistic. We believe shareholder's capital is invested in
some of the best private companies in the world, capable of delivering
outsized investment returns over the long run. This is not without risk, or
even in some cases, controversy. As we exited 2022, the five largest holdings
were SpaceX, Scopely, ByteDance, Solugen, and Wise. It would be hard to
imagine a more diverse set of businesses than those making money selling
access to space, virtual in-game goods, advertising, speciality chemicals, and
foreign exchange. In each of these companies, there are strong founders,
robust competitive advantages, and huge addressable markets. The average
growth rate of these companies was approximately 50% and three of the five are
profitable.
It is not just at the top end of the portfolio where the quality of companies
and the scale of potential upside gives us real optimism. Looking at the whole
portfolio, the average revenue growth rate was just over 50% in the last 12
months. Holdings such as Databricks are helping organisations use advances in
AI to improve their use of data to inform product development and
decision-making. Away, a direct-to-consumer luggage business, has seen a
significant upswing in its business after a tough time during Covid-19.
McMakler, a digital German real estate broker,
is weathering a tough operating environment but (we believe) taking
significant share from its competitors. We hope the extra detail around
portfolio companies included in the review of investments on pages 17 to 24 in
the Annual Report and Financial Statements will help convey this excitement
and optimism to shareholders.
Of course, some companies met challenges in 2022. Consumer-facing companies
that saw leaps forward in demand in 2020-2022 saw growth rates come back as
consumer spending retrenched, and they started to lag those big increases. We
saw this in companies such as Affirm, Warby Parker, Masterclass and Pet
Circle. Epic Games faced another kind of challenge in a large fine by the FTC
for historical issues around online child protection and payment practices.
These issues have long since been rectified, but it was nevertheless short of
the standards we expect of our companies.
Investing in late-stage private companies
We typically invest in late-stage private companies that are scaling up and
becoming profitable. At the stage we invest, founders are no longer looking
for the operational support traditional venture capital firms offer. Instead,
we provide long-term patient capital to fund further expansion, often holding
businesses after they have listed on public markets, to capture their full
growth potential.
One of the benefits of investing in late-stage private companies is that these
companies tend to have well-established financing teams and diversified
banking relationships. This benefit was evident during the recent uncertainty
in the banking sector. We engaged with all the private companies in our
portfolios to help better understand their banking relationships and any
potential impacts. The vast majority of investee companies had no material
exposure to Silicon Valley Bank. In addition, we were reassured by the Federal
Reserve's announcements that deposits would be accessible and that affected
companies were able to access their deposits and continue with business as
usual.
Deployment
2022 was also a frustrating year for deployment. Our universe has no shortage
of attractive companies, but we made fewer investments in the last 12 months
than in any year since inception. Three factors drove this. Firstly, many good
companies chose not to raise due to adverse market conditions. Secondly, there
was often a mismatch between companies' valuation expectations and what we
believed reflected market conditions. This led to us walking away from
opportunities after deep diligence based on price. Finally, in one notable
instance where we found a good business at a compelling price, misalignments
uncovered in our legal due diligence process caused us to walk away from the
investment.
The net result was that deployment from the C-Share pool was slower than
anticipated.
During the year, we invested in two new companies, Kepler Computing and Merlin
Labs; further information on each is included in the review of investments. We
also added to existing investments in Loft, Northvolt, Affirm, Brex,
Databricks, Faire Wholesale, Solugen, Tempus and Ver Se. As at 31 January
2023, approximately 79% of C share proceeds had been deployed.
Looking Forward
From a deployment perspective, 2023 has got off to a good start. We are
currently in deep diligence on companies in the US, China, Italy, and Israel.
In all these instances, price realism exists, sometimes at valuations below
previous rounds. We believe normalising down rounds is essential for
high-growth private markets. Far from viewing it as a marker of failure, we
applaud those founders and boards willing to adjust their expectations to
market norms. We have more respect for those companies that raise rounds at
lower valuations than those that use artificial means to maintain valuations
set in an environment that no longer exists.
Most of the capital we have deployed from Schiehallion has been primary
investment into companies. Companies create and issue new shares, with the
capital we use to buy them going directly onto the companies' balance sheets.
This is our preferred means of investment as it gives companies extra
resources to fund their growth. Put another way, the investment itself
favourably twists the odds and magnitude of success. This contrasts with
secondary investment, where shares are bought from existing investors, with
none of the capital going to the company's benefit in the same direct manner.
Our preference has always been, and will continue to be, for primary over
secondary investment, but in the current environment, we are seeing some
compelling secondary opportunities that are too good to ignore. Early
investors at the end of their fund life are coming under pressure to realise
gains and return capital to their clients. This is giving rise to a spike in
the supply of shares in private companies, with a corresponding decline in the
price at which we can buy these shares. We have been more actively exploring
this market in conjunction with our dealing team. Though we have not yet
transacted in this manner, we see it as an extra string to our bow that, over
time, has the potential to broaden the opportunity set for The Schiehallion
Fund.
We want to finish by thanking shareholders for their support in 2022. As we
look into 2023, we see strong reasons for optimism for both our existing
holdings and new opportunities. Our proposition around long-termism and
alignment with companies is more relevant today than it ever had been and we
maintain our conviction that this will lead to attractive returns for
shareholders.
Peter Singlehurst
27 March 2023
Past performance is not a guide to future performance.
For a definition of terms used see Glossary of Terms and Alternative
Performance Measures at the end of this announcement.
Valuing Private Companies
We hold our private company investments at 'fair value' i.e., the price that
would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date.
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 committee at Baillie Gifford
which takes advice from an independent third party (S&P Global). The
valuations committee is independent from the portfolio managers, as well as
Baillie Gifford's Private Companies Specialist 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 private company investments on a three-month rolling cycle, with
one-third of the holdings reassessed each month. 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. Recent market volatility has meant that recent pricing
has moved much more frequently than would have been the case with the
quarterly valuations cycle.
Beyond the regular cycle, the valuations committee also monitors each of the
private company investments for certain 'trigger events'. These may include
changes in fundamentals; a takeover approach; an intention to carry out an
Initial Public Offering ('IPO'); or changes to the valuation of comparable
public companies.
The valuations committee also monitors relevant market indices on a weekly
basis and updates valuations in a manner consistent with our external valuer's
(S&P Global) most recent valuation report where appropriate. When market
volatility is particularly pronounced the team do these checks daily. Any ad
hoc change to the fair valuation of any holding is implemented swiftly and
reflected in the next published NAV. There is no delay.
The Schiehallion Fund*
Instruments valued 451
Instruments held 74
Percentage of portfolio revalued up to 4 times 18.9%
Percentage of portfolio revalued 5 or more times 81.1%
* Data reflecting year to 31 January 2023
During the year, most valuations have resulted in decreases.
Valuation movements†
Average movement per instrument (16.7%)
Average mark-down per instrument (28.1%)
Average movement at private company level (28.5%)
Average mark-down at private company level (40.6%)
† Alternative performance measure, see Glossary of Terms and Alternative
Performance Measures at the end of this announcement.
Share prices have decreased less than headline valuations because Schiehallion
typically holds preference stock, which provides downside protection. The
share price movement reflects a probability weighted average of both the
regular valuation, which would be realised in an IPO, and the downside
protected valuation, which would normally be triggered in the event of a
corporate sale or liquidation.
Approach to Environmental, Social and Governance Considerations (ESG)
The environmental, social and governance considerations at play when Baillie
Gifford's Private Companies Team researches late-stage private companies.
ESG In Our Philosophy
Over our long-term horizon, we believe there is a convergence between what is
good for a business and what is good for the world at large. The conventional
wisdom that there is tension between profitability and doing the right thing
is based on short-term thinking. Over our investment horizon, we believe
profitability depends not only on a company's ability to serve customers well
but also on its ability to do this without jeopardising its social licence to
operate.
As such, we don't break out consideration of a company's role
in the broader system from our core 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
causes us to pay special attention to the positive and/or negative
externalities produced by a company's operations. Over five-year-plus periods,
these can have profound impacts on a company's relationship with customers,
regulators and staff. They can hugely help or hinder the growth of a business.
This is not about being a moral conscience for our clients. Rather, 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 Private Companies Team structures our research into potential investments
by using a proprietary '10 Questions' research framework. These questions aim
to address issues such as the scale of the opportunity, the competitive edge
and potential returns, whilst others focus specifically on ESG related topics.
Question Four ('How does the company's culture help it achieve the
leadership's long-term business vision?') asks about the stakeholders within a
firm, the culture within the workplace, and whether it cultivates a healthy
organisational mindset capable of delivering the mission. We have declined
companies in the past based on negative behaviours toward staff as part of
this question. Meanwhile, Question Five asks about external stakeholders ('Do
the company's customers like them?'). This question is geared towards
ecosystem impact in terms of opportunities and potential strengths, not just
uncovering risks. Question Six explores the E and S of ESG in greater depth
('How do environmental and social factors create opportunities and risks?').
Ultimately, this approach enables us to explore the inevitable grey areas.
Companies, like economies, are complex ecosystems.
Judging such a system as 'good' or 'bad' based on a single metric or factor
strikes us as profoundly unwise. Factors must be weighed together.
Consideration must be subjective and nuanced. The key data points are
inherently qualitative. We would be doing our clients and our companies a
disservice if we portrayed it as anything else.
Our Stewardship Principles for Public Companies
Prioritisation of long-term value creation
We encourage company management and their boards to be ambitious and focus
their investments on long-term value creation. We understand that it is easy
for businesses to be influenced by short-sighted demands for profit
maximisation but believe these often lead to sub-optimal long-term outcomes.
We regard it as our responsibility to steer businesses away from destructive
financial engineering towards activities that create genuine economic value
over the long run. We are happy that our value will often be in supporting
management when others do not.
A constructive and purposeful board
We believe that boards play a key role in supporting corporate success and
representing the interests of minority shareholders. There is no fixed
formula, but it is our expectation that boards have the resources, cognitive
diversity and information they need to fulfil these responsibilities. We
believe that a board works best when there is strong independent
representation able to assist, advise and constructively test the thinking of
management.
Long-term focused remuneration with stretching targets
We look for remuneration policies that are simple, transparent and reward
superior strategic and operational endeavour. We believe incentive schemes can
be important in driving behaviour, and we encourage policies which create
alignment with genuine long-term shareholders. We are accepting of significant
pay-outs to executives if these are commensurate with outstanding long-run
value creation, but plans should not reward mediocre outcomes. We think that
performance hurdles should be skewed towards long-term results and that
remuneration plans should be subject to shareholder approval.
Fair treatment of stakeholders
We believe it is in the long-term interests of companies to maintain strong
relationships with all stakeholders, treating employees, customers, suppliers,
governments and regulators in a fair and transparent manner. We do not believe
in one-size-fits-all governance and we recognise that different shareholder
structures are appropriate for different businesses. However, regardless of
structure, companies must always respect the rights of all equity owners.
Sustainable business practices
We look for companies to act as responsible corporate citizens, working within
the spirit and not just the letter of the laws and regulations that govern
them. We believe that corporate success will only be sustained if a business's
long-run impact on society and the environment is taken into account.
Management and boards should therefore understand and regularly review this
aspect of their activities, disclosing such information publicly alongside
plans for ongoing improvement.
* For a definition of terms used, see Glossary of Terms and
Alternative Performance Measures at the end of this announcement.
List of Investments at 31 January 2023
2023 Ordinary shares value US$'000
2023 2023 2023
C shares Total value US$'000 % of net assets 2022
Name Business Country value US$'000 Total value US$'000
Space Exploration Technologies Corp Designs, manufactures and launches advanced rockets and spacecraft United States 70,113 - 70,113 6.1 50,992
Scopely Inc Online gaming company United States 60,223 - 60,223 5.2 47,918
ByteDance Ltd Social media and news aggregation company China 49,808 - 49,808 4.3 58,378
Solugen Inc Combines enzymes and metal catalysts to make chemicals United States - 47,881 47,881 4.2 28,129
Wise PLC - Listed Online platform to send and receive money United Kingdom 30,112 10,009 40,121 3.5 48,644
Northvolt AB Lithium ion battery manufacturer Sweden 22,525 16,280 38,805 3.4 30,975
Brex Inc Corporate credit cards for startups United States 11,292 24,441 35,733 3.1 15,709
Daily Hunt (Ver Se Innovation Limited) Telephone voice, data, text messaging, and roaming services India 32,032 - 32,032 2.8 33,236
Affirm Holdings Inc - Listed Online platform which provides point of sale consumer finance United States 14,437 17,427 31,864 2.8 57,033
Genki Forest Technology Group Holdings Non-alcoholic beverages China - 29,727 29,727 2.6 33,000
Limited
Faire Wholesale Inc Online wholesale marketplace United States - 29,404 29,404 2.6 36,703
Epic Games Inc Video game developer United States 28,320 - 28,320 2.5 29,013
Stripe Inc Online payment platform United States 27,943 - 27,943 2.4 45,046
Chime Financial Inc Digital current account provider United States 7,417 19,294 26,711 2.3 44,357
Flix SE European mobility provider Germany 13,309 13,356 26,665 2.3 21,865
McMakler GmbH Real estate services Germany - 24,621 24,621 2.1 28,583
Tempus Labs Inc Oncological records aggregator and diagnostic testing provider United States 20,177 4,210 24,387 2.1 27,089
Databricks Inc Data software solutions United States - 23,523 23,523 2.0 24,766
Grammarly Inc Online platform for checking grammar, spelling and improving written United States - 22,353 22,353 1.9 45,002
communication
Nuro Inc Developer of autonomous delivery vehicles United States 9,100 12,112 21,212 1.8 29,874
Warby Parker (JAND Inc) - Listed Online and physical corrective eyewear retailer United States 20,774 - 20,774 1.8 47,868
Rappi Inc Provider of an on-demand delivery platform designed to connect consumers United States - 19,922 19,922 1.7 25,542
with local stores
Workrise Technologies Inc Jobs marketplace for the energy sector United States 17,073 - 17,073 1.5 25,026
Kepler Computing Inc Semiconductor company United States - 15,919 15,919 1.4 -
Indigo Agriculture Inc Microbial seed treatments to increase crop yields and grain marketplace United States 15,839 - 15,839 1.4 16,958
Loft Holdings Ltd Online property platform Brazil - 15,569 15,569 1.4 19,223
Merlin Labs Inc Autonomous flight technology United States - 13,842 13,842 1.2 -
Convoy Inc Marketplace for truckers and shippers United States 9,165 4,210 13,375 1.2 17,185
PsiQuantum Silicon photonic quantum computing United States - 13,195 13,195 1.1 15,000
Jiangxiaobai Holdings Ltd Producer of alcoholic beverages China 12,892 - 12,892 1.1 14,187
Away (JRSK Inc) Travel and lifestyle brand United States 12,355 - 12,355 1.1 11,920
Tanium Inc Online security management United States 11,799 - 11,799 1.0 29,773
Pet Circle (Millell Pty Ltd) Pet food and accessories Australia - 11,357 11,357 1.0 28,182
Wayve Technologies Ltd AI based software for self-driving cars United Kingdom - 9,728 9,728 0.8 16,267
Carbon Inc Manufactures and develops 3D printers United States 9,670 - 9,670 0.8 12,920
Blockstream Corp Inc Financial software developer United States - 8,885 8,885 0.8 13,937
Graphcore Ltd Computer chip developer United Kingdom 8,706 - 8,706 0.7 16,600
Airbnb Inc - Listed Online market place for travel accommodation United States 8,544 - 8,544 0.7 11,828
Cohesity Inc Data storage United States 8,033 - 8,033 0.7 11,930
Illumina Inc - Listed Gene sequencing equipment and consumables United States 7,355 - 7,355 0.6 9,396
Honor Technology Inc Provider of home-care services United States 2,990 3,888 6,878 0.6 12,043
MasterClass (Yanka Industries Inc) Online education platform United States 6,487 - 6,487 0.6 8,542
Allbirds Inc - Listed Sustainable direct-to-customer footwear brand United States 4,659 1,459 6,118 0.5 27,600
Oscar Health Inc - Listed Healthcare insurance provider United States 3,157 - 3,157 0.3 5,508
HeartFlow Inc Develops software for cardiovascular disease diagnosis and treatment United States 2,029 - 2,029 0.2 11,413
Ginkgo Bioworks Holdings* Inc - Listed Genetic engineering for industrial applications United States 1,085 - 1,085 0.1 -
Zymergen Inc* - Listed Synthetic biology United States - - - - 3,162
Total securities 559,420 412,612 972,032 84.3 1,148,322
† During the year Zymergen was taken over by Ginkgo Bioworks.
2023
Ordinary shares value US$'000 2023 2022
C shares 2023 2023 Total value US$'000
Name value US$'000 Total value US$'000 % of net assets
US Treasury Bill 18/05/2023 - 23,112 23,112 2.0 -
US Treasury Bill 13/07/2023 - 22,874 22,874 2.0 -
US Treasury Bill 07/09/2023 - 22,870 22,870 2.0 -
US Treasury Bill 23/03/2023 - 22,801 22,801 2.0 -
US Treasury Bill 02/11/2023 - 22,630 22,630 2.0 -
US Treasury Bill 28/12/2023 - 22,510 22,510 1.9 -
US Treasury Bill 24/03/2022 - - - - 44,697
US Treasury Bill 16/06/2022 - - - - 44,738
US Treasury Bill 14/07/2022 - - - - 44,786
US Treasury Bill 08/09/2022 - - - - 44,782
US Treasury Bill 03/11/2022 - - - - 44,698
US Treasury Bill 29/12/2022 - - - - 44,515
Total US Treasury Bills - 136,797 136,797 11.9 268,216
Cash 38,872 6,927 45,799 3.9 86,898
Other current assets and liabilities (684) (761) (1,445) (0.1) (30,924)
Net current assets 38,188 142,963 181,151 15.7 324,190
Net assets 597,608 555,575 1,153,183 100.0 1,472,512
Name Listed Private company Net current assets Net
investments investments % assets
% % %
31 January 2023 10.3 74.0 15.7 100.0
31 January 2022 14.3 63.7 22.0 100.0
Allocation of Net Assets
As at 31 January 2023
2023 2023 2023 2023
Ordinary C shares Total % of net
shares value value assets 2022
value US$'000 US$'000 Total value
US$'000 US'000
Listed investments 90,123 28,895 119,018 10.3 211,039
Private company investments 469,297 383,717 853,014 74.0 937,283
US treasury bills - 136,797 136,797 11.9 268,216
Cash and cash equivalents 38,872 6,927 45,799 3.9 86,898
Net current assets (684) (761) (1,445) (0.1) (30,924)
Total net assets 597,608 555,575 1,153,183 100.0 1,472,512
* Alternative performance measure, see Glossary of Terms and
Alternative Performance Measures at the end of this announcement.
Distribution of Net Assets
Ordinary Shares
Geographical
Sectoral
As at As at As at As at
31 January 2023 31 January 2022 31 January 2023 31 January 2022
% % % %
China 10.6 9.1 Communication Services 14.9 12.7
Germany 2.2 1.3 Consumer Discretionary 11.6 14.6
Sweden 3.8 3.0 Consumer Staples 4.8 3.9
United Kingdom 6.4 6.7 Financials 15.7 22.2
United States 65.2 69.4 Healthcare 5.5 7.0
India 5.4 4.2 Industrials 19.9 14.2
Net Current Assets 6.4 6.3 Information Technology 21.0 18.7
Materials 0.2 0.4
Net Current Assets 6.4 6.3
100.0 100.0 100.0 100.0
C Shares
Geographical
Sectoral
As at As at As at As at
31 January 2023 31 January 2022 31 January 2023 31 January 2022
% % % %
Germany 6.8 5.9 Consumer Discretionary 10.4 11.5
Sweden 2.9 0.9 Consumer Staples 5.4 4.8
United Kingdom 3.6 4.2 Financials 12.8 6.1
United States 50.7 41.8 Healthcare 1.5 0.9
China 5.4 - Industrials 7.8 4.7
Brazil 2.8 2.8 Information Technology 20.5 20.6
Australia 2.0 4.1 Materials 8.6 4.1
US Treasury Bills 24.7 39.4 Real Estate 7.2 7.0
Net Current Assets 1.1 0.9 US Treasury Bills 24.7 39.4
Net Current Assets 1.1 0.9
100.0 100.0 100.0 100.0
The above sectoral distribution is not derived from any index.
Statement of Comprehensive Income
For the year ended 31 January 2023 For the year ended 31 January 2022
Notes Revenue Capital Total Revenue Capital Total
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
(Losses)/gains on investments 7 - (311,938) (311,938) - 39,460 39,460
Currency losses - (17) (17) - (19) (19)
Income 2 2,800 - 2,800 362 - 362
Investment management fee 3 (8,931) - (8,931) (8,427) - (8,427)
Other administrative expenses 4 (1,233) - (1,233) (1,100) - (1,100)
Operating (loss) / profit before finance costs and taxation (7,364) (311,955) (319,319) (9,165) 39,441 30,276
Finance costs of borrowings (10) - (10) (7) - (7)
Operating (loss) / profit before taxation (7,374) (311,955) (319,329) (9,172) 39,441 30,269
Tax on ordinary activities - - - - - -
(Loss)/profit and total comprehensive (loss)/income for the year (7,374) (311,955) (319,329) (9,172) 39,441 30,269
Total comprehensive (loss)/income for the year analysed as follows:
Attributable to ordinary shareholders (4,923) (189,131) (194,054) (7,238) 51,460 44,222
Attributable to C shareholders (2,451) (122,824) (125,275) (1,934) (12,019) (13,953)
(Loss) / profit and total comprehensive (loss)/income for the year (7,374) (311,955) (319,329) (9,172) 39,441 30,269
(Loss)/earnings per ordinary share 5 (0.98¢) (37.79¢) (38.77¢) (1.47¢) 10.46¢ 8.99¢
Loss per C share 5 (0.35¢) (17.55¢) (17.90¢) (0.28¢) (1.72¢) (2.00¢)
The total column of this Statement represents the Statement of Comprehensive
Income of the Company. The supplementary revenue and capital columns are
prepared under guidance published by the Association of Investment Companies.
All revenue and capital items in this statement derive from continuing
operations.
Statement of Financial Position
As at 31 January
Notes 2023 2023 2022 2022
US$'000 US$'000 US$'000 US$'000
Fixed assets
Investments held at fair value through profit or loss 7 972,032 1,148,322
Current assets
US Treasury Bills 136,797 268,216
Cash and cash equivalents 45,799 86,898
Debtors 884 405
183,480 355,519
Current liabilities
Amounts falling due within one year (2,329) (31,329)
Net current assets 181,151 324,190
Net assets 1,153,183 1,472,512
Capital and reserves
Share capital 1,216,503 1,216,503
Capital reserve (51,536) 260,419
Revenue reserve (11,784) (4,410)
Shareholders' funds 1,153,183 1,472,512
Shareholders' funds - ordinary shares 597,608 791,663
Net asset value per ordinary share 119.42¢ 158.20¢
Number of ordinary shares in issue 500,430,002 500,430,002
Shareholders' funds - C shares 555,575 680,849
Net asset value per C share 79.37¢ 97.26¢
Number of C shares in issue 700,000,000 700,000,000
Statement of Changes in Equity
For the year ended 31 January 2023
Notes Share Capital Revenue Shareholders'
capital reserve reserve funds
US$'000 US$'000 US$'000 US$'000
Shareholders' funds at 1 February 2022 1,216,503 260,419 (4,410) 1,472,512
Ordinary shares issued - - - -
C shares issued - - - -
Total comprehensive loss - ordinary shares - (189,131) (4,923) (194,054)
Total comprehensive loss - C shares - (122,824) (2,451) (125,275)
Shareholders' funds at 31 January 2023 1,216,503 (51,536) (11,784) 1,153,183
For the year ended 31 January 2022
Notes Share Capital Revenue Shareholders'
capital reserve reserve funds
US$'000 US$'000 US$'000 US$'000
Shareholders' funds at 1 February 2021 480,340 220,978 4,762 706,080
Ordinary shares issued 41,361 - - 41,361
C shares issued 694,802 - - 694,802
Total comprehensive income/(loss) - ordinary shares - 51,460 (7,238) 44,222
Total comprehensive loss - C shares - (12,019) (1,934) (13,953)
Shareholders' funds at 31 January 2022 1,216,503 260,419 (4,410) 1,472,512
The capital reserve includes investment holding gains of US$• (2022 -
US$255,767,0000).
Statement of Cash Flows
For the year ended For the year ended
31 January 2023
31 January 2022
Notes US$'000 US$'000 US$'000 US$'000
Cash flows from operating activities
Operating (loss)/profit before taxation (319,329) 30,269
US Treasury Bills interest (1,618) (166)
Net losses/(gains) on investments 311,938 (39,460)
Currency losses 17 19
Changes in debtors and creditors (899) 879
Net cash used in operating activities* (9,891) (8,459)
Cash flows from investing activities
Acquisitions of US Treasury Bills (161,229) (1,031,088)
Disposals of US Treasury Bills 294,266 840,039
Acquisitions of investments 7 (166,076) (474,843)
Disposals of investments 7 1,848 8,740
Net cash used in investing activities (31,191) (657,152)
Cash flows from financing activities
Ordinary shares issued - 41,613
C shares issued - 694,802
Net cash inflow from financing activities - 736,415
Net (decrease)/increase in cash and cash equivalents (41,082) 70,804
Effect of exchange rate fluctuations on cash and cash equivalents (17) (19)
Cash and cash equivalents at 1 February 86,898 16,113
Cash and cash equivalents at 31 January 45,799 86,898
* Cash from operations includes interest received of US$700.000
(2022 - US$1,000).
2023 2022
US$'000 US$'000
Cash and cash equivalents comprise the following:
Cash at bank 45,799 86,898
Notes to the Financial Statements
1. Principal Accounting Policies
The Financial Statements for the year to 31 January 2023 have been prepared in
accordance with International Financial Reporting Standards ('IFRS').
2. Income
2023 2022
US$'000 US$'000
US Treasury Bills interest 1,618 166
Overseas interest 482 195
Deposit interest 700 1
Total income 2,800 362
3. Investment Management Fee
2023 2022
US$'000 US$'000
Investment management fee 8,931 8,427
Details of the Investment Management Agreement are set out on page 27 of the
Annual Report and Financial Statements. 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 Specialist Fund Segment of the Main
Market of 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$1.3 billion. Management fees are calculated and payable
quarterly.
Cash equivalents include US Treasury Bills.
4. Other Administrative Expenses
2023 2022
US$'000 US$'000
General administrative expenses 517 511
Administrator's fee 86 92
Auditor's remuneration for audit services 236 248
Directors' fees 394 249
1,233 1,100
In the year to 31 January 2023 there were no fees paid to the Auditor, KPMG
Channel Islands Limited, in respect of non-audit services. In the year to 31
January 2022 non-audit fees paid to the Auditor amounted to US$83,000 in
respect of procedural services related to the issuance of the Company's C
shares. As these costs related to the issuance of the C shares, they are
capital in nature and included within the costs of issuing shares
5. Earnings per Share
Year ended 31 January 2023 Year ended 31 January 2022
Ordinary shares US$'000 ¢ US$'000 ¢
Revenue return on ordinary activities after taxation (4,923) (0.98) (7,238) (1.47)
Capital return on ordinary activities after taxation (189,131) (37.79) 51,460 10.46
(Loss) / profit and total comprehensive income for the (loss) / income for the (194,054) (38.77) 44,222 8.99
year
Weighted average number of ordinary shares in issue 500,430,002 491,934,440
Year ended 31 January 2023 Period from 27 April 2021 to 31 January 2022
C shares US$'000 ¢ US$'000 ¢
(Loss) / revenue return on ordinary activities after taxation (2,451) (0.35) (1,934) (0.28)
Capital return on ordinary activities after taxation (122,824) (17.55) (12,019) (1.72)
Profit and total comprehensive income (loss) / income for the year / period (125.275) (17.90) (13,953) (2.00)
Weighted average number of C shares in issue 700,000,000 700,000,000
6. Ordinary Dividends
There were no dividends paid or proposed in respect of the year to 31 January
2023 (2022 - US$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 page 50 of the Annual Report and Financial Statements. 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 2023 Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Listed equities 119,018 - - 119,018
Private company ordinary shares/warrants - - 131,977 131,977
Private company preference shares* - - 708,914 708,914
Private company convertible promissory notes - - 12,123 12,123
Total financial asset investments 119,018 - 853,014 972,032
As at 31 January 2022 Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Listed equities 211,039 - - 211,039
Private company ordinary shares/warrants - - 167,268 167,268
Private company preference shares* - - 765,207 765,207
Private company convertible promissory notes - - 4,808 4,808
Total financial asset investments 211,039 - 937,283 1,148,322
* 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 2023, investments with a fair value (IPO
price) of US$nil (2022 - US$197,699,000) were transferred from Level 3 to
Level 1 on becoming listed.
Investments in securities are financial assets held at fair value through
profit or loss. In accordance with IFRS 13, the table above provides an
analysis of these investments based on the fair value hierarchy described
above, which reflects the reliability and significance of the information used
to measure their fair value.
Listed securities Private company securities* Total
US$'000 US$'000 US$'000
Cost of investments at 1 February 2022 147,488 752,024 899,512
Investment holding gains and losses at 1 February 2022 63,551 185,259 248,810
Fair value of investments at 1 February 2022 211,039 937,283 1,148,322
Movements in the period:
Purchases at cost 25,795 113,068 138,863
Sales - proceeds (1,367) (1,848) (3,215)
- losses on takeover (13,633) - (13,633)
Changes in categorisation - - -
Changes in investment holding gains and losses (102,816) (195,489) (298,305)
Fair value of investments at 31 January 2023 119,018 853,014 972,032
Cost of investments at 31 January 2023 158,283 863,244 1,021,527
Investment holding gains and losses at 31 January 2023 (39,265) (10,230) (49,495)
Fair value of investments at 31 January 2023 119,018 853,014 972,032
* Includes holdings in preference shares, promissory notes, ordinary
shares and warrants.
The purchases and sales proceeds figures above include transaction costs of
US$99,000 (2022 - US$99,000) and US$nil (2022 - US$nil) respectively.
8. Share capital
2023 2023 2022 2022
Number US$'000 Number US$'000
Allotted, called up and fully paid ordinary shares of US$1 each 500,430,002 521,701 500,430,002 521,701
Allotted, called up and fully paid C shares of US$1 each 700,000,000 694,802 700,000,000 694,802
By way of a special resolution dated 15 March 2019 the Directors have a
general authority to allot up to 720,000,000 ordinary shares or C shares, such
figure to include the ordinary shares issued at the initial placing.
477,250,000 ordinary shares were issued at the Company's initial placing.
During the year to 31 January 2023, the Company issued no ordinary and no C
shares. In the period from 31 January 2023 to
24 March 2023 no further shares were issued. Consequently, the Company has the
authority to issue a further 219,570,000 ordinary shares under the existing
authority which expires at the end of the period concluding immediately prior
to the Annual General Meeting of the Company to be held in 2024 (or, if
earlier, five years from the date of the resolution).
By way of a special resolution dated 18 March 2021, the Directors have a
general authority to allot up to 700,000,000 C shares. On 26 April 2021, the
Company issued 700,000,000 C shares of US$1 each and raised net proceeds of
US$694,802,000. The issue costs of US$5,198,000 consisted of mainly broker
commission (US$4,066,000), legal fees (US$601,000) and listing fees
(US$396,000).
By way of an ordinary resolution passed on 12 May 2022, the Directors of the
Company have general authority to make market purchases of up to 75,014,457
ordinary shares, being 14.99% of the ordinary shares in issue. This authority
will expire at the end of the period concluding immediately prior to the
second Annual General Meeting of the Company to be held on 12 May 2023. No
shares have been bought back during the year ended 31 January 2023 hence the
authority remains at 75,014,457 ordinary shares.
Holders of ordinary shares have the right to receive income and capital from
assets attributable to such share class. Assets are allocated through the
appreciation and realisation of investments acquired using the proceeds of the
ordinary share issue. Ordinary shareholders have the right to receive notice
of general meetings of the Company and have the right to attend and vote at
all general meetings.
Holders of C shares have the right to receive income and capital from assets
attributable to such share class. Assets are allocated through the
appreciation and realisation of investments acquired using the proceeds of the
C share issue. C shareholders have the right to receive notice of general
meetings of the Company and have the right to attend and vote at all general
meetings.
9. The financial information set out above does not constitute the
Company's statutory accounts for the year ended 31 January 2023 but is derived
from those accounts.
10. The Annual Report and Financial Statements will be available on the
Managers' website schiehallionfund.com‡ on or around 31 March 2023.
‡ Neither the contents of the Managers' website nor the contents
of any website accessible from hyperlinks on the Managers' website (or any
other website) is incorporated into, or forms part of, this announcement.
None of the views expressed in this document should be construed as advice to
buy or sell a particular investment.
Glossary of Terms and Alternative Performance Measures (APM)
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 Assets
Total value of all assets held less current liabilities, other than
liabilities in the form of borrowings.
Net Asset Value
Also described as shareholder 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 stockmarkets 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 the share price from the NAV per share and is usually expressed as
a percentage of the NAV per share. If the share price is higher than the NAV
per share, this situation is called a premium.
Ordinary shares 2023 2022
Closing NAV per share (a) 119.42¢ 158.20¢
Closing share price (b) 92.00¢ 212.00¢
Discount / Premium ((b - a) ÷ (a) expressed as a percentage) (23.0%) 34.0%
C shares 2023 2022
Closing NAV per share (a) 79.37¢ 97.26¢
Closing share price (b) 49.00¢ 118.00¢
Discount / Premium ((b - a) ÷ (a) expressed as a percentage) (38.3%) 21.3%
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 (with debt at fair value).
Ordinary shares 2023 2022
US$'000 US$'000
Investment management fee 5,166 6,816
Other administrative expenses 637 655
Total expenses(*) (a) 5,803 7,471
Average net asset value (with borrowings deducted at fair value) (b) 668,671 835,470
Ongoing charges ((a) ÷ (b) expressed as a percentage) 0.87% 0.89%
C shares 2023 2022
US$'000 US$'000
Investment management fee 3,765 1,611
Other administrative expenses 596 445
Total expenses(*) 4,361 2,056*
Total expenses annualised * (a) 4,361 2,680*
Average net asset value (with borrowings deducted at fair value) (b) 617,439 697,793
Ongoing charges ((a) ÷ (b) expressed as a percentage) 0.71% 0.38%
* The total expenses above cover the period 26 April 2021 to 31
January 2022, a period of 280 days.
Leverage (APM)
For the purposes of the Alternative Investment Fund Managers Directive,
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 the total of each investee company's last
12 months revenue growth (as a percentage).
Average Movement at Private Company Level/Per Instrument (APM)
Calculated by taking an average of all valuation movements (as a percentage)
by company and by line of share class.
Average Mark-Down at Private Company Level/Per Instrument (APM)
None of the views expressed in this document should be construed as advice to
buy or sell a particular investment.
You can find up to date performance information about The Schiehallion Fund on
the Schiehallion Fund page of the Managers' website at schiehallionfund.com‡
The Schiehallion Fund Limited is managed by Baillie Gifford, the Edinburgh
based fund management group with around £ billion under management
and advice in active equity and bond portfolios for clients in the UK and
throughout the world (as at • March 2023). The Administrator, Secretary and
Designated Manager is Alter Domus (Guernsey) Limited.
‡ Neither the contents of the Managers' website
nor the contents of any website accessible from hyperlinks on the Managers'
website (or any other website) is incorporated into, or forms part of, this
announcement.
Past performance is not a guide to future performance. The value of an
investment and any income from it is not guaranteed and may go down as well as
up and investors may not get back the amount invested. This is because the
share price is determined by the changing conditions in the relevant stock
markets in which the Company invests and by the supply and demand for the
Company's shares.
27 March 2023
For further information please contact:
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 Governance and Sustainable
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 Governance and Sustainability Principles and Guidelines document,
available publicly on the Baillie Gifford website bailliegifford.com.
Taxonomy Regulation
The Taxonomy Regulation establishes an EU-wide framework of criteria for
environmentally sustainable economic activities in respect of six
environmental objectives. It builds on the disclosure requirements under the
SFDR by introducing additional disclosure obligations in respect of AIFs that
invest in an economic activity that contributes to an environmental objective.
The Company does not commit to make sustainable investments as defined under
SFDR. As such, the underlying investments do not take into account the EU
criteria for environmentally sustainable economic activities.
Alex Blake, Baillie Gifford & Co
Tel: 0131 275 2859
Jonathan Atkins, Director, Four Communications
Tel 0203 697 4200 or 07803 758810
- ends -
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