The Schiehallion Fund Interim Results 2026

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The Schiehallion Fund Limited

Legal Entity Identifier: 213800NQOLJA1JCWXQ56

Regulated Information Classification: Interim Financial Report

The following is the unaudited Interim Financial Report for the six months to 31 July 2026 which was approved by the Board on 24 September 2026. The following text is extracted from the Interim Financial Report for the Company for the six months ended 31 July 2026. All page numbers below refer to the Interim Financial Report 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 the potential to become publicly traded.

Investment performance

The Company delivered another period of very strong investment performance. During the six months to 31 July 2026, the Company's ordinary share net asset value* ('NAV') returned 29.1%, while the share price returned 10.1%.

The portfolio continued to perform strongly during the period, with several important milestones achieved by underlying investee companies, including the IPOs of Merlin Labs, Space Exploration Technologies and Bending Spoons. Further commentary on portfolio performance and activity is provided in the Managers' Report.

Capital allocation

The Board remains focused on allocating capital in a manner that supports long-term shareholder value. During the period, the Company's shares traded across a wide range, moving from a premium to NAV during the spring to a discount by the period end. As at 31 July 2026, the shares traded at a discount† of 14.4% to NAV, compared with a small premium of 0.4% at the beginning of the financial period.

During periods when the shares traded at a premium, the Company reissued treasury shares and issued new ordinary shares at a weighted average premium to NAV of 11.3%, raising gross proceeds of approximately US$28.4 million. The Board believes that issuing shares at a premium benefits existing shareholders by spreading the Company's fixed costs over a larger asset base while ensuring that issuance is accretive to NAV.

Towards the end of the period, as the shares moved to a discount, the Company repurchased 650,000 ordinary shares into treasury. The Board continues to monitor closely the rating at which the Company's shares trade and will consider both share issuance and share repurchases where appropriate, taking account of shareholder interests, market conditions, liquidity requirements and investment opportunities.

Board and governance

As the Company has continued to grow, the Board has remained focused on ensuring that its governance arrangements, Board composition and service providers remain appropriate for a company of its size and complexity. During and after the period, a number of changes have been implemented as part of the Board's long-term succession and governance planning.

We were pleased to welcome Patrick Firth to the Board during the period. Patrick brings extensive experience across audit, investment management, governance and financial services.

Following the period end, the Board announced the appointments of Graeme Proudfoot and Wendy Colquhoun as non-executive Directors, effective from 1 September 2026 and 1 October 2026, respectively. Graeme brings significant asset management and investment trust experience, while Wendy has deep expertise in investment trust governance and financial services regulation. Together, their appointments further strengthen the breadth of skills and experience represented on the Board and support the Company's long-term succession planning.

As part of this orderly succession process, Trudi Clark and John Mackie will not stand for re-election at the Company's 2027 Annual General Meeting. Their planned retirements will follow an appropriate period of overlap with the newly appointed Directors and will reduce the size of the Board accordingly. On behalf of the Board, I would like to thank Trudi and John for their significant contributions to the Company.

The Board has also completed a review of the Company's Guernsey administration arrangements and has appointed Altum (Guernsey) Limited as the Company's administrator and company secretary, replacing Alter Domus (Guernsey) Limited with effect from 8 September 2026. On behalf of the Board, I would like to thank Alter Domus for its support and service to the Company since inception. We look forward to working with Altum as the Company continues to develop.

Outlook

The first half of 2026 marked an encouraging period for later-stage private growth investing. A number of successful public listings, including several from the Company's portfolio, demonstrate that high-quality private businesses are once again finding pathways to the public markets. While market conditions remain selective, these developments are encouraging both for portfolio companies seeking access to capital and for investors in the asset class.

Against this backdrop, the Board believes the Company is well placed to benefit from its differentiated portfolio of high-quality growth businesses and from the Managers' disciplined long-term investment approach. While the macroeconomic and geopolitical environment remains uncertain, the Board remains confident in the Company's strategy of investing patiently in exceptional private growth companies over the long term.

Although the Company's shares ended the period at a discount to NAV despite the strong underlying performance, the Board believes that long-term shareholder value will continue to be driven by growth in the underlying portfolio. The Board will continue to monitor the Company's rating closely and will use the capital management tools available to it where it considers these to be in the best interests of shareholders.

Dr Linda Yueh CBE

Chairperson

24 September 2026

Notes

*   For a definition of terms see Glossary of terms and Alternative Performance Measures on page 26.

†   Alternative Performance Measure, see Glossary of terms and Alternative Performance Measures on page 26.

All investment strategies have the potential for profit and loss. Past performance is not a guide to future performance.

Summary of unaudited results*

Period's high and low

Notes

*   For a definition of terms see Glossary of terms and Alternative Performance Measures on page 26.

†   Alternative Performance Measure, see Glossary of terms and Alternative Performance Measures on page 26.

All investment strategies have the potential for profit and loss. Past performance is not a guide to future performance.

Investment objective

The Schiehallion Fund Limited seeks to generate capital growth for investors through making long-term minority investments in later stage private businesses that the Company considers to have transformational growth potential and to have the potential to become publicly traded.

Principal risks and uncertainties

The principal and emerging risks facing the Company are:

Investment and strategic risks - liquidity of investments; market, economic, political and environmental risks; valuation risk; investment strategy risk; discount risk; and Environmental, Social and Governance ('ESG') risk.

External risks - political and associated economic risk; legal and regulatory risk.

Operational risks - performance and reliance on third party service providers; cyber security threats; and key professionals.

Emerging risks - the Board has regular discussions on principal risks and uncertainties, including any risks which are not an immediate threat but could arise in the longer term.

An explanation of these risks and how they are managed is set out on pages 43 to 47 of the Company's Annual Report and Financial Statements for the year to 31 January 2026 which is available on the Company's website: schiehallionfund.com

Responsibility statement

The Directors of The Schiehallion Fund Limited confirm that to the best of their knowledge:

a.         the Interim Financial Report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Directors have elected to prepare financial statements that comply with IFRS Accounting Standards as issued by the International Accounting Standards Board;

b.          the Interim Management Report includes a fair review of the information required by:

i.        DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

ii.        DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or the performance of the enterprise during that period, and any changes in the related party transactions described in the last annual report that could do so.

On behalf of the Board

Dr Linda Yueh CBE

Chairperson

24 September 2026

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website, and for the preparation and dissemination of financial statements. Legislation in Guernsey governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Interim management report

Reflections

The six months ending 31 July 2026 have seen significant developments for the Company from both a structural and portfolio perspective. In terms of the former, Schiehallion was included in the FTSE250 index for the first time in March - a product of having undergone a change in listing segment on the London Stock Exchange in December 2025. These changes have been indicative of the continued maturation of the Company - an aspect which has found further expression inside the portfolio as well. In this regard the two largest holdings, Bending Spoons and SpaceX, both completed successful initial public offerings during the period, thereby providing significant future liquidity (subject to respective lock-up provisions in each case) for further deployment into new private growth opportunities.

The SpaceX listing was the largest in history, with the vertically integrated rocket, satellite and artificial intelligence business raising approximately US$85.7 billion at an implied valuation of US$1.77 trillion through its IPO. This represented a significant milestone for Schiehallion specifically, with SpaceX having been the very first investment made by the Company in 2019, at a valuation of US$33 billion, which subsequently increased more than 53-fold over the holding period. The historical trajectory of this investment is testament to the immense amount of value that can be created in private growth markets, as well as the continued significance of public markets as an exit avenue.

From a performance perspective it has been a positive six months for the Company, producing a NAV* return of 29.1% and a share price return of 10.1%. Over the past twelve months the NAV return has been 55.8%, coupled with a share price return of 63.3%. At the end of the period shares were trading at a 14.4% discount^† to NAV and we commenced share buybacks again in June (after a period of share issuance at a premium in the preceding months). We continue to view share buybacks as one leg of our three-pronged capital allocation strategy - the other two being new investments into private holdings and follow-on investments into existing holdings.

Market Update

While the SpaceX IPO dominated news headlines over the period, Bending Spoons - the Italian digital product acquirer - also completed its own successful IPO on the Nasdaq at a valuation of US$18.5 billion. Schiehallion was among the first institutional investors in Bending Spoons early in 2023 at a valuation of about US$1 billion. The company's successful journey into public markets also came in the face of some market uncertainty around software-facing businesses in general, particularly how the rapid developments in artificial intelligence might read across to such businesses, either positively or negatively. We continue to believe that Bending Spoons is applying an innovative business model underpinned by a special culture, and despite its relatively short period as an investment in Schiehallion, it has been the second-best performer for the portfolio since inception (behind only SpaceX).

Elsewhere market news was dominated by advancements in artificial intelligence - a development which continues to find notable expression inside the Schiehallion portfolio through our investments in leading frontier AI model developer Anthropic, Chinese social media giant ByteDance, as well as data intelligence platform Databricks. The significance of this trend can be gleaned from the fact that private company fundraising in 2026 has been extraordinarily concentrated in AI, with OpenAI and Anthropic alone accounting for more than 60% of all US venture dollars in the first half of the year^#. It continues to be an area where we are applying a great deal of thought particularly in the context of elevated valuations.

Performance

Bending Spoons was the top contributor to absolute NAV performance over the period as the valuation was increased in the lead-up to the IPO once pricing was confirmed, and the shares then subsequently traded positively during July. SpaceX was the next best contributor, also driven by valuation uplifts as IPO visibility crystallised. Another notable contributor was Tekever, the Portuguese autonomous drone maker, which saw a significant valuation uplift during the period through a combination of strong operational performance and an external price discovery event.

In terms of detractors to absolute performance during the period, Oddity Tech, the listed beauty and wellness company, saw its shares fall sharply in February as the company reported increased customer acquisition costs which prompted investors to reassess its near-term growth outlook. Epic Games, the video game and digital entertainment company, saw valuation reductions during the period on the back of operational pressures which have prompted cost and workforce reductions. Another detractor was Tempus AI, a listed health technology company, which experienced share price weakness as investors remained cautious over loss-making healthcare technology companies despite continued strong revenue growth.

Activity

With Schiehallion reaching full deployment for the first time in 2025, we have been judicious in bringing new investments into the portfolio over the period. We have had to balance this against supporting strong-performing existing holdings, noting that the liquid sleeve of the portfolio began the period at approximately 13% of the fund weight, which was towards the lower end of our preferred range.

In this context we made one new investment during the period in Mottu, a Brazilian motorcycle rental and rent-to-own company. Mottu provides affordable access to motorcycles for customers who are often underserved by traditional lenders. Its integrated model spans the design and assembly of durable, low-cost motorcycles, alongside their distribution, maintenance and technology-enabled tracking and recovery. Its large customer base in Brazil, combined with scope to expand its fleet, product offering and international presence, gives Mottu significant long‑term growth potential.

Elsewhere we continued to support a number of existing private holdings through follow-on investments during the period, including Anthropic, Vinted (European online resale platform), Anduril (US autonomous defence), Bending Spoons, Wayve (UK autonomous driving technology), as well as an additional investment into listed holding Oddity Tech.

In terms of realisations, we made one complete sale of the AI-powered cardiac diagnostics company, HeartFlow, and the portfolio saw one private acquisition as Capital One completed its US$5.15 billion acquisition of financial technology company, Brex. Consideration was received in a combination of cash and Capital One shares, with the shares subsequently sold, returning further liquidity to the portfolio. In addition, we made use of secondary transactions to reduce positions in Stripe, the payments and financial infrastructure company, as well as SpaceX (early in February). We also made a reduction in Bending Spoons in a partial sell-down at IPO, coupled with a reduction in listed cross-border payments company, Wise.

Finally, in addition to the SpaceX and Bending Spoons IPOs, the portfolio also saw a third holding go public during the period, namely the US autonomous flight company Merlin Labs, via a SPAC merger in March. This provided the company with additional capital to support its development and commercialisation.

Outlook

The successful listings of Schiehallion's two largest holdings in recent months have provided further validation of the incredible value that continues to be created within private growth markets. At the same time the shape of the portfolio has changed significantly, moving from an approximate 13% liquid sleeve at the start of the period to around 40% by the end of it. This rightly prompts the question: what next for Schiehallion? In response we would like to emphasise that Schiehallion fundamentally remains a private growth portfolio, and as such we will continue to take a measured approach in redeploying capital towards that end. Historically the Company has already redeployed more than US$400 million from cumulative realisations, and we intend to continue along this path subject to lockup provisions, market conditions and our broader opportunity set.

In terms of the existing holdings, we are greatly enthused by the progress being shown by a next generation of potential winners within the portfolio. In this regard ByteDance remains a large holding pursuing an incredible opportunity set in China, while fellow Chinese social media business RedNote (held as Inspire Inc.) is building a differentiated social, search and commerce platform, underpinned by highly engaged users and a strong focus on trusted, user-led content. Elsewhere the UK financial technology company, Revolut, continues to disrupt traditional banking in a number of markets, while Vinted has built a leading second-hand marketplace with strong network effects, supported by a simple user experience and integrated payments and shipping. Its growth prospects remain attractive as it expands into new geographies and product categories, while benefiting from the broader shift towards second-hand consumption.

More broadly we remain excited by the breadth and quality of opportunities in the investment pipeline. Recent realisations have increased the Company's capacity to invest, and we remain disciplined on valuation as we seek exceptional growth businesses with the potential to become the next generation of portfolio leaders.

Peter Singlehurst

Robert Natzler

Notes

*   For a definition of terms see Glossary of terms and Alternative Performance Measures on page 26.

†   Alternative Performance Measure, see Glossary of terms and Alternative Performance Measures on page 26.

#   Source: Pitchbook, cited by Axios on 27 July 2026.

All investment strategies have the potential for profit and loss. Past performance is not a guide to future performance.

Portfolio executive summary

Performance

*   Inception date: 27 March 2019.

All figures are stated on a total return basis† for periods to 31 July 2026.

†   Alternative Performance Measure - see Glossary of terms and Alternative Performance Measures on page 26.

Source: Baillie Gifford/LSEG. See disclaimer on page 25.

Key contributors to and detractors from Company performance - six months to 31 July 2026

*   Alternative Performance Measure - see Glossary of terms and Alternative Performance Measures on page 26.

#   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 2026 to 31 July 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 total net assets* (unaudited)

Geographical as at 31 July 2026

Sectoral as at 31 July 2026

The above sectoral distribution is not derived from any index.

*   For a definition of terms see Glossary of terms and Alternative Performance Measures on page 26.

Baillie Gifford - valuing private companies

We aim to hold our private company investments at 'fair value', i.e. the price that would be paid in an open-market transaction. Valuations are adjusted both during regular valuation cycles and on an ad hoc basis in response to 'trigger events'. Baillie Gifford's valuation process ensures that private companies are valued in both a fair and timely manner.

The valuation process is overseen by a valuations group at Baillie Gifford, which takes advice from an independent third party (S&P Global). The valuations group is independent from the investment team with all voting members being from different operational areas of the firm, and the investment managers only receive final valuation notifications once they have been applied.

Baillie Gifford revalues the private holdings on a three‑month rolling cycle, with one-third of the holdings reassessed each month. During stable market conditions, and assuming all else is equal, each investment would be valued four times in a twelve‑month period. The valuations are also reviewed twice per year by the Board, which receives copies of Baillie Gifford's proposed valuations as well as the latest valuation reports from its external valuer. The valuations are also subject to the scrutiny of external auditors in the annual audit process.

Beyond the regular cycle, the valuations team also monitors the portfolio for certain 'trigger events'. These may include changes in fundamentals, a takeover approach, an intention to carry out an Initial Public Offering ('IPO'), company news which is identified by the valuation team or by the portfolio managers, or meaningful changes to the valuation of comparable public companies. Any ad hoc change to the fair valuation of any holding is implemented swiftly and reflected in the next published net asset value ('NAV'). There is no delay.

The valuations team also monitors relevant market indices on a weekly basis and updates valuations in a manner consistent with our external valuer's (S&P Global) most recent valuation report where appropriate.

Continued improvements in market conditions have sustained an increase in deal activity, but isolated pockets of heightened volatility remain. The data below quantifies the revaluations carried out during the six months to 31 July 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 period 1 February 2026 to 31 July 2026.

List of investments

as at 31 July 2026 (unaudited)

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

*   See Glossary of terms and Alternative Performance Measures on page 26.

The Company may hold various classes of shares in investee companies, some of which may have a preference on winding up.