Fund Profile

Disclaimer

This is a non-independent marketing communication commissioned by Baillie Gifford. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.

Overview
Identifying companies which are small relative to their potential size...
Overview

Edinburgh Worldwide Investment Trust (EWIT) has a global growth mandate, and is managed by the Global Discovery team at Baillie Gifford.

The trust sits in the AIC Global Smaller Companies sector, with Douglas Brodie at the helm of the portfolio. Douglas looks to identify companies which are small relative to their potential size, rather than small in terms of their capacity for growth.

The managers do not seek to replicate the benchmark index, and the trust has an active share of 99%. As such, EWIT can – and does – experience volatility, although the manager attempts to limit this as much as possible through diversification, currently holding 115 holdings and always having exposure to a minimum of six countries and 15 industries at any one time.

Douglas took charge of EWIT in January 2014, and performance has been strong during his time managing the portfolio. In particular, the last three years have seen the trust drastically outperform with returns of 68.2%, compared to returns of 21.2% and 25.3% from the AIC Global Smaller Companies sector and the benchmark index respectively. In comparison to the (arguably more suitable) peer group the AIC Global sector, the trust’s returns are equally impressive, outperforming by 33.3% over the same period.

Currently EWIT is trading on a discount of 0.5%.

Kepler View

Douglas Brodie and his team at Baillie Gifford have a differentiated approach to looking at global equities. Their focus on immature companies, combined with their long-term investment horizon and willingness to hold on to winners, complements Baillie Gifford’s other global growth Trusts.

EWIT, over the longer term, is the standout trust in the AIC Global Smaller Companies sector. The trust has outperformed every peer over three and five years, in fact offering 20% greater NAV total returns than the second-strongest performer in the sector over three years. This being said, the AIC Global Smaller Companies sector is made up of only six trusts, many of whom could be considered rather idiosyncratic. As such, it is perhaps more relevant to compare performance relative to the global sector, which offers a greater number of perhaps more comparable trusts, albeit investing in much larger companies. In comparison to the global sector, the story remains largely the same and EWIT would sit in the top three (out of 17) of the strongest performing trusts over three and five years (Source: Morningstar).

Given the volatile nature of the high growth potential small cap companies in the portfolio, some might question the attractiveness of the trust’s approach to having structural gearing. However, over the long term we believe that structural gearing – eliminating the risks associated with market timing – is appropriate in the context of a growth trust aiming for the maximum long-term effect. EWIT certainly justifies its place in higher risk portfolios. The shares currently trade close to NAV (discount of 0.5%); should we see the shares slip to a wider discount, it could be an attractive entry point for a long-term investor.

bull bear
Exceptional record over three and five years Not suitable for short-term or more cautious investors who are wary of volatility
Low OCF relative to peers Trading very tight to NAV
Highly differentiated investment approach Gearing will exacerbate portfolio volatility
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2022 Kepler Growth Rated Fund

This trust has been awarded a rating by Kepler Trust Intelligence for growth... Find out more

Fund History

29 Apr 2022 Edinburgh Worldwide Investment Trust: Growth companies shaping our tomorrow
Douglas Brodie, investment manager of the Edinburgh Worldwide Investment Trust, outlines his thoughts on the portfolio’s holdings and why he believes they represent uniquely differentiated and scalable technology-led opportunities over the coming decade and beyond...
04 Feb 2022 Edinburgh Worldwide Investment Trust - Manager Insights
Fund manager Douglas Brodie discusses new stakes in ‘green hydrogen’ equipment maker ITM Power and software development tool provider JFrog, as well as existing holdings including private company investments...
05 Jan 2022 Kepler’s top-rated trusts for 2022
We unveil the winners of our ratings for 2022 in the Growth, Income & Growth and Alternative Income categories…
14 Jul 2021 Grade inflation
We look at how our discounted opportunities portfolio has done in the first half of the year and update on the performance of our long-term rated funds…
10 Mar 2021 Spring Conference '21
Audio and presentations from 21 of the UK’s leading investment trust managers…
05 Mar 2021 Edinburgh Worldwide Investment Trust – Manager Update
Douglas Brodie, investment manager of the Edinburgh Worldwide Investment Trust, reflects on the past year, gives some insight into the current positioning of the portfolio and sheds some light on what could be some exciting opportunities in the future. Capital at Risk.
04 Mar 2021 Slides and Audio: Edinburgh Worldwide Investment Trust
Download the presentation and listen to the audio from our 'Ideas for your ISA' Spring Conference on 03 March...
20 Jan 2021 Kepler's top-rated investment trusts for 2021
We update our annual quantitative ratings for investment trusts…
12 Dec 2019 Regime change: how manager changes impact performance
Does a change in manager result in improved trust performance?
03 Dec 2019 Electric Medicine
The oncology firm Novocure is extending survival rates by attacking brain cancer with electric fields. Svetlana Viteva, deputy manager of Edinburgh Worldwide Investment Trust, talks to Linda Geddes about the implications...
27 Nov 2019 Fund Analysis
Identifying companies which are small relative to their potential size...
22 Nov 2019 Space: the final investment frontier
30 Jan 2019 The Growth Portfolio
Our ten investment trust picks for long-term capital growth...
27 Sep 2017 Winners and losers from tomorrow’s world
Searching for the Tesla of tomorrow…
26 Sep 2017 Fund Analysis
A highly-active global portfolio with a focus on immature ‘problem-solving’ companies...
24 May 2017 Hard knocks
Our long term growth model portfolio suffered a serious setback when the Brexit vote came through, but has lived up to its name since then...
24 May 2017 Fund Analysis
16 Nov 2016 Fund Analysis
A detailed research note on the Edinburgh Worldwide investment trust including share price performance, discount, dividend, premium, asset allocation and gearing analysis...
16 Nov 2016 Fortune favours the brave
Our analysis shows that technology trusts are far less risky than the returns they have generated suggest...
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12 Jun 2015 Fund Analysis
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