Change to Investment Policy

RNS Number : 0268S

Edinburgh Worldwide Inv Trust PLC

14 November 2011

 

EDINBURGH WORLDWIDE INVESTMENT TRUST PLC

Change to Investment Policy

The Board of Edinburgh Worldwide Investment Trust announces that the Company's investment policy has been amended to allow investment in unlisted equity investments. Such investments may be held on an opportunistic basis and on acquisition the aggregate holdings in unlisted equity investments shall not exceed 1% of total assets.  The intention is not to invest in small start up investments at an early stage but more mature companies planning to undertake an IPO in the foreseeable future and which are believed to have above average prospects for growth.  The Board does not believe that investment at this level alters the risk profile of the Company and therefore does not consider the change to be material.

The Company's investment objective and revised investment policy are as follows with the changes underlined:

Objective

Edinburgh Worldwide's objective is the achievement of long term capital growth by investing in listed companies throughout the world.
 

Investment Policy

While the policy is global investment, the approach adopted is to construct a portfolio through the identification of individual companies which offer long term growth potential, typically over at least a five year horizon. The portfolio is actively managed and does not seek to track the comparative index hence a degree of volatility against the index is inevitable.

In constructing the equity portfolio a spread of risk is achieved by diversifying the portfolio through investment in:

·  25 to 50 holdings

·  a minimum of six countries

·  a minimum of six sectors

On acquisition, no holding shall exceed 5% of total assets and no more than 15% of the Company's gross assets will be invested in other listed investment companies.

From time to time, fixed interest holdings, or non equity or unlisted equity investments, may be held on an opportunistic basis. On acquisition of any unlisted equity investment, the Company's aggregate holdings in unlisted equity investments shall not exceed 1% of total assets.

Derivative instruments are not normally used but, in certain circumstances and with the prior approval of the Board, their use may be considered either as a hedge or to exploit an investment opportunity.

The Company recognises the long term advantages of gearing and would seek to have a maximum equity gearing level of 30% of shareholders' funds in the absence of exceptional market conditions.

Borrowings are invested in equity markets when it is considered that investment grounds merit the Company taking a geared position to equities. Gearing levels, and the extent of equity gearing, are discussed by the Board and Managers at every Board meeting.

The Company's objective and investment policy can be found at www.edinburghworldwide.co.uk.

On behalf of the Board,

Baillie Gifford & Co

Company Secretaries

14 November 2011

 

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