Edinburgh Worldwide has published results for the year ended 31 October 2014. Over this period the fund’s net asset value fell by 2.7% and its share price fell by 4.9%. By contrast the benchmark (MSCI All Countries World Index (in sterling terms) until 31 January 2014, thereafter, the S&P Citigroup Global Small Cap Index (in sterling terms)) appreciated in value by 1.1%. The performance has been particularly bad since the fund’s portfolio was reorganised earlier this year – over the nine months of the new portfolio the net asset value fell by 3.7% vs. a 4.8% increase in the benchmark.
Although earnings in the year were negligible – about 0.14p, the dividend was maintained at 1.5p.
The shift to focusing the portfolio on smaller companies proved ill-timed as investors grew more risk averse over the year. The statement draws attention to “a seemingly indiscriminate sell-off in technology and biotech stocks”
EWI : Policy change ill timed for Edinburgh Worldwide