Schiehallion Fund Annual Financial Report

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 [email protected] 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.

Period's high and low

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

^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.

*   Data reflecting year to 31 January 2026.

List of investments

As at 31 January 2026

^P    Denotes listed investments previously held in the portfolio as a private company investment.

Allocation of net assets

*   Alternative Performance Measure, see Glossary of terms and Alternative Performance Measures on pages 122 and 123.

Portfolio executive summary

Performance

*   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

*   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

Sectoral as at 31 January 2026

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.

↑  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.

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

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

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

For the year ended 31 January 2025

The accompanying notes below are an integral part of the Financial Statements.

Statement of cash flows

For the year ended 31 January

*   Cash from operations includes interest received of US$367,000 (2025 - US$412,000).

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

3.       Investment management fee

          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

*   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

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.

*   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.

*   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

          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.

^‡        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.

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.

*   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.

Without limiting the foregoing, no Provider shall have any liability whatsoever to you, whether in contract (including under an indemnity), in tort (including negligence), under a warranty, under statute or otherwise, in respect of any loss or damage suffered by you as a result of or in connection with any opinions, recommendations, forecasts, judgements, or any other conclusions, or any course of action determined, by you or any third party, whether or not based on the content, information or materials contained herein.