The Edinburgh Investment Trust plc
HALF-YEARLY FINANCIAL REPORT
SIX MONTHS TO 30 SEPTEMBER 2022
23 November 2022 – The Directors of the Edinburgh Investment Trust plc (“the Company”) have today announced the interim results for the period ended 30 September 2022.
Highlights
· Total Return Net Asset Value (with debt at fair value) fell by 8.2% compared with a fall of 8.3% for the FTSE All-Share Index
· The refinancing of the Company’s debenture at end September 2022, and the resulting debt-driven boost of c.4% to NAV, has offset underperformance at the portfolio level over the six-month period
· First interim dividend, declared on 26 October, up 6.7% from 2021 at 6.4p per share
· Net gearing at 30 September 2022 of 4.4%
· Share price discount to NAV widened from 7.7% to 10.6% in the six months to September 2022 but has tightened to mid-single digits since the end of the period
· Since management of the trust moved in March 2020, the cumulative NAV return of +41.2% and the share price return of +44.1% have outperformed the FTSE All-Share return of +31.3% (all in total return terms)
Elisabeth Stheeman, Chair, said: “This has been an active six months for the Company. In addition to the normal day-to-day business of managing the portfolio, there have been changes to the debt structure, a first interim dividend announced and the welcome return of our in-person events for shareholders.
Since the current Portfolio Manager began day-to-day management of the Company’s portfolio at the end of March 2020, the cumulative NAV return has been +41.2% and the share price return +44.1%, compared with the FTSE All-Share return of +31.3%. Delivering returns above that of the index over all longer-term periods remains a key priority.
There are many reasons to be positive and the Company is in a strong position to take advantage of the attractive opportunities that are now arising, as well as to continue with the important business of working with existing holdings that underpin the income and capital value of the portfolio. Things are in good health and this should support attractive returns to shareholders in the years ahead.”
James de Uphaugh, Manager, said: “Equity markets gave up some ground over this six-month period. Part of that is the general weakness of global equity markets, part was self-made problems in the UK owing to the political uncertainty. However, hopefully the worst of it is behind us.
The good news is that inflationary pressures are easing as commodity prices come off their highs. Supply problems are also easing. The UK economy is slowing, but a deep recession is not a certainty, especially if the job market can remain robust. In recent years many consumers and businesses have become accustomed to operating with an element of macroeconomic and political uncertainty. As such, we think the most important thing is to produce a diversified equity portfolio that has the ability to thrive, as well as withstand any unanticipated shocks. On this basis we believe the portfolio is well placed to underpin the delivery of the Company’s dual objectives in the years ahead.”
ENDS