Edinburgh Worldwide Investment Trust Plc

Global Growth

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
Name
Edinburgh Worldwide Investment Trust Plc
Manager
Baillie Gifford & Co Limited.
Type
Closed Ended Investment Company
ISIN
GB00BHSRZC82
Sector
Global Smaller Companies
Launched
10/07/1998
OCF
0.81 %
Risk Rating
5
3 Year Sharpe
1.03
3 Year Alpha
10.10
Yield
0 %
Benchmark
S&P GSCI TR USD
Fund Size
£ 567.07 million
NAV
185
Gearing
107
Discount Premium
1
The investment objective is the achievement of long term capital growth by investing primarily in listed companies throughout the world. The approach adopted is to construct a portfolio through the identification of individual companies which offer long term growth potential, normally over at least a five year horizon and which typically have a market cap of less than USD5 bn at the time of initial investment. The portfolio is actively managed and does not seek to track the comparative index hence a degree of volatility against the index is inevitable.
Holding %
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 %
Region %
United States 64.95 %
United Kingdom 12.19 %
Japan 6.43 %
Sector %
Healthcare 35.39 %
Technology 30.82 %
Financial Services 12.38 %
Consumer Defensive 8.05 %
Consumer Cyclical 6.12 %
Name
Baillie Gifford & Co Limited.
Address
EH1 3AN, Edinburgh, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

Luke Ward
Joined 12/07/2017

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 Viteva
Joined 12/07/2017

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 Brodie
Joined 01/27/2014

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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