8th Jun 2020 11:36
(Alliance News) - Edinburgh Worldwide Investment Trust PLC on Monday said it significantly outperformed its comparable index in the first half of its financial year as Covid-19 widened the gap between stronger performances and weaker ones.
The firm, which typically invests in companies with a market capitalisation of less than USD5 billion at the time of first investment, said net asset value per share rose 16% to 206.54p as at April 30 from 177.37p on October 31.
The Edinburgh-based company's 16% NAV per share increase compares to a 13% drop S&P Global Smaller Companies Index total return in sterling terms.
"The portfolio's performance at present is striking compared against its respective index over the past six months. We believe this partially reflects an investment environment that, for the foreseeable future, will be in fast-forward mode further driving a widening divergence between the emerging winners and the structurally challenged. In backing companies championing a wide breadth of technology and innovation we feel we remain on the right side of this fast-forwarding. Furthermore, we actively avoid the numerous structurally challenged or overtly cyclical companies whereas the index, by default, cannot," said Edinburgh Worldwide.
Net revenue return per share for the six months to April was negative 0.18 pence, having been negative 0.11p the prior year. No interim dividend was recommended.
"We would reiterate the earlier observation that at times of crisis enforced adaption drives a lasting change in behaviours and propels a new wave of business opportunity. The current portfolio comprises numerous interesting companies that span the frontiers of innovation and disruption as we currently see them. But we are confident that many more opportunities will emerge over the coming years, in a large part inspired by the challenges the world is facing. In this regard we feel that the current portfolio and investment approach is as relevant as it has ever been," said Edinburgh Worldwide.
Shares in Edinburgh Worldwide were down 0.2% at 249.60p in London in late morning trading.
By Anna Farley; [email protected]
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