In focus
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This trust has been dubbed “Scottish Mortgage’s little brother” as it
is also managed by Baillie Gifford and invests in smaller companies
with the potential to become “winners of the future”
Edinburgh Worldwide
TRUSTNET
Because if you do, we’re probably not
doing our job.”
The trust’s managers attempt to limit
volatility through diversification. For
example, the portfolio currently has
around 115 holdings and will always
have exposure to a minimum of six
countries and 15 industries.
FACT BOX
MANAGER: Douglas Brodie / LAUNCHED: 09/07/1998 / PREMIUM/DISCOUNT: +2% /
OCF: 0.75%
CROWN RATING
PERFORMANCE OF TRUST VS SECTOR
UNDER MANAGER TENURE
Edinburgh Worldwide (139.59%)
IT Global Smaller Companies (34.52%)
160%
140%
120%
100%
80%
60%
40%
20%
0%
-20%
That said, its annualised volatility
of 19.79 per cent is the highest in the
sector, double that of the average
trust, and its maximum drawdown
stands at 27.66 per cent. However,
investors with a lengthy time horizon
may feel this is a price worth paying
for the potential returns on offer.
Edinburgh Worldwide invests
in immature entrepreneurial
companies with a market cap of less
than $5bn. Like all of the trusts run
by Baillie Gifford, it expects to hold
on to companies for the long term,
which results in low turnover.
Brodie specialises in global smaller
companies and is the head of Baillie
Gifford’s global discovery team.
He focuses on the fundamental
characteristics of businesses,
favouring those with strong
management teams, innovative
products and the ability to generate
S
cottish Mortgage is one of
the best-known investment
trusts in the business but
long-term investors seeking the
growth potential of small caps
may also be tempted by one of its
stablemates.
The Edinburgh Worldwide
Investment Trust is part of the
same Baillie Gifford global equity
range as Scottish Mortgage, but it
invests solely in small caps, which
leads to higher levels of volatility
with the potential for greater
returns.
The trust has made 139.59 per cent
since current manager Douglas
Brodie took charge in January 2014,
making it the best-performing
member of the IT Global Smaller
Companies sector over this time. This
return is almost 30 percentage points
ahead of the trust in second place.
sustainable profits to fund future
growth opportunities.
Deputy manager Svetlana Viteva
said this leads her to companies that
fly under the radar of most investors:
“When you go through the holdings
in our portfolio, you hopefully
won’t recognise most of the names.
Source: FE Analytics
trustnet.com