Half Yearly Report

RNS Number : 7798H

Edinburgh Worldwide Inv Trust PLC

03 June 2011

 



EDINBURGH WORLDWIDE INVESTMENT TRUST plc

Results for the six months to 30 April 2011

Over the six month period the Company's net asset value (NAV) per share increased by 10.7% while the MSCI All Countries World Index (in sterling terms) increased by 8.3%.  The share price increased by 13.6%.

Over the seven and a half years that Baillie Gifford has been managing the Company's assets, in total return terms NAV per share has increased by 129.2% and the share price by 162.2%.  The index has risen by 87.4%.

·	The last six months have seen various levels of anxiety focussed on Chinese inflation, earthquakes, nuclear fall-out and North African politics which we consider as short term noise.  Most importantly for us, we continue to observe very strong operational growth in many of the companies in which we invest, for example eBay, Tencent, Intuitive Surgical and John Deere.
·	Five new holdings have been bought during the period: C-Trip; iRobot; Salesforce.com; Autonomy; and Hengdeli.  The purchases were funded in part by the complete sales of Li Ning, MedAssets, Vestas Windsystems and Itau Unibanco.
·	Despite current noise surrounding European sovereign debt, our long term conviction in the changing world economic order continues to strengthen with each passing year. We remain optimistic about the outlook for the global economy and the investment opportunities available.
·	Revenue earnings per share were 0.83p (six months to 30 April 2010: 0.88p) and the interim dividend is unchanged at 0.50p.

Edinburgh Worldwide aims to achieve long term capital growth by investing in listed companies throughout the world. The Trust has total assets of £194.4 million (before deduction of loans of £25.1 million) as at 30 April 2011.

Edinburgh Worldwide is managed by Baillie Gifford & Co, the Edinburgh based fund management group with around £75 billion under management and advice as at 2 June 2011.

2 June 2011

For further information please contact:

Mark Urquhart, Manager,                                                                                            

Edinburgh Worldwide Investment Trust plc                                           0131 275 2070

Anzelm Cydzik

Baillie Gifford & Co                                                                              0131 275 2000

Roland Cross, Director,

Broadgate Mainland                                                                             020 7726 6111

The following is the unaudited Half-Yearly Financial Report for the six months

to 30 April 2011

 

EDINBURGH WORLDWIDE INVESTMENT TRUST PLC

Half-Yearly Financial Report 30 April 2011

Responsibility Statement

 

We confirm that to the best of our knowledge:

a)   the condensed set of financial statements has been prepared in accordance with the Accounting Standards Board's statement 'Half-Yearly Financial Reports';

b)   the Half-Yearly Management Report includes a fair review of the information required by Disclosure and Transparency Rules 4.2.7R (indication of important events during the first six months, their impact on the financial statements and a description of principal risks and uncertainties for the remaining six months of the year); and

c)   the Half-Yearly Financial Report includes a fair review of the information required by Disclosure and Transparency Rules 4.2.8R (disclosure of related party transactions and changes therein).

By order of the Board

David HL Reid

Chairman

2 June 2011

EDINBURGH WORLDWIDE INVESTMENT TRUST plc

 

Half-Yearly Management Report

As usual, it is worth reiterating our aim as Managers of the trust which is to run a concentrated portfolio of companies with good growth prospects for the long term. It is now seven and a half years since Baillie Gifford started to manage Edinburgh Worldwide Investment Trust and since then, in total return terms the net asset value has increased by 129.2% and the share price by 162.2% while the MSCI All Countries World Index (in sterling terms) has risen by 87.4%. We would reiterate our strong belief that five years and more is a sensible timeframe over which to judge performance.

For the record, over the period from 31 October 2010 to 30 April 2011, Edinburgh Worldwide's net asset value rose by 10.7% which compares to an 8.3% increase in the MSCI All Countries World Index over the same period. The share price over the six months rose by 13.6% to 312.50p representing a discount of 9.6% to the net asset value at 30 April 2011 which compares to a discount of 11.9% at the beginning of the period. The Directors have declared an interim dividend of 0.50p per share, unchanged from last year. The interim dividend will be paid on 21 July 2011 to shareholders on the register on 24 June 2011. The final dividend was 1.50p last year and the Directors will consider this year's payment over the remainder of the financial year.

Markets always find something to worry about and the last six months have seen various levels of anxiety focused on Chinese inflation, earthquakes, nuclear fall-out and North African politics. It is our strong belief that most of the ebb and flow of debate on these topics represents noise rather than fundamentals; for instance Chinese vegetable prices are now falling as rapidly as they had previously risen, most expert opinion now suggests that Fukushima's fall-out will remain localised and there are already signs of demand destruction in response to the oil price rise caused by events in Libya and elsewhere in the region. This is not to try to downplay the individual significance of such events but just as Dubai and Ireland have faded from the markets' radar so too will Greece and even Iceland's persistent ash-cloud. From our long term perspective it seems far more important that China continues to confound the sceptics and grow at nearly 10% or that Germany is booming, than that Portugal - which is smaller than numerous Chinese cities -  requires a bail-out. 

Most importantly for us we continue to observe very strong operational growth in many of the companies in which we invest. The secular shift of consumption onto the internet continues apace with Apple, eBay and Google all showing strong growth.  A linking feature was the surge in mobile revenues with iPhones, PayPal payments and search all seeing very strong growth and we think this move of much of our computing to mobile devices is a long term one. This trend is even more pronounced in China with both Baidu and Tencent showing very strong growth.  In healthcare Intuitive Surgical saw very strong procedure growth; John Deere is seeing strong demand both in North and South America and Inditex (which owns the Zara clothes brand) reported particularly strong growth in Asia.

EDINBURGH WORLDWIDE INVESTMENT TRUST plc

Half-Yearly Management Report (Ctd)

In terms of transactions, we have bought five new holdings over the last six months: C-Trip is a Chinese travel aggregator website (similar to Expedia but more dominant in market-share) which we think will benefit from the explosion in Chinese tourism; iRobot is an MIT spin out which seems capable of commercialising domestic robots - its most notable product to date being the Roomba vacuum; Salesforce.com where we think the size of the cloud computing opportunity is getting larger and their competitive position is strengthening; Autonomy which is the UK-based company specialising in complex search; and Hengdeli - the leading watch seller in China with strong relationships with Swatch and others. We have sold small holdings in Li Ning, MedAssets and Vestas Windsystems with the linking thread being the deterioration of the competitive position and also Itau Unibanco in Brazil where we think the valuation more fairly reflects the future growth prospects.

Our conviction in the changing world economic order continues to strengthen with each passing year. Western observers who view the seismic shifts through rose-tinted spectacles and yearn for a reversion to yesterday's status quo, we think are in real danger of becoming modern-day King Canutes attempting to turn back the tide of change.  We believe the next decade and beyond will continue to see radical shifts in global GDP and technological progress which will continue to create exciting global investment opportunities and we remain optimistic about the outlook for the global economy and the companies in which Edinburgh Worldwide invests.

The principal risks and uncertainties are set out in note 11 at the end of this document.

By order of the Board

Baillie Gifford & Co

2 June 2011

EDINBURGH WORLDWIDE INVESTMENT TRUST plc

INCOME STATEMENT

(unaudited)

	for the six months ended 30 April 2011					for the six months ended 30 April 2010					for the year ended 31 October 2010
	Revenue £'000	Capital £'000		Total £'000		Revenue £'000	Capital £'000	Total £'000		Revenue £'000		Capital £'000	Total £'000
Gains on sales of investments	-	8,140		8,140		-	4,673	4,673		-		6,746	6,746
Movements in investment holding gains	-	9,632		9,632		-	22,573	22,573		-		23,085	23,085
Currency losses	-	(367)		(367)		-	(254)	(254)		-		(1,122)	(1,122)
Income from investments and interest receivable	993	-		993		912	-	912		1,931		-	1,931
Investment management fee (note 3)	(146)	(438)		(584)		(120)	(360)	(480)		(250)		(748)	(998)
Investment performance fee (note 3)	-	(42)		(42)		-	-	-		-		(36)	(36)
VAT recovered on management fees (note 4)	-	-		-		8	49	57		25		127	152
Other administrative expenses	(254)	-		(254)		(219)	-	(219)		(440)		-	(440)
Net return before finance costs and taxation	593	16,925		17,518		581	26,681	27,262		1,266		28,052	29,318
Finance costs of borrowings	(66)	(197)		(263)		(60)	(179)	(239)		(130)		(390)	(520)
Net return on ordinary activities before taxation	527	16,728		17,255		521	26,502	27,023		1,136		27,662	28,798
Tax on ordinary activities	(118)	-		(118)		(90)	-	(90)		(226)		-	(226)
Net return on ordinary activities after taxation	409	16,728		17,137		431	26,502	26,933		910		27,662	28,572
Net return per ordinary share (note 5)	0.83p		34.14p	34.97p		0.88p	54.08p	54.96p		1.86p		56.45p	58.31p
Dividends paid and proposed per ordinary share (note 6)	0.50p					0.50p				2.00p

   The total column of this statement is the profit and loss account of the Company.

   All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued during the period.

  A Statement of Total Recognised Gains and Losses is not required as all gains and losses of the Company have been reflected in the above statement.

EDINBURGH WORLDWIDE INVESTMENT TRUST plc

BALANCE SHEET

 (unaudited)

	At 30 April 2011		At 30 April 2010		At 31 October 2010
	£'000		£'000		£'000
FIXED ASSETS
Investments held at fair value through profit or loss	191,044		170,766		173,763
CURRENT ASSETS
Debtors	442		1,525		314
Cash and short term deposits	3,381		4,995		4,053
	3,823		6,520		4,367
CREDITORS
Amounts falling due within one year (note 7)	(25,552)		(25,767)		(25,217)
NET CURRENT LIABILITIES	(21,729)		(19,247)		(20,850)
TOTAL NET ASSETS	169,315		151,519		152,913
CAPITAL AND RESERVES
Called-up share capital	2,450		2,450		2,450
Share premium	82,180		82,180		82,180
Special reserve	35,220		35,220		35,220
Capital reserve	47,512		29,624		30,784
Revenue reserve	1,953		2,045		2,279
SHAREHOLDERS' FUNDS	169,315		151,519		152,913
NET ASSET VALUE PER ORDINARY SHARE (After deducting borrowings at fair/par value) (note 7)	345.51p		309.19p		312.04p
Ordinary shares in issue (note 8)	49,004,319		49,004,319		49,004,319

 

 

EDINBURGH WORLDWIDE INVESTMENT TRUST plc

RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

(unaudited)

For the six months ended 30 April 2011

		Called-up share capital £'000	Share premium £'000	Special reserve £'000	Capital reserve* £'000	Revenue reserve £'000	Shareholders' funds £'000
Shareholders' funds at 1 November 2010	2,450		82,180	35,220	30,784	2,279	152,913
Net return on ordinary activities after taxation	-		-	-	16,728	409	17,137
Dividends paid during the period#	-		-	-	-	(735)	(735)
Shareholders' funds at 30 April 2011	2,450		82,180	35,220	47,512	1,953	169,315

 

For the six months ended 30 April 2010

	Called-up share capital £'000	Share premium £'000	Special reserve £'000	Capital reserve* £'000	Revenue reserve £'000	Shareholders' funds £'000
Shareholders' funds at 1 November 2009	2,450	82,180	35,220	3,122	2,839	125,811
Net return on ordinary activities after taxation	-	-	-	26,502	431	26,933
Dividends paid during the period#	-	-	-	-	(1,225)	(1,225)
Shareholders' funds at 30 April 2010	2,450	82,180	35,220	29,624	2,045	151,519

 

For the year ended 31 October 2010

	Called-up share capital £'000	Share premium £'000	Special reserve £'000	Capital reserve* £'000	Revenue reserve £'000	Shareholders' funds £'000
Shareholders' funds at 1 November 2009	2,450	82,180	35,220	3,122	2,839	125,811
Net return on ordinary activities after taxation	-	-	-	27,662	910	28,572
Dividends paid during the year#	-	-	-	-	(1,470)	(1,470)
Shareholders' funds at 31 October 2010	2,450	82,180	35,220	30,784	2,279	152,913

*    The capital reserve as at 30 April 2011 includes investment holding gains of £73,596,000 (30 April 2010 - gains of £63,452,000 and 31 October 2010 - gains of £63,964,000).

^#      See note 6.

EDINBURGH WORLDWIDE INVESTMENT TRUST plc

CONDENSED CASH FLOW STATEMENT (unaudited)
	Six months to 30 April 2011 £'000		Six months to 30 April 2010 £'000		Year to 31 October 2010 £'000
Net cash inflow from operating activities	3		35		716
Net cash outflow from servicing of finance	(241)		(226)		(547)
Total tax paid	(106)		(92)		(238)
Net cash inflow from financial investment	407		1,461		527
Equity dividends paid (note 6)	(735)		(1,225)		(1,470)
NET CASH OUTFLOW BEFORE FINANCING	(672)		(47)		(1,012)
Net cash inflow from bank loans	-		-		23
DECREASE IN CASH	(672)		(47)		(989)
RECONCILIATION OF NET CASH OUTFLOW TO MOVEMENT IN NET DEBT
Decrease in cash in the period	(672)		(47)		(989)
Net cash inflow from bank loans	-		-		(23)
Exchange movement on bank loans	(283)		(586)		(1,279)
MOVEMENT IN NET DEBT IN THE PERIOD	(955)		(633)		(2,291)
Net debt at start of the period	(20,750)		(18,459)		(18,459)
NET DEBT AT END OF THE PERIOD	(21,705)		(19,092)		(20,750)
RECONCILIATION OF NET REVENUE BEFORE FINANCE COSTS AND TAXATION TO NET CASH INFLOW FROM OPERATING ACTIVITIES
Net revenue before finance costs and taxation	17,518		27,262		29,318
Gains on investments	(17,772)		(27,246)		(29,831)
Currency losses	367		254		1,122
Other non-cash movements	-		-		(48)
Changes in debtors and creditors	(110)		(235)		155
NET CASH INFLOW FROM OPERATING ACTIVITIES	3		35		716

 

 EDINBURGH WORLDWIDE INVESTMENT TRUST plc

PORTFOLIO AND EQUITY PERFORMANCE at 30 April 2011 (unaudited)
Name	Business	Value £'000	% of total assets	Performance†
				Absolute %	Relative%
Equities
Amazon.com	Online retailer	13,894	7.1	14.1	4.1
Baidu	Chinese online search engine	9,741	5.0	29.3	18.0
Atlas Copco	Industrial compressors and mining   equipment	8,134	4.2	38.3	26.2
Apple	Computing and media equipment	8,078	4.2	10.9	1.2
eBay	Internet auction and payments	7,679	4.0	1.6	0.9
Vale (CVRD)	Mining	7,476	3.8	1.4	(7.5)
PPR	Luxury brand conglomerate	6,960	3.6	4.8	(4.3)
Tencent	Chinese internet service portal	6,511	3.3	19.1	8.7
Novozymes	Enzyme manufacturer	5,984	3.1	25.7	14.7
Petrobras	Oil exploration and production	5,938	3.1	6.3	(3.0)
Deere	Farm and construction machinery	5,831	3.0	22.5	11.8
Whole Foods Market	Organic food stores	5,657	2.9	51.8	38.5
Gazprom	Gas exploration and production	5,097	2.6	47.4	34.5
ABB	Power systems and automation	5,087	2.6	27.2	16.1
Google	Web-based search engine	5,075	2.6	(14.9)	(22.4)
First Solar	Designs and manufactures solar modules	4,945	2.5	(3.0)	(11.5)
Sandvik	Tools and mining equipment	4,880	2.5	35.8	23.9
Intuitive Surgical	Surgical robots	4,612	2.4	27.1	16.0
New Oriental Education   and Technology	English language schools	4,555	2.3	11.3	1.5
Banco Santander	Retail and commercial bank	4,415	2.3	(3.1)	(11.6)
Housing Development   Finance Corporation	Indian mortgage provider	3,958	2.0	(1.0)	(9.7)
Inditex	Fashion Retail	3,900	2.0	4.1	(5.0)
FLIR Systems	Infra-red technology	3,847	2.0	21.5	10.8
Garanti Bankasi	Turkish bank	3,617	1.9	(18.9)	(26.0)
Straumann	Dental implants	3,512	1.8	21.0	10.4
L'Oréal	Personal care	3,439	1.8	5.7	(3.6)
Hengdeli Holdings	Chinese watch retailer	3,163	1.6	6.7*	6.9*
Autonomy	Enterprise software	3,053	1.6	4.7*	3.4*
Nintendo	Gaming consoles and software	3,031	1.6	(11.4)	(19.1)
iRobot	Robots for domestic and   military use	2,974	1.5	55.5*	47.8*
Salesforce.com	Cloud based software	2,913	1.5	4.0*	2.7*
C-Trip.com	Chinese travel agent	2,900	1.5	3.4*	(1.7)*
Vanceinfo	Chinese IT outsourcing	2,882	1.5	(15.2)*	(22.7)*
ALL America Latina   Logistica	Brazilian railways	2,811	1.4	(17.4)	(24.6)
Monsanto	Agricultural biotechnology	2,780	1.4	10.5	0.8
Hermès	Luxury goods	2,775	1.4	6.8	(2.6)
VCA Antech	Animal hospitals and veterinary   diagnostics	2,659	1.4	14.1	4.1
Teva Pharmaceuticals	Generic drugs manufacturer	2,476	1.3	(14.9)	(22.3)
CFAO	African distribution	2,305	1.2	(13.0)	(20.6)
BYD	Battery technology and cars	1,500	0.8	(43.1)	(48.1)

EDINBURGH WORLDWIDE INVESTMENT TRUST plc

PORTFOLIO AND EQUITY PERFORMANCE (Ctd) at 30 April 2011 (unaudited)
Name	Business	Value £'000	% of total assets
Total equities		191,044	98.3
Net liquid assets		3,357	1.7
Total Assets at Fair Value (before deduction of loan)		194,401	100.0

†    Absolute and relative performance has been calculated on a total return basis over the period 1 November 2010 to 30 April 2011. Absolute performance is in sterling terms; relative performance is against MSCI All Countries World Index (in sterling terms).

* Figures relate to part-period returns where the equity has been purchased during the period.

 

Source: Baillie Gifford & Co, StatPro

Past performance is not a guide to future performance.

 

 

DISTRIBUTION OF ASSETS

(unaudited)

 

		30 April 2011         %			31 October 2010            %
Equities:	USA	36.5			33.3
	China	16.0			15.3
	Brazil	8.3			12.2
	France	8.0			8.4
	Sweden	6.7			7.9
	Switzerland	4.4			3.9
	Spain	4.3			3.8
	Denmark	3.1			3.5
	Russia	2.6			1.9
	India	2.0			2.3
	Turkey	1.9			1.8
	UK	1.6			-
	Japan	1.6			1.9
	Israel	1.3			1.6
Total equities		98.3			97.8
Net liquid assets		1.7			2.2
Total assets (before deduction of bank loans)		100.0			100.0

EDINBURGH WORLDWIDE INVESTMENT TRUST plc

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

1.	The condensed financial statements have been prepared on the basis of the same accounting policies as set out in the Company's Annual Report and Financial Statements at 31 October 2010 and in accordance with the ASB's Statement 'Half-Yearly Financial Reports' and have not been audited or reviewed by the Auditors pursuant to the Auditing Practices Board Guidance on 'Review of Interim Financial Information'.  The Company's assets, the majority of which are investments in quoted securities which are readily realisable, exceed its liabilities significantly; the financial statements have been prepared on the going concern basis as it is the Directors' opinion that the Company will continue in operational existence for the foreseeable future.
2.	The financial information contained within this half-yearly financial report does not constitute statutory accounts as defined in sections 434-436 of the Companies Act 2006. The financial information for the year ended 31 October 2010 has been extracted from the statutory accounts which have been filed with the Registrar of Companies and contain an unqualified Auditors' Report and do not contain a statement under sections 498(2) or (3) of the Companies Act 2006.
3.	Related Party Transactions Baillie Gifford & Co are appointed as Managers and Secretaries. The management agreement is terminable on not less than three months' notice. The fee in respect of each quarter is 0.2% of the market value of the Company's shares on each valuation date. In addition, Baillie Gifford are entitled to a performance fee, calculated annually in arrears. The performance fee is based on any out-performance of the net asset value per share by comparison to the MSCI All Countries World Index (in sterling terms) and is calculated as a percentage of the market value of the Company. The fee is 5% of the out-performance between zero and 2%, and 10% of the out-performance thereafter. A performance fee could be payable in periods when the net asset value falls by a lesser rate than the comparative index. In addition to the investment management fee, the Company also pays a secretarial fee to Baillie Gifford which is adjusted annually in line with the Retail Price Index.  The secretarial fee for the six months to 30 April 2011 was £37,000 (six months to 30 April 2010 - £36,000; year to 31 October 2010 - £72,000).
4.	VAT Recovered on Management Fees In 2007 the European Court of Justice ruled that investment trust management fees should be exempt from VAT. During the period to 30 April 2011, interest of £37,000 was received in respect of the £152,000 of VAT recovered in the year to 31 October 2010. VAT of £257,000 together with interest of £22,000 was recovered in the year to 31 October 2008. In accordance with AIC guidance, recoverable VAT has been allocated between revenue and capital on the same basis as the VAT expense was originally charged.
		Six months to 30 April  2011		Six months to 30 April  2010		Year to 31 October 2010
		£'000		£'000		£'000
5.	Net return per ordinary share
	Revenue return on ordinary activities after taxation	409		431		910
	Capital return on ordinary activities after taxation	16,728		26,502		27,662
	Total return	17,137		26,933		28,572
	Net return per ordinary share is based on the above totals of revenue and capital and on 49,004,319 ordinary shares, being the number of ordinary shares in issue during each period. There are no dilutive or potentially dilutive shares in issue.

EDINBURGH WORLDWIDE INVESTMENT TRUST plc

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Ctd)

		Six months to 30 April  2011				Six months to 30 April  2010				Year to 31 October 2010
		£'000				£'000				£'000
6.	Dividends
	Amounts recognised as distributions in the period:
	Previous year's final dividend of 1.50p (2009 - 1.50p), paid 9 February 2011	735				735				735
	Previous year's special dividend of 1.00p paid 9 February 2010	-				490				490
	Interim dividend for the year ended 31 October 2010 paid 22 July 2010	-				-				245
		735				1,225				1,470
	Dividends paid and proposed in respect of the financial period:
	Interim dividend for the year ending 31 October 2011 of 0.50p (2010 - 0.50p)		245				245				245
	Final dividend (31 October 2010 - 1.50p)		-				-				735
			245				245				980
	The interim dividend was declared after the period end date and has therefore not been included as a liability in the balance sheet.  It is payable on 21 July 2011 to shareholders on the register at the close of business on 24 June 2011.  The ex dividend date is 22 June 2011.  The registrars offer a dividend reinvestment plan.  The final date for the receipt of elections for the dividend reinvestment plan is 30 June 2011.
7.	Creditors include borrowings of £25,086,000 (30 April 2010 - £24,087,000 and 31 October 2010 - £24,803,000) drawn down in loans of US$11.3 million, ¥450 million, CHF10.5 million and €8.7 million; (30 April 2010 - US$9.1 million,  ¥820 million, CHF 10.5 million and €7.0 million; 31 October 2010 - US$11.3 million, ¥450 million, CHF 10.5 million and €8.7 million).  The loans are renewable monthly, with interest currently being paid at a rate linked to LIBOR (for the relevant currency). All borrowings are short term and are stated at fair value, which is considered to be equal to their par value.
8.	The Company has authority to buy back its ordinary shares.  In the six months to 30 April 2011 no ordinary shares were bought back therefore the Company's authority remains unchanged at 7,345,747 ordinary shares.
9.	During the period the Company incurred transaction costs on purchases of investments of £37,000 (30 April 2010 - £15,000; 31 October 2010 - £23,000) and transaction costs on sales of £20,000 (30 April 2010 - £18,000; 31 October 2010 - £27,000).
10.	None of the views expressed in this document should be construed as advice to buy or sell a particular investment.

EDINBURGH WORLDWIDE INVESTMENT TRUST plc

NOTES TO THE CONDENSED FINANCIAL STATEMENTS (Ctd)

11.

Principal Risks and Uncertainties The principal risks facing the Company relate to the Company's investment activities. These risks are market risk (comprising currency risk, interest rate risk and other price risk), liquidity risk and credit risk. An explanation of these risks and how they are managed is contained in note 19 of the Company's Annual Report and Financial Statements for the year to 31 October 2010. The principal risks and uncertainties have not changed since the publication of the Annual Report which can be obtained free of charge from Baillie Gifford & Co: www.bailliegifford.com‡ and is available on the Edinburgh Worldwide page of the Managers' website: www.edinburghworldwide.co.uk‡. Other risks facing the Company include the following: gearing risk (the use of borrowing can magnify the impact of falling markets), the risk that the discount can widen, regulatory risk (that the loss of investment trust status or a breach of the UKLA Listing Rules could have adverse financial consequences and cause reputational damage) and operational/financial risk (failure of service providers' accounting systems could lead to inaccurate reporting or financial loss). Further information can be found on page 16 of the Annual Report.

12.

The Half-Yearly Financial Report is available at www.edinburghworldwide.co.uk‡  and will be posted to shareholders on or around 10 June 2011.

‡Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

                                                                        - ends -                                                  

 

END

 

 

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