Edinburgh Worldwide has released interim results that cover the six months that ended 30 April 2014. Approximately half way through the period Edinburgh Worldwide changed its remit and moved its portfolio from investing predominantly in large cap. stocks to investing in those with a market capitalisation of £5bn or less (only about 20% f the old portfolio was retained). In retrospect it looks as though the change in remit was unfortunately timed as, towards the end of the period, smaller stocks underperformed larger ones. In addition, it looks as though the type of stocks favoured by Edinburgh Worlwide’s managers in the new portfolio, especially technology and biotech stocks, also underperformed. Edinburgh Worldwide’s net asset value fell by 12.8% over the period and the share price fell by 11.1% while the company’s benchmark (MSCI All World Index for the first part of the period and S&P Citigroup Global Small Cap Index from 1 February) fell by 3.1%.
The dividend for the period was maintained at 0.5p but was not covered by earnings (the fund made a revenue loss for the period). The Directors are keeping the final payment under review.