23rd Jan 2023 09:27
(Alliance News) - Edinburgh Worldwide Investment Trust PLC on Monday said net asset value per share - cum income with debt at fair value - fell 40% over the year to October 31.
This is compared with the 6.8% negative return from S&P Global Small Cap Index during the same period.
The investment trust - which invests in companies with a market capitalisation of less than USD5 billion at the time of first investment - finished the period with a NAV per share of 197.70 pence, down from 331.03p a year before.
It said the underperformance was due to markets shifting away from growth stocks into value stocks.
Looking ahead, the investment trust said that an easing of the current challenging economic and political backdrop is unlikely in the immediate future.
"Business confidence and consumption are likely to remain muted against a backdrop of inflationary pressure, despite the best efforts of some central banks and governments to keep it in check. The effects of a slowdown in Chinese economic activity are also being felt, although ironically this is likely to be a deflationary influence for certain industries and sectors," the company said.
Edinburgh Worldwide pays no dividend, explaining that its objective is to generate capital growth.
Edinburgh Worldwide shares were 0.7% higher at 177.40 pence each in London on Monday morning.
By Tom Budszus, Alliance News reporter
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