Edinburgh Worldwide Investment Trust Plc
Rated Fund 2014-15, 2018-19. Taps into the growth potential of small companies
Edinburgh Worldwide, part of the Baillie Gifford stable, is the standout performer in the global smaller companies investment trust sub-sector. Such firms tend to be relatively new and grow faster than established ones, albeit typically with a higher degree of risk attached.
Because of its relatively high risk level, Morningstar analyst David Holder regards the trust as “not for widows and orphans, but an interesting option for long-term capital growth”.
Douglas Brodie, head of the fund manager’s global discovery team, has run the trust since 2014, when it first became a Rated Fund. Luke Ward and Svetlana Viteva took over from John MacDougall as his deputies in December 2017.
The trio aims to generate capital growth from a global portfolio of initially immature entrepreneurial companies, typically with market values of less than $5 billion (£3.8 billion) at the time of initial investment.
They take a long-term approach to investment – typically they have at least a five-year horizon and sell a holding only when one of three things occurs: they feel their original investment case was mistaken, the market catches up with their assessment of the stock or they find a new idea.
The managers aim to spread risk through diversification by having 75-125 holdings and exposure to a minimum of six countries and 15 industries. The trust has a strong technology focus, with biotechnology and software the largest sector weightings at the end of 2018.
The shares have traded at around the value of assets over the past year. The widest discount over the past three years has been 14%, in the wake of the Brexit vote in 2016.
Narrative and ratings content all as of 01 January 2019.See all Money Observer rated funds
|MarketAxess Holdings Inc||5.79 %|
|NovoCure Ltd||4.64 %|
|Ocado Group PLC||4.47 %|
|LendingTree Inc||4.09 %|
|Alnylam Pharmaceuticals Inc||3.46 %|
|Chegg Inc||2.99 %|
|Exact Sciences Corp||2.39 %|
|Zillow Group Inc C||2.17 %|
|PureTech Health PLC||2.17 %|
|Temenos AG||2.00 %|
|United States||64.95 %|
|United Kingdom||12.19 %|
|Financial Services||12.38 %|
|Consumer Defensive||8.05 %|
|Consumer Cyclical||6.12 %|
Luke graduated MEng (Hons) in Mechanical Engineering from the University of Edinburgh in 2012. Luke joined Baillie Gifford in 2012 and is an Investment Manager in the Global Discovery Team. Luke is also a Deputy Manager.
Svetlana graduated BA in Economics and BA in Business Administration from the American University in Bulgaria in 2008, MSc in Investment Analysis from Stirling University in 2009 and PhD in Accounting and Finance from Stirling University in 2012. Svetlana joined Baillie Gifford in 2012 and is an Investment Manager in the Global Discovery Team. Svetlana is also a Deputy Manager. She is a CFA Charterholder.
Douglas graduated BSc in Molecular Biology & Biochemistry from Durham University in 1997 and with a DPhil in Molecular Immunology from the University of Oxford in 2001. He joined Baillie Gifford in 2001 and is Head of the Global Discovery Team. Douglas became a Partner in 2015 is a CFA Charterholder.
Data provided by Morningstar.
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