Edinburgh Investment Trust (EDIN)

Edinburgh Investment Trust (EDIN) is a UK-focussed investment trust managed by Imran Sattar, who applies a style-agnostic, total-return philosophy targeting high-quality, cash-generative companies. Central to his approach is investing in businesses with durable competitive advantages, structural growth potential and robust margins, which can preserve market positions and help withstand periods of volatility.

Since Liontrust’s Global Fundamental team took over EDIN in March 2020, this approach has supported strong Performance, with a 15.7% annualised NAV total return, ahead of the FTSE All-Share Index’s 14.1%. However, over the 12 months to 05/12/2025, whilst the trust delivered a positive NAV total return of 5.7%, it lagged the FTSE All-Share Index’s 18.3%. Relative underperformance was driven by the overweight to mid-cap stocks, which tailed larger peers over the year, as well as underweights in certain banks and no exposure to Rolls-Royce. Conversely, a few bright spots of performance stemmed from Tesco, Whitbread and Dunelm.

Over the year, Imran selectively added new positions where share price weakness created opportunities to acquire high-quality businesses at attractive valuations. Notable additions to the Portfolio include mid-cap franchises Marshalls and Trainline, alongside reinforcements in existing holdings Haleon and London Stock Exchange Group. Imran believes there is an abundance of attractively priced UK opportunities currently, reflected in the portfolio’s 5.5% exposure to overseas businesses, one of the lowest levels in Imran’s career.

The trust’s Dividend remains on a rising trajectory, supported by growing portfolio earnings and cash generation. Earnings per share increased 6.7% over the six months to September 2025, with full-year dividends expected to reach 32.0p, up 11% on the prior year, ahead on inflation and implying a forward yield of around 4%. Beginning from the next financial year, dividends will be paid quarterly providing more evenly spaced distributions and greater visibility.

EDIN’s Discount has narrowed over the year, with a share price total return of 10.1% outpacing the NAV, tightening to 6.7% versus a five-year average of 8.3%, supported by buybacks of 5.1% of the shares in issue so far this financial year.